British American Tobacco Nigeria has called on the Federal Government to reform the Export Expansion Grant scheme, describing it as a key step towards strengthening the country’s manufacturing competitiveness and export capacity.
According to a statement, the Managing Director of BAT West and Central Africa, Yarub Al-Bahrani, speaking during the 2025 edition of the BusinessDay CEO Forum held recently in Lagos, urged the government to replace the current promissory note mechanism under the EEG scheme with export credit certificates backed by annual budget allocations.
Al-Bahrani spoke on the panel themed ‘Driving Recovery Across Key Sectors.’ He said, “We urge the government to overhaul the EEG scheme by replacing promissory notes, which are proving administratively cumbersome, with export credit certificates backed by annual budget allocations. This would provide practical support to exporters.”
He added that the replacement would ease liquidity constraints for exporters and boost Nigeria’s external trade capacity.
While commending ongoing macroeconomic reforms such as forex unification and subsidy removal, Al-Bahrani noted that these policies had created both opportunities and challenges for manufacturers. He said, “At BAT Nigeria, our approach is clear: adapt fast, invest deeper, and build sustainably. True recovery is not just about surviving volatility but driving meaningful growth anchored in innovation, sustainability, and local empowerment.”
Al-Bahrani also revealed that BAT Nigeria had achieved over $300m in cumulative export sales between 2022 and 2024. According to him, the company’s Ibadan factory serves as a regional manufacturing hub, exporting to 13 countries, including the United States.
He stated that despite rising operational costs, the firm remains a net contributor to Nigeria’s economy, playing a role in shoring up the country’s external reserves.
On sustainability, Al-Bahrani showcased BAT Nigeria’s ‘A Better Tomorrow’ strategy, which focuses on five impact areas: Tobacco Harm Reduction, Climate, Nature, Circularity, and Communities.
“Our business is now focused on accelerating Tobacco Harm Reduction globally, with the ambition to generate at least 50 per cent of our revenue from smokeless products by 2035, products that have been scientifically shown to present reduced risks compared to traditional smoking,” he said.
He further noted that the company was on track to achieve 100 per cent renewable electricity in its Nigerian operations by 2030, powered by a 1.4 MW solar system and a fully Compressed Natural Gas energy solution at the factory.
Al-Bahrani also highlighted BAT Nigeria’s contribution to environmental and social initiatives, including its support for Lagos State’s N14.8bn Green Bond, waste-to-wealth programmes, and clean cookstove projects.
On tax and excise matters, he called for a more consultative and data-driven policy approach, warning that abrupt increases could harm legitimate businesses and encourage illicit trade.
He advised, “Sharp or unpredictable hikes can undermine formal businesses, dampen investment appetite, and fuel illicit trade. Policies should be rooted in Nigeria’s unique economic realities, not imported models from markets facing different macroeconomic conditions.”
Al-Bahrani welcomed recent fiscal reforms, including the consolidated tax framework and the planned reduction in Corporate Income Tax to 25 per cent by 2026. He described these changes as “steps in the right direction” that, if effectively implemented, could enhance Nigeria’s global competitiveness.
He concluded by positioning BAT Nigeria as a model of industrial resilience, saying, “With government support and a stable policy environment, Nigeria’s private sector can accelerate the nation’s transition from recovery to global relevance.”
The forum also featured business leaders and policymakers such as President of Dangote Group, Aliko Dangote; Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Chief Executive Officer of KPMG West Africa, Tola Adeyemi; Chief Executive Officer of ReelFruits, Affiong Williams; and Chief Executive Officer of Renaissance Energy, Tony Attah.
