Exporters Decry Inconsistent Payment Of Expansion Grant

• Exporters Decry Inconsistent Payment Of Expansion Grant

The Organised Private Sector Exporters Association through its Executive Secretary (OPEXA), Jaiyeola Olarewaju disclosed that there has not been consistency in the payment of Export Expansion Grant (EEG).

The Export Expansion Grant (EEG) was re-introduced by the Federal Government in 2017 to ensure exporters’ competitiveness in the international market.

The agency on Monday said that from the N13.28 billion allocated in 2018 to the Export Expansion Grant, only N4bn was paid in June 2019, while the remaining N9.28 billion was withheld.

“Also, to the utter surprise of the sector, the budget for 2019 was reduced to N5.12bn.

“This is totally arbitrary, for in spite of exports growing through the years, the EEG provision is being reduced,” Olarenwaju said.

However, due to the inconsistency in payments of the EEG since its reintroduction, OPEXA demanded N60 billion and N70 billion from 2020 budgetary.

Olarewaju said, “We reiterate our concern at the meagre budgetary allocations and lack of proper implementation by the implementing agencies such as Ministries of Industry, Trade and Investment, Finance, Budget and National Planning and the Nigerian Export Promotion Council.

According to him, Nigerian exporters are suffering from cost disadvantages due to infrastructural constraints, which had resulted in a high cost of doing business.

“Therefore, incentives are required to cushion such disadvantages and make our exports more competitive.

“Since the reintroduction, exporters embraced the new policy in good faith by investing in export processing factories and made commitments to foreign buyers, which improved statistics of non-oil export,” he concluded.