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Foreign Aid and Africa’s quest for Development: Issues and challenges for Nigeria


Title page

Approval page




Table of content




1.1        Background of the study

1.2        Statement of problem

1.3        Objective of the study

1.4        Research Hypotheses

1.5        Significance of the study

1.6        Scope and limitation of the study

1.7       Definition of terms

1.8       Organization of the study







3.0        Research methodology

3.1    sources of data collection

3.3        Population of the study

3.4        Sampling and sampling distribution

3.5        Validation of research instrument

3.6        Method of data analysis



4.1 Introductions

4.2 Data analysis


5.1 Introduction

5.2 Summary

5.3 Conclusion

5.4 Recommendation




This study was on Foreign Aid and Africa’s quest for Development: Issues and challenges for Nigeria. Majority of the developing countries depend on  one  form  of  assistance or the  other  from  the developed nations to improve their general economic welfare even though it has been argued that the donor countries benefit more from this grant /loan than the recipient countries. The interdependence of developing countries necessitates the granting of aid to needy countries. However, analysts have diverse opinions about factors responsible for the underdevelopment of Africa. Many assumed that the underdevelopment and dependency situation of most African countries on foreign aid are due to poor leadership, mismanagement of national resources and elevation of personal aggrandizement and primordial interest over and above national interest. The neo-Marxist scholars, on the other hand, submitted and insisted that what propelled the development of developed countries are also the same factors that facilitated the underdevelopment of developing countries. These factors are: colonialism, slave trade, and unequal exchange


 Chapter one


1.1Background of the study

Foreign aids are mostly said to be grants and loans that a donor country advance to another nation (recipient co un try) with   the motive of accelerating economic welfare. These grants are taken by official sector.

The growing gap between the developed and developing countries has dominated international relations and diplomacy for a long time. This gap has led to constant capital inflow from the developed countries to those in the Third World including Africa, with the goal of helping them overcome their problems and reduce the gap. However, there is evidence that decades of foreign aid have done little in changing the destinies of many African states, most of which are currently experiencing low growth rates. This suggests to some extent that there is more to the African problem than just sending money there as this is not likely to turn things around. Estimates suggest the West has spent about $600 billion on foreign aid to Africa so far (Akonor, 2008). Yet underdevelopment is widespread, while at same time some states are considered to have collapsed (eg. Somalia).

However, given its dismal development records, Africa falls short of  being  able  to  provide  its  people  with adequate  resources,  to  have  even  the  basic capabilities  to  feed  its  population  and  prepare suitable  ground  for  development,  the  need  for foreign aid in these countries seems indisputable. Particularly, today,  with  soaring  fuel  and  food prices,  aid  to  Africa  has  even  become  more essential and timely (Ravinder, 2008).

For  countries  like  Nigeria  foreign  aid  activities date back to the assistance of USAID since 1960, when  Nigeria  got her  independence  as  the 26  African country. As a result, the U.S. Government awarded  grants  to  four  major  U.S.  state universities  (Michigan  State,  Wisconsin  State, Kansas  State,  and  Colorado  State)  to  build colleges  of  agriculture  in  four  Nigerian Universities: the University of Ibadan, University of  Nigeria-Nsukka,  Ahmadu  Bello  University-Zaria, and the University of Ife (USAID, 2004).For quite some time now there has been a cascade by  many  developing  nations for  an  increase  in official development assistance (ODA) because of  the  need for  these  countries to  alleviate  the standard of  living of  their citizens.  On the  other hand,  the  developed  nations,  international organizations  in  conjunction  with  some philanthropists  made  a  massive  infusion  of development  aid  to  developing  countries including  Nigeria.  According to  Conchesta (2008),  a country  like Nigeria is known for  low level  of  income,  high  level  of  unemployment, very low industrial capacity utilization, and high poverty level just to mention a few of the various economic problems these country is   often faced with. Mostly, humanitarian aid has gone a long way to saving lives, provision of free health care services to the sick and deprived, medicines for those vulnerable to diseases in emergencies.

More so, foreign aid are considered a necessity for the development of Africa as well as Nigeria since it  is  seen  as  a  means  of  increasing  capital  for economic  growth  and  investment,  reducing poverty  and  raising  the  standard  of  living  of persons,  contributing  to  the  transfer  of  skills, technologies and production methods, increasing product  diversity  and  generates  employment (OECD-DAC, 1999; Bakare, 2011).

Based on this background the researcher wants to investigate the Foreign Aid and Africa’s quest for Development: Issues and challenges for Nigeria.

1.2 Statement of the problem

Two questions are pertinent: firstly, is there any clear link between foreign aid and (under) development in Africa? Secondly, has aid succeeded in making Africa better or has it undermined progress? There is no agreement on the appropriate answers to these questions. study argues that without a proper understanding of the culture of the people aid seeks to help, no effective impacts should be expected. Although we reckon the impact of external variables, we propose that a better appreciation of the internal dynamics of the recipients of aid is more likely to ensure aid contributes to sustainable socio-economic development. In many cases, people have certain fundamental belief systems and practices that influence their perceptions of what development should entail. If these factors are ignored, one cannot have a holistic understanding of the dynamics of aid, politics and socio-economic development in Africa, Nigeria in particular

1.3 Objective of the study

The objectives of the study are;

  1. To ascertain the impact of foreign aid on Nigeria development
  2. To ascertain how successful is foreign aid in development of Nigeria
  3. To find out the challenges of foreign aid in developing Nigeria

1.4 Research question

  1. Is there any impact of foreign aid on Nigeria development?
  2. Is there success of foreign aid in Nigeria development?
  3. Are there challenges of foreign aid in developing Nigeria?

1.5 Research hypotheses

For the successful completion of the study, the following research hypotheses were formulated by the researcher;

H0: There is no significant impact of foreign aid on Nigeria development

H1: There is significant impact of foreign aid on Nigeria development

H02: there is no significant success of foreign aid in development of Nigeria

H2: there is significant success of foreign aid in development of Nigeria

 H03: there are no challenges of foreign aid in developing Nigeria

H3: there are challenges of foreign aid in developing Nigeria

1.6 Significance of the study

The study will be very significant to students, government of Nigeria and the policy makers. The study will give insight on the Foreign Aid and Africa’s quest for Development: Issues and challenges for Nigeria. The study will state the challenges face by foreign aid in developing Nigeria. It will also come up with the solution to the challenges of foreign aid. The study will also serve as a reference to other researcher that will embark on the related topic

1.7 Scope of the study

The scope of the study covers Foreign Aid and Africa’s quest for Development: Issues and challenges for Nigeria. The study will be limited to Nigeria

1.8 Limitation of the study

The researcher encounters some constraints which limit the scope of the study namely:

The research material available to the researcher is insufficient, thereby limiting the study

The time frame allocated to the study does not enhance wider coverage as the researcher has to combine other academic activities and examinations with the study.

Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).


1.9 Definition of the terms

Foreign aid: Foreign aid is any type of assistance that one country voluntarily transfers to another, which can take the form of a gift, grant, or loan. Countries may provide aid through capital, food, supplies, and services such as humanitarian aid and military assistance

Development: Development is a process that creates growth, progress, positive change or the addition of physical, economic, environmental, social and demographic components. The identification of these traps enables relating to political – economic – social conditions in a country in an attempt to advance development.

Challenges: a call to someone to participate in a competitive situation or fight to decide who is superior in terms of ability or strength.


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