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Nigeria receives N2.08trn from global agencies

By on June 27, 2013

Nigeria has received a total of N2.08 trillion ($13 billion) from international donor agencies under the Country Assistance Framework, CAF, as at the end of 2012, according to a report on CAF programme for the Federal Republic of Nigeria.

According to the report sighted by  Vanguard, the fund was invested in key sectors of the economy, ranging from agriculture, water and sanitation, governance, environment, infrastructure, human development among others.

The international donor agencies which constitute CAF are: World Bank, African Development Bank, International Monetary Fund, United States Agency for International Development,Canadian International Development Agency, Embassy of Japan.

Others are Embassy of China, European Union, High Commission of India, Japan International Cooperation Agency, United Nations System and Agence Francaise de Development.

A breakdown of the distribution of the funds shows that Agriculture received $1.33 billion, water sanitation — $1.795 billion, governance-$1.89 billion, infrastructure-$3.72 billion, human development -$3.131billion , multi-sector $15.74 million, private $553.15 million and environment -$540 million .

According to the report, the lack of official data at state level, with harmonized definitions and classifications comparable to those for the federal government is an issue which the country needs to tackle.

This further complicates the formulation of fiscal policy and the monitoring of its implementation at different levels of government.

On the risk and migration strategies in Nigeria, the report noted that there are several risks to the CAF’s implementation, including insecurity, a politically fluid situation leading to the 2015 elections, vested interests, regional  instability, as well as economic volatility related to the fluctuation of oil prices.

It added that it also aims to be candid about identified risks and their impact – direct or indirect – on its implementation and states that the most important risk pertains to the security which remains challenging.

On the lingering global financial crisis, the international donor agencies also affirmed that Nigeria made a major step in responsible macroeconomic management by creating the Excess Crude Account, ECA, as a fiscal reserve fund in 2004 which was subsequently used to finance a fiscal stimulus package that maintained economic demand and rapid growth.

However, they noted that the remaining institutional vulnerabilities surrounding the ECA which surfaced visibly when political pressures led to excessive ad hoc withdrawals from the ECA, places Nigeria’s reserve position and financial stability at risk.

The States Governors Forum is also part of what CAF seeks to support as a state-level platform for dissemination of knowledge and experience and provision of flexible support to strengthen the capacity of state-level systems.

 

 

[Vanguard]