Stakeholders in the industry mines and agriculture sectors of the economy have expressed happiness over Federal Government’s decision to revive the Export Expansion Grant, EEG.
The EEG scheme is a vital incentive required for the stimulation of export-oriented activities that will lead to significant growth of the non-oil export sector.
President Muhammadu Buhari had announced the restructuring of the EEG, as part of the government’s 10 point fiscal road map for the growth of the economy in the 2017 budget.
Commending the government on the decision, the National President, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, Bassey Edem, said they look forward to the date the plan would take off.
“As the voice of Nigerian business, we are especially pleased to hear that the President has instructed the revival of the EEG. We look forward to further pronouncements on the effective date of this revival,” he said.
The Federal Government had introduced the EEG in 1999 to encourage non-oil exports and cushion the effect of cost disadvantages faced by Nigerian exporters due to infrastructural deficiencies.
The grant was planned to be disbursed to qualified exporters in the form of the Negotiable Duty Credit Certificate and utilised by beneficiaries for the payment of customs and excise duty on their export shipments.
The scheme was however suspended in January 2014 following claims of false declarations and fraud by practitioners. At the time of its suspension, exporters said they had unpaid claims of over N119bn.
The CEO of the Nigerian Export Promotion Council, Segun Awolowo, had disclosed that the EEG which had increased the non-oil export revenue of the country from $600m to $3bn was being reviewed by the Federal Executive Council to lower its threshold.