Aid distributions to the most vulnerable remained equitable even after Nigeria crossed a key income threshold, study finds
The country avoided one potential unintended consequence of a policy question that will affect nearly two dozen countries over the next decade..
A young boy drinks clean water from a fountain. Photo by Shutterstock.
Over the next decade, nearly 25 countries are predicted to transition out of low-income status into lower-middle income status, as classified by the World Bank. This is enormously good news, as it represents painstaking progress in human development and significant reductions in poverty across a diverse host of countries. But what happens to important health-related aid when those countries tip this critical World Bank income threshold and become less likely to receive aid grants? Do the remaining, scarcer resources continue to be allocated based on the needs of the country's most vulnerable groups?
New research published in PLOS ONE is one of the first studies to answer this question at a subnational level. It investigates whether Nigeria's transition out of low-income status affected aid allocations to the country, based on differences in estimated infant health needs in the country’s subregions.
“This is a policy issue that will affect dozens of countries as they pursue the UN’s Sustainable Development Goals (SDG) agenda between now and 2030,” noted Carrie Dolan , the lead author on the study. Dolan is a spatial epidemiologist and director of the Ignite research lab at William & Mary, as well as an AidData affiliated researcher, whose work focuses on how changes in health expenditures affect population-level health outcomes.
“There’s a huge question of equity here. When countries hop over the World Bank's low-income country designation, do places in those countries that most need resources get less of them? In other words, does aid become less equitable? And the good news is that what we see is: No, at least not in this case,” continued Dolan.
In Childhood health and the changing distribution of foreign aid: Evidence from Nigeria's transition to lower-middle-income status , Dolan and her co-authors looked for evidence that the relationship between World Bank child health aid and need had changed when Nigeria, Africa’s most populous country, crossed from low-income to lower-middle income status.
The researchers analyzed 20 years of World Bank project data georeferenced by AidData and demographic and health (DHS) survey data . They modeled five critical indicators of children’s health (infant mortality, under-five mortality, and the prevalence of diarrhea, acute respiratory infections, and fever in children under five) and asked if the distribution of World Bank aid to four subregions of Nigeria changed after the income transition period, when compared to the need estimated from the health indicators in those areas before the transition period.
If the researchers detected a statistically significant change in this relationship between aid and need—specifically, if a higher proportion of the country's remaining post-transition aid went to less vulnerable groups—it would suggest that the change in Nigeria’s World Bank income status was a factor. Vulnerable children would therefore have been paying for Nigeria's improved income status. This is obviously not what the World Bank or other large donors intend with their country designations and would represent a significant unintended consequence for policymakers to wrestle with.
But that’s not what Dolan’s team found. “Our research shows that World Bank funding for infant health still went to areas that needed it most in Nigeria, even after the country crossed the Bank’s income threshold and funding decreased overall," Dolan explained. “Infant health is important as a barometer in understanding the health of the community. What's so encouraging about these findings is that they show the World Bank didn't completely divest its investment in infant needs, just because Nigeria's income designation changed.”
Dolan and her co-authors, McKinley Saunders and Ariel BenYishay , focused on Nigeria for several reasons. One was because the Bank classifies it as a “blend” country, a transitional designation that means it maintains access to IDA funding from the Bank, but at a reduced scale which could be more easily studied.
“What’s more, in Nigeria, not only has official development assistance (ODA) as a share of GDP fallen over time, but so have tax revenues,” noted BenYishay, a co-author on the study and AidData’s Chief Economist. “This makes it difficult to generate meaningful population health gains as outlined in the SDGs. Losing access to concessional finance such as IDA could make it impossible to reach development goals in newly vulnerable countries like Nigeria.”
The importance of income thresholds
The World Bank sets certain income thresholds for eligibility to receive funding through its grant-making International Development Association (IDA) arm. But when a country crosses over the low-income threshold, it doesn’t just affect World Bank funding: many bilateral donors also cut off or decrease their ODA, believing that the country needs less aid.
The result is that once countries cross the Bank’s threshold, they receive an estimated 20% less ODA. Prior research also suggests that these countries are less likely to use loans to invest in health or education initiatives, preferring to direct loans to infrastructure projects, which have a clear economic return. Yet even after a country surpasses the threshold, vulnerable groups, such as children, still depend on the sorts of social service projects that are less likely to be financed by loans.
Ultimately, this means that poor countries’ progress on the 44 children-related indicators of the Sustainable Development Goals could be hampered by changes in funding allocation. This is particularly important in the health sector, where other large donors such as GAVI and the Vaccine Alliance also consider income-based eligibility when allocating funds.
The policy question of country transition across income thresholds will only grow as countries make progress on their Agenda 2030 targets. Dolan sees potential to leverage the research methodology from this study to answer similar questions about aid allocation.
“If resources go to the places that need it, countries get healthier. But just because donors are funding projects in a certain area, does not mean that's necessarily where resources need to go. To see where need truly is, you need studies like this to rigorously measure it,” said Dolan. “But this is just one study in one specific context: our approach could be applied to examine funding for a range of health-related needs and vulnerable populations. Going forward, we’re hoping to examine next how funding for HIV/AIDS—an enormous public health burden in developing countries—changes when countries’ income designations change.”
John Custer is AidData's Deputy Director of Communications and Data Analytics.
Sarina Patterson is AidData's Communications Manager.
Case Study: Aid & Development in Nigeria
Nigeria's relationships with the rest of the world.
Trading and political relationships between Nigeria and the rest of the world have changed over time.
Nigeria's global trading links
- Nigeria used to export most of its oil to the USA, but now most of its oil goes to India.
- Nigeria's most important trading partner is the European Union.
Nigeria's global political links
- Nigeria was a part of the British Empire and is now a member of the Commonwealth.
- Nigeria is also a member of the United Nations and the African Union.
Aid Received by Nigeria
Nigeria benefits from international aid in many forms, but there are concerns that some money is misspent because of corruption and that aid can lead to dependency. Examples of aid to Nigeria include:
Multilateral aid received by Nigeria
- The World Bank loaned US$500 million to Nigeria in 2014 for development projects.
Bilateral aid received by Nigeria
- The USA has funded projects to tackle the spread of AIDS.
Voluntary aid received by Nigeria
- Nets for Life (an NGO) helps tackle malaria by educating people and giving out bed nets.
The Impacts of Economic Development in Nigeria
Whilst the Human Development Index has increased in Nigeria, there are still many poor people and corruption is a major problem. There have also been significant environmental consequences related to economic development.
Pros of economic development in Nigeria
- Higher disposable income
- Improved infrastructure
- Better diets have led to increased life expectancy
- More reliable supplies of water and electricity
- More jobs in the formal sector, with reliable pay
Cons of economic development in Nigeria
- Factories in cities such as Lagos can pollute water and air, harming wildlife and people.
- 70-80% of Nigeria’s forests have been cut down. This has led to water pollution, soil erosion and loss of habitats.
- The capital city of Abuja suffers from traffic congestion and waste disposal problems.
- The oil industry has polluted parts of the Niger Delta, damaging ecosystems and making it hard for farmers and fishermen to survive.
1 The Challenge of Natural Hazards
1.1 Natural Hazards
1.1.1 Natural Hazards
1.1.2 Types of Natural Hazards
1.1.3 Factors Affecting Risk
1.1.4 People Affecting Risk
1.1.5 Ability to Cope With Natural Hazards
1.1.6 How Serious Are Natural Hazards?
1.1.7 End of Topic Test - Natural Hazards
1.1.8 Exam-Style Questions - Natural Hazards
1.2 Tectonic Hazards
1.2.1 The Earth's Layers
1.2.2 Tectonic Plates
1.2.3 The Earth's Tectonic Plates
1.2.4 Convection Currents
1.2.5 Plate Margins
1.2.6 Volcanoes
1.2.7 Volcano Eruptions
1.2.8 Effects of Volcanoes
1.2.9 Primary Effects of Volcanoes
1.2.10 Secondary Effects of Volcanoes
1.2.11 Responses to Volcanic Eruptions
1.2.12 Immediate Responses to Volcanoes
1.2.13 Long-Term Responses to Volcanoes
1.2.14 Earthquakes
1.2.15 Earthquakes at Different Plate Margins
1.2.16 What is an Earthquake?
1.2.17 Measuring Earthquakes
1.2.18 Immediate Responses to Earthquakes
1.2.19 Long-Term Responses to Earthquakes
1.2.20 Case Studies: The L'Aquila Earthquake
1.2.21 Case Studies: The Kashmir Earthquake
1.2.22 Earthquake Case Study: Chile 2010
1.2.23 Earthquake Case Study: Nepal 2015
1.2.24 Reducing the Impact of Tectonic Hazards
1.2.25 Protecting & Planning
1.2.26 Living with Tectonic Hazards 2
1.2.27 End of Topic Test - Tectonic Hazards
1.2.28 Exam-Style Questions - Tectonic Hazards
1.2.29 Tectonic Hazards - Statistical Skills
1.3 Weather Hazards
1.3.1 Winds & Pressure
1.3.2 The Global Atmospheric Circulation Model
1.3.3 Surface Winds
1.3.4 UK Weather Hazards
1.3.5 Changing Weather in the UK
1.3.6 Tropical Storms
1.3.7 Tropical Storm Causes
1.3.8 Features of Tropical Storms
1.3.9 The Structure of Tropical Storms
1.3.10 The Effect of Climate Change on Tropical Storms
1.3.11 The Effects of Tropical Storms
1.3.12 Responses to Tropical Storms
1.3.13 Reducing the Effects of Tropical Storms
1.3.14 Tropical Storms Case Study: Katrina
1.3.15 Tropical Storms Case Study: Haiyan
1.3.16 UK Weather Hazards Case Study: Somerset 2014
1.3.17 End of Topic Test - Weather Hazards
1.3.18 Exam-Style Questions - Weather Hazards
1.3.19 Weather Hazards - Statistical Skills
1.4 Climate Change
1.4.1 Climate Change
1.4.2 Evidence for Climate Change
1.4.3 Natural Causes of Climate Change
1.4.4 Human Causes of Climate Change
1.4.5 Effects of Climate Change on the Environment
1.4.6 Effects of Climate Change on People
1.4.7 Climate Change Mitigation Strategies
1.4.8 Adaptation to Climate Change
1.4.9 End of Topic Test - Climate Change
1.4.10 Exam-Style Questions - Climate Change
1.4.11 Climate Change - Statistical Skills
2 The Living World
2.1 Ecosystems
2.1.1 Ecosystems
2.1.2 Food Chains & Webs
2.1.3 Ecosystem Cascades
2.1.4 Global Ecosystems
2.1.5 Ecosystem Case Study: Freshwater Ponds
2.2 Tropical Rainforests
2.2.1 Tropical Rainforests
2.2.2 Interdependence of Tropical Rainforests
2.2.3 Adaptations of Plants to Rainforests
2.2.4 Adaptations of Animals to Rainforests
2.2.5 Biodiversity of Tropical Rainforests
2.2.6 Deforestation
2.2.7 Impacts of Deforestation
2.2.8 Case Study: Deforestation in the Amazon Rainforest
2.2.9 Why Protect Rainforests?
2.2.10 Sustainable Management of Rainforests
2.2.11 Case Study: Malaysian Rainforest
2.2.12 End of Topic Test - Tropical Rainforests
2.2.13 Exam-Style Questions - Tropical Rainforests
2.2.14 Deforestation - Statistical Skills
2.3 Hot Deserts
2.3.1 Hot Deserts
2.3.2 Interdependence in Hot Deserts
2.3.3 Adaptation of Plants to Hot Deserts
2.3.4 Adaptation of Animals to Hot Deserts
2.3.5 Biodiversity in Hot Deserts
2.3.6 Case Study: Sahara Desert
2.3.7 Desertification
2.3.8 Reducing the Risk of Desertification
2.3.9 Case Study: Thar Desert
2.3.10 End of Topic Test - Hot Deserts
2.3.11 Exam-Style Questions - Hot Deserts
2.4 Tundra & Polar Environments
2.4.1 Overview of Cold Environments
2.4.2 Interdependence of Cold Environments
2.4.3 Adaptations of Plants to Cold Environments
2.4.4 Adaptations of Animals to Cold Environments
2.4.5 Biodiversity in Cold Environments
2.4.6 Case Study: Alaska
2.4.7 Sustainable Management
2.4.8 Case Study: Svalbard
2.4.9 End of Topic Test - Tundra & Polar Environments
2.4.10 Exam-Style Questions - Cold Environments
3 Physical Landscapes in the UK
3.1 The UK Physical Landscape
3.1.1 The UK Physical Landscape
3.1.2 Examples of the UK's Landscape
3.2 Coastal Landscapes in the UK
3.2.1 Types of Wave
3.2.2 Weathering
3.2.3 Mass Movement
3.2.4 Processes of Erosion
3.2.5 Wave-Cut Platforms
3.2.6 Headlands & Bays
3.2.7 Caves, Arches & Stacks
3.2.8 Longshore Drift
3.2.9 Sediment Transport
3.2.10 Deposition
3.2.11 Spits, Bars & Sand Dunes
3.2.12 Coastal Management - Hard Engineering
3.2.13 Coastal Management - Soft Engineering
3.2.14 Case Study: Landforms on the Dorset Coast
3.2.15 Coastal Management - Managed Retreat
3.2.16 Coastal Management Case Study - Holderness
3.2.17 Coastal Management Case Study: Swanage
3.2.18 Coastal Management Case Study - Lyme Regis
3.2.19 End of Topic Test - Coastal Landscapes in the UK
3.2.20 Exam-Style Questions - Coasts
3.3 River Landscapes in the UK
3.3.1 The Long Profile of a River
3.3.2 The Cross Profile of a River
3.3.3 Vertical & Lateral Erosion
3.3.4 River Valley Case Study - River Tees
3.3.5 Processes of Erosion
3.3.6 Sediment Transport
3.3.7 River Deposition
3.3.8 Waterfalls & Gorges
3.3.9 Interlocking Spurs
3.3.10 Meanders
3.3.11 Oxbow Lakes
3.3.12 Floodplains
3.3.13 Levees
3.3.14 Estuaries
3.3.15 Case Study: The River Clyde
3.3.16 River Management
3.3.17 Hydrographs
3.3.18 Flood Defences - Hard Engineering
3.3.19 Flood Defences - Soft Engineering
3.3.20 River Management Case Study - Boscastle
3.3.21 River Management Case Study - Banbury
3.3.22 End of Topic Test - River Landscapes in the UK
3.3.23 Exam-Style Questions - Rivers
3.4 Glacial Landscapes in the UK
3.4.1 The UK in the Last Ice Age
3.4.2 Glacial Processes
3.4.3 Glacial Landforms Caused by Erosion
3.4.4 Tarns, Corries, Glacial Troughs & Truncated Spurs
3.4.5 Types of Moraine
3.4.6 Drumlins & Erratics
3.4.7 Snowdonia
3.4.8 Land Use in Glaciated Areas
3.4.9 Conflicts in Glacial Landscapes
3.4.10 Tourism in Glacial Landscapes
3.4.11 Coping with Tourism Impacts in Glacial Landscapes
3.4.12 Case Study - Lake District
3.4.13 End of Topic Test - Glacial Landscapes in the UK
3.4.14 Exam-Style Questions - Glacial Landscapes
4 Urban Issues & Challenges
4.1 Urban Issues & Challenges
4.1.1 Urbanisation
4.1.2 Factors Causing Urbanisation
4.1.3 Megacities
4.1.4 Urbanisation Case Study: Lagos
4.1.5 Urbanisation Case Study: Rio de Janeiro
4.1.6 UK Cities
4.1.7 Case Study: Urban Regen Projects - Manchester
4.1.8 Case Study: Urban Change in Liverpool
4.1.9 Case Study: Urban Change in Bristol
4.1.10 Sustainable Urban Life
4.1.11 Reducing Traffic Congestion
4.1.12 End of Topic Test - Urban Issues & Challenges
4.1.13 Exam-Style Questions - Urban Issues & Challenges
4.1.14 Urban Issues -Statistical Skills
5 The Changing Economic World
5.1 The Changing Economic World
5.1.1 Measuring Development
5.1.2 Limitations of Developing Measures
5.1.3 Classifying Countries Based on Wealth
5.1.4 The Demographic Transition Model
5.1.5 Stages of the Demographic Transition Model
5.1.6 Physical Causes of Uneven Development
5.1.7 Historical Causes of Uneven Development
5.1.8 Economic Causes of Uneven Development
5.1.9 Consequences of Uneven Development
5.1.10 How Can We Reduce the Global Development Gap?
5.1.11 Case Study: Tourism in Kenya
5.1.12 Case Study: Tourism in Jamaica
5.1.13 Case Study: Economic Development in India
5.1.14 Case Study: Aid & Development in India
5.1.15 Case Study: Economic Development in Nigeria
5.1.16 Case Study: Aid & Development in Nigeria
5.1.17 End of Topic Test - The Changing Economic World
5.1.18 Exam-Style Questions - The Changing Economic World
5.1.19 Changing Economic World - Statistical Skills
5.2 Economic Development in the UK
5.2.1 Causes of Economic Change in the UK
5.2.2 The UK's Post-Industrial Economy
5.2.3 The Impacts of UK Industry on the Environment
5.2.4 Change in the UK's Rural Areas
5.2.5 Transport in the UK
5.2.6 The North-South Divide
5.2.7 Regional Differences in the UK
5.2.8 The UK's Links to the World
6 The Challenge of Resource Management
6.1 Resource Management
6.1.1 Global Distribution of Resources
6.1.2 Uneven Distribution of Resources
6.1.3 Food in the UK
6.1.4 Agribusiness
6.1.5 Demand for Water in the UK
6.1.6 Water Pollution in the UK
6.1.7 Matching Supply & Demand of Water in the UK
6.1.8 The UK's Energy Mix
6.1.9 Issues with Sources of Energy
6.1.10 Resource Management - Statistical Skills
6.2.1 Areas of Food Surplus & Food Deficit
6.2.2 Increasing Food Consumption
6.2.3 Food Supply & Food Insecurity
6.2.4 Impacts of Food Insecurity
6.2.5 Increasing Food Supply
6.2.6 Case Study: Thanet Earth
6.2.7 Creating a Sustainable Food Supply
6.2.8 Case Study: Agroforestry in Mali
6.2.9 End of Topic Test - Food
6.2.10 Exam-Style Questions - Food
6.2.11 Food - Statistical Skills
6.3.1 Water Surplus & Water Deficit
6.3.2 Increasing Water Consumption
6.3.3 What Affects the Availability of Water?
6.3.4 Impacts of Water Insecurity
6.3.5 Increasing Water Supplies
6.3.6 Case Study: Water Transfer in China
6.3.7 Sustainable Water Supply
6.3.8 Case Study: Kenya's Sand Dams
6.3.9 Case Study: Lesotho Highland Water Project
6.3.10 Case Study: Wakel River Basin Project
6.3.11 Exam-Style Questions - Water
6.3.12 Water - Statistical Skills
6.4.1 Global Demand for Energy
6.4.2 Increasing Energy Consumption
6.4.3 Factors Affecting Energy Supply
6.4.4 Impacts of Energy Insecurity
6.4.5 Increasing Energy Supply - Solar
6.4.6 Increasing Energy Supply - Water
6.4.7 Increasing Energy Supply - Wind
6.4.8 Increasing Energy Supply - Nuclear
6.4.9 Increasing Energy Supply - Fossil Fuels
6.4.10 Carbon Footprints
6.4.11 Energy Conservation
6.4.12 Case Study: Rice Husks in Bihar
6.4.13 Exam-Style Questions - Energy
6.4.14 Energy - Statistical Skills
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Case Study: Economic Development in Nigeria
End of Topic Test - The Changing Economic World
- WE ARE WORKING TOWARDS ACHIEVING A SINGLE CURRENCY FOR THE ECOWAS REGION
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FOREIGN AID AND ECONOMIC GROWTH IN NIGERIA: AN EMPIRICAL ANALYSIS
Eseosa Joy Sowemimo and Milton Iyoha, Ph D
Foreign aid is considered a crucial tool for lifting African countries out of poverty and for fast tracking their economic and social development. Nigeria has the highest official development Assistance receipts in Africa but despite this, her macroeconomic performance is largely underwhelming. Existing literature is divided on the effectiveness or otherwise of aid in propelling growth. This paper investigates this issue using data from Nigeria. Interestingly, analysis from this study found a “U” shaped curve which implies that the benefit from aid is first negative before it becomes positive. The study posits that the reason for this peculiar aid-growth relationship in Nigeria is the rigidities in our macroeconomic and institutional frameworks. The study rather emphasizes government expenditure as a veritable tool for driving growth. It concludes that if government expenditure is channelled towards boosting domestic savings and investment as well as used for funding human capital development projects, it is likely that foreign aid will become an additional source of funding that can produce a significantly positive effect on the growth rate of the Nigerian economy.
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What use is aid and development data two examples from nigeria.
- Publish What You Fund
BY GARY FORSTER | JAN 7, 2020 | CASE STUDIES
Traditionally use cases for aid and development finance data have focussed on improved aid effectiveness. There has been an aspiration that donors might use evaluations to learn from and improve their own projects, a hope that development partners would use such information to coordinate their activities, reduce duplication of effort and ultimately reach more people. Equally aid accountability has been a focus – the belief that by making data available a variety of actors ranging from citizens in aid recipient countries to civil society organisations and governments themselves would be able to monitor aid spending and hold development partners to account where they were found wanting.
On a recent visit to Nigeria we were keen to find out how aid and development data is currently being used, if at all, and with what impact. We wanted to know if there is demand for aid and development data, and if these demands are being met. We found two very different sides of the aid transparency coin – one wholly practical, and one intangible but arguably more important.
In late November 2019 a team from Publish What You Fund was hosted by the Nigerian Ministry of Finance, Budget and National Planning. During a week of meetings the team met with a variety of stakeholders ranging from the International Cooperation Division of the ministry, to the Central Bank of Nigeria, and from international donor agencies to local civil society organisations. From an aid transparency perspective the visit was heart-warming – we heard a number of instances where data had been used by government to inform policy, or by civil society to hold donor projects to account. At the same time, however, stakeholders gave us many examples where better data would help.
A practical example: immediate impact
The first example, on the face of it, seems obvious, but it’s not a use case that the aid transparency community has really discussed. One of the most important roles of the Central Bank of Nigeria is to calculate the nation’s balance of payments (BoP) each quarter which includes a calculation of the country’s current account balance. While aid represents only a small proportion of GDP in Nigeria, the incoming flows represent a substantial proportion of the country’s current account balance (which was ~$2.8bn in the 2nd quarter of 2019). Without direct access to timely, comprehensive and disaggregated aid data, the Central Bank of Nigeria has to rely on the International Cooperation Division’s Development Assistance Database (DAD) to determine in flows of aid information. Unfortunately due to inconsistent provision of data by donors in Nigeria the DAD, at first glance, appears to be missing many hundreds of millions of dollars of aid spending. Under such circumstances the Central Bank has to estimate the incoming aid flows, making a further estimate of how much money remains in the country (i.e. not withheld by UN agencies, INGOs and consulting firms in the form of HQ salaries, overheads or fees). The current account balance of a country, and whether it’s in deficit or surplus is an important indicator of its economic health. It has a direct impact on the decisions made by policy makers and can lead to such measures as increases in interest rates, or the cost of exchange. Inaccurate, or underestimated aid flow information can have a very real impact upon fiscal policy.
A perception example: the importance of trust
The second example is all together very different. The Publish What You Fund team were granted an audience with Honourable Representative Mike Etaba of Cross River, Chairman of the Legislative Budget and NGO committees. Representative Etaba articulated a vision of development cooperation between the government and donor agencies, of building trust and mutual respect, all underpinned by a foundation of open, honest, transparent sharing of aid information. He rightly argued that without such information it was impossible to track funding, let alone measure impact – core responsibilities of his Committee. But concurrently he voiced sentiments we’d heard elsewhere; a challenge to the international community to proactively work to share information with key government stakeholders on the ground as a matter of principle. Nigeria is a sovereign state – actions undertaken by foreign groups within Nigeria’s borders are subject to the government’s approval, no matter how important or well-meaning they are. And you don’t have to look too far from Nigeria’s borders to see how scepticism of aid can quickly transform, how bureaucratic barriers can present themselves when recipient governments lose faith in the international aid system.
An opportunity?
But in Nigeria an opportunity exists. It’s an opportunity to build on sixty years of development cooperation, for donors and government to work hand in hand, openly, to ensure that future investment is evidence based, aligns with national priorities, and that the process, not just the result, helps build confidence and trust all around.
The Publish What You Fund team has since returned to the UK and is now reflecting on this experience. Questions abound as to the extent to which international development actors have undervalued the importance of aid transparency, and the extent to which these user cases illustrate the breadth of opportunity that awaits if we can collectively deliver timely, accurate and comprehensive aid information to in-country actors.
The Publish What You Fund Team is grateful to the Ministry of Finance, Budget and Planning for facilitating this visit, and specifically the International Cooperation Division who’s Director, Elizabeth Egharevba, and Deputy Director, Dr Faniran, took significant time from their schedules to be available for discussions. The team is also eternally grateful to Henry Asor, Development Assistance Database Manager, a UNDP funded Consultant hosted by the Ministry, who not only hosted, but provided invaluable insight into the workings of the Ministry, the donor community, and other stakeholders central to the use of aid data.
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The Effects of Foreign Aids on Infrastructural Development and Poverty Alleviation in The Developing Countries: A Case Study of Nigeria
- September 2020
- The Journal of Middle East and North Africa Sciences 6(09):25-35
- 6(09):25-35
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- Epoka University
- Nile University of Nigeria
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Foreign Aid to Africa: How Far and How Well?
- First Online: 23 May 2018
Cite this chapter
- Kenneth Kalu 4
Part of the book series: African Histories and Modernities ((AHAM))
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Drawing from the literature on aid effectiveness and using case studies of donor-funded public health programs in Nigeria, this chapter notes that foreign aid can indeed weaken national institutions and compound the problem of poverty and bad governance. This does not mean that aid has no positive impact on society. In many cases, donor interventions in social services, especially in the public health arena, have been hugely beneficial to the receiving communities. Foreign aid that is effectively delivered can ameliorate some of the harsh effects of poverty. However, through various mechanisms, donor projects can also produce negative externalities on national institutions. For examples, donor projects have often pulled competent staff away from government departments, thereby worsening capacity challenges within the government bureaucracy. In addition, huge external interventions in the public health sector of some African countries have led to distortions and confusions within the national system.
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Jeffrey D. Sachs, The End of Poverty: Economic Possibilities for Our Time (New York, NY: Penguin Books, 2015), x1.
UN Millennium Project, Investing in Development.
See, for example, Elliot Berg, Rethinking Technical Cooperation (New York, NY: United Nations Development Program, 1993); Tony Killick, Aid and the Political Economy of Policy Change (London: Routledge, 1998); Carol Lancaster, Aid to Africa: So Much to Do, So Little Done (Chicago, IL: University of Chicago Press, 1999); William Easterly, The White Man’s Burden: Why the West’s Efforts to Aid the Rest have done so much Ill and so Little Good (New York, NY: Penguin Books, 2006); among others.
Daron Acemoglu and Simon Johnson, “Why Foreign Aid Fails and How to Really Help Africa,” The Spectator , January 25, 2014. http://www.spectator.co.uk/2014/01/why-aid-fails/ .
See for example, Thomas Croghan, Amanda Beatty, and Aviva Ron, “Routes to Better Health for Children in Four Developing Countries,” Milbank Quarterly 84, (2006): 333–58; World Bank , The Role and Effectiveness of Development Assistance: Lessons from World Bank Experience (Washington, DC: World Bank , 2002); Easterly , The White Man’s Burden also acknowledges that foreign aid delivers results in the public health sector, but aid cannot produce growth and development.
Andrea Shleifer and Robert Vishny, “Corruption,” Quarterly Journal of Economics 108, no. 3 (1993): 599–617; Joseph, Democracy and Prebendalism ; Chabal and Daloz, Africa Works ; van de Walle , “Presidentialism and Clientelism”; among others.
World Bank , World Development Report, 2014.
World Bank’s poverty data, http://iresearch.worldbank.org/PovcalNet/povDuplicateWB.aspx . Last accessed December 6, 2016.
According to the UN Human Development Report, the 20 countries with the least human development index are African countries.
See for example, Todd Moss , Gunilla Pettersson, and Nicolas van de Walle, “An Aid–Institutions Paradox? A Review Essay on Aid Dependency and State Building in Sub-Saharan Africa” in Reinventing Foreign Aid , ed. William Easterly (Cambridge, MA: MIT Press, 2008): 257–81; Howard Pack and Janeth Rothenberg Pack, “Foreign Aid and the Question of Fungibility,” The Review of Economics and Statistics 75, no. (1993): 258–65; Nicolas van de Walle, Overcoming Stagnation in Aid-Dependent Countries (Washington, DC: Center for Global Development, 2005).
van de Walle, Overcoming Stagnation in Aid-Dependent Countries .
Moss , Pettersson, and van de Walle, “An Aid–Institutions Paradox?,” 259.
Debora Brautigam and Stephen Knack, “Foreign Aid, Institutions and Governance in Sub-Saharan Africa,” Economic Development and Cultural Change 52, no. 2 (2004): 255–85.
Elliot R. Morss, “Institutional Destruction Resulting from Donor Project Proliferation in Sub-Saharan African Countries”. World Development 12, no. 4 (1984): 465–70.
Brian Levy and Sahr Kpundeh, (eds), State Capacity in Africa: New Approaches, Emerging Lessons (Washington, DC: World Bank Institute, 2005).
Moss , Pettersson and van de Walle, “An Aid–Institution Paradox?,” 260.
Ibid., 262.
Birdsall, “The Seven Deadly Sins”.
PEPFAR official website: http://www.pepfar.gov/about/index.htm . Accessed November 20, 2016.
Melissa M. Lee and Melina Platas Izama, “Aid Externalities: Evidence from PEPFAR in Africa,” World Development , 67, (2015): 281–294.
Ibid., 281.
See PEPFAR “Working Toward and AIDS-free Generation: Latest PEPFAR Funding”. http://www.pepfar.gov/documents/organization/189671.pdf .
The Global Fund: http://www.theglobalfund.org/en/overview/ .
The Global Fund: http://www.theglobalfund.org/en/portfolio/ .
The Global Fund, The Global Fund Grant in Detail (Geneva: The Global Fund). Available at: http://www.theglobalfund.org/en/downloads/ .
See, for example, D.A. Brautigam and S. Knack “Foreign Aid, Institutions, and Governance in Sub-Saharan Africa”. Economic Development and Cultural Change , 52 (2) (2004): 255–85; Berg, Rethinking Technical Cooperation; Birdsall, “Seven Deadly Sins”, among others.
Results of interviews conducted in Abuja in 2016.
See, for example, Moss et al., “An Aid-Institution Paradox?”
See, for example, Roger England, “Are we spending too much on HIV?,” British Medical Journal 334, no. 7589 (2007): 344.
See “The Role of Public Health Institutions in Global Health System Strengthening Efforts: The US CDC’s Perspective”. Available at: http://www.cdc.gov/globalhealth/dphswd/pdf/global-perspective.pdf .
Interview respondent.
OECD, Parish Declaration of Aid Effectiveness and the Accra Agenda for Action . https://www.oecd.org/dac/effectiveness/parisdeclarationandaccraagendaforaction.htm .
Lee and Izama , “Aid Externalities: Evidence from PEPFAR in Africa”.
Ibid., 284.
Ibid., 291.
Eran Bendavid and Jayanta Bhattacharya, “The President’s Emergency Plan for AIDS Relief in Africa: An Evaluation of Outcomes,” Annals of Internal Medicine 150, no. 10 (2009): 688–95. See also Committee on the Outcome and Impact Evaluation of Global HIV/AIDS Programs Implemented Under the Lantos–Hyde Act of 2008; Evaluation of PEPFAR (Washington, DC: The National Academy Press, 2013).
Elliot Berg, Rethinking Technical Co-operation (New York, NY: UNDP , 1993); Nancy Birdsall, “Seven Deadly Sins” in Reform & Growth. Evaluating the World Bank Experience , eds. Ajay Chhibber, Kyle R. Peters, and Barbara J. Yale (New Brunswick, NJ: Transaction Publishers, 2006), 515–51.
Birdsall, “Seven Deadly Sins”.
Ibid., 516.
See, for example, Berg, “Rethinking Technical Cooperation”; Brautigam and Knack “Foreign Aid, Institutions and Governance in Sub-Saharan Africa,” among others.
Bendavid and Bhattacharya, “The President’s Emergency Plan for AIDS Relief in Africa”.
Sachs, “The End of Poverty: Economic Possibilities of Our Time”.
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Kalu, K. (2018). Foreign Aid to Africa: How Far and How Well?. In: Foreign Aid and the Future of Africa. African Histories and Modernities. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-319-78987-3_5
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On where the foreign aid comes from, the findings show that, most of the foreign aid received by Nigeria comes from multi-national institutions like the World Bank and the IMF as 74% of the respondents agreed to this assertion. The result also show that, 26% of the respondents believe that, most of the foreign aid received by Nigeria comes from bilateral organizations like individual donor countries.
Table 2: Where do the foreign aid mostly come from?
Multilateral Organizations | 37 (74%) |
Bilateral organizations | 13 (26%) |
Total |
The findings show that, largely, Nigeria receives significant amount of foreign aid from multilateral sources, but the disbursement to the hospital administration might be stifled. This percentage result presentation is used to contrast the government reported aid to the level the hospital is awarded the aid.
Table 3 What is the degree to which your hospital receives foreign aid?
Greater extent | 13 (26%) |
Lesser extent | 7 (4%) |
Total | 50 |
On the question of whether respondents think their country deserves more or less foreign aid, the respondents agreed that, their country deserves more foreign aid. 74% of the respondents agreed that Nigeria need more foreign aid to support hospital operations, through the purchase of advanced medical infrastructures, medications, and other services necessary to increase health outcomes of patients, and the primary health care centres.
Table 4. Do you think your country deserves more or less foreign aid?
More foreign aid | 37(74%) |
Less foreign aid | 13 (26%) |
Total | 50 |
The effectiveness of foreign aid in addressing the health challenges in Nigeria
On the percentage of foreign aid, that goes to the health sector, majority of the respondents said, of the total number of foreign aid received by hospitals, primary health centres, and clinics could be about 20-30%. In all, approximately 72% of the respondents agreed that only about 20-30% of foreign aid received by Nigeria Government is disbursed to the health sector.
Table 5 What percentage of foreign aid goes to the health sector?
Below 10% | 2 (4%) |
10-20% | 7 (14%) |
20-30% | 36 (72%) |
More than 30% | 5 (10%) |
Total | 50 |
On whether the foreign aid received by Nigeria is enough or not, the respondents asserted that, the foreign aid Nigeria receive, as a country is not enough. This is illustrated by the fact that, approximately 76% of the respondents said the amount foreign received by Nigeria is not enough considering the economic challenges facing Nigeria.
Table 6: Would you say the amount of foreign aid dedicated to the health sector is enough?
Somehow Enough | 5 (10%) |
Enough | 3 (6%) |
Not Enough | 38 (76%) |
More than Enough | 4(8%) |
Total | 50 |
The effectiveness of the foreign aid received in Nigeria is considered as not effective as majority respondents representing 52% said the use of the foreign aid received by Nigeria is not effective.
Table 7: How would you describe the effectiveness of foreign aid dedicated to the health sector of your country
Somehow Effective | 13 (26%) |
Effective | 8 (16%) |
Very Enough | 3 (6%) |
Not Effective | 26(52%) |
Total | 50 |
The relationship between foreign aid and health outcomes
On whether there is a relationship between foreign aid and outcomes, majority of the respondents representing 66% agreed that, there exist a relationship between foreign aid and health outcomes. The case in hand (Lagos State Teaching Hospital Report, 2021) showed numerous deaths linked to lack of equipment for clinical services, therapeutics, and medication. The lack of these equipment is due to lack of funding this State hospital and other State hospitals across the country. Deaths relating to health issues such as Malaria, Cholera, maternal deaths, that can be avoided becomes an impediment that leads to death.
Table 8: Do you think foreign aid has anything to do with health outcomes?
Yes | 33 (66%) |
No | 17 (34%) |
Total | 50 |
On the extent to which foreign has influenced health outcomes, the result shows that to a large extent, foreign aid has not effectively affected positive health outcomes in Nigeria. 74% of the respondents believe that the inflows of foreign aid to Nigeria has not significantly influenced the health outcomes in then hospital, which is a benchmark for the country. To some, 12% of the population sample believes the foreign aids have afforded certain basic health kits to treat a fraction of patients in the hospital, while local budgets supplements for the rest of hospital activities.
Table 9: To what extent do you think foreign aid has influenced health outcomes?
To some extent | 6 (12%) |
To a large extent | 7 (14%) |
To a lower extent | 37 (74%) |
On the specific area of health that foreign aid has influenced, the results demonstrates that, the foreign aid received by Nigeria has mostly influenced maternal health. The result suggests that, 70% of the respondents said most of the foreign aid sent to the health sector have influenced maternal health as most of the aid has been used to address issues in maternal mortality.
Table 10 In your opinion, what health outcomes has foreign aid has been able to achieve
Maternal Health | 35 (70%) |
Child mortality | 10 (20%) |
General Healthcare | 5 (10%) |
On the overall relationship between foreign aid and health outcomes, the results indicates that, the influx of foreign aid to Nigeria has been positive in addressing health challenges. The result show that, majority of the respondents representing 58% agreed that, the inflow of foreign aid to Nigeria has been very positive to the health sector.
Table 11 The relationship between foreign aid and health outcomes in your country
Positive | 29 (58%) |
Negative | 16 (32%) |
Can’t tell | 5 (10%) |
This study aimed at examining the impact of foreign aid on the health sector at Lagos State Teaching Hospital. On the level of foreign aid to Nigeria, the study demonstrated indicates Nigeria have been receiving foreign aid for decades now and most of the foreign aid they received comes from multi-national institutions like the World Bank and the IMF and in addition, most of the foreign aid received by Nigeria comes from bilateral organizations like individual donor countries. The study also demonstrated that, largely, Nigeria receives significant amount of foreign aid from multilateral sources. This finding is consistent with Baliamoune-Lutz (2016) who indicated that, in 2007, the G8 countries promised to increase multi-lateral aid by $ 50 billion by 2010 with 50% of the aid going to Africa. The findings also demonstrated that, despite the huge foreign aid received by Nigeria, the country still deserves more foreign aid.
On the effectiveness of foreign aid in addressing the health challenges of Nigeria, the study made a number of revelations. Firstly, the findings demonstrated that, of the total amount of foreign aid received by Nigeria, only 20-30% is dedicated to the health sector. The findings also show that, the foreign aid Nigeria receive, as a country is not enough considering the economic challenges facing Nigeria. This finding is not consistent with Baliamoune-Lutz (2016) who indicated that, in 2007, the G8 countries promised to increase multi-lateral aid by $ 50 billion by 2010 with 50% of the aid going to Africa. The findings also suggested that, the effectiveness of the foreign aid received in Nigeria is considered as not effective. This finding is inconsistent with Toseef, Jensen and Tarraf (2020) who argued that, foreign aid is “dead” because despite the fact that several billions of dollars have been transferred to developing countries to improve the health condition in the society, the result has been disastrous as the foreign aid has rather worsens people health conditions and poverty levels.
On the relationship between foreign aid and health outcomes in Nigeria, the study revealed that, there exist a relationship between foreign aid and health outcomes. This finding is consistent with Rahman, Khanam and Rahman, (2018) who argued that foreign aid has a positive effect on solving development problems, especially in developing countries. The findings also points to the fact that, this is largely not experienced in Nigeria.
Largely, foreign aid has affected health outcomes in Nigeria. Kalifa (2017) found that increased government spending on health had a greater impact on reducing maternal and child health education and infrastructure development supports this finding. The findings further demonstrated that, the foreign aid received by Nigeria has mostly influenced maternal health. This finding is contrasted with Bedir (2016) who found that foreign aid has a significant impact on child mortality.
On the overall relationship between foreign aid and health outcomes, the study demonstrated that, the influx of foreign aid to Nigeria has been positive in addressing health challenges. Rahman, Khanam & Rahman (2018) found a relatively positive relationship between maternal and child health and ODA (Rahman, Khanam & Rahman, 2018).
Context and Suitability
The results of the present study a very complex situation when it comes to the foreign aid received by Nigeria and how it has affected in the health sector of the country. For instance, while Nigeria receives substantial amounts of foreign, aid, it is still not considered enough considering the economic challenges of the country. Again, despite the huge amounts of foreign aid received by Nigeria, only 20-30% is allocated for the health sector. Not withstanding, this percentage, the foreign aid received by Nigeria appears to have made some positive affect the health sector especially improvements in maternal health.
Limitations of the Study
The author faced a number of challenges in the course of the study especially during the distribution and collection of the questionnaires. Firstly, the tight schedules of the employees of the Lagos State teaching hospital made it difficult in reaching participants to deliver and collect questionnaires. The researcher therefore visited the hospital several times and waited for several hours to distribute and collect a questionnaire.
Based on the results, the study concludes that, Nigeria have received substantial amount of foreign aid and yet these amount of foreign aid is still considered to be low given the huge healthcare issues in Nigeria. The paper also concludes that, the foreign aid received by Nigeria have been largely ineffective in addressing the health issues Nigeria. The study finally concludes that, largely, foreign aid has had a positive impact on the health outcomes in Nigeria. The study recommends that, future studies should expand the scope of the research by focusing on the effect of foreign on the entire West African Sub-region.
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Nigeria and Transnational corporations
The role of transnational corporations (tncs) in relation to industrial development.
A Trans National Corporation (TNC) is a company that has operations (factories, offices, research and development, shops) in more than one country . Many TNCs are large and have well‐known brands. Often TNCs have their headquarters and areas of research, development and product innovation in the country they start in, and manufacturing and factories in other countries (often poorer ones to take advantage of cheaper labour and environmental costs).
Nigeria is attractive to many TNCs because of the large market on offer and lower labour costs. Below is a list of the 20 biggest companies in Nigeria, it shows the impact of foreign TNCs but also that Nigeria has its own home grown massive businesses.
Shell in Nigeria
Shell is a massive TNC that operates in many countries around the world. Extracting the oil is a primary industry but Shell also refine the oil which is a secondary manufacturing industry and they also sell the finished products which is a tertiary service. Shell's work in Nigeria produces more than 21% of the country's total petroleum production from more than eighty fields. Shell bring positives and negatives to the country.
Advantages and disadvantages of TNC(s) to the host country
There are many positives and negatives of Trans National Corporations for a country like Nigeria. TNCs like Shell provide jobs in factories making supplies and in services where the products are available for sale, and they do try to clean up after they accidently damage the environment. TNCs often have charities to help people in the country they work in. Shell has the Shell foundation to help sustainability and biodiversity and help local communities. The main advantage is that TNCs can help countries develop by investing money ENCOURAGING DEVELOPMENT . Shell has spent $12 billion in LICs for example. This also means that TNCs pay tax which can be used by the governments of countries to help their people. Shell paid £20billion in corporation tax in 2013 for example. Finally, oil refineries like those in Nigeria use lots of local companies to help them run. This creates a multiplier effect and TNCs allow the import of new technologies into a country, improving it.
However, sometimes TNCs come in for criticism. Their activities have polluted the environment in the past. Shell has had many incidents involving oil spills for example. TNCs have been accused of human rights abuse s in the past. Shell have been accused of crimes against the Ogoni people in the Niger Delta (see case study box). In addition, employees in LIC’s are working for long hours (e.g. 12+ hours) in poor conditions (in factories known as “Sweat Shops”). Also, employees in LIC’s might be paid much less than employees in HIC’s for doing higher intensity jobs. Some TNCs have even been known to use child labour in their factories. In addition, the jobs in the LIC’s are not secure. They could lose their jobs without warning if company decide to set up somewhere cheaper (as Michelin did in Nigeria). The profits from the production go straight to the headquarters in the HIC . They aren’t reinvested in the LIC. Even in HICs, big TNCs like Amazon and Starbucks have been accused of doing everything they can to limit the amount of tax they pay by playing the system.
CASE STUDY: HUMAN RIGHTS VS. OIL
The Niger Delta contains Ogoniland, home to a community that fought back against Shell. Shell has extracted $30billion worth of crude oil from the land of the Ogoni people since the 1950s. Oil revenue makes up 75% of the Nigerian economy and ½ of that comes from Shell. This has had consequences for the Ogoni people, many of whom live without electricity or running water, who see none of the oil profits and have to live with the poisoning of land and water from pipelines, oil spills and gas fires.
Ken Saro-Wiwa (pictured), organised the locals into the Movement for the Survival of the Ogoni People (MOSOP) who used non-violent protest methods against the power of Shell. The protest movement were attacked, killed and mutilated and some people blamed the government for this. The military Government made their intentions clear and Ken Saro-Wiwa said on May 10 1994 – “This is it. They (the Nigerian army) are going to arrest us all and execute us. All for Shell” . On May 22nd 1994 Ken Saro-Wiwa was arrested on a murder charge, he told the tribunal “I and my colleagues are not the only ones on trial. Shell is here on trial….The company (Shell) has indeed ducked this particular trial but its day will surely come”. Despite massive pressure from Germany, France and Australia, Saro-Wiwa was hanged with 8 other protestors in 1995. John Major (the then UK prime minister) declared it as indefensible.
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How is Nigeria’s economy changing?
Nigeria’s Economy
Nigeria has the largest economy in Africa and one of the fastest-growing economies in the world. The graph below shows considerable growth in Nigeria’s GDP from 2000 to 2022.
Despite its rapid growth in GPD, Nigeria has a significant inequality gap. Wealth is typically found in the south, in and around Lagos. However, the north is exceptionally poor. Almost half of Nigeria’s population lives on less than US$1 per day.
According to Oxfam in 2017 , “The combined wealth of Nigeria’s five richest men – $29.9 billion – could end extreme poverty at a national level, yet 5 million face hunger. More than 112 million people live in poverty in Nigeria, yet the country’s richest man would have to spend $1 million a day for 42 years to exhaust his fortune.”
How is Nigeria’s industrial sector changing?
The structure of Nigeria’s economy has changed significantly. Its economy has transformed from one mainly based on agriculture to manufacturing and services. Around 52% of Nigeria’s GDP now comes from manufacturing and services.
Mechanisation and rural-urban migration have led to a decline in the number of people employed in agriculture. Manufacturing and services have grown due to Nigeria’s increased political stability. Countries such as China, the USA and South Africa have heavily invested in Nigeria. There has also been considerable growth in the service sector, mainly IT services.
The oil and gas industry has been very important to the Nigerian economy. The discovery of oil in the Niger Delta in the 1950s significantly changed Nigeria’s economy.
Despite the country having the 11th largest oil reserves in the world and accounting for 90% of Nigeria’s international currency coming from oil, inefficiencies at refineries, the large domestic demand for energy and fluctuating prices have created an economic challenge. As a result, oil and gas only contribute around 9% to Nigeria’s GDP. At today’s rate of production and current consumption rates, it has over 200 years of supply left.
The fastest-growing sector in Nigeria is manufacturing. A combination of the cheap and plentiful labour force and its vast market, both within and beyond the country, has led to rapid economic growth.
Does Nigeria have a balanced economy?
Dividing Nigeria’s economy into primary (agriculture and mineral extraction), secondary (manufacturing) and services, it is possible to assess the contribution of each sector to a country’s GDP or employment. The graph below shows changes in Nigeria’s employment structure. Since 1991, there have been significant changes to Nigeria’s industrial structure .
Employment in agriculture has steadily declined due to mechanism (increased use of machinery) and competition from other forms of employment, offering better working conditions and pay. Today, agriculture contributes 22 per cent of Nigeria’s GDP.
The industrial sector now accounts for about 27 per cent of GDP. Nigeria has the fastest-growing industrial sector in Africa, overtaking South Africa.
The service sector now employs 53 per cent of workers and accounts for 50 per cent of the country’s GDP.
As with many NEEs, the economy of Nigeria has changed from one dominated by agriculture to one where the service sector is becoming increasingly important. Although Nigeria has a wide-ranging and largely developed economy, with oil accounting for over 90% of its exports, it cannot be said the country has a balanced economy.
Nigeria’s growing manufacturing sector
Manufacturing involves making new products from raw materials. Historically, Nigeria’s manufacturing industry was hindered by its dependence on exporting raw materials, mainly agricultural produce. Processing was mainly done abroad.
In 2020 Manufacturing accounted for around 27 per cent of Nigeria’s GPD. The sector is growing faster than the oil, gas, telecommunications and agricultural sectors. Goods manufactured in Nigeria include:
- leather items
- soaps and detergents
- processed food
With its rapidly growing home market, cheap labour force and improving infrastructure, the sector is expected to grow and become more diverse.
How is manufacturing affecting economic development?
Economic development has been stimulated by the growth of manufacturing in several ways:
- People have a more secure income through regular paid work, increasing the home market for purchasing products such as electrical appliances, cars, and clothes.
- The growth in manufacturing leads to the multiplier effect , which means other industries develop to supply parts.
- Tax revenue increases, and more people are in formal employment.
- Foreign investment is attracted by a thriving industrial sector, leading to further economic growth.
- Chemical by-products from oil processing have led to the growth of chemical industries.
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The University of Chicago The Law School
Abrams environmental law clinic—significant achievements for 2023-24, protecting our great lakes, rivers, and shorelines.
The Abrams Clinic represents Friends of the Chicago River and the Sierra Club in their efforts to hold Trump Tower in downtown Chicago accountable for withdrawing water illegally from the Chicago River. To cool the building, Trump Tower draws water at high volumes, similar to industrial factories or power plants, but Trump Tower operated for more than a decade without ever conducting the legally required studies to determine the impact of those operations on aquatic life or without installing sufficient equipment to protect aquatic life consistent with federal regulations. After the Clinic sent a notice of intent to sue Trump Tower, the State of Illinois filed its own case in the summer of 2018, and the Clinic moved successfully to intervene in that case. In 2023-24, motions practice and discovery continued. Working with co-counsel at Northwestern University’s Pritzker Law School’s Environmental Advocacy Center, the Clinic moved to amend its complaint to include Trump Tower’s systematic underreporting each month of the volume of water that it intakes from and discharges to the Chicago River. The Clinic and co-counsel addressed Trump Tower’s motion to dismiss some of our clients’ claims, and we filed a motion for summary judgment on our claim that Trump Tower has committed a public nuisance. We also worked closely with our expert, Dr. Peter Henderson, on a supplemental disclosure and on defending an additional deposition of him. In summer 2024, the Clinic is defending its motion for summary judgment and challenging Trump Tower’s own motion for summary judgment. The Clinic is also preparing for trial, which could take place as early as fall 2024.
Since 2016, the Abrams Clinic has worked with the Chicago chapter of the Surfrider Foundation to protect water quality along the Lake Michigan shoreline in northwest Indiana, where its members surf. In April 2017, the U. S. Steel plant in Portage, Indiana, spilled approximately 300 pounds of hexavalent chromium into Lake Michigan. In January 2018, the Abrams Clinic filed a suit on behalf of Surfrider against U. S. Steel, alleging multiple violations of U. S. Steel’s discharge permits; the City of Chicago filed suit shortly after. When the US government and the State of Indiana filed their own, separate case, the Clinic filed extensive comments on the proposed consent decree. In August 2021, the court entered a revised consent decree which included provisions advocated for by Surfrider and the City of Chicago, namely a water sampling project that alerts beachgoers as to Lake Michigan’s water quality conditions, better notifications in case of future spills, and improvements to U. S. Steel’s operations and maintenance plans. In the 2023-24 academic year, the Clinic successfully litigated its claims for attorneys’ fees as a substantially prevailing party. Significantly, the court’s order adopted the “Fitzpatrick matrix,” used by the US Attorney’s Office for the District of Columbia to determine appropriate hourly rates for civil litigants, endorsed Chicago legal market rates as the appropriate rates for complex environmental litigation in Northwest Indiana, and allowed for partially reconstructed time records. The Clinic’s work, which has received significant media attention, helped to spawn other litigation to address pollution by other industrial facilities in Northwest Indiana and other enforcement against U. S. Steel by the State of Indiana.
In Winter Quarter 2024, Clinic students worked closely with Dr. John Ikerd, an agricultural economist and emeritus professor at the University of Missouri, to file an amicus brief in Food & Water Watch v. U.S. Environmental Protection Agency . In that case pending before the Ninth Circuit, Food & Water Watch argues that US EPA is illegally allowing Concentrated Animal Feeding Operations, more commonly known as factory farms, to pollute waterways significantly more than is allowable under the Clean Water Act. In the brief for Dr. Ikerd and co-amici Austin Frerick, Crawford Stewardship Project, Family Farm Defenders, Farm Aid, Missouri Rural Crisis Center, National Family Farm Coalition, National Sustainable Agriculture Coalition, and Western Organization of Resource Councils, we argued that EPA’s refusal to regulate CAFOs effectively is an unwarranted application of “agricultural exceptionalism” to industrial agriculture and that EPA effectively distorts the animal production market by allowing CAFOs to externalize their pollution costs and diminishing the ability of family farms to compete. Attorneys for the litigants will argue the case in September 2024.
Energy and Climate
Energy justice.
The Abrams Clinic supported grassroots organizations advocating for energy justice in low-income communities and Black, Indigenous, and People of Color (BIPOC) communities in Michigan. With the Clinic’s representation, these organizations intervened in cases before the Michigan Public Service Commission (MPSC), which regulates investor-owned utilities. Students conducted discovery, drafted written testimony, cross-examined utility executives, participated in settlement discussions, and filed briefs for these projects. The Clinic’s representation has elevated the concerns of these community organizations and forced both the utilities and regulators to consider issues of equity to an unprecedented degree. This year, on behalf of Soulardarity (Highland Park, MI), We Want Green, Too (Detroit, MI), and Urban Core Collective (Grand Rapids, MI), Clinic students engaged in eight contested cases before the MPSC against DTE Electric, DTE Gas, and Consumers Energy, as well as provided support for our clients’ advocacy in other non-contested MPSC proceedings.
The Clinic started this past fall with wins in three cases. First, the Clinic’s clients settled with DTE Electric in its Integrated Resource Plan case. The settlement included an agreement to close the second dirtiest coal power plant in Michigan three years early, $30 million from DTE’s shareholders to assist low-income customers in paying their bills, and $8 million from DTE’s shareholders toward a community fund that assists low-income customers with installing energy efficiency improvements, renewable energy, and battery technology. Second, in DTE Electric’s 2023 request for a rate hike (a “rate case”), the Commission required DTE Electric to develop a more robust environmental justice analysis and rejected the Company’s second attempt to waive consumer protections through a proposed electric utility prepayment program with a questionable history of success during its pilot run. The final Commission order and the administrative law judge’s proposal for final decision cited the Clinic’s testimony and briefs. Third, in Consumers Electric’s 2023 rate case, the Commission rejected the Company’s request for a higher ratepayer-funded return on its investments and required the Company to create a process that will enable intervenors to obtain accurate GIS data. The Clinic intends to use this data to map the disparate impact of infrastructure investment in low-income and BIPOC communities.
In the winter, the Clinic filed public comments regarding DTE Electric and Consumers Energy’s “distribution grid plans” (DGP) as well as supported interventions in two additional cases: Consumers Energy’s voluntary green pricing (VGP) case and the Clinic’s first case against the gas utility DTE Gas. Beginning with the DGP comments, the Clinic first addressed Consumers’s 2023 Electric Distribution Infrastructure Investment Plan (EDIIP), which detailed current distribution system health and the utility’s approximately $7 billion capital project planning ($2 billion of which went unaccounted for in the EDIIP) over 2023–2028. The Clinic then commented on DTE Electric’s 2023 DGP, which outlined the utility’s opaque project prioritization and planned more than $9 billion in capital investments and associated maintenance over 2024–2028. The comments targeted four areas of deficiencies in both the EDIIP and DGP: (1) inadequate consideration of distributed energy resources (DERs) as providing grid reliability, resiliency, and energy transition benefits; (2) flawed environmental justice analysis, particularly with respect to the collection of performance metrics and the narrow implementation of the Michigan Environmental Justice Screen Tool; (3) inequitable investment patterns across census tracts, with emphasis on DTE Electric’s skewed prioritization for retaining its old circuits rather than upgrading those circuits; and (4) failing to engage with community feedback.
For the VGP case against Consumers, the Clinic supported the filing of both an initial brief and reply brief requesting that the Commission reject the Company’s flawed proposal for a “community solar” program. In a prior case, the Clinic advocated for the development of a community solar program that would provide low-income, BIPOC communities with access to clean energy. As a result of our efforts, the Commission approved a settlement agreement requiring the Company “to evaluate and provide a strawman recommendation on community solar in its Voluntary Green Pricing Program.” However, the Company’s subsequent proposal in its VGP case violated the Commission’s order because it (1) was not consistent with the applicable law, MCL 460.1061; (2) was not a true community solar program; (3) lacked essential details; (4) failed to compensate subscribers sufficiently; (5) included overpriced and inflexible subscriptions; (6) excessively limited capacity; and (7) failed to provide a clear pathway for certain participants to transition into other VGP programs. For these reasons, the Clinic argued that the Commission should reject the Company’s proposal.
In DTE Gas’s current rate case, the Clinic worked with four witnesses to develop testimony that would rebut DTE Gas’s request for a rate hike on its customers. The testimony advocated for a pathway to a just energy transition that avoids dumping the costs of stranded gas assets on the low-income and BIPOC communities that are likely to be the last to electrify. Instead, the testimony proposed that the gas and electric utilities undertake integrated planning that would prioritize electric infrastructure over gas infrastructure investment to ensure that DTE Gas does not over-invest in gas infrastructure that will be rendered obsolete in the coming decades. The Clinic also worked with one expert witness to develop an analysis of DTE Gas’s unaffordable bills and inequitable shutoff, deposit, and collections practices. Lastly, the Clinic offered testimony on behalf of and from community members who would be directly impacted by the Company’s rate hike and lack of affordable and quality service. Clinic students have spent the summer drafting an approximately one-hundred-page brief making these arguments formally. We expect the Commission’s decision this fall.
Finally, both DTE Electric and Consumers Energy have filed additional requests for rate increases after the conclusion of their respective rate cases filed in 2023. On behalf of our Clients, the Clinic has intervened in these cases, and clinic students have already reviewed thousands of pages of documents and started to develop arguments and strategies to protect low-income and BIPOC communities from the utility’s ceaseless efforts to increase the cost of energy.
Corporate Climate Greenwashing
The Abrams Environmental Law Clinic worked with a leading international nonprofit dedicated to using the law to protect the environment to research corporate climate greenwashing, focusing on consumer protection, green financing, and securities liability. Clinic students spent the year examining an innovative state law, drafted a fifty-page guide to the statute and relevant cases, and examined how the law would apply to a variety of potential cases. Students then presented their findings in a case study and oral presentation to members of ClientEarth, including the organization’s North American head and members of its European team. The project helped identify the strengths and weaknesses of potential new strategies for increasing corporate accountability in the fight against climate change.
Land Contamination, Lead, and Hazardous Waste
The Abrams Clinic continues to represent East Chicago, Indiana, residents who live or lived on or adjacent to the USS Lead Superfund site. This year, the Clinic worked closely with the East Chicago/Calumet Coalition Community Advisory Group (CAG) to advance the CAG’s advocacy beyond the Superfund site and the adjacent Dupont RCRA site. Through multiple forms of advocacy, the clinics challenged the poor performance and permit modification and renewal attempts of Tradebe Treatment and Recycling, LLC (Tradebe), a hazardous waste storage and recycling facility in the community. Clinic students sent letters to US EPA and Indiana Department of Environmental Management officials about how IDEM has failed to assess meaningful penalties against Tradebe for repeated violations of the law and how IDEM has allowed Tradebe to continue to threaten public and worker health and safety by not improving its operations. Students also drafted substantial comments for the CAG on the US EPA’s Lead and Copper Rule improvements, the Suppliers’ Park proposed cleanup, and Sims Metal’s proposed air permit revisions. The Clinic has also continued working with the CAG, environmental experts, and regulators since US EPA awarded $200,000 to the CAG for community air monitoring. The Clinic and its clients also joined comments drafted by other environmental organizations about poor operations and loose regulatory oversight of several industrial facilities in the area.
Endangered Species
The Abrams Clinic represented the Center for Biological Diversity (CBD) and the Hoosier Environmental Council (HEC) in litigation regarding the US Fish and Wildlife Service’s (Service) failure to list the Kirtland’s snake as threatened or endangered under the Endangered Species Act. The Kirtland’s snake is a small, secretive, non-venomous snake historically located across the Midwest and the Ohio River Valley. Development and climate change have undermined large portions of the snake’s habitat, and populations are declining. Accordingly, the Clinic sued the Service in the US District Court for the District of Columbia last summer over the Service’s denial of CBD’s request to have the Kirtland’s snake protected. This spring, the Clinic was able to reach a settlement with the Service that requires the Service to reconsider its listing decision for the Kirtland’s snake and to pay attorney fees.
The Clinic also represented CBD in preparation for litigation regarding the Service’s failure to list another species as threatened or endangered. Threats from land development and climate change have devastated this species as well, and the species has already been extirpated from two of the sixteen US states in its range. As such, the Clinic worked this winter and spring to prepare a notice of intent (NOI) to sue the Service. The Team poured over hundreds of FOIA documents and dug into the Service’s supporting documentation to create strong arguments against the Service in the imminent litigation. The Clinic will send the NOI and file a complaint in the next few months.
Students and Faculty
Twenty-four law school students from the classes of 2024 and 2025 participated in the Clinic, performing complex legal research, reviewing documents obtained through discovery, drafting legal research memos and briefs, conferring with clients, conducting cross-examination, participating in settlement conferences, and arguing motions. Students secured nine clerkships, five were heading to private practice after graduation, and two are pursuing public interest work. Sam Heppell joined the Clinic from civil rights private practice, bringing the Clinic to its full complement of three attorneys.
IMAGES
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Since 2005, Nigeria's economy has grown substantially, transforming it from a low-income country into a newly emerging economy (NEE). This raises questions about whether it still requires international aid. In 2018, the UK contributed £300 million in aid to Nigeria, though this amount has decreased. Critics argue that, given Nigeria's ...
NIGERIA CASE STUDY EXECUTIVE SUMMARY. The Local Capacity Strengthening Policy was adopted in 2022 to guide USAID in making strategic and intentional decisions about why and how to invest in the capacity of local actors based on a shared understanding of the principles for efective local capacity strengthening.
It investigates whether Nigeria's transition out of low-income status affected aid allocations to the country, based on differences in estimated infant health needs in the country's subregions. "This is a policy issue that will affect dozens of countries as they pursue the UN's Sustainable Development Goals (SDG) agenda between now and ...
The results of the study suggest that foreign aid plays a significant role in Nigeria's growth prospects. In addition, Maruta et al. (2020) conducted a study to analyze the effects of foreign aid on the agriculture, education, and health sectors in 74 developing nations across Africa, Asia, and South America.
The Department for International Development of the UK Government believe that a "peaceful, more democratic and prosperous Nigeria, meeting the basic needs of its citizens, is possible within a generation.". This is where it has focussed its aid. Nigeria will get £1.14 billion of UK overseas aid over the five years from 2013.
Nigeria has the one of the highest burden of Human Immunodeficiency Virus (HIV) infection in the world, with about 1.9 million people infected and a prevalence rate 1.4%. The HIV prevalence remains higher among Females adults age 15-64 with a prevalence of 1.9% than Males with a prevalence of 1.1%. To address her high HIV burden, Nigeria needs ...
Cons of economic development in Nigeria. Factories in cities such as Lagos can pollute water and air, harming wildlife and people. 70-80% of Nigeria's forests have been cut down. This has led to water pollution, soil erosion and loss of habitats. The capital city of Abuja suffers from traffic congestion and waste disposal problems.
This chapter examines the impact of aid on economic growth in Nigeria. The study employed various econometric techniques such as Augmented Dickey-Fuller (ADF) test, Granger causality test and Johansen cointegration test using time series data spanning from 1981-2017. The findings of the study reveal that foreign aid has a significant impact ...
The study posits that the reason for this peculiar aid-growth relationship in Nigeria is the rigidities in our macroeconomic and institutional frameworks. The study rather emphasizes government expenditure as a veritable tool for driving growth. It concludes that if government expenditure is channelled towards boosting domestic savings and ...
Two examples from Nigeria. BY GARY FORSTER | JAN 7, 2020 | CASE STUDIES. Traditionally use cases for aid and development finance data have focussed on improved aid effectiveness. There has been an ...
This study provides an analysis of the impacts of foreign aid and infrastructural development on poverty reduction in Nigeria. The major findings of the study are three: one, foreign aid exerts a ...
Nigeria - A case study of a NEE experiencing rapid economic development which leads to significant social, environmental and cultural change. What is Nigeria's location and importance? ... International Aid in Nigeria. What are the environmental impacts of economic development in Nigeria?
Author(s) Dollar, David R. Devarajan, Shantayanan. Holmgren, Torgny. TweetLikeShare. Abstract. This book synthesizes the findings from ten case studies that investigate whether, when, and how foreign aid affected economic policy in Africa, and reveals the range of African policy experience. Results varied enormously, for example, while Ghana ...
Drawing from the literature on aid effectiveness and using case studies of donor-funded public health programs in Nigeria, this chapter notes that foreign aid can indeed weaken national institutions and compound the problem of poverty and bad governance. This does not mean that aid has no positive impact on society.
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This study aimed at examining the impact of foreign aid on improving the health outcomes of Nigerians using the Lagos State Teaching Hospital as a case study. To reach this objective, the study focused on the following research questions: To what extent is the level of foreign aid to Nigeria, effective in improving health outcomes?
The country has an estimated 1.8 million people living with HIV (PLHIV) (2019 Spectrum estimate) and an estimated 107,112 new HIV infections which is about 38% of new infections in West and Central African region. Nigeria accounts for about 41% of vertically transmitted HIV infections in children in the region in 2018 (UNAIDS, 2019).
3 Of the total aid disbursed between the 2002 and 2012, 59, 9, 3 and 0.33 per cent was provided in the form of social, economic, productive and humanitarian aid respectively. 4 Case studies by Muzondo, Isaac, and Osvaldo ( Citation 2001 ) for Zambia, Matovu ( Citation 2010 ) for Uganda, Kagina ( Citation 2012 ) all find improvements in revenue ...
6 Int. j. adv. multidisc. res. stud. 2024; 4(5):6-10 HIV/AIDS Prevalence in Taraba State, North East, Nigeria; Case Study: Wukari and Environs 1 Ofiri Pascal Ngozi, 2 Imarenezor Edobor Peter Kenneth, 3 Anyiam Vivian Ifeoma, 4 Abhadionmhen Onolunosen Abel 1 Technical Officer-PMTCT, PEAD/Adolescent, ECEWS, Osun State, AP3 Lead, Nigeria 2, 3 Department of Microbiology, Faculty of Science, Federal ...
Below is a list of the 20 biggest companies in Nigeria, it shows the impact of foreign TNCs but also that Nigeria has its own home grown massive businesses. Shell in Nigeria. Shell is a massive TNC that operates in many countries around the world. Extracting the oil is a primary industry but Shell also refine the oil which is a secondary ...
The structure of Nigeria's economy has changed significantly. Its economy has transformed from one mainly based on agriculture to manufacturing and services. Around 52% of Nigeria's GDP now comes from manufacturing and services. Mechanisation and rural-urban migration have led to a decline in the number of people employed in agriculture.
Study with Quizlet and memorize flashcards containing terms like bilateral aid, multilateral aid, Humanitarian aid and more.
Students then presented their findings in a case study and oral presentation to members of ClientEarth, including the organization's North American head and members of its European team. The project helped identify the strengths and weaknesses of potential new strategies for increasing corporate accountability in the fight against climate change.