EU withdraws financial support for Nigeria?

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 IBB Golf Club, 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.

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 IBB Golf Club, 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.