NEAT Initiative
The Nigerian Endowments through Asset Transformation (NEAT) Initiative aims to transform a portion of state-controlled resources from extractives industry proceeds, debt swaps, and recovered stolen assets into well-endowed civil society support foundations to address the pressing economic, social, and climate needs of the Nigerian people.
THE NEAT INITIATIVE
Nigeria has a pressing need to develop indigenous, sustainable funding mechanisms to support CSOs in light of diminishing foreign aid and increasing societal needs. CSOs’ work in improving health, providing education, supporting youth, fighting corruption, and other areas of need are vital to support Government of Nigeria efforts to meet the Sustainable Development Goals and to improve life of all Nigerian citizens. But where could such sustainable CSO funding come from, and how would it be managed? The NEAT Initiative, a partnership between the Nigeria-based Africa Network for Environment & Economic Justice (ANEEJ) and US-based East-West Management Institute (EWMI), aims to answer this question by applying a proven approach to endowment formation—the capture of all or a part of the proceeds from transfers of public or quasi-public assets to fund locally-focused, independent, and accountable foundations.
THE NEED
Despite abundant human and natural resources, endowments, and potential for strong economic growth and regional leadership, Nigeria’s long-term prospects have been hampered by the failure to consolidate effective systems of democratic governance, misguided policy choices, and glaring inefficiencies in distributing social and economic benefits to citizens. Key challenges include: moribund public infrastructure; pervasive corruption; widespread poverty and unemployment; inadequate access to education, healthcare, and other basic human needs; a rising trend of violence; and the absence of public accountability for the massive oil rents that have defined the country’s economy and politics for over four decades.
Ucheke, CC BY-SA 4.0, via Wikimedia Commons.
Mariam Florence Ogo, Centers for Disease Control and Prevention, Public Domain.
THE PLAN
The NEAT Initiative will carry out research, education, and advocacy to capture a portion of funds from upcoming and potential deals and legislative changes involving three key asset classes to endow an independent, private foundation to support local CSOs and communities working to address the pressing social and economic issues facing the people of Nigeria. The PtP concept on which the NEAT Initiative is built emphasizes the need for community and stakeholder input at all stages of development, governance, and oversight of any resulting foundation and encourages a clear connection between the asset being captured—and any ills brought about by the activities underlying it—and the work carried out by the resulting foundation. The NEAT Initiative will follow this guidance.
ASSET CLASSES
Extractive Proceeds
In 2020, the extractive sector contributed 8.2% of Nigeria’s total real GDP and generated over US$20.4 billion in revenue. However, the country suffers from the “resource curse”—a paradox of underdevelopment amidst astounding resource wealth. A major driver of this paradox is that the extractive sector is still very poorly governed and remains largely unaccountable to citizens and communities, and existing mechanisms to return benefits to impacted communities are ineffective.
Recovered Stolen Assets
In 2019 Chatham House, a UK Think Tank, estimated that more than US$580 billion had been stolen from Nigeria since independence. Some recovery efforts have been successful, with close to US$1B repatriated over the last decade. However, past repatriations have gone badly, with recovered assets disappearing into the State Treasury without transparency or accountability, or being used to fund questionable projects that may have resulted from renewed corruption deals.
Debt Swaps
Nigeria’s public debt stood at US$100.1b (N41.6 trillion) as of 2020, of which 40% was external debt. There are many reasons for creditors and the GoN to agree to debt swap deals, including that Nigeria cannot settle its enormous debt without going bankrupt and the need to service the debt crowds out the GoN’s ability to address pressing needs, including socio-economic development and climate change mitigation and adaptation efforts. Debt swaps can generate millions for these efforts.
CONTACT US
We are building a broad coalition across Nigeria to advocate for the reforms needed achieve out vision of dedicating Nigerian assets to a foundation to support CSOs working to improve the lives of Nigerians. Please reach out if you would like to join this effort.