Issue promissory notes to eligible companies, Reps tell FG

The House of Representatives has urged the Nigerian Export Promotion Council to immediately resume the issuance of promissory notes to eligible companies from the 2007-2016, 2017-2020 and 2021-2024 batches in its Export Expansion Grant.

This is as the House at plenary on Thursday, adopted a motion on “Need to revamp the Export Expansion Grant by Nigerian Export Promotion Council,” sponsored by the member representing Kauru/Chawai/Kumana Federal Constituency, Kaduna State, Mukhtar Chawai.

The EEG scheme was administered by the Nigeria Export Promotion Council to support active exporters, expanding their international trade through a post-shipment incentive by way of exporting grants to encourage non-oil exports.

Such grants were used by eligible Nigerian companies as government promissory notes and tax credits access to government bonds, among others.

Chawai stated over time, owing to poor funding by the Federal Government, “A huge number of EEG claims were not provided for. A provisional measure was introduced for the settlement of outstanding EEG claims through the Federal Government Promissory Note Programme. This was deployed to settle the claims in three batches: 2007-2016, 2017-2020, and 2021 to date.”

He added that the PNP has resulted in a massive and expanding national debt, with many grants still outstanding despite the 9th Assembly’s intervention in ratifying the backlog of settlements.

“The House is worried that many businesses have closed as a result of the lack of a significant plan to resolve the EEG claims of viable Nigerian companies, even as a temporary solution,” he lamented.

The House, in its resolution, mandated the Committee on Commerce to look into revamping the settlement of all eligible Nigerian companies and report within four weeks.

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