The Federal Government says it has commenced moves to clear the N330.08 billion in outstanding claims under the Export Expansion Grant (EEG) scheme, while restructuring the programme to establish a more sustainable framework for supporting Nigerian exporters.

This development follows sustained calls by manufacturers and exporters, particularly the Manufacturers Association of Nigeria Export Group (MANEG), for the government to settle the outstanding EEG claims, which they say have remained a burden on businesses and undermined the effectiveness of the export incentive scheme.

The Executive Director, Nigerian Export Promotion Council (NEPC), Nonye Ayeni, disclosed this during a stakeholder engagement on the EEG scheme at the council’s headquarters in Abuja.

Ayeni said the meeting was convened to address the outstanding liabilities, examine challenges affecting the scheme and develop recommendations for its restructuring. She said the government recognised the outstanding claims but stressed that payment would be subject to the required verification and approval processes.

According to her, the outstanding obligations include previously approved claims under the Promissory Note mechanism, verified claims covering the 2017–2020 and 2021–2022 periods, as well as stepped-down claims that remain subject to verification and approval.

She said the Federal Executive Council approved a Promissory Note Programme worth about N269.45 billion in May 2023 for verified EEG claims involving 195 beneficiary companies. There were also outstanding stepped-down claims of about N60.64 billion for 32 companies covering the 2017–2020 period. Together, the two figures amount to approximately N330.08 billion.

The government said its objective is to settle legitimate outstanding obligations while ensuring that claims paid from public funds have undergone the necessary verification, validation and approval procedures.

Manufacturers, particularly members of MANEG, have in recent years continued to call for the clearing of the outstanding EEG claims, arguing that the delayed payments have affected exporters’ operations and the incentive’s ability to support competitiveness and the expansion of non-oil exports.

Beyond settling the backlog, she said the Federal Government is working on a new funding structure for the export incentive programme.

Minister, Federal Ministry of Industry, Trade and Investment, Dr. Jumoke Oduwole, said the President has approved the establishment of a professionally managed Trade Facilitation Fund, with 40 per cent of monthly Nigerian Export Supervision Scheme collections to be ring-fenced for strategic trade facilitation and export incentive interventions.

The proposed arrangement is intended to create a clearer connection between available funding, verified export performance and government commitments to exporters. She said government also plans to strengthen the use of technology in administering the EEG, including improved data, verification processes and greater visibility into the status of exporters’ claims.

The EEG is a post-shipment incentive designed to improve the competitiveness of Nigerian products and increase the volume and value of non-oil exports. Eligible exporters receive Export Credit Certificates, which can be applied towards certain Federal Government tax obligations and other approved liabilities. The existing eligibility framework considers factors including local value addition, local content, employment and export growth.

The government said the proposed restructuring would address weaknesses that contributed to the accumulation of outstanding claims while creating a more predictable system for exporters. The reformed framework is expected to place greater emphasis on genuine export performance, domestic value addition and diversification of Nigeria’s non-oil export base.

The Ministry of Industry, Trade and Investment is working with the NEPC, 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.

Ayeni said the stakeholder engagement would enable the government examine exporters’ experiences with the scheme and develop practical recommendations for its restructuring. She also said Nigeria had recorded growth in the volume and value of non-oil exports, the number of products exported and the number of destinations reached

The government’s latest move comes as it seeks to strengthen non-oil exports and establish a funding framework for export incentives that can be sustained over time.