The European Union said today it will grant €600 million in aid to Nigeria to help the country fight poverty.
EU Development Commissioner Mr Poul Nielson is to sign the five-year aid package tomorrow during his visit to Nigeria, where he will meet the country's President Olusegun Obasanjo.
"With the transition towards democracy, Nigeria has made much progress over recent years. Nevertheless, Nigeria faces many challenges," Mr Nielson said.
Mr Obasanjo took power in 1999, ending 15 years of military rule in the ethnically divided country. His pledge to hold democratic elections is expected to materialise on August 10th, when local polls are due to take place.
An EU Commission spokesman said the aid would help Nigeria, Africa's most populous country of 120 million, to launch its anti-poverty scheme, which will focus on improving water and sanitation services and on reforming public finance management.
The aid package, which includes unspent balances from previous programmes, would also support the strengthening of democracy and human rights in Nigeria, where more than 10,000 people have died in ethnic and religious violence since 1999.
Mr Nielson is also due to meet opposition leaders and visit projects financed by the EU in the Niger Delta.