EU Set to invest $1.3 billion in Nigeria’s agric sector, renewable energy

The European Union (EU) has expressed its readiness to financially support the agricultural sector in Nigeria, as a way to encourage the African country’s diversification of its economy away from oil.

Nigeria, an oil dependent nation, earns 90% of its foreign currency from oil, which contributes 7% to the country’s gross domestic product. The impacts of this dependency on oil on the country’s revenue during the meltdown of the oil industry during COVID-19 breakout have been so grave.
Successive administrations of Goodluck Jonathan and Muhammadu Buhari had talked about diversifying the economy, in order to minimise the exposure of the economy to the oil industry with the attendant implications.

The EU determines to play a role in this path away from oil by providing $1.3 billion financing for different projects in Nigeria that will include agricultural development, road network, and the renewable energy, reducing dependence on fossil fuel and managing climate change. Part of the funds will also go to waste-to-energy initiative in Cross River State, as well as combating deforestation and desertification.

The capital is part of the “Green Deal” initiative, of the EU, and the funding will run until 2027, covering 57 pronects, according to a report by Reuters on Monday.

“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.” the EU said.

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