By Favour Nnabugwu
Wreaked by dishonesty and scheming behavours of some export manufacturers in the country, the nation’s Export Expansion Grant (EEG) is faced by implementation problems.

Senator Jubril Martins-Kuye, Minister of Commerce and Industry made this known at the presentation of the report of the Inter-Ministerial Committee on the comprehensive review of the Export Expansion Grant (EEG) by the Chairman of the Committee Dr. Abubakar Mohammad in Abuja,  Monday, said that the EEG is faced with implementation challenges which are inflicted on it by manufacturers.

According to him, “Simple and sensible as the EEG policy may seem, it has faced implementation challenges, ranging from the corruptive and manipulative activities of a few export manufacturers to alleged institutional hindrances on the part of FGN implementation agencies”

However, the country’s Non-Oil export has been upped by 111percent in 2010 as Nigeria’s non-oil export has increased to N2.3billion in 2010 from USD 0.2 billion in 2000.

The bulk of the Nigeria’s non-oil exports consist of agro-allied products such as cocoa, leather, rubber, cotton-textiles, shrimps, sesame seeds and gum Arabic which have been growing consistently at a double digit rate.

He explained that the main objective of the EEG was to compensate export manufacturers for manufacturing cost increases traceable to hashed environment thereby enhancing their products’ competitiveness in the export markets.

Though, he said that the policy had to some extent succeeded as the country’s non-oil exports have been growing consistently at a double-digit rate in the last five years.

He reiterated that the Ministry has substantially discharged the responsibility assigned to it by the directive of the Federal Executive Council of Wednesday, June 23, 2010 to bring to the FEC a report on the reform of the EEG with a sharp focus on the specific imported items/products and payments to which the policy’s redemption instrument, Redeemable Duty Credit (RDCC) as may apply.

Senator Kuye however stated that there is the urgent need for the report to be laid before the Federal Executive Council by way of a memorandum. In his words “it is my hope and prayer that I am able to do this in the few days that I have to serve in the present administration.

Dr. Abubakar Mohammad, Chairman of the Inter-Ministerial Committee, pointed out that the committee was charged with the responsibility to comprehensively review the Export Expansion Grant scheme in order to determine the continue desirability or otherwise of the scheme.

He noted that the EEG has been effective in diversification of Nigerian economy by way of increase in non-oil export, creation of employment opportunities and value addition to primary commodities adding that the report contains 11 recommendations among which are that the EEG should be sustained to diversify the Nigerian economy and improve the competitiveness of non-oil export products.