Manufacturers seek return of export expansion grant

The Manufacturers Association of Nigeria (MAN) has urged the Federal Government to reintroduce the Export Expansion Grant (EEG) earlier introduced to reduce the country’s dependence on oil for income and foreign exchange.

MAN President, Mr. Frank Jacobs disclosed that beneficiaries of the grant held an instrument called the Negotiable Duty Credit Certificate (NDCC), which they used to pay import and excise duties, adding that its suspension in 2014 had caused a drastic reduction in the volume of exportable manufactured goods.

In an interview with the News Agency of Nigeria (NAN), Jacobs said that Nigeria exporters’ inability to meet delivery targets has eroded the confidence of overseas importers of Nigerian products which was built over the years.

Noting that the EEG was equally useful for the diversification of the nation’s revenue base, Jacobs lamented that the exchange rate situation has become very difficult for business transactions.

Following the policy, Nigeria’s non-oil exports volume rose from $700 million in 2005 to $2.9 billion in 2013 just as it “led to an increase in value chain expansion in terms of processing manufacturing capabilities, which resulted in significant new investments and job creation in the manufacturing sector.”

Jacobs lamented: “We have made it clear to the government to re-introduce EGG and pay the outstanding NDCC to save many companies that are folding up....some have folded up already.

“The Vice President (Prof.Yemi Osinbajo)has promised us that something will come up soon but we do not know how soon it will be. If nothing is done fast, many companies are still going to fold up.”