THE IMPACTS OF FOREIGN AID ON THE POLITICAL AND ECONOMIC DEVELOPMENT OF NIGERIA

Abstract

The study "The Impacts of Foreign Aid on the Political and Economic Development of Nigeria" examines the effects of foreign aid on Nigeria's political and economic development including the connections between employment, poverty reduction, and foreign aid in Nigeria. The main objective of this study is to determine how foreign aid affects Nigeria's development, determine the effect of foreign aid on Nigeria's political growth, ascertain the impact of foreign aid on Nigeria's economic progress and discover whether there is a connection between employment, poverty alleviation, and foreign aid in Nigeria. The study used a qualitative approach and applied structural functionalism as the theoretical framework. The study discovered that Foreign aid has expanded the scope of political development in Nigeria, notwithstanding the backwardness in the maintenance of democratic ethos. Foreign aid has boosted economic development in Nigeria despite the high level of corruption associated with the implementation of projects attached to foreign aid. Foreign aid has reduced the high rate of poverty and unemployment in Nigeria but has so far been abused by the leaders of the country. The study recommended the following: Closing any loopholes established by the ruling class in Nigeria, which have led to issues with political growth there, is the best way to maximise the influence of foreign aid on the political development of Nigeria. The Nigerian government should get into the habit of allocating foreign aid to initiatives that will promote economic growth, avoid corruption and money laundering, and keep track of the income and expenses associated with funds received from foreign aid to ensure that Nigeria experiences real economic growth. There should be no redirection of monies intended for poverty reduction to another sector; all foreign aid contributed to Nigeria for activities to alleviate or reduce poverty should be used for such programmes.