In May 1999, Nigeria ushered in a new era of democracy by inaugurating its first democratically elected government in fifteen years, ending a cycle of military dictatorships that devastated the country's economic and social capital. Nigerians have cause to be optimistic with the country's political transition. Nigeria has begun to slowly rebuild an economy burdened by years of corruption and mismanagement, and reclaim its position of leadership in Africa. At the same time, the country is benefiting from increased engagement and partnership with the international community.

The stakes for the young democracy are high; Nigeria’s regional neighbors, the international donor community, and the Nigerian people themselves are all watching the civilian government as it faces a delicate period of transition. Upcoming elections in April and May 2003 in particular will be an important measure of the success of democracy in Nigeria; if successful and followed by an orderly, permanent transfer of power to the newly elected government, Nigeria will have established the democratic foundation that has eluded it in the past. And while the full benefits from the democratic transition have yet to reach many Nigerians, poll results show that a majority of adults prefer democracy to any other political system and are willing to give it the time necessary to resolve the problems of the past

History and Overview of USAID’s Nigeria Program
With Nigeria's move to a civilian-led government, the United States Government (USG) deployed an interagency assessment team to Nigeria in 1999 to explore how to best support a successful democratic transition. This team’s assessment report, and USAID’s own analysis of constraints and prospects, set the stage for a major expansion of USAID’s economic development assistance to Nigeria. The USAID program grew from a relatively small but innovative and dynamic program supporting health and women’s democratic decision-making to a fast-paced program of support for the 1999 elections, and then to a four-year transition program that will end in December 2003. USAID has also moved from funding programs implemented solely by non-governmental organizations (NGOs) to full bilateral relations with the Government of the Federal Republic of Nigeria (GFRN). The expansion of the USAID program in Nigeria in response to the democratic transition has been accompanied by significant increases in resources, from $7 million annually before the transition, to an average of $85 million per year for fiscal years (FYs) 2000-2003

USAID’s transition assistance program provided the platform for the USG’s strategic plan for Nigeria and focused on four key areas of intervention:

• Democracy and Governance
• Economic Reform and Agriculture
• Basic Education
• Integrated HIV/AIDS, Child Survival and Reproductive Health;
• Energy and infrastructure

USAID’s assistance to Nigeria at this critical juncture is intended to strengthen democratic governance and build Nigerian citizens’ confidence in the capacity of the new government to provide for their basic needs

In recognition of the importance of the country as an economic partner and ally in African and global affairs, the Bush Administration has indicated that Nigeria will continue to be a focal point of U.S. foreign policy attention. In response, USAID is currently developing a sustainable development strategy for its program in Nigeria for FYs 2004-2009.

Next Step
With the transition strategy ending in December 2003, USAID/Nigeria has initiated the process of developing a comprehensive, five-year sustainable development strategy for its ongoing program in Nigeria. Preparing the new strategy will be a major priority for the Mission throughout the year. A draft of the strategy will be completed by June 2003, with final approval expected in September. A transition from the current to the new strategy will take place between October and December, with full implementation of the new strategy starting in January 2004. This new five-year program will build on the results achieved under the current transition portfolio, and will support Nigeria to achieve a more transparent and participatory democracy with a healthier and better-educated population in a growing and diversified economy. Strategic objectives will be developed in the following areas:

• Good Governance, Transparency and conflict Management;
• Sustainable Agriculture and Diversified Economic Growth;
• Improved Social Sector Service Delivery;
• Expanded Response to HIV/AIDS and Tuberculosis