Five Decades of Development Aid to Nigeria: The Impact on Human Development

Abstract

The purpose of this study is to provide a long-term perspective on development aid and human development in Nigeria. This study employs two-stage least squares estimation to analyzing data from 1960 to 2010, the result shows that there is a negative relationship between development aid and human development, implying that aid tends to worsen human development in Nigeria. As such Nigerian government should put in place an appropriate policy measures that would monitor the maximum and effective utilization of foreign aid. Government should sustain the current reforms in the various sectors of the economy to encourage the inflow of foreign aid. Donors should provide information on future aid disbursements in order to reduce the uncertainty associated with aid flows and improve fiscal planning.

Key words: Development aid, ODA, Human Development