The document discusses challenges facing development in Nigeria's North Eastern region, which has high poverty and was vulnerable to extremism due to neglect, underestimation of needs, and lack of investments in the region. It argues that financing for development in Nigeria must prioritize and engage local NGOs, community-based organizations, small and medium enterprises, youth, and women to efficiently meet basic needs, reduce poverty, and maintain peace. The current administration has earmarked funds for social programs and microcredit loans to promote job creation, social inclusion, and reduce unemployment and inequality.

1. In 1999, most people grosslyunderestimatedthe extentof social,political andeconomicdayof the
country.
Since 1999, we have succeededinstabilizingthe polity,consolidatedthe democraticgovernance
structure,establishedthe National Economic EmpowermentDevelopmentStrategy(NEEDS) butwe
have onlymade a modestprogressinthe social andeconomicspheres(OlusegunObasanjo,NEEDS
Document2005)
In 2006, the official developmentassistance toNigeriaincreasedinthe wake of havingastabilizedpolity
and continuityindemocraticgovernance(Aidflows).
However,these effortslaudable asitwas,failedtoachieve the desiredsocial outcomesinthe country
due to pervasive corruption,misplacedpriorities,illicitfinancialflows,aweakandinsufficiently
articulateddomesticresource mobilizationframe work,andmostimportantlyalackof recognitionfor
MSME’s, NGO’s, CBO’s,youthand womeninrural communitiesasthe local contentvehiclesin
implementingthe conceptof inclusive governance towardssustainable development.
Thisconsequentlyledtoa trustdeficitbetweenthe Federal governmentof Nigeria,institutions andthe
people.
In the NorthEastern regionof Nigeria,specifically,where we have the highestlevel of extremepoverty
incidencesandunderdevelopmentoccurringthere overthe pastdecade (WorldBankreport2007/
Central Bankof Nigeriapovertyindex analysis)
It can be agreedbythose whohave visitedthisregion thatpovertyiswalkingnakedonthe streetsandit
actuallystaresback at you.
The neglect,underestimation,improperchannelingof fundsandlow level of developmentinvestments
consequently ledtothe regionbeingvulnerable toreligiousextremismandanentrypointfor terrorist
networksintothe country.
There isan urgentneedforinnovative finance fordevelopmentsolutionsinNigeria,especiallythe North
Easternregionafterit hasbeen successfullysecured,stabilized andterrorismflushedout.
It isimperative toengage the NGOs,CBO’s,MSME’s as keydriversinjump startingthe economy of
those regions.
In orderto make financial flowsmore efficientandresultsoriented,The WorldBank/IMF development
committee shouldengagethe Local NGOs,CommunityBasedOrganizations,SMEsthroughthe agencies
of the federal andstate governmentasanintegrationstrategytogetclosertothe local communities
towardsidentifying,re-orientating, capacitybuilding,acceptability, onthe spotSWOT analysisof the
intendeddevelopmentinvestmentsregionsinwhichprivate finance will be mobilized forthe deliveryof
publicgoodsandservices.

2. It iscommon knowledge acrossboardinNigeria,inwhich the currentadministrationhave already
recognizedthatthe fundamental challenge atthisstage of National developmentisto quickly meetthe
basicneedsof itspeople andreduce povertyona sustainedbasis inordertoavoidyouthsandregional
agitationsandto maintainpeace andorder.There isthe needto ensure participatory processes
(ownership,sustainability andlocal contentinclusion).
FinancingfordevelopmentinNigeria,needstorecognize asa priorityMSMEs, NGOs,CBOs,youthand
womeninsectorslike agriculture,social enterprise, infrastructure,publicfinance reforms,climate
change, and othersocial sectorsinorderto attainthe executionimperatives of the sustainable
developmentgoalsby2030.
Fortunately, the currentadministration of PresidentMuhammaduBuhari justearmarkedthe sumof
N500 billionforsocial welfare interventionprogramsforthe 2016 fiscal yearas a pilotscheme towards
securingdonoragenciessupportandtominimize potentialriskfordevelopmentpartners.
These includescashtransfers,home grownschool feedingprogramsandmicrocreditloans
(SMEs/Marketwomen) towardsjobcreation,andsocial inclusioninordertoreduce the ratesof
unemployment,povertyandinequality(2016-2017 and 2018 MediumTermExpenditure Framework
(MTEF) and Fiscal StrategyPaper(PSP) submittedtothe senate forconsiderationandapproval.
Financingfordevelopmentcannotbe effective orefficientwithoutsocial inclusionorparticipationof
the people ororganizationsatthe local levelsforwithoutpeace there cannotbe development.
Thank youinanticipationof yourpositive consideration.
Bestregards,
OlalekanKolaOlasiyan.