Official Development Assistance and Poverty Alleviation in Nigeria (1981-2017)

Abstract

The aim of this study is to examine the long run equilibrium relationship between official
development assistant and poverty alleviation in Nigeria over the period of 1981 to 2017 which past
studies have failed to explore. Consequently, the study utilized data from UNCTAD, World Bank
database, CBN Statistical Bulletin and Cointegration, DOLS and Granger Causality approach was used
to address the objective of this study. However, the major findings in this study are summarized as
follows. Firstly, there is a significant negative relationship between official development assistance and
poverty level in Nigeria. However, FDI which also constitutes a strategic part of foreign capital in
Nigeria does not contribute to poverty alleviation in Nigeria. Furthermore, official development
assistance and poverty level in Nigeria have a bidirectional feedback. Due to the findings that emerged
from this study, the following recommendations are made for the policy makers that whenever
alleviation of poverty is the target of the policy makers in the country, the Nigerian government should
be committed to the provision of a sound environment and good governance that can facilitate further
inflows of official development assistance from the developed countries, especially G 7 countries. Also,
the policy makers in Nigeria should ensure that ODA should be tailored towards projects and programs
that have trickle down effects on the masses in the country.