Federal Government has confirmed 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.

The development followed sustained calls by manufacturers and exporters, particularly the Manufacturers Association of Nigeria Export Group (MANEG), for the government to settle the outstanding EEG claims.

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, adding that 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 amounted to approximately N330.08 billion.

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 was working on a new funding structure for the export incentive programme.

The Minister, Federal Ministry of Industry, Trade and Investment, Dr Jumoke Oduwole, said the President had 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 the government also planned 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.

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.