The Nigerian Export Promotion Council (NEPC) has resumed processing baseline data for the reintroduced Export Expansion Grant (EEG) scheme. This follows the earlier announcement by the Federal Government (FG) that the scheme would be reintroduced in the 2017 fiscal year.
EEG scheme was introduced by the FG in 1999 to stimulate export-oriented activities in the non-oil sector. The introduction of the scheme was driven by the need to diversify the economy thereby reducing dependence on oil for foreign exchange earnings. Beneficiaries of EEG are given a Negotiable Duty Credit Certificate (NDCC) which may be used to pay import and excise duties. The quantum of grants to an exporter is dependent on a set of company-specific information, known as baseline data.
In a notice recently issued by NEPC, non-oil exporters are requested to submit baseline data covering the periods 2013 to 2016 calendar years. The objective of this data gathering exercise is to enable NEPC calculate applicable EEG rates for 2014 to 2017 calendar years. The timeframe given for submission of the baseline data is 29 March 2017 to 27 April 2017.
Whilst the reintroduction of EEG scheme is expected to promote the export of non-oil products (a key goal of the present administration), it will be interesting to see how NEPC intends to manage the challenges and excesses which led to the initial suspension of EEG scheme.
A copy of the public notice can be accessed HERE.
We recommend that non-oil exporters submit their baseline data before the communicated deadlines. Importantly, intending applicants must adhere strictly to the guidelines and accurately complete the forms to avoid rejection of the application.