Sunday, September 2, 2012

No plan to ban Export Expansion Grant — Aganga

No plan to ban Export Expansion Grant — Aganga

Olusegun aganga
The Minister of Trade and Investment, Mr. Olusegun Aganga, has said that the Federal Government has no plan to ban the Export Expansion Grant.

The 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, as well as reduce overall unit cost of production and increase the competitiveness of Nigerian products in the international market.

The grant ranges from 10 per cent to 30 per cent of the Freight On Board value of the products being exported with a confirmation that the export proceeds have been repatriated.

A statement from the ministry quoted Aganga as saying this during a-two day facility visit and assessment of industries as well as a town hall meeting with the stakeholders in the manufacturing sector in Kano.

Specifically, Aganga stated that the Federal Government was committed to strengthening the processes and procedures involved in the implementation of the EEG in order to make it more beneficial to exporters and the government, adding that the ministry was putting structures in place to ensure that the EEG was insulated from being abused in the future.

Aganga 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 said that as part of its industrial revolution plan, the ministry would collaborate with the Kano State Government to boost the capacity utilisation of industries in the state, especially in the textile, leather, agric-business and 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.”

The Kano State Governor, Dr. Rabiu Kwankwaso, on his part, expressed the readiness of the state government to partner the Federal Government in order to create the needed conducive environment for industries to thrive.

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