MILLENNIUM DEVELOPMENT GOALs AND FUNDING MECHANISM FOR 2010 AND 2011 PROJECTS AND PROGRAMME - NIGERIA

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MILLENNIUM DEVELOPMENT GOALs AND FUNDING MECHANISM FOR 2010 AND 2011 PROJECTS AND PROGRAMME - NIGERIA

 

The Millennium Development Goals (MDGs) is a set of eight-time bound goals subscribed to by Heads of State and Government of 189 member countries of the United Nations in New York in 2000. Recognizing the need to chart a pathway for an enduring and encompassing development, the Head of states and governments of the United Nation member countries in the Millennium Summit ratified a charter and pledge commitment to an international development framework set out to help bridge the widened gap between the developed countries and the developing countries.

The Millennium Development Goals and Targets come from the Millennium Declaration, signed by 189 countries, including 147 heads of State and Government, in September 2000, and from further agreement by member states at the World Summit (Resolution adopted by the General Assembly – A/RES/60/1). The goals and targets are interrelated and should be seen as a whole. They represent a partnership between the developed countries and the developing countries “to create an environment – at the national and global levels alike – which is conducive to development and the elimination of poverty”.

 

At the continental level, Africa countries in 2001 domesticated the MDGs by the establishment of New Partnership for Africa’s Development (NEPAD) supported the by African Peer Review Mechanism (APRM). These frameworks focused on the issue of Good Governance and Accountability. The partnership identifies Governance as a critical issue to Africa’s development. Leadership in the continent has not demonstrated the required and desire capacity of governance needed for lifting the people from the perverse poverty undermining the development potentials of the continents.

The Millennium Development Declaration provided an opportunity for Nigeria to make the Millennium Development Goals (MDGs) a critical pillar for the country’s development agenda. The Nigeria’s Poverty Reduction Strategy Policy (PRSP), Vision 20:2020 and the current development agenda of the present administration which all have a common link of bringing about sustainable and meaningful development to the citizens is key in the implementation of the Millennium Development Goals (MDGs).

 

In 2004, Nigeria developed a policy document that articulate the problem faced by the people and possible interventions to overcoming those challenges. The National Economic and Empowerment and Development Strategy (NEEDS) is a domestication of the MDGs that place the goals at the heart of the development agenda of the Government. The document identified four cardinal objectives which borders on Poverty reduction, Wealth Creation, Employment generation and Value Reorientation. The NEEDS document is the outcome of the Kuru Declaration held in 2001 in Plateau State.

 

In September 2005, Nigeria successfully negotiated a US$18 billion debt relief package from the Paris Club of creditors, giving rise to annual debt savings of roughly US$1 billion i.e. $750 million to the Federal Government and $250 million to the State Governments.

Under the settlement with the Paris Club, the Nigerian Government entered an agreement under which they would buy back a portion of the country’s debt with net payments to creditors amounting to US$12 billion.

 

The debt-relief gains have been invested from 2006 to date through annual appropriation. The gains are channelled through a range of funding mechanisms:

 

 

 

 MDGs FUNDING MECHANISM FOR 2010/2011 PROJECTS AND PROGRAMME

S/N

                 Funding Mechanism

            TOTAL

1

Federal Ministries, Departments and Agencies

₦120,883,523,563

2

Quick Wins (Constituency projects, but now called Special projects)

₦35,000,000,000

3

Conditional Grants Scheme (CGS) to State Government

₦80,618,128,870

4

Other (M&E, Communications, Special Presidential Interventions)

₦37,759,500,000

 

A total of ₦249.26billion was appropriated for MDGs Programmes and Projects for 2010/2011 through the above stated mechanisms.

The Federal Government decided to channel these funds into pro-poor projects that would catalyse the quick achievement of the MDGs using the OPEN initiative (Overview of Public Expenditure in NEEDS). This initiative is coordinated by the Office of the Senior Special Assistant to the President on MDGs (OSSAP-MDGs).

Investments were made in stimulating national development by addressing critical infrastructural deficits, public sector reforms, and creating conducive environment for public-private partnership (PPP) in order to ensure that Nigerians get value for their money. Following the savings of the DRG, there were agitations from Nigerians on the extent of implementation and to know how the money is been spent. Nigerians want to know what interventions are been implemented and their level of effectiveness.

 

Key programmes to achieve the MDGs include Conditional Grants Scheme (CGS), the social safety nets (SSN) programme, Special Projects (formerly called Quick wins, QW projects) and funding for Ministries Departments Agencies (MDAs) to carry out projects related to achieving the MDGs. The virtual poverty fund (VPF) or Overview of Public Expenditure in Needs (OPEN) system is a way of tagging and tracking expenditure on poverty reduction.

 

Budget Period: 
2017
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