Manufacturing exporters grumble over conflicting figures in NDCCs

Manufacturing exporters say the figures released by the Nigeria Customs Service regarding the amounts they were owed through the Negotiable Duty Credit Certificates (NDCCs) are different from what they were actually owed before the suspension of the Export Expansion Grant (EEG) scheme.

“In the publication by the Customs, we were quoted as being owed N123 million, from which we were paid N6 million. But my records show we are owed N367 million,” Ede Dafinone, CEO, Sapele Integrated Industries Limited, a crumb rubber exporter, told Real Sector Watch.

NDCCs are instruments of compensation exporters used for the Export Expansion Grant (EEG) scheme, which was suspended in August 2013, by the Federal Government.

Before the suspension of the EEG scheme, manufacturing exporters often got some compensation from the government through the NDCCs. The compensation was targeted at encouraging them to export more products and bring in more foreign exchange.

However, the compensation, which was also given to them for bearing huge export costs, accumulated as debts to the tune of over N117 billion, according to the exporters.

Several months after the non-payment, however, the Federal Government, through the Customs, published on December 10, 2014, that about N93 billion were owed them. The government also paid them about N5 billion of the money owed them.

Several manufacturers complain that there is a gulf between what was published by the Customs and what they were owed in compensation, stating that many of them were yet to pay back the loans they took before the EEG suspension because they had hoped the compensation would be paid them before obtaining the loans.

“For our company, the difference between the two figures is over N13 million,”said an exporter, who did not want the name of his company disclosed.

Real Sector Watch obtained a document, which conflicts with the Customs’ figures. While the Customs’ publication showed Cadbury Nigeria plc was owed N21.35 million, the document alleged the company was actually owed N416.53 million.

Also, while the Customs’ figures said Flour Mills was owed N809.8 million, the document claimed the flour milling giant was owed N2.56 billion.

Similarly, the Customs’ list shows Atlantic Shrimpers Limited was owed N2.35 billion, the document in possession of Real Sector Watch claimed the firm is owed N2.76 billion.

More so, while the Customs’ list shows Olam Nigeria Limited was owed N17.28 billion, the document claimed the company was owed N22 billion.

The publication by the Customs showed all companies owed below N30 million had their debts cleared while others owed above N30 million were paid part of their debts through the NDCCs.

Some of the companies owed below N30 million include AA-KKAYZ Resources Limited, Kolorkote Nigeria Limited, GB Tannery Limited, Seven-Up Bottling Company plc, Bel Papyrus Limited and Vita Foam. Others are Aarti Steel Nigeria Limited, Kwale Rubber Company Limited and Western Metals Products Company Limited, among others.

On the other hand, firms owed above N30 million were Araromi Rubber Estates Limited, Cement Company of Northern Nigeria, Everest Metal Nigeria Limited, Sapele Integrated Industries Limited, African Textiles Manufacturing Limited and African Foundries Limited. Others are Friesland Campina Wamco Nigeria plc, New Star Metal, Armada International Limited, among others.

Having paid N5 billion, Tunde Oyelola, chairman, Manufacturers Association of Nigeria Export Group (MANEG), commended the Federal Goverment for placing the real sector at the top of its agenda but urged them to tell exporters when they will pay the next batch.

“We need to know when we can utilise the rest of the NDCCs. We plead with the government to intimate us with their plans because export requires planning and is not a guess game,” Oyelola said.

ODINAKA ANUDU