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Export Expansion Grant In Nigeria

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The Export Expansion Grant (‘EEG’ or ‘the Scheme’) is one of the export incentives introduced by the Federal Government through the Export (Incentives and Miscellaneous Provisions) Act, No. 18 of 1986 as amended by the Export (Incentives and Miscellaneous Provisions) Act, No. 65 of 1992, Cap. E19, Laws of the Federation of Nigeria (LFN). It is a post-shipment incentive designed to improve the competitiveness of Nigerian products and commodities and expand the country’s volume and value of non-oil exports.<
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 and the diversification of the economy.
The Federal Government in its efforts to bring about tremendous growth in non-oil exports through enhanced efficiency, transparency and accountability, set out the following guidelines to ensure affordability and sustainability of the Scheme<
  • An intending beneficiary must be registered with the Corporate Affairs Commission.
  • An eligible exporter must be registered with the NEPC
  • 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).
  • An eligible exporter must have carried out formal export with its export proceeds repatriated into a domiciliary account in Nigeria and confirmed by the Central Bank of Nigeria.
  • An exporter-company shall submit its baseline data which includes audited Financial Statement, information on operational capacity and Export Expansion Plan (EEP) to NEPC.
Qualifying export transaction must have satisfied all formal export requirements and the proceeds fully repatriated within 300 days, calculated from the date of export and as approved by the EEG Implementation Committee

The use of technology shall be incorporated into the country’s export procedures and in the processing of claims to promote transparency and improve confidence in the export documentation generated. Also, scanners and weigh bridges shall be urgently installed in all ports as part of the automation process to amongst others, eliminate the possibility of false claims by exporters. The scanners shall also confirm the type and weight of product /commodity that was exported and its output would be accessible by all relevant agencies such as NEPC, CBN, NCS and the pre-shipment inspection agents.

Pending the commencement of the automation of export procedures and incentives processing, whereby all applications shall be forwarded to NEPC via a web based electronic platform, all applications for Export Expansion Grant (EEG) to NEPC must be submitted in duplicate along with scanned copies in a flash drive, with the following export documents attached.
  • Forms NXP duly certified by processing bank; Nigeria Customs Service and the Pre-shipment Inspection Agents;
  • Bill of Lading;
  • Final Commercial Invoice;
  • Single Goods Declaration (SGD) Forms, duly endorsed by Nigerian Customs Service, both at front and back.
  • Evidence of full repatriation of export proceed (CBN confirmation of repatriation of proceeds by exporter)(Include Schedule of Confirmation of Repatriation of Export Proceeds)
  • Clean Certificate of Inspection (CCI) to include quality certification;
  • NEPC non-oil Export Certificate
  • Certificate of Manufacturer (where applicable)
  • Scanning Report
  • Any other documentation as may be required by NEPC from time to time

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 cum product 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 four bands: 15%, 10%, 7.5% and 5%.  The following template will be used in assessing the incentive rate of every EEG applicant
A1- Fully Manufactured Products Exporters = Maximum EEG Rate Applicable= 15%
A2- Semi Manufactured Products Exporters = Maximum EEG Rate Applicable= 10%
B- Processed/Intermediate Products Exporters = Maximum EEG Rate Applicable= 7.5%
C- Merchant/Agro-Allied Products Exporters = Maximum EEG Rate Applicable= 5%
Source:   NEPC website


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