The European Union is investing €1.3 billion in the Nigerian agricultural sector. This was disclosed in Lagos by the head of the European Union Delegation to Nigeria and the Economic Community Of West African States (ECOWAS), ambassador Isamuela Isopi, during the official launch of team Europe.
The launch was disclosed to be part of the activities that marked the 8th edition of EU-Nigeria Business Forum that was held in Lagos between June 30 and July 1st, 2022, with the theme ‘Nigeria and the New Economy’.
The TEI- Green economy would put forward innovative, modern solutions to established sectors like agriculture as a new growth engine. According to ambassador Isamuela Isopi, she disclosed that the launch of the TEI-Green economy will bring together projects that would create jobs for unemployed youths and accelerate economic growth in the country.
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In her words, “We launch the TEI-Green Economy, which brings together projects and measures of access to finance, promoted and funded by the EU, the EU member states and EU Development finance institution with the objective to achieve low carbon, resource-efficient and climate-resilient development that would create jobs for the youth and accelerate economic growth through the development of climate-smart agriculture, as well as the circular digital economy”.
The aim of this objective is built on three (3) pillars, which are, the expansion of renewable smart energy, the development of climate-smart agriculture, and the sustainable transformation of Agri-SMEs in selected value chains.
Through the implementation of the TEI-Green economy, it is expected to yield the emergence of new, and existing growth in Agribusiness to achieve improved growth in production and exportation, as well as the improvement of smallholder livelihood through capacity building and investments.
The TEI-Green economy is also expected to reduce the loss of livestock and crop, as well as the improvement of food security. Indeed this partnership is loaded with so many benefits. Looking at the list of development that the TEI-Green economy will bring in the Agricultural sector, it will no doubt positively impact Nigeria’s economy.
Despite the fact that the agricultural sector in Nigeria has received few fundings from the government of Nigeria, it is still faced with a myriad of problems. With the Russian-Ukraine war that has led to severe famine in most countries in the African region, which is the worst hit, African countries need to revamp their agricultural sector so that they can start producing their food and quit the heavy reliance on foreign countries for food aid.
In Nigeria, the country has been ravaged by heavy reliance on the importation of food commodities which is affecting the economy. Hopefully, this partnership with the EU will improve the production scale of Agricultural commodities in the country as well as ensure that there is food security.
Also, looking at the high percentage of unemployed youths, the project will enhance the employability of Nigerian youth and women. This TEI program has been disclosed to run till 2027, hopefully before it elapses, a lot of transformation would have happened in the agricultural sector.
The EU, having observed Nigeria, identified agriculture as one of the backbone of the Nigerian economy, which was revealed to be providing the main source of livelihood for most Nigerians and contributing about 22 percent to the nominal GDP of the country.
Unfortunately, the country continues to rely on oil with so much dependence on the mineral resource. A nation cannot grow without the diversification of its economy. The EU, therefore, disclosed that its reason to invest in the agricultural sector, is to diversify it as well as help Nigeria attain the SDGs and put the country on a sustainable development path.