1 day Ago By Arinze Nwafor
Nigerian exporters in the manufacturing sector have called on the Minister of Industry, Trade, and Investment, Dr Jumoke Oduwole, to intervene in a recent policy by the Federal Inland Revenue Service taxing grants under the Export Expansion Grant scheme. Chairperson of the Manufacturers Association of Nigeria Export Group, Odiri Erewa-Meggison, raised the alarm during an engagement with stakeholders and the government recently in Lagos, stating that the policy undermines the purpose of incentivising export growth. “FIRS wants to tax the grants that exporters receive,” Erewa-Meggison said.
“This reduces the value of the money exporters get because the credit certificates or promissory notes are already issued in arrears, often discounted. To now add an additional level of tax defeats the purpose of having an incentive in the first place.” The MANEG chairperson explained that the delayed nature of the grants erodes their value over time.
“When you factor in the time value of money and discounting, exporters lose significant value. Taxing these grants further limits our ability to be competitive globally,” she lamented, adding that pricing Nigerian goods for international markets becomes even harder under such circumstances. Erewa-Meggison told The PUNCH that MANEG had written to the former Minister of Industry, Trade, and Investment, Doris Uzoka-Anite, and the Chairman of the Presidential Fiscal Policy and Tax Reforms Committee, Taiwo Oyedele, seeking intervention.
“He (Oyedele) is the one that really should champion this on behalf of our members. So he’s taking it on board and he says, yes, it’s something that he will look at. That’s a low-hanging fruit, I think, you know, that can be easily addressed.
So he’s taking it on board to address that.,” she asserted. MANEG has also made recommendations to Oduwole, emphasising the need for the government to simplify the process of using grants to settle multiple obligations, a move exporters believe will improve efficiency.
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“But it’s important that other states also work with Lagos states as well to make sure that it’s easy for you to move your goods across at a reduced cost, remove all the bottlenecks in place as well. So there’s a role for the states, the government as well in this.” The MANEG chairperson also called for enhanced diplomatic efforts to ensure Nigerian goods are accepted in international markets, saying, “When you pass all the hurdles of getting your goods out of Nigeria, you want to have access.
Yes, I know the Continental Free Trade Area is preparing us for that. But we need to make sure that our goods are not rejected when we get into those countries.” “There’s a lot of diplomatic work that needs to happen as well to make sure that Made-in-Nigeria goods are accessible and accepted when it gets to their end destinations.
” On whether exporters have complied with the FIRS policy, Erewa-Meggison revealed: “I’m not aware that any of our members have paid. They are unhappy about it, but no one has confirmed making payments.” MANEG’s plea underscores the urgency of creating an enabling environment for exporters, as the country seeks to diversify its economy through non-oil exports.
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