Continuous and consistent implementation of the Export Expansion Grant (EEG) has been identified as crucial to the diversification agenda of the Federal Government of Nigeria (FGN). Despite its importance, however, the programme has experienced various implementation challenges and, at least, three suspensions since inception. The aim of this study is to provide evidence-based information on EEG implementation to guide relevant stakeholders to reform and reposition the scheme for greater effectiveness. The study aims to specifically analyse the impact of the grant on the beneficiaries prior to suspension in 2013 and the post-suspension implementation from 2017. It also investigates the challenges faced by beneficiaries in their attempts to access the grant. The study applied both primary through survey and secondary data through desk review to address the set objectives of the study. The survey was conducted through three methods: (i) administration of questionnaires, (ii) Key informant interviews (KII), and (iii) focused group discussions (FGD).
ANALYSIS AND IMPACT OF THE EXPORT EXPANSION GRANT ON EXPORT POTENTIAL, MARKET ACCESS AND EXPORT COMPETITIVENESS IN NIGERIA
Resource type: Report
Sector: Trade and investment
Year: 2020
File type: PDF
Number of pages: 55
File size: 2.3MB
Associated resources
This dialogue explores the alternative ways to provide market access to the southeast business hubs from Aba through Onitsha. COVID19 has caused businesses to reimagine their trade value-chain working actively to diversify roles. This dialogue explores ways that new technologies can help bridge the gap between buyers, sellers, and manufacturers.
A roundtable event on the potentials of exporting the services sector in Nigeria. At the Roundtable, it was noted that among business owners and exporters, there is little understanding of what services export entails. Many businesses engage in service exports but are not aware of this. Understanding the four modes of services – Cross border trade, Consumption abroad, Commercial presence, and Presence of natural persons – is important for business growth. To achieve this, stakeholders including the NEPC will need to conduct capacity building and sensitisation workshops for exporters, working with relevant business associations.
Export Expansion Grant (EEG) was established under the Export Incentives and Miscellaneous Decrees of 1986 and amended into an Act in 1992 to accomplish the diversification agenda of the Federal Government of Nigeria (FGN). Other export support funds created under the same Act are the Export Development Fund (EDF) and Export Adjustment Scheme Fund (EASF). The funds have been repositioned in the Economic Recovery and Growth Plan (ERGP) of 2017-2020. The EEG is a post-shipment incentive scheme aimed to achieve three key objectives: (i) to enable exporters to expand their businesses more conveniently, (ii) make Nigeria’s non-oil export more competitive, and (iii) facilitate greater and faster foreign market penetration.
PDF II (now PDF Bridge)’s Trade Policy Workstream funded a study on “Analysis and Impact of the Export Expansion Grant on Export Potential, Market Access and Export Competitiveness in Nigeria”. This policy roundtable discussed the findings and recommendations from this study.
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PDF II held a two-day capacity building training themed: “Capacity Building for Banks and DFIs”. This is designed to explore access to finance challenges, awareness campaigns, and opportunities that non-oil exporters face with banks in accessing finance. The capacity building covered topics such as Export Industry Regulations and Documentations, payment methods and trade finance instruments, Handling export finance options, managing export risks, understanding the franchising potential etc.