Why is UN supporting Nigeria with $250m?

Typically, the United Nations is very shrewd when it comes to supporting government projects across the world. The world body usually looks at people-oriented programmes before it commits.

In the case of the N2.3 trillion Economic Sustainability Plan (ESP) initiated by Vice President Yemi Osinbajo, the UN did not waste any time in supporting the programme with $230 million.

 

The ESP is a coronavirus pandemic stimulus plan which President Muhammadu Buhari asked Prof. Osinbajo to execute. The plan seeks to impacts millions of Nigerians especially artisans, private schools, manufacturing/production sector, MSMEs and others.

 

Before the UN threw its weight behind the ESP, it needed to be sure that the grand plan put together by Osinbajo was properly executed. Where people receiving the money budgeted? Did they have to pay bribe? Did they have to know anyone in government? These were the questions the UN was looking at and in small measures all those questions have been answered.

 

A component of the ESP is the Survival Fund. The scheme has already begun paying N30,000 one-time grant to artisans. Note, this is a grant and not a loan. The artisans are expected to use it support their businesses. This grant is for commercial bus and cab drivers, carpenters, tailors, mechanics, vulcanizer, etc.

 

When the UN did it due diligence it realized that many of those who have received the grant did not know anyone in government, did not pay bribe and most importantly were credited directly. There are no middlemen and no agents.

 

Accepting the UN’s offer, Prof Osinbajo said it aligns with the government’s plan. He said the government seeks to mobilize close to $250 million and will provide targeted support to the development of health response systems ($13.78 m); protecting people ($53.3); macroeconomic stability and economic recovery ($30.7); as well as social protection (26.6m) to assist communities in building back better.

 

Like we always say in Nigeria, “seeing is believing”, and that was the approach that UN took before supporting this project.

Speaking on the support to the Nigerian government, UN Deputy Secretary-General, Mrs Amina Mohammed said various components of the ESP initiative will expedite interventions in the four key areas.

 

“This offer is aimed at supporting Nigeria in its immediate efforts at risk mitigation by cushioning vulnerable communities, and through medium-term measures that will aid socio-economic recovery while addressing structural drivers of exclusion, inequalities and discrimination as a component of recovering better,” Mrs Mohammed said.

 

Another UN representative described it as a medium term socio-economic recovery plan. The United Nations Development Programme (UNDP) Resident Representative and Chair of the Nigeria Development Partners Group, Mr. Mohammed Yahya said the offer was in response to the UN Secretary General’s call for action, noting that the Offer is to support the government’s action on post-COVID-19 medium-term socio-economic recovery.