Foreign Aid & Economic Development in Nigeria, 2015-2023

Foreign aid has long been positioned as a catalyst for economic development in Nigeria, yet its effectiveness remains a topic of extensive debate. This study explores the intricate relationship between foreign aid and Nigeria’s economic development, from 2015-2023, focusing on both the potential and the limitations of aid inflows. Despite receiving substantial development assistance over the decades, Nigeria continues to grapple with widespread poverty, weak infrastructure, and institutional inefficiencies. The study evaluates the disconnection between aid inflows and meaningful economic progress which is largely attributed to governance deficits, corruption, and policy misalignment. This study seeks to address these gaps by answering two key research questions:1. Does lack of good governance in the management of foreign aid undermine economic development in Nigeria? 2. Does the high rate of corruption in the management of foreign aid undermine economic development in Nigeria? Using Dependency Theory as its theoretical framework, which posits that developing nations remain economically subordinate to developed countries due to historical and structural inequalities reinforced by foreign assistance mechanisms. Employing a Time Series research design, the study analyzes data spanning multiple decades to assess aid flows and their developmental outcomes. Data is gathered through documentary methods, drawing on reports, policy documents, journal articles, and institutional records. Using content analysis, the research critically evaluates the effectiveness of foreign aid in achieving economic development objectives in Nigeria. Nonetheless, foreign aid remains a significant external resource for Nigeria, and with improved transparency, institutional reforms, and better donor-recipient alignment, its developmental potential could be harnessed more effectively. This study concludes that while foreign aid alone cannot drive Nigeria’s economic transformation, it can play a complementary role when integrated into a broader framework of domestic reforms and inclusive development strategies. Keywords:Foreign Aid, Economic Development, Governance, Corruption and Nigeria