The Nigerian Export Promotion Council (NEPC) has said that positive steps are currently being taken to recapitalize the Export Development Fund (EDF) an incentive provided for Nigerian export.
Speaking with DAILY TREND NEWS last week, Mr. Akinwe Oluwole, Head of Administration and Human Resources NEPC in Apapa Lagos said that the incentives is divided into two categories namely; Pre-shipment and Post-shipment.
He said that though for sometime now, the EDF have not been funded by the Federal Ministry of Finance, however, efforts are ongoing to recapitalize the fund to ensure exporters continue to take advantage of it.
According to the NEPC top brass “When we talk of incentives, we have the post-shipment incentives and the pre-shipment Incentives, there are some that has to do with you having these incentives before you go into exportation of your products, and there are some that comes after you must have made your exportation and repatriate the proceeds”
“For instance, we have the Export Development Fund (EDF), the fund is meant for you to carry out research work, it enables you to go out and source your products, gather information about what you want to export, the EDF is a pre-shipment incentive”
“We also have the Export Expansion Grant Fund (EEGF) which is a post shipment incentive, it is the kind of fund given to you to leverage on what you are producing and exporting. The value is calculated based on what you really export and repatriate to the country”
“The inventive is to alleviate the cost of production in the country, for instance we have the high cost of production, but the EEGF, when it is given to you will address some of the gaps in the area of cost, it is maximum of 30% of the proceeds”
“Companies have been taking advantage of it, but there are lots of issues that has to do with implementation, there is a ministerial committee set up to look into this, basically, it has been one of the major incentive for exporters over the years so it has to be funded by the federal government through ministry of finance”
“At the moment, there are lots of efforts to revive it, for some time it was not funded, but there has been a lot of advocacy for it to be recapitalized so that exporters can enjoy the advantage again” he said