The European Union has signed a financial agreement for US$697bn with the Nigerian government to support the nations infrastructure
The money will be utilised for health, governance and power supply and will be given over a period of seven years, starting in 2014, stated reports. The grant would also support agricultural development and rural programmes in Nigeria.
This decision was taken at the 11th European Development Fund (EDF) National Indicative Programme at Nairobi, Kenya, according to reports.
In 2013, the EU had provided US$136mn to support the west African nation.
Andres Piebalgs, commissioner for development cooperation at EU, stated that there was a possibility of increasing the grant in future if the funds are utilised correctly.
"More prosperity among nations definitely leads to more trade and less problems and leads to world peace. So, indirectly Europe also benefits," added Pielbags.
Alhaji Bashir Yuguda, supervising minister of national planning, explained that the EDF's projects were directed at addressing some challenges that Nigeria was facing at this stage of consolidating its status as a middle-income country. According to him, the programmes would also help the nation to achieve its expressed developmental goals.
