Foreign Aid and Socio-Economic Development in Nigeria

Abstract

This study aimed to explore the relationship between foreign aid and socio-economic development in Nigeria. The research was guided by four objectives and corresponding research questions. The study employed both historical and descriptive research methods, utilizing a documentary approach to data collection. This approach involved a comprehensive review of secondary sources, including systematic observation of documentary evidence related to the intersection of foreign aid and socio-economic development in Nigeria. Data analysis was conducted using a content analytical approach. The findings indicated that between 2015 and 2023, Nigeria received over $36.16 billion in official development assistance from bilateral and multilateral sources. Despite the significant financial support, the International Fund for Agricultural Development (IFAD) aimed at alleviating poverty faced challenges due to ongoing crises that displaced people both within and beyond Nigeria's borders. These crises disrupted agricultural production and livelihoods, severing small-scale farmers and their families from their social support systems and impeding their access to farmland and aid. On the other hand, the study found that the United States Agency for International Development (USAID) significantly improved healthcare access and service delivery in Nigeria. Additionally, foreign aid efforts positively impacted the quality of education through various programmes.  The study concluded that while foreign aid has contributed to certain sectors, it is essential for Nigeria to focus on harnessing and developing internal resources. The over-reliance on foreign aid should be avoided as it is intended to supplement rather than replace domestic development efforts. Recommendations emphasize the need for Nigeria to strengthen its internal mechanisms for sustainable socio-economic development.