Guidelines for redesigned export expansion grant scheme

By Eleanor Warren,2014-08-11 07:08
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Guidelines for redesigned export expansion grant scheme




    The export Expansion Grant scheme is a very vital incentive required for the stimulation of export oriented activities that will lead to significant growth of the non-oil export sector.

    The Federal Government is committed in its efforts to bring about tremendous growth in non-oil exports and is resolved to enhance efficiency, transparency and accountability in the administration of the key incentive for non-oil export development. The “Export Expansion Grant EEG

    is therefore, a policy tool to further this objective.

    The use of incentives supports the NEEDS objective of mainstreaming businesses that are currently operating in the informal sector. It is also in line with the NEEDS requirements that companies desiring to receive benefits from the government will have to comply with the laws of the country.

    The government in reviewing the scheme set out the following guidelines:



    1. Incentives Rate:

    The Scheme would operate the Weighted Eligibility Criteria” in assessing applications for EEG. The baseline data as supplied by individual applicant company would be used in its assessment. Thus the method of assessment is “company specific.” A company’s EEG assessment would be conducted once yearly and the determined rate will apply throughout the year.

    The Weighted Eligibility Criteria has three bands: 30%, 15% and 10%. The following template will be used in assessing the incentive rate of every EEG applicant Determination of Export Performance Eligibilibity Criteria



    Local Value 20% 20%


    Local Content 35% 20%

    Employment 500 20%


    Priority Sector Manufacturing 10%


    Export growth 10% 25%

    Capital 10% 5%


     Total Weight = 100%


    A new entrant into the EEG Scheme shall provide prior period financial statement or where applicable an investment plan for its assessment. However, to encourage export of value added and processed/manufactured products, exporters shall be divided into three categories:-

    EEG Rate applicable to the 3 categories of exporters

    Scoring Key Manufacturing Non-Merchant

    (Processed to Manufacturing Exporter and

    finished products) (Processed to semi-Exporters of

    finished) Primary Products


    commodities and

    Solid minerals

    Scores Band EEG Rate % EEG Rate % EEG Rate %

    > 70 30 15 10

    > 50 25 10 7.5

    > 25 20 5 5

    >5% 15 0 0

    < 5% 0 0 0

    Exporters whose activities/products fall into more than one category shall have their EEG rate for each different category determined by the application of their eligibility criteria score to the appropriate activity/product score table for EEG rates. The rates then determined are applied to appropriate NXPs.


Please note that:

    (i) each different activity/ product type is to

    be exported using different NXPs.

    (ii) for the transition period for exports made under MEIBS,

    stall exports with Bill of lading dated 1 July 2005 shall be

    eligible for EEG as per the rates applicable under the above guideline

2. Eligibility:

    (i) An exporter must be registered with the Nigerian Export Promotion Council


    (ii) An eligible exporter shall be a manufacturer producer or merchant of products

    of Nigerian origin for the export market (i.e. the products must be made in


    (iii) An exporter must have a minimum annual export turnover of N5 million and

    evidence of repatriation of proceeds of exports.

    (iv) An exporter-company shall submit its baseline data which includes audited

    Financial Statement and information on operational capacity to NEPC. 3. Validity for EEG Application.

    Qualifying export transaction must have the proceeds fully repatriated within 180 days, calculated from the date of export and as approved by the EEG Implementation Committee


4. Documentation:

    All applications for Export Expansion Grant EEG to NEPC must be completed in duplicate with the following documents attached.

1 Import documents (if the raw materials are imported)

    (i) CRI

    (ii) Bill of Lading

    (iii) SGD

    (iv) ASYCUDA Print Out

    (v) Final Commercial Invoice

    (vi) Receipt of Payment of import duty and other charges.

2 Export Documents

    (i) NEPC non-oil Export Certificate

    (ii) Clean Certificate of Inspection (CCI) to include quality certification;

    (iii) Forms NXP duly certified by processing bank; Nigeria Customs

    Service and the Pre-shipment Inspection Agents;

    (iv) Single Goods Declaration (SGD) Forms, duly endorsed by Nigerian

    Customs Service, both at front and back;

    (v) Final Commercial Invoice;

    (vi) Bill of Lading;

    (vii) Evidence of full repatriation of export proceed (CBN confirmation of

    repatriation of proceeds by exporter);


    (viii) Certificate of Manufacturer;

    (ix) Any other documentation as may be required by NEPC from time to


5. Negotiable Duty Credit Certificate (NDCC):

    The NDCC shall be used for the payment of import & excise duties only.

6. Company Visits

    Company visits shall be incorporated into a programme for validation of information

    submitted by the exporters and impact assessment of the scheme. The programme

    will include a first visit to validate financial as well as operational information at least

    once a year and as may be required. Impact assessment of the scheme on the

    Nigerian economy shall be carried out annually by external consultants, as may be

    determined by the Hon. Minister of Finance.

7. Implementation Committee:

    i. The Implementation Committee will consist of:

    (1) Nigerian Export Promotion Council (NEPC)

    (2) Federal Ministry of Finance (FMF)

    (3) Nigeria Customs Service (NCS)

    (4) Central Bank of Nigeria (CBN)

    (5) Federal Ministry of Commerce

    (6) Federal Ministry of Industry


    (7) Special Adviser to the President

    (Manufacturing and Private Sector).

    The implementation Committee shall meet monthly to consider processed applications and make recommendations to the Hon. Minister of Finance for approval, and subsequent issuance of NDCC by NEPC.

8. Inter-Ministerial Committee

    There shall be an inter-ministerial Committee to review the activities of the EEG

    Scheme. The Committee shall meet twice a year. Membership includes all members

    of the Implementation Committee and representatives of the Ministry of Agriculture,

    Trade Malpractices Committee and Economic and Financial Crime Commission


    9. Administration of EEG:

    The EEG Scheme shall be domiciled in NEPC and administered in conjunction with

    the Implementation Committee. The list of applicants to whom NDCC have been

    issued shall be forwarded to the Federal Ministries of Finance and Commerce


    10. Outstanding Claims

    All outstanding claims in respect of transactions between the suspension of the

    scheme and its subsequent lifting will be processed under the old EEG Scheme Rate

    st December, 2004) (i.e. exports made with Bill of lading dated on or before 31


11. `Violation of Guidelines:

    Any violation of these guidelines by any claimants shall be handled by the Presidential Committee on Trade Malpractices and Economic and Financial Crimes Commission in conjunction with members of the Implementation Committee.


    1. EXPORT CERTIFICATE is required on each consignment for all

    categories of export whether or not an exporter is eligible for the Export

    Expansion Grant. The certificate is obtainable from NEPC offices

    throughout the Federation. FREE OF CHARGE (upon the submission of

    the pre-shipment documents.

    2. DOUBLE DIPPING into government industrial incentives will not be

    allowed. (i.e. beneficiaries of EEG are prohibited from enjoying other

    industrial incentives e.g. Manufacturers Export In-bond Scheme).


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