Nigeria, foreign aid, and the dependency theory

Since Nigeria’s independence in 1960, Foreign aid has been seen as a beacon of hope, a source of funding for the economic growth of developing countries, and for their overall progress. Over the years, foreign aid has evolved and is seen as a way to rescue most African countries from the cold grasp of poverty and underdevelopment.

However, beneath this helpful hand lies a disturbing reality. Foreign aid is a tool of neo-colonialism, masked as financial support. It is safe to say foreign aid is a way to control not just Nigeria’s economy, but its growth by promoting dependency and dominance of foreign powers on Nigeria’s economic landscape.

Foreign aid could be obtained either bilaterally (that is from one nation to another) or multilaterally (involving more than two nations and International Financial Institutions such as World bank, International Monetary Fund, African Development Bank, and other Regional development banks). Since Nigeria gained her independence in 1960 till date, she has been receiving foreign assistance from the United States, United Kingdom, China, Japan, European Union, World Bank, among others, and has been giving aid to African and Caribbean Nations. Given the high dependency of Nigeria on primary product export and weak lack of technological development, her reliance of foreign aid remains one of the banes of her underdevelopment.

The major purpose of foreign aid is to foster economic development, alleviate poverty, and promote self-sufficiency in recipient countries. Yet, all the empirical evidence points towards a different reality, particularly in the Nigerian. Since independence, Nigeria has received billions of dollars in foreign aid, but still, Nigeria continues to fight against poverty, corruption, and underdevelopment.

According to data from the Organisation for Economic Co-operation and Development (OECD), Nigeria has received over $36.16 billion in official development assistance (ODA) between 2015 and 2022. On the surface, looking at the amount received, the high inflow of foreign aid appears to have been high enough to boost Nigeria’s economy. Rather, delving closer into the foreign aid received reveals a troubling pattern of dependency and exploitation.

Disguised as a benevolent gesture, foreign aid is a means for foreign powers to maintain control over Nigeria’s vast resources and economic destiny.

The Dependency Theory, as opined by scholars such as Raul Prebisch and Andre Gunder Frank, states that underdeveloped countries will remain subordinate to developed nations due to their reliance on them for capital, technology, and market access.

Foreign aid in Nigeria is a neo-colonialism tool to keep Nigeria reliant on international countries and stopping real economic growth. Even though it’s meant to help Nigeria grow, several conditions attached to getting foreign aid are hardly economic friendly.

One of the fallacies surrounding foreign aid is the notion that it catalyzes sustainable development in recipient countries. But it has proved otherwise in Nigeria because foreign aid has failed to boost or provide the desired growth and development, or a meaningful progress for the Nigerian people.

A large portion of the received aid given to Nigeria are given to support specific projects and initiatives, which ironically, the said projects are often executed by foreign contractors and consultants. This not only ridicules local capacity-building efforts but also implies a cycle of dependency on external expertise and resources. And the return of the said aid, pumped back into the economy of the country from which it was given.

Instead of fostering self-sufficiency and empowerment, reliance on foreign aid has continuously promoted a sense of entitlement and complacency among Nigerian policy makers who view aid as a cornerstone for all developmental challenges.

Foreign aid has helped establish a cycle of dependency, where Nigeria has become increasingly reliant on external assistance to sustain its economy. The large inflow of foreign aid destroys domestic priorities and reduces the accountability essential for effective governance. Instead of addressing deadly issues such as corruption, inequality, and infrastructure problems, Nigerian authorities now prioritize projects and policies aligned with donor interests, perpetuating a cycle of dependency and underdevelopment.

The narrative surrounding foreign aid in Nigeria must be reframed to reflect the realities of neo-colonial exploitation and dependency. Instead of passively accepting aid as a solution to Nigeria’s economic woes, policymakers and Nigerians must advocate for greater economic independence.

The truth is, foreign aid in Nigeria is not a move for poverty alleviation or economic development; rather, it can be seen as a vehicle for neo-colonial exploitation and dependency. The staggering amounts of aid flowing into Nigeria have done little to catalyze sustainable progress or empower the Nigerian people.

The call for the eradication of this dependency on foreign aid requires a paradigm shift towards sustainable, inclusive development strategies that prioritize local ownership, capacity-building, and grassroots empowerment. Rather than relying on external handouts, Nigeria must harness its abundant human and natural resources to drive genuine economic transformation and social progress.

To break free from dependency and move towards the path of economic sovereignty, Nigeria must reclaim control over its economic growth. As Nigeria navigates the complex terrain of international development cooperation, it must remain vigilant against the allure of foreign aid and assert its sovereignty in shaping its own future. Only then can Nigeria truly emancipate itself from the vestiges of neo-colonialism and realize its full potential as a vibrant, self-sustaining economy.

Also, transparency and accountability must be upheld as cornerstones of development cooperation, ensuring that aid is utilized effectively and in the best interests of the Nigerian people. Civil society organizations play a crucial role in holding both domestic and foreign actors accountable for their actions, fostering a culture of transparency and participatory governance.

Foreign aid should be the last resort for any nation for its national development. Nigeria, the giant of Africa being reliant on foreign aid for its development not only leaves her citizens at the mercy of foreigners, but also undermines the power and struggle of her people towards personal growth.

Nigeria, a nation blessed with numerous resources, is rich enough, if all the resources are well managed without corruption, to give foreign aid to other African countries. To break free of dependency shackles and eradicate neo-colonialism, Nigeria policy makers must be ready to take charge and be truly independent (as we are indirectly still dependent on foreign nations for support).

Maxwell Adeyemi Adeleye sent this piece from London, United Kingdom. He can be reached via [email protected].