EU-Nigeria Partnership

Andris Piebalgs, who was then the EU development commissioner, in a discussion with Bashir Yuguda, Nigeria’s supervising minister for national planning, during the signing of the 2014-2020 EU national indicative program for Nigeria in Nairobi, Kenya. Photo by: European Union Despite abundant natural resources and having one of the highest growth rates in Africa at over 6 percent, conditions in Nigeria remain critical. Problems in governance and limited access to the most basic services have led to poor socio-economic indicators. The country suffers from high infant and maternal mortality, as well as high malnutrition rates. An estimated 60 percent of the population lives below the poverty threshold and high unemployment among young people has reached alarming levels. The northern states are of particular concern due to prevalent conflict and instability caused by extremist activities. The Nigerian government is currently in the process of implementing policy reforms and is increasing allocations at both the federal and national levels to support governance and enable sufficient delivery of basic services. Line ministries, including the federal ministries of health, power, agriculture and education, are already carrying out measures to improve service delivery in their respective sectors. Meanwhile, privatization is taking place in areas that are seen as essential to economic progress such as telecommunications and electricity. The government is also placing emphasis on reducing oil dependence and attracting investments especially in agriculture and food production. The European Union recently released a national indicative program for Nigeria, which covers fiscal years 2014-2020. The new partnership strategy is aligned with the government’s development approach, dubbed 20:2020 Vision and Transformation Agenda, and will continue to build on the EU’s previous achievements in the West African state. Funding levels Total funding for the 2014-2020 period amounts to 512 million euros ($551.73 million). This is financed by the A-allocation from the 11th European Development Fund, and will be used for macroeconomic support, strengthening sectoral policies as well as implementation of EU programs and projects. Allocations from the 10th EDF covered fiscal years 2009-2013 and amounted to 700 million euros. Programs under the previous financing are still being implemented and will continue to be carried out alongside the EU’s new initiatives. A B-allocation will also be made available for unforeseen expenditures, such as humanitarian assistance, emergency assistance and recovery measures, and debt relief contributions. The amount for the B envelope will be determined as the need arises. Both A and B allocations may be revised on the basis of midterm and end-of-term reviews. Funding priorities In line with the government’s strategy, the EU will focus its resources on the health, energy and governance sectors. Detailed below are the activities included in these three main areas of engagement under the new partnership strategy. Health, nutrition and resilience (240 million euros): Interventions in this area will focus on improving policies and institutional governance. Public institutions will be strengthened to enhance the quality and reach of primary health care services and immunization campaigns. The EU will also provide assistance to the government in crafting a sector policy framework that ensures food security for children below 5 years of age and supports pregnant and breast-feeding women. Strong emphasis will be placed on the northern region of Nigeria. Sustainable energy and access to electricity (150 million euros): Activities in this sector will build on previous efforts carried out under the 10th EDF, which were focused on renewable energy, energy efficiency and rural electrification. The 11th EDF will finance activities that improve access to sustainable energy for the poor and least-developed states, particularly in the northern region. Specifically, the EU will focus on building capacity in relevant government institutions for developing policies and regulations to improve the overall performance of the energy sector. Investments in infrastructure will likewise be made in order to increase access to renewable energy sources. Rule of law, governance and democracy (90 million euros): The EU will seek to improve economic governance, strengthen the rule of law, address peace and security issues, support democratic processes, and improve management of migration and mobility. Particular focus will be given toward improving electoral processes as an added assistance to democracy in Nigeria. Below is a breakdown of all indicative funding allocations under the 2014-2020 EU national program. Devex analysis Nigeria is the largest economy in Africa with huge oil production capabilities and is a key trade partner of the EU. The country has also become increasingly involved in peace and security operations in the West African region, and is likely to receive funding from the 28-member bloc even beyond 2020. But while the EU, along with the rest of Nigeria’s top development partners, continues to commit large sums in favor of development initiatives in the West African state, serious threats of terrorism and violence caused by militant group Boko Haram remain as huge impediments to aid efforts. A recent attack in the town of Baga has prompted the EU to limit its operations in areas under terrorist control. The EU has stated that in order to effectively deal with the security situation in the northern states, the root causes of poverty must be addressed as poor social conditions contribute largely to enabling terrorist recruitment. The 28-member bloc fears that continued instability in northern Nigeria, as well as from neighboring countries in the Sahel and the Gulf of Guinea, could undermine the scope and impact of its aid programs. It is therefore anticipated that emergency financing from the B-envelope will play a crucial role in responding to these threats. The EU has been making a concerted effort to enhance peace and security in Nigeria, and is poised to continue doing so throughout this funding period. From 2009-2013 EU allocated about 200 million euros for peace and stability, poverty reduction and job creation for the youth, especially for ex-militants in the Niger Delta. Currently, the EU Humanitarian Aid and Civil Protection department is funding programs for food security and nutrition in the northern region, while providing support for internally displaced people and refugees. Contact Delegation of the European Union to Nigeria and ECOWAS Tel: (234-9) 461-7800 Fax: (234-9) 461-7836 Email: