May 18, 2018Non-oil Exports
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:
An exporter-company shall submit its baseline data which includes audited Financial Statement, information on operational capacity and Export Expansion Plan (EEP) to NEPC.