Kano manufacturers query grant on export expansion

MEMBERS of the Leather and Allied Product Manufacturers' Association of Nigeria (LAPAN) have urged the Finance Minister, Dr. Ngozi Okonjo-Iweala, not to be persuaded into believing that the Export Expansion Grant (EEG) policy is in the best interest of the country.In a letter to members of the House of Representatives Committee on Commerce, LAPAN claimed that the EEG policy had done serious damage to the leather and allied product sector of the economy.The petition dated March 26, 2012, was copied the Minister of Trade and Investment, Dr. Olusegun Aganga; the Central Bank of Nigeria (CBN) Governor, Lamido Sanusi Lamido, and the Comptroller-General of the Nigeria Customs Service (NCS), Alhaji Abubakar Inde Dikko.Titled: 'Petition on granting of EEG to the leather sector' and signed by LAPAN's Board of Trustees (BoT) Chairman, Malam Bashir Danyaro noted that the continuous implementation of the EEG policy would wipe out whatever remains of the leather and allied product industry.The industrialists claimed that due to the implementation of the EEG policy, only five outfits got undue advantage over hundreds of leather manufacturing outfits that hitherto provided millions of jobs for Nigerians.The group, which faulted claims that the EEG intervention in the leather industry had added value to the economy, maintained that there was lack of transparency in the execution of the scheme.It, therefore, urged the National Assembly members to be vigilant over the EEG policy issue and argued that its abuse had led to loss of billions of naira, which could have been used to provide basic amenities to Nigerians.LAPAN said: 'For government to pay 30 per cent EEG to leather exporters beats every knowledgeable person's imagination. First, how do you verify the selling price' Unlike other commodities, leather has no quoted price. Check all the indexes in the world. So pricing is secretive between the producers and the buyers.'There is the need for Nigerians with the technical know-how in the sector to be co-opted so as to advise government on the possible implications of its policies.'We are the group that adds value to the finished leather and also give jobs to millions of Nigerians. Our industries are facing imminent collapse if you recommend the continuation of this EEG.'These beneficiaries of the EEG in the leather sector have driven the price to all time high, making it impossible for any local user of leather to remain profitable in the business.
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