The Nation Newspaper

Tag: Nigerian Export Promotion Council

  • Finance, DMO approve N195bn to exporters for EEG settlement

    The Nigerian Export Promotion Council (NEPC) disclosed at the weekend that the Export Expansion Grant (EEG) is being resuscitated as the minister of Finance has directed the Debt Management Office for settlement of the EEG debts.

    The debt is covering claims back log of 10 years from 2007 to 20016 for 270 companies with the total value of one hundred and ninety five billion, eighty nine million, two hundred and thirty four thousand, eight hundred and eighty naira, and sixty four kobo (N195,080,234,808.64).

    The Executive Director, CEO, Nigeria Export Promotion Council NEPC, Olusegun Awolowo, disclosed these at the stakeholders forum on the framework for the issuance of Promissory Notes for the settlement of outstanding Export Expansion Grant claims 2007-2019, stating that this will bring succor to the export succor in particular and the economy in general.

     He added that there is also positive signal from the National Assembly as it will soon pass the second batch of approval for the remaining 39 companies with a total N124bn.

    READ ALSO: ‘How we can become top export nation’

    According to him, the settlement of this inherited debt by the government will pave way for the revival of the non-oil export sector of the economy.

    It will in no small measure enable financial institutions inject funds for further export activities, generate more foreign exchange as well as employment for the teeming youths of the country.

    “Statistics from the pre-shipment inspection agents and the National Bureau of Statistics analyzed by the council showed that, the country’s export earnings for 2017 and 2018 experienced an upward trend.

    “There was a growth of 48.43% from $1.204 billion in 2016 to $1.787 billion in 2017, it further went up by 27.22% equivalent to $2.274 billion in 2018.

    “It is our sincere believe that exports for 2019 will grow by about 40 percent in view of the settlement of the exporter’s debt through the promissory note programme.”

    Awolowo said in line with government policy on the Ease of Doing Business and to compliment these efforts, the council has developed an online, real time portal for the processing and management of the EEG claims. The online platform will provide opportunity for all stakeholders, processing government agencies, auditors of the scheme, exporters and other relevant stakeholders to submit, review and access information regarding the processing of claims.

  • ‘Nigeria will benefit more from AGOA before scheme expires’

    Recently, the Nigerian Export Promotion Council (NEPC) under its African Growth and Opportunity Act Trade Resource Centre (AGOA-ATRC) organised a one day workshop for export ready and potential exporters in Kano. NEPC, the Federal Government’s agency in charge of promotion of all non-oil export trained participants on how to export under AGOA into the United States and enjoy maximum benefit. The Regional Coordinator of the NEPC, South West, Mr. Babatunde Faleke speaks with Omolara Akintoye on why Nigerians need to tap into the scheme. Excerpts:

    In your opinion as an administrator and Coordinator at the NEPC, how do you think Nigeria can benefit maximally from AGOA?

    Yes, Nigeria can benefit maximally like other sub-Saharan AGOA eligible  Countries, only if  processor/manufacturer/ producers of made in Nigerian products can do things right: produce quality AGOA eligible goods consistently, meet buyers specifications, mass produce to make the goods competitive, meet orders by timely delivery of goods, obtain Textile Visa Stamp for export of apparel and textiles and support shipment with genuine documentation like quality certificate and certificate of origin etc.

    It is obvious there are so many exporters who export ‘behind the door’, I mean those not exporting through the NEPC. What is your organisation doing to encourage these exporters to take advantage of AGOA?

    The NEPC identified this trend through market research visit to the markets like Ebute Ero, Idumagbo and Marina in Lagos Island, Mile 12 market, Aspanda market in Badagry, Okerete Boarder in Shaki and Seme boarder; where both leather and rubber slippers, grinding machines, malt and soft drinks, Yam, Tomatoes, confectionaries, household goods etc. were loaded for export.

    To mitigate this trend of informal trade, we organised Zero to Export Programmes where exporters and potential exporters were taken through the process of exporting from zero knowledge to the stage of exporting.  Participants were taken through eight weeks intensive lecture, culminating in the field/market research to gain practical experience. So far, a total of 10 series of Zero2Export programmes have been conducted and 10 Cooperatives formed and are engaged in export businesses.  This was achieved through collaboration with the private sector organisations like Fidelity Bank, Sterling Bank and Providus Bank.

    How well have you sensitized Nigerian exporters to take advantage of AGOA before it expires?

    From time to time people do visit the AGOA Center to make enquiries and information on AGOA disseminated to them. The same happens at the other Regional offices of the Council where we have AGOA Desk officers. More importantly and within our limited resources, advocacy programmes was conducted in seven States in Nigeria in 2018; Kano is the first State in 2019. In all, precisely 913 participated in the programmes.

    Recently, one of the AGOA eligible countries, Seychelles was declared not eligible again since the country (of just about 100,000 population) got the maximum benefit and exited the list of developing countries.  What is NEPC/Nigeria learning from this tiny nation like the Bible advised us to learn from the ants and get wisdom? 

    Seychelles is a very small country, has a strategy in place and took advantage of the opportunity, so it was quite easy to coordinate the country’s trade compared to Nigeria which is a large country of about 200 million people with different cultures.  The expectations are really high and requires concerted efforts from all the Stakeholders both public and private sector organisations to move the economy forward.  As NEPC is striving to fulfill its mandate of promoting non-oil exports and other Stakeholders follow the process, with time Nigeria will get there as we have more products and capacity.

     

  • NEPC calls for partnership with NACCIMA, exporters

    The Executive Director/CEO, Nigerian Export Promotion Council (NEPC),  Segun Awolowo, has emphasized the need for exporters with Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA)  to register and work with the Council to enable them link up with the global supply chain.

    Awolowo stated this at an export promotion conference organised by NACCIMA in Lagos. He emphasised the need to  start with export regulations and ending with import regulations in target markets of their products.

    Awolowo said:  “Regarding Nigeria’s export regulations, we are in the process of comprehensive review of the steps, cost  and efficacy of implementation.

    “Our objective is to ensure export regulations in Nigeria are simple, clear and more importantly, not unreasonably costly to  exporters.  The government is also reviewing regulations and procedures more broadly.

    “I would like to point out that NACCIMA has provided objective,  unbiased and untarnished points of view to aid our national economic development.

    “NACCIMA,  your sights are our sights, we are all committed to the diversification of the economy through  manufacturing,  productivity and competitiveness.”

    The NEPC boss added that the Council stands as  integrator, rendering extensive service that is sometimes invisible.  “We also provide trade facilitation in a very complex environment, but our service can engender the whole economic structure of a nation,” he added.

     

     

     

  • Nigeria ready for local tomato export—NEPC boss 

    The Executive Director, Nigerian Export Promotion Council (NEPC), Mr. Olusegun Awolowo, has declared that the country has put in place necessary facilities to make locally produced tomatoes exportable and acceptable in foreign country.

    According to him, the export drive for Nigerian agricultural produce has reached a stage of no return, adding that Nigeria was set to hit the global market with quality agro-allied products.

    Awolowo made the declaration on Thursday in Benin City while commending an indigenous producer of tomatoes, Wells Hosa Greenhouse Farms Limited, for deploying the use of greenhouse technology to produce exportable tomatoes in the country.

    Mr Awolowo explained that with the technology, Nigeria could now start to export tomatoes to every part of the world, maintaining that the technology would also help to end the era of Nigeria’s tomatoes being infected by different forms of diseases, hence unacceptable overseas.

    The NEPC boss stated this at the first harvest launch of Wells Hosa Green House Farms Limited in Edo State.

    Meanwhile, the Minister of State for Agriculture, Senator Heineken Lokpobiri, said the Federal Government had endorsed green house farming to boost food production in the country, saying that before the administration of President Muhammadu Buhari, agriculture was seen as a government’s programme, but stressed that with Wells Hosa Green House Farms initiative, Nigerians are seeing it as a business and investment.

    Awolowo said: “He wants to create wealth for the people in Edo State and creating job opportunities. It is a good idea to use the green house technology because all year round, they would be growing and you can see the massive project he has embarked on and I believe if it is not the biggest in Africa, it will be the biggest in West Africa. From green-house technology, you will not get any form of tomato diseases because they are covered and restricted and those are the kind of tomatoes we can export because it is easy to get into supermarkets across the world.”

    The Chairman, Wells Hosa Green House Farms Limited, Captain Idahosa Wells Okunbo, said agriculture is key to changing the Nigerian narrative, pointing out that with green house technology, the country could produce quality and exportable round for local and global needs while also creating wealth and job opportunities in the country. “People are seeing tomatoes, but I am seeing more than tomatoes. I am seeing jobs for the youths, empowerment, I am seeing food security for the country and export of our tomatoes to earn foreign exchange,” Okunbo said.

     

  • FG targets $30 billion from non-oil revenue yearly 

    FG targets $30 billion from non-oil revenue yearly 

    • Sets up panel to boost export promotion

    Towards restructuring the Nigerian economy, the Federal Government is targeting to get at least $30 billion revenue from the current $5 billion from non-oil sources.

    This was disclosed by the Director – General of Nigerian Export Promotion Council, Segun Awolowo while briefing State House correspondents at the end of the National Economic Council (NEC) meeting chaired by Vice – President Yemi Osinbajo at the Presidential Villa.

    He was with the Governor of Ebonyi State, Dave Umahi, Governor of Kwara State, Ahmed Abdulfattah, and Kebbi State Governor, Atiku Bagudu.

    According to him, Nigeria is going through the sharpest falls of export revenues in her history, losing over $100 billion (N30 trillion) of national export revenue between 2015 to 2017 due to the crashing oil prices, which resulted in recession.

    He said “The NEPC made a presentation to the NEC on a plan to restructure the Nigerian economy to survive without crude oil. The plan is called “the zero oil plan.”

    “Council was informed that there was urgent need to rapidly ramp up non-oil exports as our future earnings from crude oil faces significant headwinds.

    “The zero oil plan aims at earning at least $30 billion from non-oil sources in the near to medium term as against the current earnings of about $5 billion.

    He said the objectives of zero oil plan is to add $150 billion to Nigeria foreign reserves in the next 10 years, create 500,000 jobs, lift 10 million Nigerians out of poverty and integrate each state of the federation into the export value chain.

    Awolowo said that the focus of the plan is on the export of the following crops: rice, wheat, corn, palm oil, rubber, hides and skin, sugar, soya beans and automotive parts among others.

    He listed the destination countries for Nigeria’s exports to include Netherlands, China, Iran, Germany, United Kingdom, France, Sapin, Italy, India, Saudi Arabia, among others.

    He said NEXIM briefed Council on the “States Export Development Initiative” which is being pursued as a medium to long term strategic plan aimed at stimulating and increasing deliberate funding intervention to SMEs in the non-oil sector for attainment of its objectives.

    He further said that council was informed that one of the major objectives of the initiative is contributing to the implementation of economic policies of the country, like the ERGP and Agricultural Promotion Policy, among others.

    He added that the initiative is built on schematic transaction dynamics with key features like provision of a dedicated funding of a minimum of N5 billion as a pilot phase with window for other facilities and partnership for transactional support.

    “Council was further informed that the initiative will also help re-awaken the business consciousness of the states towards export and value added production especially in the areas of manufacturing, agro-processing and solid minerals,” he stated. 

    He said the Managing Director of NEPZA briefed council on the need to have more special economic zones in addition to the Calabar Free Trade Zone.

    “He told the council that the major defect in Calabar Free Trade Zone is that the zones have not been linked to the Calabar Port and that there is urgent need to do so in order to make the zone a lot more effective.

    “Partnership between the federal and state governments as well as the private sector is needed. He urged council to ensure that the location of free trade zones should be done strictly on business consideration and not political considerations.

    “He also asked council to provide incentives for free trade zones to include linkage to rail line, express ways, close proximity to utilities, airports among others,” he stated.

    The Council on Thursday also constituted a committee towards improving Nigeria’s non-oil exports.

    The National Committee on Export Promotion is to review several ideas and suggestions tabled at the NEC meeting.

    The committee consisted of three State Governors: Jigawa, Lagos and Ebonyi and the federal ministers from Industry, Trade & Investment, Agriculture & Rural Development, Power, Works & Housing, Transportation and Finance.

    Other members of the Export Promotion Committee of NEC are  the Nigerian Export Promotion Council, NEPC, Nigerian Export Processing Zones Authority, NEPZA, NEXIM Bank, and the CBN. Jigawa State Governor Alhaji Mohammed B. Abubakar is the Chairman, and Industry, Trade & Investment Minister, Dr. Okey Enelamah is Co-Chair.

    The Committee which is expected to submit an initial report by November is expected to come up with a concise action plan on how to drive non-oil exports based on the presentations and discussions of Council at today’s meeting.

  • Crude Price: Group Tasks NEPC on economic recovery

    The New Initiative for Credible Leadership (NIPL) has tasked the Nigerian Export Promotion Council (NEPC) to increase its activities toward ensuring increase in non-oil export as a solution to the economic hardship caused by fallen crude oil price.

    It said the NEPC has a crucial role to play in Nigeria’s economic recovery since there was a consensus that the era of depending on crude oil as the country’s major revenue source was over.

    A statement issued by the group in Abuja on Thursday noted that the current economic challenge offered a unique chance for the NEPC to fulfill its mandate of developing and diversifying the nation’s export trade since it could easily get the buy-in of Nigerians at this point.

    The Executive Director (NICL), Rev Samson Onwu, noted that the NEPC must also live up to its responsibility of assisting the development and promotion of export-oriented industries since the country must first have products to sell to the world before increasing its export.

    He said:  “Now is a good time as any for the Executive Director of NEPC, Mr Olusegun Awolowo to implement all the impressive concepts and ideas he had articulated in the past. His public pronouncements have been source of hope in the past and we believe implementation of his ideas will bring the much needed succor to Nigerians.

    “Our observation is that Nigerians have been looking inwards since the pressure on the naira first manifested and our belief is that it is a matter of time before the small and medium scale industries that were recently re-activated will begin to produce surplus to local consumption.

     

    “NEPC must prepare for this eventuality to ensure that there will be no glut and that industries are able to export such surpluses without breaking sweat.

     

    “We equally expect that Mr. Awolowo can now activate the various foreign contacts and relationships that the Council has built in the past years for the benefit of Nigerian companies that are ready to export their goods and services.”

     

    He advised Awolowo not to shy away from exploiting the cooperation that is possible with government agencies with complementary functions to ensure that the economy is out of the woods.

  • Exporters seek single digit interest rates

    Exporters seek single digit interest rates

    Exporters in Nigeria have said that for the country to successfully diverse its economy, the federal government need to initiate policies aimed at promoting single digit interest rates for them.

    The exporters listed access to funding, high interest rates and lack of development of Warri and Portharcourt ports as major challenges facing export.

    They spoke Thursday at a forum for bankers and exporters organised by the Nigerian Export Promotion Council (NEPC) in Benin, the Edo State capital.

    An exporter, Mrs. Rona Peters, said Nigerian banks preferred providing finances for businesses that ‎bring quick financial returns.

    Mrs. Peters explained that the development of Warri and Portharcourt ports would make trucking cheaper for exporters as well as decongest Lagos Ports.

    “Loans for agricultural processing should be single-digit. CBN gives nine per cent. They (banks) should make borrowing single-digit, if they want to promote exports. It is not for banks to get at single digit and give to the citizens at double digit.

    “They should bring it down; the banks should encourage us. NEPC has done well by bringing us together.‎ If you are into agricultural processing, it take time for you to stabilise. So, the banks need to be patient, grant the exporters low interest rates to promote export in Nigeria.”

    ‎Another participant, Abraham Momoh, decried the dearth of accessible port terminals in the South-South to cater for exporters in the region.

    Momoh, who said that functional ports would promote the movement of goods from the area of origin to their respective destination outside the country, called for programmes on capacity building for farmers, as primary producers in the agricultural sector.

    Chief Executive Officer of NEPC, Mr. Olusegun Awolowo, ‎attributed the challenge of funding to what he described at poor business understanding between the banks and exporters.

    Awolowo, who was represented by the Director of the Duties of the council, Olajide Mohammed, however, noted that the federal government was willing to bridge the gap, through relevant interventions, as non-oil export was key to economic growth.”

    Head of Nigeria Export and Import Bank in Lagos, Kalu Ugenyi, said literacy level on export ‘is low because a lot of people don’t want to go through the rigorous process of exporting products and you need a bit of exposure to get a partner outside the country.”

  • ‘Amend Export Incentive and Miscellaneous Act’

    The Director-General, Association of Nigerian Exporters, Prince Joseph Idiong, has called for the amendment of Export Incentive and Miscellaneous Act 65 of 1992.

    He said this became necessary because the Act deals with export incentives and also streamlines some funds that are meant for export.

    Idiong said this during the inauguration of the executives of Nigerian Export Promotion Council (NPC) in Port Harcourt, the Rivers State capital.

    He urged stakeholders to take a proactive step to ensure that laws which are not in tandem with the Export Incentive and Miscellaneous Act would be amended for the free flow of exports.

    He noted that as  far as there was no active export incentive law, we could not compete favourably with China, the United States and other strong markets in the world.

    He said: “If there is no active export incentive law that has requisite incentive that can compete with what other country have, you can never be a competitor. We must also make sure that the government goes to the private sector to have national export strategy every year.’’

    He continued: “We don’t want to make only advocacy, we want the expert to re-write the law and the proposal will be taken to National Assembly. And at that time the executive will discuss with us and it can become executive act. We want miscellaneous act 65 of 1992 to be amended so that export could easily fly.

    “Of course, if this act is amended it would assist the economy in the flow of dollars because you are producing at the same time exporting. Many companies will have access to dollars and wouldn’t be going to central back or standing along the road to buy dollars.”