Nigeria Announces Export GRANTS. How To Apply. Step By Step. The Complete Guide

by Samuel Abasi Last updated on April 13th, 2017,

Nigeria Announces Export GRANTS. How To Apply. Step By Step. The Complete Guide. In a press release today March 28th signed on behalf of the Executive Director/CEO by George Enyiekpon Director (Export Dev. & Incentives) the Nigerian Export Promotion Council is receiving applications for would be exporters who wish to take advantage of Nigeria’s newly implemented Export Expansion Grant (EEG) scheme. These are for non-oil exports and commences Wednesday, March 29, 2017.

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:

GUIDELINES FOR EXPORT EXPANSION GRANT SCHEME (EEG)

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

ELIGIBILITY CRITERIA COMPANY DATA THRESHOLD WEIGHT COMPANY SCORE
Local Value added 20% 20%
Local Content 35% 20%
Employment (Nigerians) 500 20%
Priority Sector Manufacturing only 10%
Export growth 10% 25%
Capital Investment 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(Processed to finished products) Non-Manufacturing(Processed to semi-finished) Merchant Exporter and Exporters of Primary Products
(including 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:

    • Each activity/ product type is to be exported using different NXPs.
  • For the transition period for exports made under MEIBS, all exports with Bill of lading dated 1st July 2005 shall be eligible for EEG as per the rates applicable under the above guideline

2. Eligibility

  1. An exporter must be registered with the Nigerian Export Promotion Council (NEPC)
  2. 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 Nigeria).
  3. An exporter must have a minimum annual export turnover of N5 million and evidence of repatriation of proceeds of exports.
  4. 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. CRI
  2. Bill of Lading
  3. SGD
  4. ASYCUDA Print Out
  5. Final Commercial Invoice
  6. Receipt of Payment of import duty and other charges.
  1. NEPC non-oil  Export Certificate
  2. Clean Certificate of Inspection (CCI) to include quality certification;
  3. Forms NXP duly certified by processing bank; Nigeria Customs Service and the Pre-shipment Inspection Agents;
  4. Single Goods Declaration (SGD) Forms, duly endorsed by Nigerian Customs Service, both at front and back;
  5. Final Commercial Invoice;
  6. Bill of Lading;
  7. Evidence of full repatriation of export proceed (CBN confirmation of repatriation of proceeds by exporter);
  8. Certificate of Manufacturer;
  9. Any other documentation as may be required by NEPC from time to time.

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

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 (EFCC).

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 monthly.

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

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.

NOTE:

  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).

PART OF THE PRESS RELEASE:

Submission of EEG Baseline data *

Date : 2017-03-28
This is to inform all Exporters interested in or those already registered for the Export Expansion Grant (EEG) scheme, that consequent upon the lifting of the suspension of the Scheme by the Federal Government, submission of 2013, 2014, 2015 and 2016 baseline data for the purpose of determining their EEG rates for 2014, 2015, 2016 and 2017 non-oil exports respectively commences from Wednesday, March 29, 2017

2. DOCUMENTATION REQUIREMENTS:

(i) Complete Baseline forms 1A, 1B, 1C and their annexes. (The forms can be assessed on www.nepc.gov.ng) (ii) Audited Financial Statements, which must include Value Added Statements for the respective base years.

Notes: (a) Photocopies of Financial Statements are not acceptable. Any photocopy must be duly certified by the Company’s Auditor. (b) Companies, who are submitting baseline data for the first time should in addition to the above, submit their Financial Statements for 2011, 2012 and 2013, if applicable. (c) New companies should submit their current Management Account and Projected Financial Statements for 2018.

3. In order to ensure that the information provided in the baseline data forms conform with what is contained in the Audited Financial Statement, all exporters are further requested to provide the following additional information:

(i) Analysis of Turnover into Local and Export Sales. (ii) Analysis/Schedule of Total Export Sales (N) showing the conversion rates used.

2 (iii) Details of Addition to Fixed Assets during the Year. (iv) Breakdown /Analysis of Cost of Sales into local and Foreign Input (Raw materials and packaging).

Note: All figures must correspond to the information provided in the Audited Financial Statement for the period under review.

4. In line with the reviewed guidelines, all exporters are expected to include in their submission the company’s 5-year Export Expansion Plan (EPP).

5. TIME SCHEDULE:

For orderly and smooth processing of EEG applications, the Submission of baseline data will close on 27th. April, 2017. Applications will only be submitted after the determination and communication of EEG rates to Exporters. PLEASE NOTE THAT THERE SHALL BE NO EXTENSION OF THE DEADLINE.

6. Exporters are advised to strictly adhere to the guidelines on the Revised Guidelines on EEG. Incomplete or illegible documents will not be accepted.

7. The Nigerian Export Promotion Council will not accept responsibility for claims denied in respect of incomplete and illegible documents. All submissions must be addressed to the Executive Director/CEO, NEPC.

Signed George Enyiekpon Director (Export Dev. & Incentives)

For: Executive Director/CEO.

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Author

Samuel Abasi

Samuel Abasi

A computer programmer who is also very proficient with hardware, Sam follows sports, science and tech news and everything else in between with an unrivaled passion that keeps readers coming back. Sam is also proficient in use of most online journalism tools and Social media management
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