FOREIGN AID AND ECONOMIC DEVELOPMENT IN LESS DEVELOPED COUNTRIES (LDC): NIGERIA AT GLANCE

Abstract

Foreign aid has continued to be an important source of external financing to most less developed countries particularly those in sub-Saharan Africa.   It  has been observed by some researchers that foreign aid has not in any way improved the economic condition of the less developed countries,  others are of the opinion that without foreign aid, the level of development attained by the less developed countries would not have been attained.  Other researchers take a middle position as they believe that foreign aid can both bring about development and otherwise to the less developed countries depending on the viability of the economic policies of the country. This study, therefore, makes use of a historical method of analysis to examine whether foreign aid has a positive or negative effect on Nigeria’s economic development from 1999 to 2021.Dependency theory is used to show why the Less Developed Countries (Nigeria included) are underdeveloped to the extent that they have to rely upon aid from Industrialized Nations.  The finding of the research shows that foreign aid has not contributed much in the development of Nigeria, and therefore, it is recommended among others that the political leaders should formulate viable economic policies that will make it possible for the foreign aid to be of benefit.