EU offers Nigeria $1.3bn to help diversify economy

The European Union (EU) and its development finance institutions have said they will provide Nigeria with 1.29 billion euros ($1.3 billion) to help the country diversify its economy away from oil.

According to Reuters, a document from EU showed that the funding will be provided until 2027 under the EU’s “Green Deal” initiative and will, among other things, focus on enhancing access to renewable energy and boosting the development of the agricultural sector.

Nigeria has been trying to broaden its economy and exports outside the oil sector, which accounts for about seven percent of Nigeria’s gross domestic product (GDP) and 90 percent 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 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 will receive funding, the EU stated.

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