Reported by Ariajegbe Sylvia Esezobor
The Federal Government has commenced a coordinated process to settle approximately N330.08 billion in outstanding claims under the Export Expansion Grant scheme, in a move aimed at restoring confidence in Nigeria’s export incentive framework and strengthening the non-oil export sector after years of delayed payments that have strained the liquidity and planning capacity of exporters across the country.
The initiative was disclosed on Thursday at a stakeholder engagement on the EEG scheme held at the headquarters of the Nigerian Export Promotion Council in Abuja. The Minister of Industry, Trade and Investment, Dr Jumoke Oduwole, outlined the government’s two-track approach: clearing verified legacy obligations and restructuring the scheme into a transparent, predictable and performance-driven framework. “Mr President’s direction is clear: resolve verified legacy obligations, establish a sustainable funding architecture, and build a more transparent, predictable and performance-driven scheme,” Oduwole said.
The breakdown of the outstanding obligations is precise. In May 2023, the Federal Executive Council approved a Promissory Note Programme covering approximately N269.45 billion in verified EEG claims for 195 beneficiary companies. In addition, outstanding stepped-down claims for 32 companies covering the 2017–2020 EEG period stood at approximately N60.64 billion. Together, the two figures amount to approximately N330.08 billion. The obligations include claims approved for settlement through the Promissory Note mechanism, verified claims covering the 2017–2020 and 2021–2022 periods, and relevant stepped-down claims subject to verification and approval.
Oduwole acknowledged that delays in settling legitimate claims had affected exporters’ liquidity, investment decisions, business planning and capacity to sustain export operations. “Addressing these obligations is therefore about more than settling historical claims; it is about restoring confidence in Nigeria’s export incentive framework,” she said. She emphasised that the government’s objective is to bring legitimate outstanding obligations to closure while ensuring that every claim settled from public resources has satisfactorily passed the required verification, validation and approval processes.
The Federal Ministry of Industry, Trade and Investment is coordinating the process with the NEPC, the Federal Ministry of Finance, the Debt Management Office, the Office of the Accountant-General of the Federation, the Central Bank of Nigeria, the National Assembly and other relevant institutions. The NEPC Executive Director and Chief Executive Officer, Nonye Ayeni, said the engagement was convened to address outstanding liabilities, examine the challenges affecting the scheme and develop practical recommendations for its restructuring. She said the government recognised the outstanding claims but stressed that payments must follow verification and approval procedures.
Central to the reform is a new funding architecture. President Bola Tinubu has approved the establishment of a professionally managed Trade Facilitation Fund, with 40 per cent of monthly Nigerian Export Supervision Scheme collections ring-fenced to support strategic trade facilitation and export incentive interventions. “This creates a clearer relationship between available resources, verified export performance and government’s commitments,” Oduwole said. She said the government would transmit the payments already approved in May 2023 to the National Assembly for consideration and approval, after which promissory notes would be issued through the Debt Management Office to clear the backlog.
The government has also announced the formation of an EEG Restructuring Working Group, comprising the Ministry of Industry, Trade and Investment, the Ministry of Finance, the CBN, the OAGF, the DMO, the NEPC and the Manufacturers Association of Nigeria Export Group, among others. The working group is expected to submit a proposed structure for the reformed scheme within 60 days.
The restructuring is designed to address the structural weaknesses that contributed to the accumulation of claims. Oduwole said the current EEG structure is unsustainable because it is too expensive and has no closing date. The reformed scheme will discourage the export of raw materials and place greater emphasis on value-added and finished products, while supporting emerging businesses and target sectors requiring assistance to improve their export competitiveness. Technology will also play a central role in the reformed framework, with stronger data, more efficient verification and greater visibility across the claims process so that exporters can track the status of their applications.
The EEG is a post-shipment incentive established under the Export (Incentives and Miscellaneous Provisions) Act. It is designed to improve the competitiveness of Nigerian products in international markets and expand the volume and value of non-oil exports. Eligible exporters receive Export Credit Certificates, which can be applied towards certain Federal Government tax obligations and other approved liabilities. The eligibility framework considers factors including local value addition, local content, employment and export growth.
The delays in settling claims have been a persistent source of frustration for exporters. The Manufacturers Association of Nigeria Export Group has repeatedly called on the government to clear the outstanding EEG claims, arguing that the delayed payments have burdened businesses and undermined the effectiveness of the scheme as a tool for promoting non-oil exports. The government’s renewed focus on the scheme comes as Nigeria records growth in the volume and value of non-oil exports, with Ayeni noting that the country has recorded its highest-ever non-oil export performance in terms of volume, value and the number of distinct products exported. She attributed the development to the resilience of Nigerian exporters and said value addition had increased across several sectors, including among small and medium enterprises.
For the exporters who have waited years for payments, the government’s announcement represents a long-overdue acknowledgement of their grievances. The coming months will determine whether the promised settlement materialises and whether the restructured scheme delivers the predictability and sustainability that the old framework lacked. The government has said it remains committed to the process, and the working group has 60 days to produce a proposed structure for the reformed scheme. For now, the direction is clear, even if the timeline remains subject to the legislative and administrative processes that will determine when the cheques are finally written.
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