[{"bbox": [72, 108, 294, 137], "category": "Section-header", "text": "## 2. RATIONALE"}, {"bbox": [86, 171, 216, 197], "category": "Section-header", "text": "### 2.1 Context"}, {"bbox": [83, 214, 1145, 399], "category": "Text", "text": "The action is guided by the geopolitical priorities of the EU as well as Nigeria's development plans. Providing better prospects for a predominantly young population is a vital priority. It is also aligned with the jobs and growth priority and the external dimension of the *EU Green Deal strategy, the 2018 Communication on a new Africa – Europe Alliance for Sustainable Investment and Jobs*, as well as with the *2030 Agenda for sustainable Development*. This action is also aligned with the *Economy, Growth, and Green Partnership* priority of the EU-Nigeria Ministerial Roadmap 2021-2022, ensuing from the 7th Nigeria-EU Ministerial Dialogue in November 2020. The action will contribute to SDG 8 (good jobs and economic growth) and SDG 9 (Industry, innovation and infrastructure)."}, {"bbox": [83, 426, 1145, 638], "category": "Text", "text": "The rapidly mobilised EU COVID-19 support created an unprecedented positive momentum for EU-Nigerian relations. Building on this new impetus, the 7th high-level Nigeria-EU Ministerial Dialogue took place on 18 November 2020, where both sides confirmed their commitment to reinvigorating their relationship towards a more strategic, comprehensive and balanced partnership. To this end, the 2021-2017 Multi-Annual Indicative Programme (MIP) is guided by the geopolitical priorities of the EU as well as Nigeria's development plans. The three priority areas are: (1) Green and Digital Economy; (2) Governance, Peace and Migration; and (3) Human Development. Priority area 1 will contribute to tackling youth employment and employability as well as innovation and digitalisation more specifically."}, {"bbox": [83, 664, 1145, 929], "category": "Text", "text": "The proposed action will contribute to the MIP's first priority by contributing to the creation of green and smart jobs, generating employment and improving employability, in particular for women and youth, including from groups that are living in vulnerable situations (such as persons with disabilities, people living in poverty and in rural/remote areas) and by enhancing Nigeria's digital economy potential, drawing on the “demographic dividend” of its young and entrepreneurial population. As such, it will give traction to one of the two Team Europe Initiatives: ‘Green Economy Alliance’. The Team Europe Initiative (TEI) includes a host of actions stimulating employment creation and entrepreneurship for youth and women, actions improving employability through Technical and Vocational Education and Training - TVET (in agriculture and energy sectors primarily), as well as actions promoting digital and innovative solutions. The TEI brings together Denmark, France, Germany, the Netherlands and the European Investment Bank (EIB), as well as Member States (MS) with lesser presence in Nigeria but interested in the objectives addressed."}, {"bbox": [83, 956, 1145, 1377], "category": "Text", "text": "With an estimated population of 211 million in 2021, Nigeria is Africa's most populated country and a leading economy, with a wealth of natural resources as well as a thriving entrepreneurial culture and creative industries. Yet, the country is confronted with numerous political, socio-economic, environmental, and severe security challenges. After a recession in 2016, the country returned to marginal growth in 2017, but the COVID-19 pandemic, coupled with the collapse in oil prices in 2020, led the Nigerian economy into its second recession in five years. All analytics point to considerable socio-economic consequences in the aftermath of the pandemic. Following two decades of steady improvement, the human development indicators have slumped. The World Bank estimates that some 7 million more people have fallen into poverty as a result of the crisis. The unemployment is high, especially among the youth (at over 40 %), and 65 % of the economy is attributed to the informal sector. With economic growth below the rate of population growth, per capita incomes continue to decline, while high inflation (of around 18 %) is reducing Nigerians' purchasing power. Meanwhile, public resources to tackle the crisis remain extremely limited. Nigeria's tax to Gross Domestic Product ratio stands at 6 %, pointing to a very low revenue generation, while the debt to revenue ratio is of around 80 %, which indicates a very limited fiscal space for much needed investments in human and economic capital. Despite evidence of democratic consolidation after six successive elections, political tensions appear to be rising as the country approaches the 2023 general elections. Insecurity is on the rise with deepening or new crises in the North-East, North-West, Middle Belt and the South."}, {"bbox": [83, 1405, 1145, 1644], "category": "Text", "text": "The Government of Nigeria recognises these challenges in the latest Economic Sustainability Plan of 2020, successor to the ERGP and the key response instrument to the crisis. While a longer-term Economic Development Plan of Nigeria is still in the making, the government is proposing a number of initiatives designed to address the most immediate problems. They include the two initiatives of the Office of Vice-Presidency this action will support: (i) The Nigeria Jubilee Fellowship Programme, a flagship initiative intending to place gradually up to 100,000 young graduates in jobs across the country and the economy; and (ii) the Nigeria Innovation Programme, supporting digital solutions for sustainable development, including through enhancement of capacities of innovation ecosystem actors and partnerships with the private sector. Engaging the country's growing young and educated population in gainful activities also tackles one of the root causes of irregular migration. Support to these initiatives will provide a higher"}, {"bbox": [1051, 1664, 1157, 1686], "category": "Page-footer", "text": "Page 5 of 22"}]