The European Union
(EU) Ambassador to Nigeria and ECOWAS, Michel Arrion, says EU will not
increase its financial assistance to Nigeria.
Mr. 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 has enough resources to meet its developmental needs.
While expressing
concern on the economic level of the country, Mr. Arrion called for a
more equitable distribution of the nation's wealth to ensure growth and
stability and unleash its enormous economic potentials.
He explained that the combined aide to Nigeria was 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 corresponds roughly to about 10 per cent
of the federal budget (N7.3 trillion or $24 billion).
This, he said, has raised the question of should EU continue to give aide to Nigeria?
"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.
Mr. 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,
the 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.
(NAN)
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