Finance minister praises tannery for use of export grants
14/06/2012
The Export Expansion Grant (EEG) initiative is a federal government idea aimed at encouraging exporters to add more value to their products before shipping them to overseas markets. It has come in for considerable criticism for high levels of abuse among some applicants.
However, in recent comments, Dr Okonjo-Iweala said Kano-based tannery the Mamuda Group represented an example of good use of EEG, using the grant to add finished leathergoods to its range of products and create jobs.
She told local media: “I am happy with the company because I saw how they are processing raw-material, and adding value to it to make finished products such as handbags.”
She pointed out that Mamuda had been operating for 20 years before taking the step of making finished leathergoods, but said this was the whole point, explaining: “EEG is not meant to support people who keep on doing the same thing for years, without being able to add value to their products. Beneficiaries are expected to branch out for others to benefit.”
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