Minister of Trade and Investment, Mr. Olusegun Aganga, has said the Export Expansion Grant, EEG, is not under threat of being stopped by the Federal Government.
He said the Federal Government was committed to strengthening the processes and procedures involved in the implementation of the EEG to make it more beneficial to exporters, as well as government.
The minister spoke during a-two day facility visit and assessment of industries in Kano. He was accompanied by the National President, Manufacturers Association of Nigeria, MAN, Chief Kola Jamodu; National President, Nigerian Association of Small Scale Industrialists, Chief Chuku Wachuku; heads of parastatals under the Ministry of Trade and Investment; top officials of the Kano State government and key stakeholders in the manufacturing sector.
The Export Expansion Grant is an initiative of the Federal Government, aimed at encouraging exporters of non-oil products, including agro-commodities as part of efforts to cushion the effects of infrastructural deficiencies, reduce overall unit cost of production and increase the competitiveness of Nigerian products in the international market.
The grant usually ranges from 10 per cent to 30 per cent of the Freight On Board value of the products being exported and confirmation that the export proceeds have been repatriated.
Aganga noted that the Ministry of Trade and Investment was putting structures in place to ensure that the EEG was insulated from being abused in the future.
He said, "The EEG is not under any threat. The Federal Government has no intention of terminating the EEG. Instead, what we are trying to do is to strengthen the processes and procedures involved in the implementation of the EEG to ensure that it becomes most beneficial to both the exporters and the government".
We are putting structures in place to make sure that the EEG is not abused in the future."
The Minister disclosed that as part of its Industrial Revolution Plan, the Ministry of Trade and Investment would partner the Kano State Government on boosting capacity utilisation of industries in Kano State, especially in the textile, leather, agri-business and food processing sectors where the state had comparative and competitive advantage.
He said, "Statistics have shown that the second largest non-oil export in Nigeria is leather, and Kano is the home of leather. So, Kano has contributed, and has continued to contribute significantly to the economy of our country.
Beyond leather, Kano is known for textile and garment manufacturing, rice and tomatoes processing.
"The state is also known for trade and commerce.
These are the areas we want to partner Kano State Government so that we can create the jobs, generate wealth and transform our economy."
He added, "We will work with the Kano State Government to make sure that we create an industrial and business-friendly environment so that the industries in the state can thrive. Kano used to be a major player in groundnut production and processing, which the state has in abundance.
"As regards the textile industry, there was a time that this sector was the second largest employer of labour outside the government. We want to bring back those good old days, working with the state government." Speaking at the Town Hall meeting held during the minister's two-day visit, the Kano State Governor, Dr. Rabiu Kwankwaso, expressed the readiness of the state government to partner the Trade and Investment Ministry in order to create the needed conducive environment for industries to thrive.
He said, "We want to thank the Minister of Trade and Investment for coming to Kano State to visit the industries and discuss with the stakeholders in the manufacturing sector on how to move the sector forward. I have confidence in him and we are ready to work with him to attract more investments into our state, develop our industries, create jobs and generate wealth for our people."
Vanguard Nigeria