Overview

The Export (Incentives and Miscellaneous Provisions) Decree 1992 (Decree No. 65) is an amendment to the principal act Cap.118 LFN, enacted on 19th November 1992 by the Federal Military Government of Nigeria. The decree introduces significant changes to export incentives and regulations. Section 1 amends the retention of export proceeds: Nigerian exporters may now retain all their export proceeds in foreign currency in a Nigerian bank account, overriding any contrary provisions. This retention must be effected upon receipt of the foreign exchange in Nigeria, and the funds are to be used for export-related activities as prescribed by the Nigerian Export Promotion Council in consultation with the Central Bank of Nigeria. Section 2 vests the administration of all incentives exclusively in the Nigerian Export Promotion Council, removing any other government body or authority from such responsibility. Section 3 deals with the exportation of raw or unprocessed commodities. It mandates that all raw or unprocessed goods (mineral or agricultural) are exportable upon payment of a levy prescribed by the Council. Additionally, exports no longer require an export license, provided foreign exchange regulations are complied with. Subsections (3) and (6) of the principal act are deleted, and subsections (4) and (5) are renumbered as (3) and (4). Section 5 amends the use of the Expansion Fund: it now provides cash inducements for exporters of semi-manufactured or manufactured products, based on the value of their products as prescribed by the Council. The inducements aim to increase export volume and value, and to diversify export products and markets. Section 6 deletes the existing subsection (6) from the principal act. A new section 6A is inserted, requiring exporters who wish to benefit from duty drawback, duty suspension, or manufactured-in-bond schemes to direct their applications to the Nigerian Export Promotion Council. Overall, the decree centralizes export incentive administration, liberalizes export licensing for raw materials (subject to levies), enhances foreign currency retention for exporters, and streamlines access to incentive schemes.

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