FACAN flays FG over N125bn unpaid export grants

In a letter to outgoing President Goodluck Jonathan, dated May 11, 2015, signed by FACAN’s National President, Dr. Victor Iyama, and copied the Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, FACAN regretted that the federal government reneged on the agreement to implement the EEG policy framework for 2014 as announced […]

In a letter to outgoing President Goodluck Jonathan, dated May 11, 2015, signed by FACAN’s National President, Dr. Victor Iyama, and copied the Minister of Finance and Coordinating Minister of the Economy, Dr. Ngozi Okonjo-Iweala, FACAN regretted that the federal government reneged on the agreement to implement the EEG policy framework for 2014 as announced by the finance ministry.
The agro exporters lamented that they have NDDC’s cheque of over N125 billion in their possession, which they have been stuck with for several years.
The association stressed that their members are now wondering if they have been handed a “dud cheque” by the Ministry of Finance in the form of NDCC’s.
 “We are yet to come to terms with the fact that we have been handed a “dud-cheque” by government which is against fiscal policies and financial guidelines,” it said.
The letter observed that member-companies and organisations in the agriculture and agro-allied sector form the bulk of the non-oil exporters in the country and contribute over 80 per cent of the nation’s non-oil export earnings.
According to the association, government’s lukewarm attitude towards boosting the non-oil sector has continued to negatively affect sustained economy growth.
“Our members have relied on the EEG and NDCC policies to plan their investments and make their pricing decisions. Now, government has been foot-dragging on the issue of implementation of these policies. It is rather saddening that while the federal government regularly pays fuel subsidy to marketers with interests and exchange rate adjustments, it (FG) is refusing to allow the utilization of NDCCs which has been signed by the Federal Ministry of Finance and disbursed to the exporters as a ‘legal tender’. Our members have been patient but have been subjected to continued neglect,” FACAN also stated.
Experts said Nigeria spends a whopping sum of US $ 11 billion annually on wheat, rice, sugar and fish importation, products which the nation could mass-produce or even export given the right political will and commitment.
The agro-allied operator argued that the figure could be reduced by 50% within three years if the federal government implements the EEG and NDCC utilization policies.
According to the commodity exporters, the EEG policy review was on the cards throughout the duration of the Jonathan administration (2011 – 2015) urging the outgoing administration to “kindly ensure that the appropriate details are shared with the transition committee so that the incoming administration of Muhammadu Buhari would be assisted to complete this process soonest.”
The organisation disclosed that two official files on EEG implementation committee meeting have been awaiting approval by the Ministry of Finance since 2014, adding that the documents deal on the approved EEG claims of various exporters up to 2013.
The agro commodity association mentioned many important issues on which decision is still pending to include, the 300 days’ rule for repatriation of export proceeds – to be extended to 360 days for exports done during 2009 and 2010 owing to the prevailing global financial crisis and the timeline to NEPC to complete the processing of pending claims within a specified period.
FACAN noted that non-oil exports have grown fivefold between 2005 and 2011 which is a much higher rate of growth than the Nigerian GDP. Since 2011, the growth rate has stagnated and now even reversed because of the poor implementation of the EEG policy.
FACAN appealed to the incoming administration to treat EEG claims with same seriousness as other subsidy payments like fuel, fertiliser, as non-oil exporters should not be treated otherwise.