Democracy and Governance in Nigeria
The Development Challenge: Despite a political transition to democracy in 1999, Nigeria continues to face enormous challenges. Two-thirds of the country's citizens live in poverty; corruption is endemic, with Nigeria perceived as the third most corrupt country of 102 assessed by Transparency International; unemployment is growing, with up to 40% of urban youth jobless; half of the adult population is illiterate; close to four million Nigerians are HIV-positive; and 20% of children die before the age of five. Although Nigeria is a major oil producer, oil revenues amount to less than $100 per capita per year and provide little benefit to the majority of Nigeria's 133 million citizens.
In the second year of his final term in office, Nigerian President Olusegun Obasanjo has strengthened and intensified initiatives launched to address these challenges after his democratic re-election in May 2003. The National Economic Empowerment and Development Strategy (NEEDS) has been adopted as the country's poverty reduction plan, and a number of Nigeria's 36 states are designing state poverty reduction plans, a crucial step given that states manage 51% of budget resources and provide essential services to their citizens. A national poverty survey undertaken over the course of the year suggests a small reduction in the proportion of Nigerians living in poverty but it is too soon to judge the impact of the NEEDS or to suggest that the trend is sustainable.
Over the past year, these poverty reduction plans have been accompanied by intensified efforts to combat corruption. The House of Representatives and the judiciary have adopted codes of conduct and the House has also passed the Freedom of Information Act. The Budget Office of the Federation has instituted transparent budget policies and processes and the Economic and Financial Crimes Commission, established in 2003, is investigating over 1,000 reported offenses. President Obasanjo has committed Nigeria to participating in the Extractive Industries Transparency Initiative and the G-8's Transparency and Anti-corruption Initiative, and civil society organizations are demanding greater responsiveness and accountability from the institutions that serve them. Fighting corruption is also a core element of NEEDS.
The Nigerian government recognizes the gravity of the unemployment problem, and has made job creation a priority under NEEDS. Agriculture provides a livelihood for at least half of Nigeria's people and revitalization of the agricultural sector holds out the greatest promise for growth in employment. Increased productivity and value-added processing of agricultural products for both food consumption and industrial use have the potential to generate significant employment and first steps have been taken to realize this potential in the cassava sector.
Nigeria is committed to implementing universal basic education and attaining the Millennium Development Goal of education for all. The 2004 Educational Data survey showed encouraging trends in the mean number of years of schooling achieved by Nigerians and in the high degree of acceptance by Nigerian parents regarding the teaching of HIV/AIDS awareness and prevention in school, even at the primary level. Nigeria has also stepped up its efforts to combat HIV/AIDS and improve child survival. States in the northern part of the country have resumed polio eradication efforts, vaccines to prevent other childhood killer diseases are now available, and treatment and prevention options for malaria are increasingly accessible through innovative private sector and voucher redemption programs.
Regional conflict, HIV/AIDS, continued democratic advancement, terrorism and crime - including trafficking in persons - and sustainable economic growth are the principal U.S. national concerns and interests in Nigeria. The country's role as a major supplier of oil to the US and as a key trading and investment partner also stand out. Increasingly, Nigeria plays the lead role in fostering peace and stability in the region and elsewhere on the African continent.
The USAID Program: USAID launched the 2004-2009 Country Strategic Plan on January 1, 2004, and signed four Strategic Objective Grant Agreements with the Government of Nigeria on June 30, 2004. These agreements, for programs in democracy and governance, agriculture and economic growth, integrated social sector services, and HIV/AIDS treatment, prevention, care and support, reflect the four objectives that form the core of USAID's strategic approach over the next five years. These objectives were designed to address the core development challenges in Nigeria, as outlined above.
USAID's democracy and governance objective will empower civil society to demand openness and accountability on the part of its government, and equip selected government institutions to respond to those demands. Ethnic, religious and resource-based conflicts remain enormous problems in Nigeria and the USAID program will support both public and civil society efforts to respond to these problems. In support of the Presidential Anti-Trafficking in Persons Initiative, USAID will undertake rehabilitation of formerly trafficked persons, and advocacy efforts. Under the Constitution President Obasanjo cannot stand for election again in 2007, and with would-be successors already announcing their candidacies, the next elections will be the true test of Nigeria's young democracy. Significant resources will be needed to ensure transparent and professional implementation.
(Excerpted from the 2006 Congressional Budget Justification for Nigeria)
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