LCCI, FACAN oppose forensic audit of approved N195bn EEG

[Edoman]

LCCI, FACAN oppose forensic audit of approved N195bn EEG
ublished April 21, 2019




Director-General, Lagos Chamber of Commerce and Industry, Mr. Muda Yusuf

Anna Okon

Exporters who were gearing up to access the Export Expansion Grant may be in for a long wait as the Debt Management Office is said to be in the process of starting a fresh forensic audit of the recently approved grant by the Federal Government.

However, this does not go down well with the Lagos Chamber of Commerce and Industry and exporters under the aegis of the Federation of Agricultural Commodity Associations of Nigeria.

Recall that the Federal Government had earlier this month issued promissory notes to the tune of N195.08bn for payment to about 270 companies that were owed arrears of EEG between 2007 and 2016.

Addressing stakeholders at a forum organised by the Council on the implementation of the framework for the issuance of promissory notes, the Executive Director of the Nigerian Export Promotion Council, Mr Segun Awolowo, said the settlement of the outstanding claims owed exporters was one of government’s many efforts in diversifying the economy through non-oil exports.

Our correspondent gathered that the DMO was in the process of engaging a tax and advisory service firm, KPMG, to audit the approved payment.

Stakeholders are, however, of the view that a fresh audit was unnecessary.

Expressing this stance to our correspondent on Friday, the Director–General, LCCI, Mr Muda Yusuf, described the proposed fresh audit as an unnecessary bottleneck.

The President of FACAN, Dr Victor Iyama, while speaking during an NTA live programme on Tuesday, also opposed the move.

Also, while speaking exclusively to our correspondent on Friday, Iyama stated that the EEG had been through five forensic audits already, adding that subjecting the approved payment to another audit would make the process of accessing the fund drag.

On the method of payment which is through discounted promissory notes paid over a 10-year period, stakeholders are of a view that a faster method would have been preferable.

The President, Manufacturers Association of Nigeria, Ahmed Mansur, remarked that exporters would have preferred a faster mode of payment or even tax waivers, noting that the long period of redeeming the promissory notes would affect the value of the money.

Yusuf pointed out that the EEG was an incentive, adding that it should have immediate value.

“The idea of giving promissory notes that will mature in 10 years is not a good one,” he said.

He lamented that the whole process of settling the EEG was becoming frustrating.

He said, “The EEG backlog has been there for several years and exporters have been tossed from one place to the other.

“There is a need for coordination of the agencies involved in the process because there seem to be too many agencies, handing out too many instructions. The agencies need to be streamlined so that exporters can have a single channel with which to interact.”

He advised transparency in the process, saying that there had been complaints that names of some exporters were removed from the list of beneficiaries when the list got to the National Assembly.

The EEG was introduced via the Export (Incentives and Miscellaneous Provisions) Act (amended in 1992) to stimulate non-oil exports.

The scheme is administered by the NEPC.

The scheme was suspended in 2014 amid widespread allegations of abuse.

The suspension, according to the government, was aimed at reviewing and redesigning the scheme to prevent abuse and ensure that it was fit for the desired purpose.