Encouraging Nigerian Exports

Post-shipment incentives for non-oil exports are offered by the Nigerian government as a means to encourage the growth of non-oil Nigerian exports. The Export Expansion Grant(EEG) and the ECOWAS Trade Liberalisation Scheme(ETLS) are the incentives most popular among Nigerian exporters.

Export Expansion Grant – EEG

The EEG scheme was introduced to Nigerians in 1986.  It was created as a means of increasing Nigeria’s non-oil exports. This scheme has seen the value of exports from Nigeria rise from $750 million to $2.9 billion between the years 2005 to 2013.

billion $ (U.S. dollars) export value in 8 years

Some EEG Benefits

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The EEG scheme aids the competition for Nigerian exports in global markets.
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The effect of EEG on the economy includes a boost in foreign exchange earnings and an increase in the value of foreign reserves.
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A rise in the volume of exports promotes job creation within Nigeria

How It Works

Grants from the EEG are provided in the form of credit. This credit is known as the Negotiable Export Credit Certificate(NECC). The certificate can be used to settle all Federal Government taxes such as company income tax, VAT, WHT, and more.

The NECC certificate is valid for two years and transferable once to a final beneficiary.

Negotiable Export Credit Certificate

The NECC credit can be used for the following:

  • Company Income Tax
  • Value Added Tax
  • Withholding Tax
  • Federal Government Bond purchase
  • Settlement of credit facilities provided by the Bank of Industry, NEXIM bank and CBN intervention facilities
  • Settlement of AMCON liabilities

Who Is The EEG For?

The EEG is for exporters with goods that fall into the following categories:

  • Fully manufactured goods (ready for consumption)
  • Manufactured products that serve as input for further processing
  • Processed/Intermediate products
  • Primary agricultural commodities including solid minerals

How can MANEG help?

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We organise training sessions to help our members understand how to take advantage of the EEG
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We play a research-based advocacy role with the Government on the sustainability of the EEG scheme and settlement of claims for non-oil exporters
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We get involved with the Government to set a minimum acceptable EEG rate and score band for our members.

ECOWAS Trade Liberalisation Scheme – ETLS

The Economic Community of West African States(ECOWAS) created the ETLS in a bid to strengthen trade among its member states. The ETLS was created in 1976 at the summit of Heads Of States in Lome – Togo.

Nigeria signed the ETLS protocol on the 29th of May 1979 and ratified this protocol on the 12th of September 1979.

The ETLS was originally created for agricultural products, handicrafts, and crude products, however, in the year 1990, the scheme was opened up to include industrial products.

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Tarrif and duties within ECOWAS states

Some ETLS Benefits

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The ETLS promotes cooperation and integration within West African nations which leads to an economic union that can raise standards of living in the region
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Trade liberalisation by abolishing Customs duties, and other non-tariff barriers
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A rise in the volume of exports promotes job creation within Nigeria

Who Is The ETLS For?

The ETLS is available for all manufacturers intending to export their products to any of the 15 ECOWAS nations.

How can MANEG help?

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MANEG provides ETLS application assistance to our members and non-members.