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UK, Nigeria sign deal to strengthen economy

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By Abiodun Okunloye

Nigeria's ₦589bn deal to enhance governance and various economic sectors.

The federal government of Nigeria and the United Kingdom have made a notable advancement in their partnership by signing a series of agreements valued at about ₦589 billion. These partnerships address key sectors such as governance, climate change, health, education, and economic development. In Abuja, the official agreement was signed by Nigeria’s Minister of Budget and Economic Planning, Senator Abubakar Bagudu, alongside the UK’s Charge d’Affaires, Cynthia Rowe, as representatives of their nations. This partnership signifies an ongoing bond between the two countries, emphasising a stronger commitment to addressing urgent global and domestic challenges.

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Bagudu recognised the significance of these agreements, particularly considering the economic difficulties that many nations, including the UK and his own, are encountering. He emphasised that this partnership reflects the UK’s determination to assist the nation during these challenging periods, even in light of the economic limitations faced by both countries. A key aspect of the agreements is recognising that health, climate change, and governance go beyond national borders. Recent events, including the COVID-19 pandemic, have underscored the global nature of these challenges, highlighting the interconnectedness of countries in Public Health and other critical sectors.

Tinubu’s economic reforms aim to boost domestic and foreign investment.

Also, the agreements demonstrate a consensus that collaborative actions are essential to tackle challenges such as forced migration, warfare, and the consequence of climate change, which, if not appropriately managed, could result in distractions across regions. Bagudu emphasised the recent economic changes that President Bola Tinubu’s government implemented, noting that although these measures might bring about some challenges, they are integral to a comprehensive plan for ensuring macroeconomic stability. These reforms are expected to encourage domestic and foreign investment, essential for the country’s economic advancement and development.

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Furthermore, the pacts established with the UK are viewed as essential for providing the necessary backing for the nation to address its growth issues, as no nation can tackle these challenges independently. The United Kingdom has consistently backed the country over many years, and this new partnership enhances earlier investments. Cynthia Rowe commended the country for its collaborative spirit, especially during recent natural disasters like floods that affected several states. The relationship between the two nations goes beyond financial support, with the UK engaged in multiple areas of the region’s growth, mainly through the Foreign and Commonwealth Development Office (FCDO).

Multiple economic agreements were signed between the two countries.

These initiatives have involved actions to enhance human development, promote peace, and drive economic change, all essential for the country’s stability and progress. The Human Assistance and Resilience Program (HARP) is an essential element of the accords, featuring a three-year financial plan of ₦324 billion (£150 million). This program is designed to deliver vital humanitarian assistance, especially in the northeast region, where conflict and displacement have rendered millions at risk. A vital part of the partnership is the Nigeria Governance and Climate Change Programme, which has a budget allocation of ₦84 billion.

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This initiative aims to collaborate with the federal government to tackle governance and climate-related challenges, particularly emphasising support for the most at-risk communities. Additionally, it strives to strengthen state governments’ capacity to boost Revenue from local sources and incorporate climate strategies into their policies and financial plans. The pact additionally encompasses the Strengthening Peace and Resilience in Nigeria (SPRING) initiative, which aims to mitigate conflict and enhance Security in rural communities. With a financial allocation of ₦82 billion, this program seeks to foster peace and bolster Climate Resilience in particularly unstable areas of the northern part of the region.

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Additional agreements include the ₦8.3 billion allocated for Equipment Support for Health Training Institutions (ESHTI); ₦41 billion designated for Climate Resilient Infrastructure for Basic Services (CRIBS); ₦26 billion aimed at Building Resilience in Nigeria’s Nutrition Stockpile (BRINNS); and ₦24 billion committed to Strengthening Humanitarian Access in Nigeria (SHAN). The UK’s engagement in the nation’s progress extends beyond providing support. The Manufacture Africa initiative is designed to foster comprehensive economic change. With a funding budget of ₦151 billion, this program aims to offer technical assistance to various African nations to enhance employment opportunities and promote sustainable economic development.

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