Abuja: The Federal Government has begun processes to clear the backlog of Export Expansion Grant (EEG) payments and reform the scheme for sustainability. The Minister of Industry, Trade and Investment, Dr. Jumoke Oduwole, disclosed this at a stakeholders engagement on the EEG scheme in Abuja on Thursday.
According to News Agency of Nigeria, Oduwole noted that the scheme had faced difficulties, with payments outstanding since 2020, leaving the current administration with significant payment backlogs. She explained that resolving the backlog required validation and verification of claims submitted by exporters, involving several government agencies such as the Federal Ministry of Finance and the Central Bank of Nigeria (CBN).
Oduwole stated that the Federal Ministry of Industry, Trade and Investment anchored the EEG as an export promotion tool under the Nigerian Export Promotion Council (NEPC). She highlighted the government’s dual approach of clearing outstanding payments and restructuring the scheme to ens
ure its sustainability.
The minister emphasized that the reforms aligned with President Bola Tinubu’s Renewed Hope Agenda, which aims to build a one trillion dollar economy by prioritizing economic diversification and non-oil exports. Oduwole noted that Nigerian non-oil exporters had recorded growth in both volume and value over the past two years, and the government would continue to incentivize exporters sustainably due to the sector’s potential to create jobs and expand the global market for Nigerian products.
Additionally, Oduwole mentioned efforts to improve market access through trade agreements like the African Continental Free Trade Area (AfCFTA). She stated that payments already approved in May 2023 would be transmitted to the 10th National Assembly for consideration and approval, with the National Assembly performing its legislative duties before the Federal Government can issue the necessary instruments for payment.
President Tinubu has also approved earmarking 40 per cent of the NEST Fund towar
d a trade facilitation fund. This independently managed fund will provide a sustainable pathway for settling EEG obligations and supporting trade facilitation. Once the National Assembly approves the payments, the government can issue promissory notes through the Debt Management Office to clear the backlog and establish a reformed framework for export expansion incentives.
Oduwole acknowledged that the current EEG structure is unsustainable due to its high costs and lack of a closing date. The reformed scheme will discourage the export of raw materials and place greater emphasis on value-added and finished products. It will also support emerging businesses and target sectors requiring assistance to improve their export competitiveness. The government has engaged stakeholders, including the NEPC and the Manufacturers Association of Nigeria Export Group, to develop a sustainable way forward for the scheme.