Nigeria secures $12 million US support to boost financial transparency

The Federal Government of Nigeria has announced a significant $12 million commitment from the United States aimed at enhancing transparency in the management of public finances. This was disclosed by Yusuf Tuggar, the Minister of Foreign Affairs, during a ministerial sectoral briefing in Abuja on Tuesday. The briefing outlined the challenges and achievements of President Bola Tinubu’s administration in its first year.

“As an outcome of the US-Nigeria engagement, the US has committed to contributing at least $12 million to Nigerian efforts to increase the transparency of public financial management and to support civil society efforts to promote government transparency,” Tuggar stated.

Tuggar also revealed that the US has agreed to repatriate stolen Nigerian funds, which will be reinvested in Nigeria’s public sector through the African Development Bank (AFDB).

“Repatriated funds from the US will be utilised for investment in Nigeria’s public sector via the AFDB,” he mentioned.

Highlighting some of the administration’s achievements, the Minister noted the establishment of a Joint Business Council with Qatar to facilitate trade partnerships, investment opportunities, and economic growth. Among the notable achievements are a €250 million investment from the Netherlands, $14 billion in investment commitments from Indian investors across various sectors, and a $2 billion investment with Germany for the Nigeria-Siemens Power Project.

Other significant agreements highlighted by Tuggar included a $500 million memorandum of understanding (MOU) for exporting liquefied natural gas (LNG) to Germany and multiple MOUs with France worth $600 million to promote digital technology and creative industries.

The ministry has also engaged over 300 stakeholders domestically and internationally to create opportunities for Nigeria’s youth. This includes an MOU with India’s Lab Four to provide 50,000 full-time business process outsourcing (BPO) jobs to Nigerians over the next three years. Agreements have also been signed with Qatar regarding the employment of Nigerian workers, and with the U.S. to prioritise the movement of people under the bilateral extradition treaty.

Tuggar further disclosed that discussions with the European Union (EU) are ongoing to address the return, readmission, and reintegration of Nigerians who do not fulfil entry conditions.

The Minister also noted the administration’s progress in diaspora engagement, implementing the National Diaspora Policy and registering over 10,890 Nigerians in the diaspora database.

“There have been engagements with over 300 diaspora professionals, and efforts have been made to repatriate Nigerians detained in Addis Ababa, Ethiopia. Consular services are being digitalised to improve service delivery, with a pilot launched at Nigeria’s High Commission in London,” Tuggar said.

On the democracy front, Tuggar noted that Nigeria has taken a leadership role within ECOWAS to promote peace and security in the region, underscoring the country’s commitment to upholding democratic principles across Africa. He emphasised that the administration’s commitment to democracy, regional stability, and the welfare of its citizens underscores its holistic approach to governance and international relations.

Significance of the Support

Nigeria has long been grappling with issues related to financial transparency and corruption, which have significantly impeded economic growth and development. Efforts to improve transparency in public finance management have been ongoing, with various reforms and initiatives introduced to enhance accountability and reduce corruption.

The $12 million commitment from the US aligns with Nigeria’s broader strategy to strengthen its financial systems and ensure that public funds are managed more effectively. This funding is expected to support the implementation of robust financial management systems, promote civil society engagement, and reinforce mechanisms that ensure greater transparency and accountability in the use of public resources.

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