Nigeria to set up multi-donor trust fund to support investments

NIGERIA – Nigeria has initiated plans of setting up a multi-donor trust fund that would promote efficient use of donor funds in the West African Nation.

According to the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, a Donor Coordination Unit (DCU) will be set up by the Federal Government in the coming weeks will.

The Unit will be tasked with the responsibility of coming up with a roadmap to guide the setting up of the multi-donor trust fund.

The yet to be unveiled DCU will be co-chaired by Mrs Zainab and the Minister of State for Budget and National Planning, Clem Agba.

Speaking at a high level roundtable meeting on National Donor Coordination, Mrs Zainab said, “We will be engaging towards setting up a Donor Coordination Unit to be chaired by the Minister of Finance, Budget and National Planning, and co-chaired by the Minister of State, Budget and National Planning, and the Chair(s) of the Donors Coordination Committee.

“We will task the DCU to develop a road map toward setting up a Multi-Donor Trust Fund to be managed by the World Bank, which will pool donor funds to enhance transparency and accountability,” added Mrs Zainab.

The Minister of Finance noted that there was need to ensure that aid was managed in the most effective way.

In her opinion, proper coordination between donors and the government was key in donor funds were used effectively.

Mrs Zainab also highlighted the importance of aligning aid with the federal government’s strategic development priorities.

Coordination of donor activities has already been carried out on a pilot basis in some areas of the country with some measure of success.

Minister of Finance, Budget and National Planning hopes to replicate the success achieved in the coordination of the North East intervention and the Social Investment Programmes to other donor activities in the country.

Mrs Zainab however recognised the huge task that they were embarking on.

“We still have a long way to go in ensuring a government-led mutual accountability framework for aid coordination in Nigeria,” said Mrs Zainab.