SUMMARY
This study does not support the strong pessimism on aid effectiveness expressed in some studies. There is evidence suggesting that both total foreign aids have, on average, impacted negatively on economic growth in Nigeria. With regard to the nature of foreign aid in Nigeria, the results reveal an almost persistent lack of consistency in the aid given to Nigeria.
Consequently, it can be concluded that the foreign aid given to Nigeria has no uni-directional nature. Moreover, the results show no evidence on whether Nigeria has benefited significantly from foreign ale coming to the country. It is therefore argued that foreign aid has not impacted positively on the socio-political and economic development of the country. Furthermore, the high burden on a society, identified by dependency ratio, has a significant negative impact on growth in most specifications.
This study as show that Developing countries, including Nigeria face the challenge of achieving a higher and more equitable growth path over the next decade in order to accelerate progress towards the achievement of MDGs and other developmental agendas. Primarily, this requires intensified efforts within the country aimed at establishing a policy framework that is more conducive to investment and employment generation and that reaches out to the poor.
Foreign aid is not and must not be seen as a mere largesse or a manifestation of a benign rapprochement between two countries. It is a serious business affair which by its nature, its deadlines and its manner must be business-like. The recipient country should have designed a way coping with and accommodating the conditionalities attached to aid rather than complaining of its aftermath which they were, of course, aware of before taking such loans. Foreign loan is not a tree gift of nature.
As expected. It is interesting-yielding, with a lot of ideological underpinnings intended to impose one country’s ideology on another and have a dominion and control over the recipient country. More importantly the culture of financial transparency and accountability is lacking in the developing world. Corruption has become a national virtue among officials to the extent that official money is seen as private fund. Most of the borrowed funds are diverted to private bank accounts as typified in Nigeria under military regime. Corruption and official leakages are limitations to economic growth and development and discourage foreign investment. To come out of these doldrums, it is desirous to diversify and restructure the economy of Nigeria.
Also instructive is the boosting of the agricultural output aapproach to economic restructuring. More emphasis should also be placed on technology development. This involves widening, deepening and strengthening manufacturing sector and human development. Also, loan should be taken when seriously and genuinely needed and must be channelled to economic growth and national prosperity. On the whole, leadership becomes critical, both in terms of political will and ability to mobilize resources for the attainment of national objectives. It is important; therefore, to adopt the leadership and management s inspire confidence in all who will be involved in the restructuring of the economy. Restructuring of the economy also involves restructuring of interest which is invariably conflicting and have to be balanced.
The essence of this, however, is that leadership role is crucial in the overall development of any economy. The Nigeria leaders should transit from ineptitude to competence moral corruption to moral decency; parochialism to purposeful leadership that serves not to oppress the people.
