Nigeria weighs reforms as exporters await resolution of ₦330bn incentive backlog
The Nigerian Export Promotion Council says the Federal Government is working with manufacturers and other stakeholders to address about ₦330.08 billion in outstanding Export Expansion Grant claims. The proposed reforms include a sustainable funding model and a ring-fenced Trade Facilitation Fund, but accountability will be crucial.
Nigeria’s effort to resolve about ₦330.08 billion in outstanding Export Expansion Grant claims could help restore exporters’ confidence, but a lasting solution will depend on predictable funding and transparent administration, according to an analysis by Kabir Abdulsalam. The Nigerian Export Promotion Council’s chief executive, Nonye Ayeni, said the Federal Government was working with the Manufacturers Association of Nigeria Export Group and other stakeholders to clear verified claims and develop a sustainable funding model. About ₦269.45 billion represents verified claims involving 195 beneficiary companies under a Promissory Note Programme approved by the Federal Executive Council in May 2023.
A further ₦60.64 billion covers stepped-down claims involving 32 companies for the 2017-2020 period. The Export Expansion Grant was designed to improve the competitiveness of non-oil exporters through Export Credit Certificates, which beneficiaries can use to offset specified federal tax obligations. Delayed payments have affected businesses’ cash flow, expansion plans, employment and competitiveness, the analysis says.
The proposed reform is intended to address the system’s funding structure as well as the backlog. Paying outstanding claims without fixing the causes of delay, the analysis argues, could create another accumulation of unpaid obligations. Ayeni said President Bola Ahmed Tinubu had approved the ring-fencing of 40 per cent of monthly collections from the Nigerian Export Supervision Scheme for strategic trade facilitation initiatives and export incentive programmes.
The proposed Trade Facilitation Fund would need clear rules for collection, allocation, disbursement and reporting. The analysis says exporters should be able to understand how the fund is managed and see regular reports showing its impact. It also identifies high production costs, unreliable electricity, expensive logistics, limited affordable finance, certification problems and regulatory bottlenecks as continuing barriers to exports.
Nigeria recorded $6.1 billion in non-oil exports in 2025, up 11.5 per cent from $5.46 billion in 2024, according to the supplied material. More than eight million tonnes of goods reached 120 countries. The figures suggest demand exists, but the analysis says a reliable policy environment is needed for exporters to compete.
The source material ends while discussing the role of manufacturers, so it does not provide further details on the proposed reform’s timetable or implementation.
This independently written report is based on information supplied by the named publisher. Vertrix News has not independently verified the source report.