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This research was based on the Impact of Foreign Aids on Nigeria’s Socio-Economic Development (A cast study of NEPAD). At various times in the recent political history of Nigeria, political and economic instability, economic mismanagement and poor industrial practice resulted to underdevelopment. The method of research design used in writing this project was more of survey study of NEPAD.

The major instrument used for data collection is the questionnaire instrument administered to the sample population selected for the study. In all 80 questionnaires were distributed and were returned completely which was used for the analysis. The researcher found that NEPAD gave aid to Nigeria to: (1) provide long-term loan to Nigeria (2) That NEPAD has also capitalized new banks in Nigeria.

(3) NEPAD in its programmes will help Nigeria achieve her millennium development goal. (4) Activities  of current leaders in Nigeria also affect the development of Nigerian socio-economic sectors. The researcher recommended that Nigeria government should address the issue of corruption by setting up institution to deal with corrupt persons or organization in order to provide enabling environment for NEPAD operation in Nigeria.





Foreign aid provides both opportunities and challenges for Nigerian socio-economic development. One of the greatest problems facing Nigerian intellectuals is how to go about the negotiation process between Nigerian and the international or multilateral aid agencies. Two reasons are responsible for this development. Firstly, negotiations are done in secret and out of public glare.

Secondly, the agreements resulting from such negotiation are never made public or published until after twenty five years or more.

Instructively, international negotiations between Nigeria and international aid agencies on the one hand and developed countries on the other hand have been infact a virgin forest begging for exploration. As Bonaham (1971) observed, although the era of negotiation has begun, we know very little about the process of international negotiations.

Do international or multilateral aid agencies dictate, rather than negotiated with developing countries, one may ask? Another question that has continued to agitate the minds of many Nigerians is how to explain the worsening nature of their economy inspite of the numerous agreements with the World Bank and other multilateral aid agencies in the area of agriculture.

In most cases, these negotiations have resulted in increasing unemployment, double digit inflation, virtual halt in domestic capital accumulation, breakdowns in the productive apparatuses and widening income inequality.

The former Governor of Kaduna State, Alhaji Balarabe Musa protested against world Bank food production programme in the state because one of the terms of that loan agreement required vesting the management of the programme in the hands of the World Bank Officials. He argued that it was not in the national interest of Nigeria to SURRENDER to the World Bank the management of a programme, which directly affects the lives and destiny of millions of Nigeria peasants.

Another thorny issue was the Banks insistence on consultants, preferably foreigners who will ensure that the terms of the agreement are full implemented and employed. The fact is that international aid agencies are in control of who gets what, how and when. This explains why Jerry Gana of Alhmadu Bello University described the ADPS as World Bank Directed and not World Bank Assisted. It is popular in Nigeria today that World Bank and other multilateral aid agencies dictate rather than negotiate with the government.

To bring to an end the activities of these imperialists, Africans on their own decided to find solution to their problems of underdevelopment by way of integration. NEPAD is an acronyms for new partnership for African development, supposedly a developmental partnership between Nigeria, African and the developed countries.

African Labour Unions were on target when they in Dakar under the Aegis of the Organisation for African Trade   Union Unity (OATUU), Congress of South African Trade Union (CSATU) and the International Confederation of Trade Unions (ICFTU) raised questions over the new partnership for African development (NEPAD). Their objections can be summarized under the then environmental climate of war without end in Africa, unsustainable debt burden to which the west is cynical about its abetting, and the unfair terms of trade.

Other areas adduced by the labour leaders include NEPAD’s apparent distance from existing structures popular participation in development and transformation, African Union and the outright dependence on the west-west by NEPAD, contrary to the labret it has been given as home grown initiative.

In addition, the labour leaders drew attention to the imbalance between the market and state, the latter assuming too low a consideration, relegation of Africa’s development bottlenecks arising from the underplay of the responsibility of the state and the parlous sense of history displayed in the formation of NEPAD by African leaders.

Indeed, at a recent brain storming on issues on NEPAD at Durbar, South Africa, Abdoulaye Wade, president of Senegal disagreed with peer review content of NEPAD’s implementation while muammar Gaddafi of Libya condemned the apparent capitulation to the capitalist cause by NEPAD even though they are in agreement with the principal objectives of the initiative.

These are just a few areas where critics hope the leadership of NEPAD would pay careful attention. Many continued to applaud the New partnership for Africa’s development (NEPAD) just as many might continue to pick holes in the arrangement even to the extent of distancing themselves from it entirely. All these are to be expected given the multifarious facets of African socio-economic and political problems. It would have been surprising if not disturbing for the introduction of NEPAD by African leaders to attracts a different consternation of reactions.

Africa remains relevant on the world socio-economic and political scene. It may be worlds poorest continent, making up more than two thirds of low income countries around the globe, yet the continent harbours an equally disproportionate reservoir of the world natural resources for development. That in itself raises the hope that Africa could occupy a high pedestal of the worlds most developed continents as it was noted by history.

Africa therefore needs series of initiatives to turn its resources into real wealth. On these score alone, no one can present a convincing argument against the need for NEPAD at that time. There is no doubt that a new initiative by Africans for African’s development in the first decade of the 21 century is long over-due. The present corps of African leaders must therefore be praised for quickly coming up with a revamping of African’s political and economic relations as the African union (AU) replaces the organisation of African Unity (OAU). The creation of NEPAD in this regard is a worthy initiative to jump-start the new dream.


Yet NEPAD is actually too little, too late as the commitment of Africa’s development partners especially G8 Group of the west is still doubtfully. NEPAD ought to be seen by both African and western leaders as the authentic basis for Africa’s “marshal plan” which is a plan made by the African leaders to redressing previous neglect and platform for reconstruction.

It was originally an effort set by the united nation in the year 2000 to achieve the millennium development goals, which include; eradication of extreme poverty, increasing asses to education, promotion of sub-regional and the continental economic integration, to increase infact and child mortality ration by two third and to promote the role of women in social and economic development by 2015. Marshal plan was endorsed unanimously by five African presidents at the introduction of NEPAD in the Lusaka submit of the OAU in the years 2002.

This plan was to move in conjunction or agreement with the G8 to achieving the set millennium development goal. In this context, a $ 2 billion gross annual resources inflow to Africa pledged by the G8 nations is inadequate especially compared to $ 20 billion handed to Russia. It is arguable for instance whether to-date, the current administration in the united states has any serious matching arrangement to assist Africa outside the much trumpeted Bretton woods initiatives and the African Government opportunity Act (AGOA), a legacy of the previous administration.

Who does not know for instance that the current system and framework of technical co-operation under which external assistance is discharged is bedeviled by the donors control and lack of altruism? In nearly a decade of the Bretton wood implementation of their highly indebted poor countries initiatives, what is the result and who is fooling who? Africa’s debt to the west is no longer an economic-business issue but one which the west continues to prosecute as a political Agenda through every subterfuge, that stance has to change.

But Africa must co-operate with the west for NEPAD to succeed  as both have done for centuries to the advantage of the latter. Now is the time to find accommodation for each others interest to the benefit of both. The west must be re-assured in this process. This is the context of relevance of NEPAD’s insistence on peer review of each country’s situation, as found for instance under the common wealth arrangement. Debt forgiveness will prove its worth only if indeed the environment for the use of limited resources improves in Africa. The African private sector is critical but it can succeed in leading development in African only if the government are transparent accountable and ensure the rule of law, safe property rights, human and national security.

Foreign investment can only come if indigenous investment is growing as an evidence of trust in the economy which must employ adequate macro-economic policy and a conducive environment for investment. Above all, the countries must grow in their understanding and practice of democratic government that ensure the rights and participation of the people who actually are the end and means of development. A situation of perpetual wars, skirmishes of religious, ethnic and violent political conflict will only create uncertainty in the continent. Unless African leaders address these problems as critics contend, NEPAD will prove inadequate if not counter-productive in bringing about development.

However in Africa integration is an expression of both the need for satisfy the yearning and desires of the citizenry and that of nationalism. In an age of universalism, African is left with little or no choice than to come together, politically and economically what ever the cost are in order to survive and have a stronger voice in the committee of nations. This understanding is partly what informs the formation of the African Union (AU) with its accompanying “New partnership for African Development (NEPAD). NEPAD is seen from its formation as a nascent platform designed to pull the continent of socio-economic miasma. So, NEPAD is saying, African nations must come in Unison, ensure that they develop a mature financial and capital market.


In the statement of problem, the research is shaped to studying the impact of foreign aid on Nigeria socio-economic development and how NEPAD have served as the need to meeting African millennium economic development initiative goals. NEPAD has been of immense help to African economic development. How its programmes has promoted democracy and good governance which has been an essential component of economic development. So, the research will focus on the following problems;

  • What are the causes of underdevelopment of African states, example Nigeria?
  • What are the roles of NEPAD on Nigeria socio-economic development?
  • What are the challenges of NEPAD on Nigerian socio-economic development?


The research objectives will run as follows:

  • To explore the causes of underdevelopment of African States.
  • To examine the role of NEPAD of Nigerian socio-economic development.
  • To examine the challenges of NEPAD on Nigeria socio-economic development.


The work is of great benefit. These benefits will include both intellectual and practical intellectually, the research will reflect findings which will be of great help to other researchers on the topic impact of foreign aid on Nigeria socio-economic development. Practically, this work is aimed at exploring the effort of NEPAD as Africans New millennium economic development initiative goal, the impact of foreign aid on Nigeria socio-economic development, the roles of NEPAD in Nigerian socio-economic development, finally, the challenges of NEPAD to restoring sound socio-economic development in Nigeria.


H0:  NEPAD will likely help Nigeria meet her growth rate per-annum and her millennium development goal.

H1:  NEPAD will not help Nigeria meet her growth rate per-annum and her millennium development goal.


The scope of this research is delimited to exploring the impact of foreign aid on Nigeria socio-economic development, the role of NPEAD on Nigeria socio-economic development, the challenges of NEPAD on Nigeria socio-economic development. This research will also cover the response of the donor agencies to ensuring economic development of Nigeria.

The limitations of this research are money constraint, time constraint, non-availability of some of the NEPAD officials.

  • MONEY CONSTRAINT:– As a student researcher of this work the researcher was financially constrained that all attempts made to generate money for extensive research work failed. This money if it was available could have as well be used for internet browsing and photocopies in appropriate website at available computer business kiosk, it could as well been used for traveling to rich libraries where international relations documents could be found at ease, even visit NEPAD offices located in some part of Nigeria.
  • TIME CONSTRAINT:– Time given to the researcher is also limited, that he is to restrict himself to a barely minimum scope of the study.
  • Finally, non availability of some of the NEPAD officials who would have supplies the researcher with some salient and required information for thorough and effective research work were not found owing to the fact that the NEPAD personnel could not make themselves available on the researcher for adequate information.



On October 19th 2001, five African heads of state inaugurated a new African initiative (NAI) later called New Partnership for African Development (NEPAD). The New African initiative was set up in July, 2001 at the OAU submit in Lusaka. The renaissance programme spear headed by president Mbeki of South Africa. The millennium African programme led by Nigeria’s leader, president Olusegun Obasanjo and president Boutelflica of Algeria. The programme was finally recognized as the Omega plan put forward by President Abdoullaye Wade of  Senegal.

The originality of this initiative is that it is a reflection of the desire of Africans to take its destiny in its own hands, with vital support of international community. Support is the key and not aid as has been the case over the years.

NEPAD is regarded as the overhaul of the African, continent desired by a new generation of statesman who advocate regional co-operation to reverse the downward spiral of poverty and set Africa on the road to globalization. It is comprehensive, integrated strategic framework for socio-economic development of Africa. The policy provides the frame-work for the public and private sectors, partnership between and among Africans in the first instance and then with the rest of the world.

NEPAD is also a merger of millennium partnership for the recovery programme and the Omega plan. The merger was finalized on July 3rd 2001. Out of this merger the new Africa initiative (NAI) was born.


This is the combination of social and economic development. In this case the study of socio-economic development includes the advancement or improvement in the standard of living and the increase in economic life of the people.


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