FG To Clear N330bn Verified EEG Claims, Restructure Export Grant Scheme

The federal government has commenced moves to clear about N330.08 billion in verified legacy claims under the Export Expansion Grant (EEG) Scheme and restructure the programme into a more transparent, predictable and performance-driven export incentive framework.

Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, disclosed this on Thursday at a stakeholder engagement on the EEG Scheme held in Abuja.

Oduwole said the government’s approach was aimed at resolving verified legacy obligations while establishing a sustainable funding structure for the export incentive scheme.

“Mr. President’s direction is clear: resolve verified legacy obligations, establish a sustainable funding architecture, and build a more transparent, predictable and performance-driven Scheme,” she said.

The minister said the EEG remained an important instrument for enhancing the competitiveness of Nigerian products in international markets, encouraging value addition, expanding the non-oil export base and supporting export-oriented businesses.

She acknowledged that delays in settling outstanding claims had affected exporters’ liquidity, investment decisions, business planning and capacity to sustain export operations.

“Addressing these obligations is therefore about more than settling historical claims; it is about restoring confidence in Nigeria’s export incentive framework,” she said.

Giving a breakdown of the outstanding obligations, Oduwole said the Federal Executive Council in May 2023 approved a Promissory Note Programme covering about N269.45 billion in verified EEG claims for 195 beneficiary companies.

She added that outstanding stepped-down claims for 32 companies covering the 2017–2020 EEG period stood at about N60.64 billion, bringing the total legacy obligations to approximately N330.08 billion.

The minister said the government was committed to progressing the settlement of duly verified, validated and approved claims through the applicable processes.

According to her, the obligations include claims approved for settlement through the Promissory Note mechanism, verified claims covering the 2017–2020 and 2021–2022 periods, as well as relevant stepped-down claims subject to verification and approval.

“The objective is to bring legitimate outstanding obligations to closure while ensuring that every claim settled from public resources has satisfactorily passed the required verification, validation and approval processes,” she said.

Oduwole said the Federal Ministry of Industry, Trade and Investment was coordinating with the Nigerian Export Promotion Council, Federal Ministry of Finance, Debt Management Office, Office of the Accountant-General of the Federation, Central Bank of Nigeria, National Assembly and other relevant institutions to reconcile and progress the outstanding obligations.

Beyond clearing the backlog, she said the federal government was restructuring the EEG to address structural issues that contributed to the accumulation of outstanding claims.

She disclosed that President Bola Tinubu had approved the establishment of a professionally managed Trade Facilitation Fund, with 40 per cent of monthly Nigerian Export Supervision Scheme collections ring-fenced for strategic trade facilitation and export incentive interventions.

“This creates a clearer relationship between available resources, verified export performance and Government’s commitments,” Oduwole said.

She added that the reformed EEG would be designed to reward genuine export performance, encourage greater domestic value addition and diversification, and support businesses contributing to non-oil export growth.

“Technology will also be central to the reform: we need stronger data, more efficient verification and greater visibility across the claims process, so exporters can understand the rules, track the status of their claims and know what action is required next,” she said.

In her welcome address, the Executive Director/Chief Executive Officer of the Nigerian Export Promotion Council, Mrs Nonye Ayeni, said Nigeria had recorded its highest-ever non-oil export performance in terms of volume, value and the number of distinct products exported, despite challenges surrounding the EEG Scheme.

Ayeni said the stakeholder engagement was convened to address outstanding issues surrounding the scheme, examine the experiences of exporters and identify practical measures for its restructuring.

She said the engagement followed the directive of the minister for NEPC to coordinate the process in collaboration with the Manufacturers Association of Nigeria Export Group and ensure the participation of EEG beneficiaries.

“At a time when the Federal Government is placing renewed emphasis on export growth, diversification of the economy and increased foreign exchange earnings, it is imperative that our export incentive framework remains credible, transparent, sustainable and responsive to the needs of exporters,” she said.

Ayeni commended Nigerian exporters for their resilience and contribution to the growth of non-oil exports, saying the country had recorded unprecedented performance in the volume and value of exports, the number of products exported and the destinations reached.

She also noted increased value addition across several sectors, including among small and medium-sized enterprises, describing the development as consistent with the government’s industrialisation drive.