Major challenges

DFID: Working to reduce poverty in Nigeria

Making aid effective | Governance | Health | HIV/AIDS | Education | Trade and growth

Making aid effective

Overall aid to Nigeria accounts for less than 1% of GDP. Helping Nigeria’s government use its own resources more effectively is key to reducing poverty and forms an integral part of DFID’s programme in Nigeria.

DFID’s support is concentrated in a number of ‘lead’ states where there is a commitment to reform, and the potential to make the most difference. Given the high risk of corruption, no UK aid is channeled through Nigerian government systems.

In 2009 a new country parnership strategy (CPS2) was agreed between the Nigerian government, DFID, the World Bank, the African Development Bank and USAID. The strategy is the first of its kind anywhere in the world, and represents our commitment to work together as effectively as possible to help Nigeria achieve its development goals.


Governance

Poor governance is a cause of poverty and conflict as well as an obstacle to growth. People suffer when governments don’t allow participation in political life, provide access to justice, deliver adequate public services or control corruption.

There are deep rooted historical and structural constraints to democratic governance in Nigeria; high non-tax revenues from oil eroding the compact between state and citizen; a patronage-based political system which places much of its focus on controlling and redistributing oil revenues; corruption; insufficient separation of powers in the machinery of governance; poverty, exclusion and unemployment among youth; and deep gender inequality.

Political institutions in Nigeria remain fragile despite the transition to civilian rule and the first transfer of power from one civilian leader to another in 2007, a significant milestone in itself.

The 2007 elections were widely criticised by domestic and external observers with reports identifying critical flaws: a weak constitutional and legal framework; an elections administration lacking independence; and endemic procedural irregularities, intimidation and violence.

Working with government to improve the way public resources are used is an important part of DFID’s assistance to Nigeria.

  • In October 2005, with the UK’s assistance, Nigeria agreed the largest-ever debt-relief package for sub-Saharan Africa, which saves it debt payments of US$1 billion a year. With DFID’s support, the Nigerian government created a system for monitoring debt relief gains, to make sure that they are spent on poverty reduction. For example, in 2006, these gains resulted in the retraining of 145,000 teachers and the recruitment of 40,000 new ones.
  • We have provided technical assistance to the Nigerian budget office to improve budget systems and to link spending more closely to poverty reduction. Our assistance in 2006 helped the government to identify savings of about £850 million, which will be invested in roads and power to support economic growth.
  • The UK has a long-standing policy of working with Nigeria to build its capacity in criminal justice and tackling corruption. DFID has supported the work of the Nigerian government’s economic and financial crimes commission since its inception in 2004.
  • The UK is a major supporter of better elections and deepening democracy. In 2007 we supported election monitoring and we are currently planning a comprehensive programme of support to better elections (in 2011 and 2015) and democratic . The planned programme will support media, Parliament, civil society and the election management body. DFID’s Coalitions for Change programme supports groups within civil society, the private sector, the media and government to work together to change the rules that have led to an entrenched lack of accountability and poor resource management. 

Health

Nigeria’s health indicators are amongst the worst in the world. Over the past five years, DFID has provided more than £70 million to the health sector, through a number of projects and programmes.

Through the £30 million DFID Health Commodities Project, drugs and medical equipment have been provided to a total of 1,000 health facilities in six Nigerian states.

Primary healthcare centres supported by this project have shown a 58% increase in utilisation within one year of DFID support. By the end of the project in November 2009, a total of 1,468 facilities will have been supported by DFID, ensuring the availability of drugs for an estimated 24 million outpatient consultations per year.

Malaria is highly endemic in Nigeria and it remains one of the leading causes of morbidity and mortality in the country. DFID supports the National Malaria Programme (SUNMAP, 2008-2013) in a five-year, £50m package aimed at helping the Nigerian government to better control malaria.

It will provide support for a total of 6 million free insecticide-treated nets (ITNs), 9.5 million doses of subsidised malaria treatments (ACTs) for children, and 9 million doses of free malaria preventive drugs (IPT) for pregnant women.

The partnership for transforming health systems 2 (PATHS 2) is a £148 million programme which started in 2008 as the health component of DFID’s body of state-level programmes.

Working with government, it focuses on governance within the health sector; strengthening systems relating to the supply side e.g. human resources, drug supplies; and works with civil society to improve communities’ knowledge of, and involvement in, health.

While Nigeria has 2% of the world’s population, it has 10% of the world's maternal mortality. In 2008/09, DFID and the Norwegian government agreed a cooperation arrangement which will improve maternal health services for up to 5 million women.


HIV/AIDS

For the last five years, DFID has given £62 million in support of HIV/AIDS prevention and stigma reduction in Nigeria.

DFID support has helped increase public awareness of HIV: willingness to take an HIV test has risen from 40% to 54%; the percentage of young people who have taken an HIV test has doubled from 10% to 20%; and consistent condom use has risen from 35% to 44%.

We also provide 80% of all reproductive health commodities; drugs and supplies for safe motherhood and the prevention and treatment of sexually transmitted diseases, plus contraceptives and condoms.


Education

Nigeria’s education system faces a multi-dimensional crisis. Free universal basic education became law in 2004, but Nigeria remains off-track for both education MDGs.

Net primary school enrolment is about 65% and disproportionately large numbers of girls are out of school.

Quality is also poor. A DFID-supported survey in 2007 found that learning outcomes in Nigerian schools compare unfavourably even with other countries in sub-Saharan Africa.

Pupil-teacherratios are particularly high in rural areas, textbooks are in limited supply and more than 50% of schools are in need of some renovation. The supply and deployment of qualified teachers, especially in rural areas, is a major challenge.

Better governance is the critical challenge, with a particular need to improve evidence-based planning, public financial management, procurement and institutional coordination.

Poor management of resources is at the root of the crisis. Only 50% of funding available from the Universal Basic Education Commission’s intervention fund (the main source of funding for basic education) has so far been spent at state level.  

DFID support is designed to strengthen these key elements of sector governance. The Education Sector Support Programme in Nigeria (ESSPIN) is a new £100 million, six-year programme, working with the federal government and five states to support the development and implementation of education sector plans. It will also work with communities and civil society to promote greater responsiveness in the delivery of services.

DFID Nigeria also has a girls’ education project (GEP), which works in northern states with the worst disparities between boys and girls’ enrolment and is implemented by UNICEF.

In some states of northern Nigeria, less than one-third of school age girls attend primary school, with even lower ratios at secondary level.

The project has helped to increase girls’ enrolment using advocacy, community mobilisation and the provision of educational materials and infrastructure to selected schools.

Supported communities have seen increases of up to 80% in total enrolment (boys and girls) since 2005.

In 2009, DFID also began supporting over 700 female teacher trainees from rural areas where there are almost no female teachers at present. This will provide role models for girls, encourage girls’ enrolment, and make schools more inclusive.

Trade and growth (including agriculture)

The Nigerian economy is dominated by oil. It contributes three quarters of government revenue and 98% of export revenue.

As a result Nigeria has suffered from the resource curse for much of the past four decades. Poor and inconsistent policies, non-transparent and unpredictable application of the legal and regulatory framework have stifled private sector development.

Joint DFID/World Bank analysis has identified three constraints to private sector growth and competitiveness: poor-quality infrastructure (energy and transport), a hostile business environment with excessive barriers to trade, and low levels of access to finance.

The following DFID/World Bank programmes have been developed to address these:

Infrastructure

  • The Nigeria Infrastructure Advisory Facility (£13.5 million, 2007-12) helps government improve planning, management, implementation and maintenance of infrastructure investments and related regulatory functions, focusing on the power, transport and water sectors.

Business environment

  • The Investment Climate Programme (£6.1 million, 2007-10) is undertaking useful diagnostic studies of the business environment including the sub national doing business reports and sub-national investment climate assessment reports. It also has implemented a number of pilot reform programmes across the four focal states in preparation of the bigger Growth and Employment in States programme. 
  • The Nigeria Growth Challenge Fund (£7.5 million, 2008-13) will support the private sector, civil society and research community to engage in effective public-private dialogue with the government on economic policy/legal and regulatory issues.

 

Access to finance

  • The Enhancing Financial Innovation and Access (EFINA) programme (£9.2 million, 2007-12) is working to increase access to financial services in Nigeria through providing better information to the financial sector and regulators thereof, supporting reforms of policies that create legal and regulatory barriers,  and financing the development of innovative financial services and products to increase market access.

Growth and Employment

  • The new Growth and Employment in States (GEMS) programme (£70m 2010- 2013) aims to create 100,000 jobs in four states, in six economic sectors. The first component will focus on supporting the state and federal governments to reform the business environment. The second component will focus on six clusters, including construction and meat and leather.

Agriculture

  • The Promoting Pro-poor Opportunities through Commodity and Service Markets  (PROPCOM) programme (£17.5m 2002 - 2011) is supporting a more efficient agriculture sector, particularly rice and input markets.