EU puts $1.35b on the table to fund agriculture, renewable energy, job creation
By Jeph Ajobaju, Chief Copy Editor
Nigeria has been offered €1.29 billion ($1.3 billion) by the European Union (EU) and its development finance institutions to help diversify Africa’s largest economy from oil into agriculture, renewable energy, and create jobs.
The money, however, will add to Nigeria’s debt which reached N41.60 trillion in March.
Reuters cited a document from the EU which shows the funding will be provided until 2027 under the EU’s “Green Deal” initiative and will, among other things, focus on enhancing access to economic sectors apart from oil.
Nigeria has been trying to broaden its economy and exports outside the oil sector, which accounts for about 7 per cent of its Gross Domestic Product (GDP) and 90 per cent of its foreign exchange (forex) earnings.
“In parallel, the European Investment Bank (EIB) sovereign lending will support the agri-food sector access to markets by financing rural roads, as well as climate adaptation and mitigation efforts,” the EU said.
About 60 projects, including nature-based measures to reduce climate change vulnerability, combating deforestation and desertification, and a waste-to-energy initiative in Cross River will receive funding.
Samuela Isopi, EU Ambassador to Nigeria and Economic Community of West African State ECOWAS), elaborated on the plan at the launch of Team Europe Initiative (TEI) at the eighth EU-Nigeria Business Forum in Lagos.
She said the initiative will help Nigeria achieve low carbon, resource efficient and climate resilient development, job creation for youths and economic growth, focusing on climate-smart agriculture, circular and digital economy, and improving competitive advantage of agriculture.
_________________________________________________________________
Related articles:
Nigeria records €6b surplus in €28b trade with EU
EU seeks to buy more gas from Nigeria
US assures Nigeria of priority access to its market
__________________________________________________________________
Green Economy Project
Isopi disclosed that TEI Green Economy Project members include Denmark, France, Germany, and The Netherlands, and 60 different projects will be executed across the agricultural and energy sectors value chain.
She said the work is already underway and will continue through 2027 and gave an assurance to stakeholders that the EU will continue to support economic diversification in Nigeria, per reporting by ESI Africa.
“In line with the EU’s Green Deal, the Green Economy Initiative will support the Nigerian government’s efforts to diversify the economy by combining support to enhance access to renewable energy for productive uses and boosting the development of the agricultural sector while integrating circular economy principles in the development models.
“Collectively, the actions will help Nigeria attain its SDGs and put the country on a sustainable development path,” Isopi added.
