EEG FACES IMPLEMENTATION CHALLENGES - MARTINS-KUYE
By Favour Nnabugwu
The implementation of Export Expansion Grant (EEG) in Nigeria is bedevilled by dishonesty and scheming behaviour of some export manufacturers in the country.
Senator Jubril Martins_Kuye, Minister of Commerce and Industry, made this known at the presentation of the report of the Inter_Ministerial Committee on the comprehensive review of the Export Expansion Grant (EEG), Monday, in Abuja.
According to him, 'simple and sensible as the EEG policy may seem, it has faced implementation challenges, ranging from the corruptive and manipulative activities of a few export manufacturers to alleged institutional hindrances on the part of FGN implementation agencies.'
He however, noted that the country's Non_Oil export increased by 111 percent in 2010 to N2.3 billion from 2000. He added that the bulk of the Nigeria's non_oil exports consist of agro_allied products such as cocoa, leather, rubber, cotton_textiles, shrimps, sesame seeds and gum Arabic which have been growing consistently at a double digit rate.
Martins_Kuye explained that the main objective of the EEG was to compensate export manufacturers for manufacturing cost increases traceable to hashed environment thereby enhancing their products' competitiveness in the export markets.
He said that the policy had to some extent succeeded as the country's non_oil exports have been growing consistently at a double_digit rate in the last five years. He reiterated that the Ministry has substantially discharged the responsibility assigned to it by the directive of the Federal Executive Council of Wednesday, June 23, 2010 to bring to the FEC a report on the reform of the EEG with a sharp focus on the specific imported items/products and payments to which the policy's redemption instrument, Redeemable Duty Credit (RDCC) as may apply.
The minister however stated that there is the urgent need for the report to be laid before the Federal Executive Council by way of a memorandum. In his words 'it is my hope and prayer that I am able to do this in the few days that I have to serve in the present administration.