EEG: FEC approves payment of N375 billion to 285 exporters

The Federal Executive Council (FEC) has approved the disbursement of N375 billion for Export Expansion (EEG) to 285 beneficiaries.

With approval, it will pass to the National Assembly at any time for legislative approval.

The Executive Director/CEO of the Nigerian Export Promotion Council (NEPC), Dr. Ezra Yakusak, confirmed this weekend in Abuja, adding that the sum would effectively clear the EEG arrears from 2006 to date.

The EEG is a government trade policy unit administered by the NEPC. It aims to help active exporters develop their international business. The EEG is a post-shipment incentive designed to encourage Nigerian exporters to increase the volume and value of exports and improve the global competitiveness of Nigerian products.

The New Telegraph reported last month on the federal government’s regulatory plan to eliminate the EEG backlog. While the reported process to clear the backlog was ongoing, the NEPC, as the implementing body of the policy, had proposed the initiative which focuses on egg exporting beneficiaries on value added export items.

Speaking to reporters this weekend in Abuja at the NEPC Export 4 Survival March, Yakusak hinted that approval had just been secured.

“To boost non-oil exports, the Federal Executive Council has just approved the sum of N375 billion as an export expansion grant to all exporters who have applied for the EEG. And that means the backlog from 2006 to date has been cleared and exporters will expect it anytime soon. At present, it is going to be presented to the National Assembly for approval. About 285 exporters are beneficiaries of this EEG,” he noted.

On initiatives undertaken to boost non-oil exports, he said last month’s non-oil export conference came up with a number of initiatives.

“The initiatives come as the challenges arise. Since the outcome of the last conference, we have decided to recruit new exporters who have no idea what it means to export, we will match them with all exporters to train them on non-oil exports from the basics, procedures to ensure that they export.

“Challenges facing non-oil export development that have to do with supply-side constraints; question of packaging, question of logistics and access to the market. And so from this conference, we intend to implement every point of the communiqué that was made at this conference.

“There are so many strategies to overcome the challenges. One of the challenges is the logistical constraint regarding our exports in terms of bottlenecks in the ports, especially the ports of Lagos. So we started the domestic warehouse initiative which is to reduce logistical constraints and ensure that our goods do not sit for months before being shipped, as almost all export contracts have a shelf life and once you don’t have time for that export, the contract will be canceled and that bad news for exporters that affects our economy as a whole,” the NEPC boss said.

Assessing the impact of exporting for the survival march, he said quarterly body walkouts are paying off.

“We are meeting our target for the NEPC March on Export for Survival as it has led to an increase in the registration of non-oil exporters. There has been an influx of people coming to register and we know it is thanks to this initiative.

The EEG is a government trade policy unit administered by the NEPC. A Nigerian exporter can get between 5 and 15% of the annual value of their exports, depending on the product category of the exporters. Successful exporters are paid through the instrument known as an Export Credit Certificate (ECC), which can be used to settle all federal government taxes such as corporate income tax, VAT, WHT, etc. by the Bank of Industry, the NEXIM Bank, the Bank of Agriculture and the intervention structures of the CBN.

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