The Federal Government has begun fresh efforts to clear about N330bn in outstanding claims under the Export Expansion Grant scheme while restructuring the programme to make it financially sustainable.
The Minister of Industry, Trade and Investment, Jumoke Oduwole, and the Nigerian Export Promotion Council are leading the process in collaboration with other government agencies and representatives of the exporting community.
Oduwole disclosed the development on Thursday at a stakeholder engagement on the Export Expansion Grant held in Abuja, where government officials and industry representatives discussed the outstanding payments and the future of the scheme.
The EEG is a Federal Government incentive designed to support Nigerian exporters and improve the competitiveness of locally produced goods in international markets. The scheme is administered through the NEPC and provides eligible exporters with non-cash incentives, including Export Credit Certificates that can be used for approved government obligations.
According to Oduwole, the government is pursuing two major tracks: clearing legitimate outstanding obligations and developing a reformed framework that can provide sustainable support to exporters.
She said the backlog had accumulated over several years, with some payments outstanding since 2020. The claims require validation and verification involving the Ministry of Industry, Trade and Investment, Ministry of Finance, the Central Bank of Nigeria and other relevant institutions.
The minister said payments approved in May 2023 would be transmitted to the 10th National Assembly for consideration and approval before the government can issue the necessary financial instruments.
Once the legislative process is completed, promissory notes could be issued through the Debt Management Office to settle the verified obligations.
The NEPC Chief Executive Officer, Nonye Ayeni, said the council recognised the outstanding liabilities but stressed that payments must follow proper verification and approval procedures.
She said the government needed to restore confidence in the export incentive framework at a time when Nigeria was placing greater emphasis on non-oil exports, economic diversification and increased foreign exchange earnings.
The figures presented by the NEPC put the outstanding obligations at approximately N330.08bn.
According to Ayeni, the Federal Executive Council approved a Promissory Note Programme in May 2023 covering about N269.45bn in verified EEG claims involving 195 beneficiary companies. Outstanding stepped-down claims involving 32 companies from the 2017–2020 period were estimated at about N60.64bn.
The combined amount accounts for the approximately N330bn backlog the government is now seeking to address.
Government Plans New Funding Structure
As part of the proposed reforms, the government is also working on a new funding architecture for export incentives.
Oduwole said President Bola Tinubu had approved the earmarking of 40 per cent of the Nigerian Export Supervision Scheme collections towards a professionally managed Trade Facilitation Fund.
The proposed fund is expected to provide a more sustainable source of financing for trade facilitation and export incentives while creating a clearer relationship between available resources and verified export performance.
The minister also described the existing EEG structure as financially unsustainable because of its cost and the absence of a defined closing framework.
Under the proposed reforms, greater emphasis would be placed on value-added and finished products rather than the export of raw materials. The government also plans to support emerging businesses and sectors that require assistance to improve their competitiveness in international markets.
Ayeni said Nigeria had recorded growth in the volume and value of non-oil exports, as well as an increase in the number of products and international destinations reached.
She urged exporters to focus increasingly on value addition, saying stronger export performance could contribute to industrialisation, employment creation and poverty reduction.
The government is working with the NEPC, Manufacturers Association of Nigeria Export Group and other stakeholders to develop recommendations for the restructured scheme.
The latest initiative is expected to address both the immediate issue of unpaid verified claims and the longer-term question of how Nigeria can maintain an export incentive programme without accumulating another large payment backlog.
For exporters with outstanding claims, however, payment remains subject to the completion of verification, approval and the legislative processes required before the government can issue the relevant promissory notes.
The government says the broader objective is to create a more credible and sustainable export incentive framework capable of supporting Nigeria’s non-oil export ambitions and expanding the country’s participation in global markets.
