Get Even More Visitors To Your Blog, Upgrade To A Business Listing >>

Non-oil exporters groan over delay in N350 billion EEG payments

Non-oil exporters groan over delay in N350 billion EEG payments – Non–oil exporters are full of great expectations that the National Assembly will soon give its legislative nod for the issuance of the Federal government’s N350billion promissory notes to them in continuation of the Export Expansion Grant (EEG). However, it appears that after the executive arm has done its bit, the legislature wants to sit on the policy, a situation which analysts and economic watchers say would lead to de-industrialisation, massive loss of jobs as well as lull in non-oil exports.

It was reliably gathered that the Presidency (Federal Executive Council) had sent three issues for the formal approval of the National Assembly earlier in the year. The three executive resolutions border on EEG claims, payment of construction contractors and pensions. Whereas NASS has since rectified the latter two items, there has been no legislative action yet on the EEG claims, making tongues to wag about the government’s seriousness concerning its economic diversification programme and export promotion drive.

Indeed, one of the main policy initiatives of the Buhari administration is the re-focusing of the nation’s economy from oil-based to non-oil sectors. Towards this determination, the federal government promised to beam searchlight on the export sector; how to expand and promote the sector for much needed foreign exchange, industrial growth as well as job and employment creation. Before now, the previous administration commenced the issuance of EEG to genuine exporters. However, the grants were suspended in 2007 due to duplicitous claims and counter-claims by stakeholders over who and who should indeed benefit from the package. The development, according to insiders, led to the accumulated sum of N350billion owed to exporters between 2007 and 2016.

The Federal Executive Council in one of its meeting made the EEG promissory notes approval for onward implementation. We learnt that the EEG claims by non-oil exporters have been processed and prepared by the federal government implementation committee which members are drawn from the Federal Ministry of Finance, Federal Ministry of Industry, Trade and Investment, Central Bank of Nigeria, Nigeria Customs Service, Federal Ministry of Budget and Planning, Federal Inland Revenue Service as well as Nigeria Export Promotion Council. Again, the N350billion approximate EEG claims now under the promissory notes programme were audited by the officials of Presidential Initiative on Continuous Audit (PICA) between March and July 2018.

Due to the delay in the approval of EEG claims by the NASS, non-oil exporters have been facing acute financial distress and therefore under intense pressure from banks, financiers and other creditors. Therefore, the stakeholders are appealing to the federal lawmakers to expedite action on the executive request for the payment of the N350billion EEG promissory notes.

To a local manufacturer, Akin Durotoye, non-oil exporters need every encouragement and support from the federal government. Although the EEG policy suffered poor implementation during the Jonathan administration, it was initiated to boost and grow non-oil exports. The EEG policy represented the federal government’s intervention to encourage non-oil exporters and uplift the nation’s economy through massive job creation as well as increased foreign reserves. Observers maintain that highly performing economies across the world are export-driven, where finished products are pushed outside the shores as a matter of deliberate policy.

Analysts say the non-oil sector has great potential. For instance, agriculture has the capacity of sustaining the economy and ensuring inclusive growth. Although, the federal government is trying to promote the sector, more incentives and political will are required for improved productivity and encourage agro-exports.

One commodity which Nigeria has the potential to produce and export is rice. The government’s food security agenda would only succeed through effective collaborations with stakeholders and operators involved in the production, demand, supply and consumption value chain of a commodity like rice.

Rice growers in Nigeria are trying to mechanise and modernise their production processes in line with international best practices. Nigeria, some experts believe, can produce 10 million tons of rice annually to drive self-sufficiency, food security and rice exportation.

“We need to make great efforts to grow our rice capacity in order to displace imports and smuggling from rice suppliers especially coming from some South-East Asian nations such as India, Thailand, Bangladesh, Vietnam, Cambodia and so on.

“Regrettably, they force Nigerians to buy their rice when the Nigerian government abandons well-laid plans and policies, investments and import substitution strategies such as the EEG, and NDCCs. Nigerians are out of jobs, enriching smugglers, pauperising our local farmers through policy delays. The government should implement policies that are good for economic growth and development. Exports grants and other intervention funds should be put in place. Continuity remains the hallmark of good governance and purposeful leadership. Politics should lead to development and not under-development,” a stakeholder averred.

Actually, the EEG claims of the non-oil exporters are quite in tandem with the directive by the Federal Ministry of Finance as approved by FEC and consistent with the audited financial results of the participating companies as filed with the Corporate Affairs Commission.

Again, the claims were duly vetted by CBN, Customs, FIRS, Federal Ministries of Finance, Industry, Trade & Investment and Budget & Planning. Our checks showed that these MDAs which constituted the EEG Implementation Committee convened several meetings to check and clear every EEG claim which are in turn properly vetted by PICA (Presidential Initiative on Continuous Audit).

Sources close to the exporters disclosed that they are anxiously waiting for the appropriate Senate Committee to consider and accede to the FEC’s request on the payment of EEG promissory notes without further delay, adding that this would bring vibe and vitality towards growing the nation’s export sector.

  • Tackling Corruption In Nigeria Through Whistle Blowing
  • These are states against N30,000 minimum wage
  • How PDP govt frustrated restructuring — Osinbajo
  • Fed govt To Support UNILORIN To Build World Class Sport Centre

The post Non-oil exporters groan over delay in N350 billion EEG payments appeared first on Financial Watch.

This post first appeared on FINANCIAL WATCH, please read the originial post: here

Share the post

Non-oil exporters groan over delay in N350 billion EEG payments


Subscribe to Financial Watch

Get updates delivered right to your inbox!

Thank you for your subscription