The Organised Private Sector Exporters Association (OPEXA) has raised the alarm over apathy displayed by government’s policy implementing agencies to non-oil exports, saying it is suffering from neglect.
Mr Jaiyeola Olarewaju, the Executive Secretary of OPEXA, made this known in a statement on Sunday in Abuja.
He said that the apathy was eroding the confidence of investors and foreign buyers of the country’s export products.
Olarewaju said that the sector had agro-allied linkages which supports the livelihood of over 11 million Nigerians directly and indirectly.
He said that this was vital for diversification of Nigeria’s economy and revenue base.
According to him, the government needs to engender confidence in its policies and diversification of the economy as a policy imperative.
He said that the government should be commended for reviving the moribund Export Expansion Grant (EEG) scheme.
“In 2017, the scheme was revamped to improve its effectiveness and ensure sustainability.
“After a lengthy re-validation exercise, the Senate and House of Representatives in December 2018 approved the conversion of this ‘debt’ into promissory notes,’’ he said.
He said that under the new EEG scheme effective from 2017, exporters would be entitled to an export grant of between five per cent to 15 per cent of the repatriated value in the form of Export Tax Credit Certificates (ETCC’s).
He added that this could be used for settlement of direct and indirect taxes as well as other liabilities due to the Federal Government.
He said that the government did a good job by allocating a budget provision for EEG from 2017, adding that this would create transparency and predictability.
Olarewaju however said that three years after the policy announcement and three budget cycles, the EEG policy was still confined to the files of implementing ministries – finance and industry, trade and investment “with not a Kobo utilised”.
“The EEG budget for 2017 was N16 billion and there is an apprehension that this may have been forfeited due to non-utilisation. likewise, the allocation for 2018 was N13 billion awaiting utilisation.
“To our utter surprise, the budget in 2019 was reduced to N5.12 billion. This is totally arbitrary and reason for exports not growing, and the EEG provision is being reduced.
According to him, the government agencies and CBN have real time data on which a realistic projection can be made.
” NEPC estimates going by prevailing exports, an annual budget provision of not less than N50 billion to N60 billion will suffice to meet policy commitments, ” he said.
He said that the reform of the EEG policy was commendable, adding that what was needed was the actual implementation.
OPEXA boss called on the government to show sincerity and commitment to generate confidence in its policies.===NAN
