Abuja — The European Union (EU) has signed an agreement, which aims to help Nigeria tackle development challenges in the areas of governance, trade and peace.

The agreement, worth -677 million (about N147.95bn), was signed in Brussels by the European Commissioner for Development and Humanitarian Aid, Karel De Gucht and the Executive Secretary, National Planning Commission (NPC), Professor Sylvester Monye.

A press statement by the European Union in Abuja, which was made available to THISDAY said the pact "is an ambitious step forward in cooperation and is a direct result of the Nigeria-EU political dialogue. It reinforces cooperation in three strategic areas: peace and security; governance and human rights; trade and regional integration with -677 million for the period 2009 - 2013 financed through the European Development Fund."

The statement quoted the Gucht as saying the agreement indicates "that Europe stands by Nigeria and its people in the development challenges it faces" adding that "a substantial amount of this financing will go to support conflict resolution and the peace process in the Niger Delta which has been ravaged by years of unrest. We are fully committed to supporting the Government of Nigeria in the process of restoring peace and bringing development to the region."

The agreement known as the "Country Strategy Paper and National Indicative Programme" of the 10th European Development Fund (EDF) will provide a total of -677 million in programmable funds between now and 2013.

According to the Union, the funds will be disbursed as follows: Peace and Security -166 million; Governance and Human Rights -297million; a major part of the new cooperation strategy will support governance reforms at all three tiers of the government and the fight against corruption and electoral reform in view of the 2011-2015 electoral cycle. Also trade, regional integration and energy will gulp -105 million while climate change, health, cultural, scientific and technical cooperation has -99 million earmarked for its facilitation.

On the burning Niger-Delta issue, the EU said almost a third of the overall budget (29%, corresponding to - 199 million) is devoted to addressing underlying causes of violence and poverty in the region.

This Country Strategy Paper and National Indicative Programme differs significantly from the earlier 10th EDF (2008-2013) cooperation strategies launched with the other African, Caribbean and Pacific countries. For the first time it ties political dialogue at the highest levels with cooperation policy. This new cooperation strategy unites Nigeria and the EU around a common position and a common approach on peace and security; governance and human rights and regional integration.