The Nigerian Export Promotion Council (NEPC) has advised exporters in Ondo State to take advantage of the two export incentives administered by NEPC to boost their businesses and penetrate the global market.
The Executive Director/ CEO of NEPC, Dr Ezra Yakusak, who gave this advice during a one-day workshop on export incentives for business owners in Akure, the state capital, said the two export incentives for exporters in the state will help to expand their businesses and increase the volume and value of their products.
According to Yakusak, who was represented by the Deputy Director, NEPC and the State Head of NEPC, Architect Benedict Ndudi Itegbe, said the incentives are provided to help exporters in keeping their products competitive in the global markets.
He listed the two export incentives administered by NEPC to include, Export Development Fund and Export Expansion Grant saying incentive provides training, trade fair participation support, financial and logistics support designed to expand export volumes and improve global competitiveness of Nigerian products.
His said: “The workshop is being held across the country and it is designed to inform our existing exporters and potential exporters about the current incentive regime applicable in 2023. How to apply and benefit from them and what the objectives are, and how they are differentiated from each other.
“The incentives include Export Expansion Grant which is an incentive given to exporters as a post- shipment incentive, which means that you have already carried out the incentive transaction, repatriated the funds, you are able to bring the evidence and we would be able to calculate the rate and give you an export incentive.
“That incentive, you are expected to invest it into your business, to expand your business so that you can increase the volume and value of your export business”.
He specifically noted that the Export Development Fund incentive aims to prepare, facilitate and support new exporters to penetrate global markets, stressing that it provides training, trade fair participation support, financial and logistics support for the exporters.
“We also have the Export Development Fund which is usually attractive to small and medium enterprises who may have financial and technical deficits in preparing themselves to go into export business.
“So, it is a pre- shipment incentive, which means you enjoy it before you actually do the export transaction. It covers capacity building, provision of technical support, packaging and labeling support and it can also be in the form of provision of market research, provision of improved seedlings as we do in various parts of our offices Nationwide”.
Yakusak emphasised that the export development fund is a pre- shipment incentive while the export expansion grant is a post – shipment incentive.
“For the export development fund, people that benefit from it run into thousands because we do training in our offices across the country every month, we do technical support in getting international certification, we do packaging and labeling, technical support. So, it’s more widespread.
“For the export expansion grant, you must reach a certain volume of export. There is an amount you have to reach, N5 million. You also have to meet the guidelines of paying your taxes, submit your audited account, so, there are some documentary requirements, baseline information you have to provide and evidence that you conducted the export business.
“Furthermore, you need to apply, if you don’t apply, nobody will come to you and give you the incentive. So, it is a function of application. Usually, the application runs into hundreds every year and some of them are really substantial, depending on the volume of export”.
While speaking, the Ondo State Chairman of Nigeria Association of Small Scale Industrialists, Great Seyi Akintunde said that the workshop will enhance small and medium scale businesses in the state.
He said “I have noted that there are two principal or major federal agencies that are functioning in Ondo State, despite having over 15. NEPC and SMEDAN have been continuously functioning in the state.
“We have taken time to challenge other agencies that they should come up to let us know what they are up to in the state.
“The workshop is a welcome development as it will enhance small and medium scale businesses in the state.
“They should keep it up. We are also coming up, I am looking up to a situation where we have over 80 percent of the small scale business and enterprises in Ondo State having export”
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