Some real sector stakeholders have advocated a total overhaul of the Export Expansion Grant(EEG) that would leverage the contributions of non-oil exports to the economy by 31 per cent.
They told newsmen in Lagos
Mr Tunde Oyelola, Chairman of the Manufacturers Association of Nigeria Export Group (MANEG), said that the delay in the suspension of the EEG had affected some exporters negatively.
Oyelola said that the grant had led to a rise in non-oil exports from $700 million (N137.87 billion) in 2005 to $2.9 billion (N571.16 billion) in 2013.
Some real sector stakeholders have advocated a total overhaul of the Export Expansion Grant(EEG) that would leverage the contributions of non-oil exports to the economy by 31 per cent.
They told newsmen in Lagos
Mr Tunde Oyelola, Chairman of the Manufacturers Association of Nigeria Export Group (MANEG), said that the delay in the suspension of the EEG had affected some exporters negatively.
Oyelola said that the grant had led to a rise in non-oil exports from $700 million (N137.87 billion) in 2005 to $2.9 billion (N571.16 billion) in 2013.
He said also that the suspension of the scheme had led to a heavy backlog of unutilized claims and the rejection of the Negotiable Duty Credit Certificates (NDCC) by some exporters.
“With effective implementation of the EEG and the Nigerian Customs Service (NCS) acceptance of the NDCCs, the non-oil exports have the potential to significantly increase its current contribution to the GDP by at least 31 per cent annually.
“We hope that there will be a refreshing of the major industrial policies and proper implementation,” he said.
Also speaking, Mr Segun Awolowo, the Director-General of the Nigerian Export Promotion Council (NEPC), appealed to the Federal Government to implement the new incentive scheme for small-scale exporters.
“There is a need for small and medium-scale enterprises to be given a chance to penetrate the export market as they are increasing in number.
“We made several efforts to begin the implementation of the Export Development Fund,(EDF) under the last administration, and hope that the current administration will bring it to fruition.
“According to our last data, Nigeria earned $2.4 billion (about N600 billion) from the export of cocoa, leather, hides and other commodities in 2014.
“However, we still spend huge revenue on imported products, just like the CBN recently announced that a whooping N1.18 trillion was spent to import rice, milk and others.
“It is sad that we have the capacity to produce these things, therefore, the importance of increased government intervention for non-oil exports cannot be overemphasized at this time,” Awolowo said.
Mr Emmanuel Cobham, Director-General, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture, (NACCIMA), said that there were a lot of challenges facing the industrial sector.
Cobham said that policies on agriculture, manufacturing and exports were pivotal to the growth of the economy, adding that operators and local manufacturers were already lamenting the harsh conditions.
He urged the new administration to involve the organised private sector in the formulation and implementation of policies regarding small, medium and large-scale enterprises.
“It is a shame that we spend so much to import products that we can manufacture ourselves, because our local industries are dying.
“This is why we have been doing a lot of advocacy for our local industries to be protected even in the face of the recent removal of some items from the Import Prohibition List.
“As our borders are being opened under the ECOWAS trade regime, what will become of our local industries which needed revival even before now?
“We appeal for a true implementation of protectionist policies and incentives to improve the contribution of the real sector to the economy,” Cobham said.
NAN recalls that Mr Olusegun Aganga, former Minister of Trade and Investment, had earlier put the contribution of non-oil exports to Nigeria’s Gross Domestic Product (GDP) at nine per cent.
The Federal Government then had promised to implement policies like the National Industrial Revolution Plan (NIRP) to increase the contribution of non-oil exports to 20 per cent by 2015.
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