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Foreign Aid Effects On Nigeria An Honest Essay

Foreign Aid Effects on Nigeria AN HONEST ASSESSMENT

Effects of Foreign Aid Use in Nigeria

Nigeria or the Federal Republic of Nigeria is located in West Africa on the Gulf of Guinea and lies between Benin and Cameron (LOC 2008). As of the latest count, it has a population of 138 million at an annual growth rate of 2.38%. Nigeria is the fourth largest exporter of oil to the United States. Yet in the face of vast natural fossil fuel reserves, it suffers from extreme personal poverty for 57% of its people. Economists describe this as a "paradox of plenty" or the "curse of oil." Nigeria, like other developing countries in similar situations, is provided foreign aid to help promote democracy and economic stability. Foreign assistance attempts to deliver these countries' people from poverty, and provide security, military assistance and counter-terrorism measures. Of the countries outside Western Europe, Canada and Australia, Nigeria is the 10th of the top 10 recipients of foreign aid from the United States at $614.7M, as of 2010 (LOC). .

Nigeria received assistance also from the World Bank in the form of 23 active projects with a committed value of U.S.$2.67 billion in August 2007 (LOC 2008). It received 123 other projects since it joined the World Bank in 1961. And the International Monetary Fund approved what is called a two-year policy support instrument to encourage the growth of the non-oil sector and for poverty reduction in October 2005. Upon review of the program in March 2008, the IMF found that Nigeria had achieved macroeconomic progress, an 8.5% average non-oil sector growth and reduced inflation at roughly 6%. But it also noted that, despite these improvements, the majority of families remained very poor (LOC).

Impact in the Case of Nepad...

One was that these negotiations were conducted in secret rather than publicly. Another was that resulting agreements were never made public until after 25 years or more have lapsed. Nigerian critics know very little about the process. Often, these negotiations lead to increased unemployment, double-digit inflation, interruption of domestic capital accumulation, collapse of productive processes, and broadening income inequality. One instance is the protest filed by the former Governor of Kaduna State against the World Bank food production loan program. One of the terms required World Bank officials to manage the program. The former governor asserted that the surrender of the management of the program directly affects the lives and future of millions of Nigerian peasants. This would be in the interest of the country. Another example was the insistence of the World Bank that consultants should be foreigners who will make sure that all the terms of the agreement would be fulfilled and implemented. Nigerians feel that international aid agencies are the actual decision-makers on who gets what, when and how. Jerry Gana of Alhmadu Bello University described one program as World Bank-directed rather than World Bank-assisted. Nigerians generally believe that the World Bank and other multilateral ad agencies dictate rather than negotiate with or assist governments (Chukwuka).
Actions of Nigerian Leaders

Corruption heads the list of reasons for the failure of the objectives of foreign aid. One illustration is provided by the Chairman of the Economic and Financial Crimes Commission Nuhu Ribadu who accused former leaders…

Sources used in this document:
BIBLIOGRAPHY

Articles (2013). Impact of foreign aid on Nigeria socio-economic development.

ArticlesNG: WordPress. Retrieved on January 30, 2014 from http://www.articlesng.com/impact-of-foreign-aid-on-nigeria-socio-economic-development

Chukwuka, C. (2013). Nigeria's socio-economic development -- the impact of foreign aid. Doublegist:doublegist.com. Retrieved on January 30, 2014 from http://www.africamaster.web.com/AdSense/NigerianLeadersLooted500b.html

LOC (2008). Country profile: Nigeria. Federal Research Division: Library of Congress.
Retrieved on January 30, 2014 from http://www.lcwb2.loc.gov/frd/cs/profiles/Nigeria.pdf
2014 from http://www.africamaster.web.com/AdSense/NigerianLeadersLooted500b.html
Vol. 1 Issue 6, Journal of Economics and Finance: International Organization of Scientific Research Journals. Retrieved on January 30, 2014 from http://www.iosrjournals.org/.iosr-jef/papers/vol1-issue6/H0164449.pdf?id=6764
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