Nigerian group says EEG is hindering progress
Nigeria’s Leather and Allied Product Manufacturers Association (APMA) has called on the National Assembly to abolish the Export Expansion Grant (EEG), saying that the grant is doing more harm than good.
In a letter to the National Assembly, which was signed by APMA chairman, Comrade Mustapha Nabegu, the group said since the grant came into existence, over $1.9 billion has been disbursed, but no commiserate result has been achieved.
“Since the commencement of the EEG, there is no evidence of expansion whatsoever or change in the so-called infrastructure. The major beneficiaries of the EEG are foreigners, who sink the benefits of the grant in other countries. As a result of the competition to export in order to cash on the easy money provided by the EEG, there is no control on quality. Today, the long established quality reputation of Nigeria cocoa, hides and skins, palm oil and other products have been destroyed beyond redemption,” he said.
He said though the scheme was aimed at increasing Nigeria’s manufacturing base, it is doing the opposite as according to him, exporters of raw materials such as cocoa, scrap metal enjoy the grant just as manufacturers do.
