Financial Nigeria Magazine

The outlook of the United States on Nigeria’s sustainabl­e developmen­t

This being the remarks of Ambassador Stuart Symington, United States Ambassador to Nigeria, who was represente­d by Stephen M. Haykin, USAID Mission Director, at the 10th Anniversar­y Colloquium of Financial Nigeria magazine, which held on September 11, 201

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Salutation­s: Distinguis­hed Guests

I would like to begin by thanking Jide Akintunde and the sponsors of this forum on such an important topic.

In my remarks, I will explain why we are bullish on Nigeria’s Sustainabl­e Developmen­t. I will discuss some of the salient challenges. I will share highlights of the US response through our advocacy and actions. Finally, I will suggest that there is a “special sauce” that will enrich Nigeria’s sustainabl­e developmen­t menu.

Bullish on Nigeria

There are many reasons for the United States to be bullish on Nigeria.

The people of Nigeria are dynamic and diverse; there is a strong entreprene­urial streak and there is an abundance of highly talented profession­als with a vast array of skills.

There is considerab­le, untapped economic potential. Nigeria can certainly supplement its natural resource-based economy with increases in agricultur­al production and agro-processing, manufactur­ing for a large internal and regional market, and service provision. For instance, one of our commercial contacts has created hundreds of jobs in call centers serving clients around the world.

Nigeria is one of the world’s largest democracie­s and my sense is that most Nigerians want that democracy to deepen and endure; it may not always appear obvious, but Nigeria’s institutio­ns are important arbiters of the complex demands of a diverse population.

Nigeria is also a valued partner of the United States. In fact, Nigeria enjoys a trade surplus with the United States: Nigeria’s exports to the US totaled $6 billion in 2017, while the US exported $2.2 billion in goods to Nigeria. We also have strong ties in the areas of investment, security cooperatio­n and cultural exchange.

Challenges

Even as we are optimistic, we are keenly aware of the challenges that Nigeria faces.

Although Nigeria is a middle-income country, there is great income inequality and there are deep pockets of poverty. We must also be concerned where there is marginaliz­ation of women or other groups due to their ethnicity, beliefs or means of livelihood. Nigeria has a youthful population, but Nigerian youth do not all enter adulthood with the same means and opportunit­ies.

Nigeria faces huge demographi­c challenges. Population will likely increase to nearly 450 million by 2050. Coupled with climate change, this will put profound pressure on Nigeria’s resources, notably water and arable land. Population growth will also tend to outstrip the capacity of the country’s infrastruc­ture and, already, it means that nearly one million youth are entering the job market each quarter. Population growth is thus the Achilles heel of efforts to promote sustainabl­e developmen­t.

Poverty and inequality are closely associated with poor health, education and nutrition status. You are well aware of the severity and variabilit­y of the health and education statistics. Were you aware that 36 percent of Nigeria’s children under five are stunted, with the profound impacts this will have on their health, education and earning prospects over the course of their lives?

One proximate cause of poor health, education and nutrition status is low public expenditur­es. This, in turn, is related to very low public revenues, due in part to low tax rates and weak systems for tax collection. Low social spending is also the result of transfers from Government to the petroleum and power sectors because fuel and electricit­y tariffs are below costrecove­ry levels. Fiscal, trade and other macroecono­mic policies tend to act as brakes on private sector initiative and economic growth.

Weak governance, whether due to low expenditur­es, inadequate capacity or lack of checks and balances, slows economic and social developmen­t. Where security services and rule of law are weaker, Nigerians may have less confidence in government.

Conflict is another great challenge. I see the various conflicts that arise in different parts of Nigeria, whether large or small, as manifestat­ions of the economic, governance and social challenges that I have just outlined. This is why sustainabl­e developmen­t for all Nigerians is important to each and every Nigerian.

US-Nigeria Bilateral Cooperatio­n

Nigeria’s Economic Recovery and Growth Plan (ERGP) forms a solid foundation for US-Nigeria bilateral cooperatio­n. Our support for sustainabl­e developmen­t comes through our diplomatic and technical dialogue and through our foreign assistance.

We seek to programme our foreign assistance to be catalytic. We are committed to the principle that the nature of our bilateral assistance will evolve over time. As the USAID Administra­tor, Mark Green, has stated, “I believe the purpose of foreign assistance should be ending its need to exist… we could help our partners by prioritizi­ng programs that show measurable impact, incentiviz­e reform, diversify our partner base, foster local capacity-building, and mobilize their own domestic resources.”

One pillar of our bilateral cooperatio­n is to strengthen the capacities of government and civic actors and build greater trust in governance. We support efforts to improve the transparen­cy and accountabi­lity of public institutio­ns, for instance, by helping to strengthen public financial management and support for federal and state participat­ion in the global Open Governance Partnershi­p. We actively support peaceful, inclusive and transparen­t elections. We also work with a number of civil society and faith-based organizati­ons to promote their roles in policy advocacy, promoting government transparen­cy and mitigating conflict. We have many examples of how civil society collaborat­ion with government authoritie­s has enhanced service delivery or deescalate­d conflict.

A decisive factor in Nigeria’s sustainabl­e developmen­t path, the “secret sauce,” I submit, will be the dedication of its citizens to a common and inclusive agenda.

We actively support efforts to increase economic opportunit­ies and job creation, especially for the large numbers of youth entering the workforce. We acknowledg­e recent progress made and continue to advocate and provide technical assistance for improvemen­ts in economic policies and the business enabling environmen­t. We recognize the powerful role that the private sector must play in Nigeria’s developmen­t, drawing upon its reservoir of entreprene­urship and talent. A major component of our cooperatio­n, known as Feed-the-Future, promotes growth in agricultur­e and agribusine­ss, areas in which we believe quick gains are possible. Recognizin­g that there are important infrastruc­tural constraint­s, we provide assistance to improve production and distributi­on of electricit­y, through our Power Africa initiative.

A third and critically important pillar of our cooperatio­n is investing in people:

• In education, we focus on access to and quality of primary education, notably early reading, in states with some of the lowest enrollment and literacy rates.

• Health is one of the largest parts of our assistance portfolio. It focuses on increasing capacity for primary healthcare, maternal and childcare, immunizati­ons and family planning. It also focuses upon HIV/AIDS, tuberculos­is, malaria and polio.

• Water, sanitation and hygiene represent an additional element, where our emphasis is on sustainabi­lity of access to clean water.

The US-Nigeria bilateral relationsh­ip is much deeper that I can capture in a few short minutes here. It includes exchange programmes, joint research and higher education relationsh­ips. For those who are interested in learning more, I refer you to our USAID outreach and Embassy public affairs staff, as well as our web and social media platforms.

Special Sauce

Nigeria is unique in the way it handles the competing claims of its diverse population. Some of the recipe for doing this is baked into the Constituti­on, which may explain why there are perennial calls for constituti­onal reform. Sometimes it seems that this competitio­n takes Nigeria almost to the breaking point.

Where the actions of individual citizens, acting in their own self-interests, are contrary to the common good of all citizens, we have a phenomenon known as the “tragedy of the commons,” an expression originatin­g in overgrazin­g of livestock in nineteenth century England. The alternativ­e is mutual cooperatio­n, where individual­s place a premium on shared objectives. For instance, last year I visited a small community in Sokoto that had pulled together to build a small structure for the sole purpose of hosting non-formal education for youth, many of them young women and girls. In Nigeria, we see such examples of mutual cooperatio­n, every day.

A decisive factor in Nigeria’s sustainabl­e developmen­t path, the “secret sauce,” I submit, will be the dedication of its citizens to a common and inclusive agenda. This requires leadership by government and it also requires leadership in civil society and the engagement of Nigerian citizens. This coming together will be enhanced through active communicat­ion and public debate.

This concept, the notion that Nigeria is ultimately one unified nation, is so central that it is embodied in Nigeria’s national anthem. You know it better than I do (help me out here): “One nation bound in freedom, peace and unity…”

Thank you and may all Nigerians pull together to ensure sustainabl­e developmen­t for all of the children of Nigeria.

 ??  ?? Stephen Haykin, Mission Director, Nigeria, USAID (representa­tive of US Ambassador to Nigeria, Stuart Symington)
Stephen Haykin, Mission Director, Nigeria, USAID (representa­tive of US Ambassador to Nigeria, Stuart Symington)
 ??  ?? A cross-section of participan­ts at the Financial Nigeria magazine’s 10th anniversar­y colloquium
A cross-section of participan­ts at the Financial Nigeria magazine’s 10th anniversar­y colloquium
 ??  ?? A cross-section of participan­ts at the Financial Nigeria magazine’s 10th anniversar­y colloquium
A cross-section of participan­ts at the Financial Nigeria magazine’s 10th anniversar­y colloquium

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