By Julius Peter, Abuja
The Federal Government has commenced fresh efforts to resolve about N330 billion in outstanding claims under the Export Expansion Grant (EEG) scheme, the Nigerian Export Promotion Council (NEPC) has disclosed.
The move is aimed at addressing long-standing obligations owed to eligible exporters under the incentive programme and strengthening confidence in Nigeria’s non-oil export sector.
The NEPC said the government’s renewed intervention was part of broader efforts to support exporters, improve the competitiveness of Nigerian products in international markets and create an enabling environment for export-led economic growth.
The Export Expansion Grant is one of the Federal Government’s incentives designed to compensate eligible exporters for some of the disadvantages associated with operating in Nigeria and to encourage businesses to expand their presence in international markets.
The outstanding claims have accumulated over time, creating concerns among exporters over delayed payments and the impact on their businesses.
The latest move by the government is therefore expected to provide relief to affected exporters while reinforcing the role of incentives in promoting non-oil exports.
The development comes as the Federal Government continues to pursue economic diversification through increased production and export of agricultural, manufactured and other non-oil products.
Nigeria has historically depended heavily on crude oil exports for foreign exchange earnings, making the expansion of the non-oil export sector a key component of efforts to broaden the country’s revenue base and strengthen external reserves.
Under the EEG framework, qualified exporters are entitled to incentives based on their export performance and other applicable requirements. The scheme is intended to enable Nigerian exporters to compete more effectively with businesses from other countries where producers may enjoy lower production and logistics costs or stronger government support.
Industry stakeholders have, however, repeatedly raised concerns about delays in the settlement of legitimate claims, arguing that prolonged payment backlogs could weaken the effectiveness of the incentive programme.
The N330 billion outstanding claims consequently represent a significant financial obligation and a major issue for businesses that have already incurred production, processing, logistics and other costs in delivering goods to international markets.
The government’s fresh effort to clear the backlog is expected to improve liquidity for affected companies and potentially enable them to reinvest in production, expand their export operations and employ more workers.
The intervention could also contribute to efforts to increase Nigeria’s share of regional and global trade, particularly under the African Continental Free Trade Area (AfCFTA), which provides opportunities for Nigerian businesses to access a wider African market.
For exporters, timely settlement of verified claims is considered important to maintaining confidence in government-backed export incentives. It could also encourage more companies to formalise their operations and participate in the export market.
The NEPC has continued to promote the development of Nigeria’s non-oil export sector through exporter support, trade promotion, capacity building, market access initiatives and programmes designed to improve the quality and competitiveness of Nigerian products.
The council’s disclosure on the N330 billion backlog signals renewed attention to the financial commitments associated with export promotion at a time when the government is seeking to increase non-oil foreign exchange earnings.
The resolution of the claims would also require proper verification to ensure that only legitimate and qualified obligations are settled, particularly given the substantial amount involved.
Stakeholders will therefore be watching the implementation of the government’s latest initiative, including the mechanism and timeline for verification and payment of the outstanding claims.
The development is expected to remain a major issue in discussions between the government and the organised private sector as Nigeria seeks to make exports a stronger driver of economic growth.
With the government focusing on diversification, increased local production and improved foreign exchange earnings, the settlement of verified EEG obligations could form part of wider measures to strengthen the country’s export ecosystem and position Nigerian businesses to compete more effectively in international markets.
