EU Withdraws Financial Support for Nigeria

The European Union has revealed it will not
increase its financial assistance to Nigeria
anymore saying that the country is not
poor.

The European Union (EU) Ambassador to
Nigeria and ECOWAS, Mr Michel Arrion says
EU will not increase its financial assistance
to Nigeria.
Arrion made this known in Abuja while
delivering a Distinguished Lecture organised
by the , with the theme “40 years of
European union in Nigeria: Lessons learned
and the way forward”.
The ambassador who said that EU was not
promising further assistance to Nigeria
however said that Nigeria remains EU key
partner in view of the role it plays in global
affairs.
The envoy also stressed that the Union
would scale up its efforts towards the
country’s institutional, political and
economic development for a more
prosperous future.
He said that Nigeria could not be said to be
poor, as it is has enough resources to meet
its developmental needs.
While expressing concern that on the
economic level of the country Arrion called
for a more equitable distribution of the
nation’s wealth to ensure growth and
stability and unleash its enormous economic
potentials.
Arrion explained that the combine aides to
the country were about ten per cent of the
country’s annual budget.
According to him, the Official Development
Assistance (ODA) flow in Nigeria is about
2.5 billion dollars yearly, which correspond
roughly to about 10 per cent of the federal
budget (N7,3trillion or 24 billion dollars).
This, he said has raised the question of
should EU continue to give aide to Nigeria.?
Arrion, however said the regional block
would scale up its efforts towards the
country’s institutional, political and
economic development for a more
prosperous future.
“We are not offering more financial support,
we are proposing more political and policy
dialogue, technical assistance, capacity
building, training, transfer of technology.
We also proposing more advocacies for
more private investments and other
innovative sources of funding,” the EU envoy
said.
The envoy therefore called for improving in
tax collection to finance the development of
the country.
According to him Nigeria must find
alternative funding to ODA including
improved tax collection which must be
improved at least five times more and also
spend better.
Quoting Price Water Cooper (PwC 2016), he
said: “Nigeria collects about N5.5 trillion or
18 billion dollars per year.
“About 10 million people (10 per cent of
adult population) are registered for personal
income tax (half of them in Lagos).
“The rate of VAT compliance by registered
entities is about 12 per cent. The rate is
lower for corporate income tax nine per
cent.”
He also said Nigeria must attract more
foreign investment five times more, to reach
the level of Angola or Vietnam for instance
and put in place more and better Public
Private Partnerships.
Arrion said the evolution of vibrant
relationship of equal partners between
Nigeria and the EU was founded on shares
values and aspirations and mutual trust.
According to him EU in its 40 years of
engagement with Nigeria has identified
development priorities, funded projects to
stimulate the Nigeria’s economy, reduce
hunger and disease.
He said that the union had also helped to
enhance institutional capacities, strengthen
governance and fight insecurity in Nigeria.

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