NEPC and the Quest for a More Reliable Export Incentive System, by Kabir Abdulsalam

NEPC and the Quest for a More Reliable Export Incentive System

By Kabir Abdulsalam

For several years, numerous Nigerian exporters have actually waited patiently for federal government rewards created to reinforce their competitiveness in global markets. While services satisfied export orders, bought production and broadened into brand-new markets, postponed reward payments and policy unpredictability slowly deteriorated self-confidence in the system.

The Federal Government’s restored effort to deal with the 330 billion Export Expansion Grant (EEG) stockpile for that reason is worthy of cautious attention. Beyond settling exceptional commitments, it provides a chance to bring back self-confidence in among Nigeria’s essential export assistance systems and lay the structure for a more trustworthy reward structure.

At a current stakeholder engagement in Abuja, the Executive Director and Chief Executive Officer of the Nigerian Export Promotion Council (NEPC), Mrs. Nonye Ayeni, divulged that the Federal Government was dealing with the Manufacturers Association of Nigeria Export Group (MANEG) and other stakeholders to clear impressive EEG claims while establishing a sustainable financing design for the plan.

According to NEPC, about 269.45 billion represents validated EEG claims including 195 recipient business under the Promissory Note Programme authorized by the Federal Executive Council in May 2023. An extra 60.64 billion associates with stepped-down claims including 32 business covering the 2017– 2020 duration, bringing the overall exceptional responsibility to around 330.08 billion.

For the afflicted business, nevertheless, the problem extends beyond the quantity owed. It has to do with the expense of unpredictability.

An exporter who has actually purchased basic materials, processed items, satisfied agreements and paid shipping expenses can not deal with an accepted federal government reward as a far-off guarantee. Hold-ups impact capital, limitation growth, lower competitiveness, constrain work and prevent more financial investment.

Solving the stockpile is for that reason required, however avoiding another build-up is much more essential.

The Export Expansion Grant was developed to enhance the competitiveness of Nigerian exporters by motivating non-oil exports through Export Credit Certificates, which recipients can utilize to balance out defined federal tax commitments.

Its goal is uncomplicated: make Nigerian services more competitive in global markets.

The present reform surpasses clearing exceptional liabilities. It likewise looks for to deal with weak points in the program’s financing architecture– an advancement that might show a lot more substantial than the settlement itself.

Paying old claims without repairing the structural reasons for the stockpile would just hold off another crisis.

Nigeria requires an export reward system developed on transparent eligibility requirements, effective confirmation procedures, foreseeable payment timelines and sustainable financing.

Such reforms have actually ended up being progressively crucial as the nation’s non-oil export sector continues to broaden.

In 2025, Nigeria taped $6.1 billion in non-oil exports, representing an 11.5 percent boost over the $5.46 billion attained in 2024. Export volumes went beyond 8 million metric tonnes, with 281 items reaching 120 nations.

Cocoa beans created around $1.99 billion, while urea contributed $1.29 billion. Cashew nuts, sesame seeds and numerous other farming products likewise tape-recorded considerable export incomes.

These figures show that worldwide need for Nigerian items currently exists.

The difficulty is developing an operating environment that allows exporters to react competitively.

Makers and exporters still compete with high production expenses, undependable electrical energy, costly logistics, minimal access to budget friendly financing, accreditation obstacles, regulative traffic jams and unpredictable worldwide markets.

Export rewards can not get rid of all these restraints, they must at least supply a trustworthy policy environment that services can with confidence integrate into their preparation.

Among the most motivating elements of the suggested restructuring is the facility of an expertly handled Trade Facilitation Fund.

According to Mrs. Ayeni, President Bola Ahmed Tinubu has actually authorized the ring-fencing of 40 percent of regular monthly collections from the Nigerian Export Supervision Scheme to fund tactical trade assistance efforts and export reward programs.

This proposition has significant capacity.

Its success will depend completely on governance.

The Fund ought to run under plainly specified guidelines governing collections, allotments, dispensations, openness and public responsibility. Exporters need to comprehend how resources are handled, while federal government organizations need to routinely release quantifiable reports showing the Fund’s effect.

The EEG stockpile provides an essential lesson.

Federal government rewards develop worth just when organizations can fairly anticipate when and how they will be provided.

An exporter thinking about financial investment in a processing center or growth into brand-new markets should make long-lasting monetary choices. Uncertain reward payments increase service danger and weaken the really competitiveness the program looks for to promote.

The participation of MANEG in the reform procedure is similarly substantial due to the fact that export competitiveness starts with production.

Services do not experience federal government through different ministries, departments or firms. They experience one service environment.

When electrical power expenses stay high, logistics ineffective, accreditation procedures sluggish, customizeds treatments troublesome and funding costly, even generous export rewards have a hard time to balance out those drawbacks.

The restructuring of the EEG need to for that reason form part of more comprehensive reforms targeted at enhancing trade assistance, commercial performance and regulative coordination.

In this regard, efforts such as the Federal Government’s National Single Window are especially pertinent. Exporters need systems that lower duplication, reduce processing time and streamline compliance throughout numerous federal government firms.

Nigeria should continue moving from exporting raw products to exporting higher-value items.

Cocoa, cashew, sesame, leather and many other products present massive chances for regional processing, product packaging, branding and production before export. Every extra phase of worth addition produces tasks, enhances domestic markets and increases forex revenues.

A reformed reward plan ought to for that reason reward quantifiable results such as worth addition, regional material advancement, work generation, export diversity and increased global competitiveness– not simply greater export volumes.

Beyond promoting Nigerian items abroad, NEPC is progressively showing its significance as a collaborating organization efficient in combining exporters, makers, regulators and policymakers to resolve structural barriers facing the non-oil export sector.

Effectively solving the EEG stockpile will need continual cooperation amongst the Federal Ministry of Industry, Trade and Investment, NEPC, the Federal Ministry of Finance, the Debt Management Office, the Office of the Accountant-General of the Federation, the Central Bank of Nigeria, the National Assembly and other appropriate organizations.

Coordination needs to accomplish more than conferences and communiqués.

It needs to produce faster confirmation, transparent processing, foreseeable payment schedules and digital systems through which exporters can keep track of the status of their applications from submission to settlement.

Eventually, the success of the existing reform ought to not be determined entirely by just how much of the 330 billion stockpile is ultimately cleared. It ought to likewise be evaluated by whether future claims are processed effectively, payment timelines appreciated and self-confidence brought back.

Nigeria has actually currently shown the massive capacity of its non-oil export economy.

The record $6.1 billion attained in 2025 verifies that Nigerian items can contend effectively in worldwide markets.

Sustaining that momentum, nevertheless, needs more than motivating export data. It requires reputable policies, trusted organizations, sustainable financing systems and constant engagement with the economic sector.

Cleaning acquired commitments is an essential primary step.

Developing a durable export economy needs making sure that future dedications are transparent, effectively moneyed and regularly honoured.

Just then can Nigerian exporters with confidence prepare production, protected worldwide purchasers, get accreditations, satisfy agreements and trust that federal government assistance will show up when assured.

That is the distinction in between revealing an export reward and constructing a really competitive export economy.

Kabir Abdulsalam composes from Suleja, Niger State. He can be reached by means of [email protected]