Michel Arrion, the European Union (EU) ambassador to
Nigeria and ECOWAS, says EU cannot promise further
financial assistance to Nigeria.
Arrion made this known at a lecture which the IBB Golf
Club organised in Abuja.
The lecture had as its theme: ‘40 years of European
Union in Nigeria: Lessons learned and the way
forward’.
Arrion said Nigeria remains EU key partner in view of
the role it plays in global affairs.
The envoy added that the union would scale up its
efforts towards the country’s institutional, political and
economic development for a more prosperous future.
He said Nigeria could not be said to be poor, as it has
enough resources to meet its developmental needs.
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 combine aides to the country
were about ten percent of its country’s annual budget.
According to him, the official development assistance
(ODA) flow in Nigeria is about $2.5 billion yearly,
which corresponds roughly to about 10 percent of the
federal budget (N7,3trillion or $24 billion).
This, he said has raised the question of should EU
continue to give aide to Nigeria.
Arrion, however, said the regional block would scale up
its efforts towards the country’s institutional, political
and economic development for a more prosperous
future.
“We are not offering more financial support, we are
proposing more political and policy dialogue, technical
assistance, capacity building, training, transfer of
technology,” he said.
“We also proposing more advocacies for more private
investments and other innovative sources of funding.”
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 percent 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.
Arrion said the evolution of the vibrant relationship of
equal partners between Nigeria and the EU was
founded on shares values and aspirations and mutual
trust.
According to him EU in its 40 years of engagement
with Nigeria had identified development priorities,
funded projects to stimulate the Nigeria’s economy,
reduce hunger and disease.
He said the union had also helped to enhance
institutional capacities, strengthen governance and
fight insecurity in Nigeria.
TheCable
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