EU offers Nigeria $1.3 billion to help diversify its economy

Nigeria will receive 1.29 billion euros ($1.3 billion) as support from the European Union (EU) to help diversify its economy away from oil.

According to Reuters, a document from the EU on Monday showed that the funding will be provided until 2027 under the EU’s “Green Deal” initiative.

It will, among other things, focus on enhancing access to renewable energy and boosting the development of the agricultural sector in the country.

The funding will cover about 57 projects, including nature-based measures to reduce climate change vulnerability, combating deforestation and desertification, and a waste-to-energy initiative in Cross River State.

Over the years, the Nigerian government has tried to diversify its economy away from oil but has achieved very little success.

Oil revenue accounts for more than 50 per cent of government earnings and 90 per cent of its foreign exchange revenues. Oil ahd gas contribution to the gross domestic product (GDP) is however less than 10 per cent.

“In parallel, the EIB (European Investment Bank) sovereign lending will support the agri-food sector access to markets by financing rural roads, as well as climate adaptation and mitigation efforts,” Reuters quoted the document as stating.