Economic Growth and Environment
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| Rice farmers (top) and Clean water faucets for girl students (bottom). Photo by Jide Adeniyi-Jones |
Nigeria has enjoyed relatively strong economic growth over the past seven years but poverty is still a major concern. While oil accounts for 95% of export earnings and 85% of government revenues, agriculture which employees 70% of the population accounts for only 2.6 percent of exports. Economic growth in Nigeria is constrained by inadequate infrastructure, electricity, incentives and policies that promote private sector development, and poor access to quality education.
Sustained broad-based economic growth and poverty reduction are critical to Nigeria’s economic stability. USAID/Nigeria programs to support the Government of Nigeria’s poverty alleviation efforts are focused on improving agricultural productivity and expanding jobs in the rural sector where the majority of poor people are concentrated. The rural sector depends principally on agriculture but also on good infrastructure such as roads, ports and energy and good policies at both the federal and state levels. USAID's Economic Growth program supports the efforts of the Government of Nigeria (GON) and the country's private sector to improve agricultural productivity and market access, increase the country's energy supply, reduce obstacles to trade and expand access to clean water.
AGRICULTURE
The agriculture program concentrates on building private sector demand driven value chains for selected commodities—those that have a ready market, local or export, with value-added possibilities and can generate employment. The program seeks to develop partnerships with private sector firms involved in processing, agricultural input supply and that are interested in expanding exports to the West African region, the United States and other international markets. The EG flagship agriculture program, Maximizing Agricultural Revenue and Key Enterprises in Targeted Sites (MARKETS), supports the GONs efforts to increase rural incomes and jobs through private sector demand-driven value chain activities; evidence-based development of sector policies; and support to the GONs commitment to the Comprehensive African Agriculture Development Program. Other EG managed agriculture instruments include: Expanded Access to Services for Agricultural Enterprises (EASE); Program for Bio-Safety (PBS); Support to the United States Department of Agriculture Foreign Agriculture Service; and The Nigeria Strategy Support Program.
TRADE AND TRANSPORT
USAID/Nigeria works closely with the GON to implement activities that promote increased trade. These activities include assistance to the National Customs Service (NCS) for customs reform and modernization, reducing Lagos seaport congestion and increasing transport flows along the LKAJA (Lagos, Kano Jibiya) Transport Corridor beginning with the port of Lagos; and building trade capacity at the Ministry of Commerce and Industry. At the same time, assistance is also provided to private enterprises through the Nigerian Expanded Export Program (NEEP) to stimulate exports by providing export-ready private enterprises with expertise and training in key areas such as access to finance and export competitiveness and linkage to international markets and partners.
ENERGY
Nigeria’s economic growth is also constrained by insufficient electricity generation capacity which results in a lack of reliable and affordable supply of power. At the same time, Nigeria flares considerable amounts of associated gas, a by-product of offshore crude oil extraction, and generates significant greenhouse gas emissions while there is tremendous need for clean power generation onshore. To reduce gas flaring and increase generation of clean energy generally through greater private sector participation, USAID/Nigeria is supporting the GONs President’s Task Force on Power Reform as well as the Nigerian Electricity Regulation Commission to better manage the sector.
WATER AND SANITATION
Access to clean water and improved sanitation facilities is a daily challenge for many Nigerians. This problem is particularly acute in northern Nigeria, where only 30% of the population has access to safe drinking water and adequate sanitation. This situation leads to a high prevalence of waterborne diseases, threatens the livelihoods of smallholder farmers, and contributes to low levels of school enrollment, especially among girls. USAID/Nigeria, in partnership with a local NGO, the Women Farmers Advancement Network (WOFAN), is increasing community access to safe water, sanitation and hygiene education in at least 22 communities in Bauchi and Kano States. There is a similar activity in Enugu State with Society for Family Health (SFH) implementing the Water and Development Alliance in a Public Private Partnership with Coca-Cola. USAID/Nigeria is also supporting the development of the legislative and institutional framework for the Bauchi State Water Board to have operational and financial autonomy, accountability and efficiency for achievement of cost recovery.
Expected Results:
- Improved policy envrionment for planning and investment in key economic sectors
- Improved economic performance of the agricultural sector through private sector demand driven value chain activities for selected commodities
- Reduction in environmental damaging flared gas and increased energy supply in support of the GON’s Road Map for Power Sector Reform
- Improved internal/external trade, customs, and agricultural transportation routes
- Accelerated participation of the very poor in economic development
- Improved nutritional status of the poor and very poor in key states
Activities Include:
Bridge to Maximizing Agricultural Revenues and Key Enterprises (MARKETS) II
Life of Project: 2011 -2012
Funding: $9.7m
Implementing Partner: Chemonics International Inc.
Geographic Focus: 23 states
Life of Project: 2010- 2013
Funding: $1.3m
Implementing Partner: Partners for Development
Life of Project: 2009- 2019
Funding: $2,264,320
Implementing Partner: Women Farmers Advancement Network
Geographic Focus: Bauchi and Kano states
