The Export Expansion Grant (‘EEG’ or ‘the Scheme’) is one of the export incentives introduced by the Federal Government through the Export (Incentives and Miscellaneous Provisions) Act, No. 18 of 1986 as amended by the Export (Incentives and Miscellaneous Provisions) Act, No. 65 of 1992, Cap. E19, Laws of the Federation of Nigeria (LFN).
It was introduced via the Export (Incentives and Miscellaneous Provisions) Act (amended in 1992) to stimulate non-oil exports and administered by the Nigerian Export Promotion Council (NEPC).
The scheme was suspended in 2014 to ensure a review and redesign in order to prevent abuse and ensure that the scheme is fit for purpose. Prior to the suspension of the scheme, the incentive was granted in form of a negotiable duty credit certificate (NDCC) utilizable by exporters for payment of import and excise duties.
The NDCC has now been replaced with the Export Credit Certificate (ECC)
The revised guidelines were released and effective from 1 January 2017. To facilitate implementation, a budgetary provision of N20 billion was made in the 2017 budget for settlement of the grant.
Highlights of the Revised Guidelines
Exporters are divided into 4 categories with maximum applicable EEG rates as indicated below:
- Fully manufactured products: 15%
- Semi-manufactured products: 10%
- Processed/intermediate products: 7.5%
- Merchants/primary agricultural commodities: 5%
- Proceeds of qualifying export transactions must be fully repatriated within 300 days calculated from export date and as approved by the EEG implementation committee.
- Exporters are required to present an Export Expansion Plan as a prerequisite for participating in the EEG scheme.
- An intending beneficiary must be registered with the Corporate Affairs Commission.
- An eligible exporter must be registered with the NEPC
- An eligible exporter shall be a manufacturer producer or merchant of products of Nigerian origin for the export market (i.e. the products must be made in Nigeria).
- An eligible exporter must have carried out formal export with its export proceeds repatriated into a domiciliary account in Nigeria and confirmed by the Central Bank of Nigeria.
An exporter-company shall submit its baseline data which includes audited Financial Statement, information on operational capacity and Export Expansion Plan (EEP) to NEPC.