Share this:

Like this:

Like Loading...
" />
Published On: Sun, Apr 6th, 2014

Manufacturers want EEG suspension lifted

Share This
Tags

Olusegun-AgangaFrom Abdullah Akilani, Lagos

Manufacturers Association of Nigeria, Export Promotion Group (MANEG) has called on the government to call off the ongoing suspension of the Export Expansion Grant (EEG) saying the uncertainty of the scheme is affecting the performance of non-oil exports in the country.

Speaking at the Nigerian Export Promotion Council (NEPC)- MAN Export Promotion Group (MANEG) interactive forum for its quarterly meeting held at MAN house in Ikeja during the weekend, the Chairman of MANEG, Tunde Oyelola made it known that the current problem facing the scheme

is as a result of the incessant interruptions with the EEG administration.

“This uncertainty in the scheme is really affecting the performance of non-oil exports in the country. With the ongoing non acceptance of the NDCC, manufacturing exporters are incurring cost for duties

payment that NDCC is meant to cover for their raw materials and to a large extent, this is impacting on non-oil exports negatively”. Oyelola said.

While urging the government to stop the ongoing suspension and allow the use of NDCC currently in the hand of exporters for payment of duties, Oyelola made it known that EEG is implemented in various countries to have their respective export subsidies designed to promote and grow the country exports but not to discourage the inflow direct investment and exporters.

“After the introduction of EEG scheme, Nigerian non-oil export grew from $600Million to $2Billion between 2006 and 2012, and the 2013 export value was about $3.6 billion, these proof the current EEG is effective and achieving the result it was originally set up to achieve. It is also an indication that if the current scheme is maintained, the growth in the near future would be extremely high, with concomitant benefit for the welfare of the citizenry.

“The potential of the EEG contribution to export growth is very huge and government must exercise caution with the ongoing suspension of the scheme and the proposed review or else, the outcomes of the policy reversal may ultimately become disincentive for current and potential exporters as well as discourage those already in the scheme”. Oyelola said.

On his part, NEPC CEO, Mr. Olusegun Awolowo made it known that his group and other agencies of government associated with the promotion of non-oil export in the country has recorded a slight increase in the performance of non-oil export in 2013 with a total export value of $2,970,107,354 as against the $2,561,243,645 recorded in 2012.

Leave a comment

XHTML: You can use these html tags: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>

%d bloggers like this: