The Minister of Budget and National Planning, Senator Udoma Udoma, at the weekend said that government had revived the Export Expansion Grant (EEG) and Export Development Fund (EDF) schemes with N13.28 billion in the 2018 budget to facilitate export of Made-in-Nigeria goods to the international markets.
Udoma was quoted in a statement issued by his Media Adviser, Akpandem James, on Sunday that the re-opening of the EEG funding window to export-oriented manufacturers was part of Federal Government’s diversification of the country’s economy agenda.
The minister, while delivering the keynote address at the 42nd Annual Conference Dinner of the Institute of Chartered Secretaries and Administrators of Nigeria, said that steps were being taken towards broadening the scope of Nigerian produced goods and services’ exports to boost the nation’s earnings.
He said: “Government is also reactivating the Export Expansion Grant Scheme and the Export Development Fund Scheme, with the sum of N13.28bn provided in the 2018 budget. We have, therefore, prioritised improvements in the business climate to make Nigeria an attractive place for business to be conducted.”
“We will be able to manufacture many of our basic requirements. We will be able to grow our non-oil exports to overtake our oil exports in value”, the minister added.
Udoma explained further that the overall objective of government’s economic agenda was to make the country self sufficient in food and become net exporter of locally manufactured goods, including agro commodities.
The EEG was introduced by the government to encourage exporters of non-oil products, including agro-commodities, in order to mitigate the negative effects of infrastructure deficiencies and reduce the overall unit cost of production of local manufacturers.
The scheme was introduced through the Export Incentives and Miscellaneous Provisions Act, Cap 118 of 1986 to enhance the contributions of non-oil export to the nation’s GDP.
The mechanism is such that a financial credit is applied to the value of exports of products ranging from five percent to 30 percent.
Like other schemes of its type, the EEG financial credit is not cash funded but provided as Negotiable Duty Credit Certificate, which can be applied against import duties on other items.
Following alleged abuses of the EEG by exporters, the scheme was suspended by the government a few years ago.