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NIGERIA
>> AFR Regional Overview >> Nigeria Overview
Development Challenge Summary Tables
Program Summary
Previous Years' Activities
2001, 2000, 1999, 1998, 199749
Introduction
Nigeria is of great strategic importance to U.S. national interests. It is the eighth largest oil producer in the world, and the largest in Africa. Nigeria is the fifth largest supplier of oil imports to the United States and is expected to supply an increasing share of oil imports to the U.S. in the coming years. It is Africa's second-largest economy, the second largest U.S. trading partner on the continent, and a huge potential market for American products. Current U.S. investments in Nigeria are estimated at $8 billion. Nigeria remains an important guarantor of regional stability through its economic influence and diplomacy and through its participation in peacekeeping operations in Liberia and Sierra Leone and significant contributions to the Economic Community Cease-fire Monitoring Group (ECOMOG).
Nigeria is in the midst of a difficult political transition after 40 years of ineffective and often corrupt military dictatorships and civilian regimes. With the May 1999 transition from a military to an elected civilian government, Nigeria took a major political step. Military rule is discredited among the majority of Nigerians, but the transition to a stable, democratic civilian government is far from complete. Years of neglect have left all government institutions in tatters. So far, the majority of Nigerians have yet to see significant changes in their daily lives as a result of democracy, but most still seem willing to allow the new government time to redress the problems of the past.
During 2000, progress toward the consolidation of the democratic transition continued. There is increasing respect for fundamental human rights, particularly regarding freedom of speech and association. The National Assembly has shown little hesitation in assuming its constitutional role of oversight of the executive. There is great consensus among Nigerians on the need to sustain the new democracy, including recognition of the independence of the judiciary, and there have been some notable efforts by the government to be more consultative and transparent. Specific milestones in 2000 include: the passage of an anti-corruption law and the naming of the Anti-Corruption Commission promised by President Obasanjo at the beginning of his tenure in office; the inauguration of the Niger Delta Development Commission, which will begin to address the myriad problems of the country's oil-producing areas; and re-invigoration of the National Revenue Mobilization and Allocation Commission, which for the first time in ten years was empowered to establish a national standard for revenue allocation across tiers of government and to set a nation-wide scale for salaries of public elected officials. While these steps are small relative to the challenges at hand, undoing four decades of misrule cannot be done in just a few years.
The Development Challenge
Despite these accomplishments, the government of President Obasanjo faces a daunting set of political, social and economic challenges. Economic mismanagement, lack of good governance, weak fiscal discipline and inefficient government-owned enterprises have inhibited growth. Nigeria has had a poor economic record since the late 1970s, resulting in declining growth and increasing poverty. GNP per capita in 2000 was $300. Over two-thirds of the population live below the poverty line. Political instability, corruption, endemic violence, and the high costs of doing business in Nigeria have discouraged private investment and undermined public confidence. Decades of neglect have led to a dilapidated and unreliable infrastructure and a sharp deterioration in health, education and other public services.
With a population of 120 million, Nigeria is the most populous country in Africa and the third-fastest growing population in the world, after India and Pakistan. Life expectancy at birth is only 54 years for women and 52 for men, and over one third of Nigerians will not live to 40 years of age. Nigeria's annual population growth rate is nearly 3%, a rate that is undermining the country's development and affecting the entire region. At this rate, Nigeria's population will double to 240 million in 25 years. Health crises, such as the HIV/AIDS pandemic, are worsening rapidly without an effective response at hand. The Joint United Nations Program on AIDS (UNAIDS) ranked Nigeria as the fourth-worst affected country in the world in 1999, based on the number of HIV infections. Nigeria is rapidly becoming the epicenter in West Africa for the AIDS pandemic. Schools lack basic infrastructure and supplies, and teachers are under-trained. Approximately 50% of the population is under the age of 15. Literacy rates for this cohort are below 40%.
In order to restore and maintain public confidence in the new democracy, the challenge for the government is to show sufficient improvement in several key areas: economic policy reform; provision of social services; resolution of internal conflicts; redress of the inequitable distribution of power and resources; reduction of endemic corruption and mismanagement; and other key development issues. The stakes are high; Nigeria's regional neighbors, the international donor community, and-most importantly-Nigerians themselves are all watching. Nigerians clearly do not want a return to the depredations of military rule, but they must see concrete results on many fronts soon or their faith in the benefits of democratic government may quickly wane.
Other Donors
As a result of the return to democracy, many donors have resumed or increased their assistance programs to Nigeria. The World Bank leads the umbrella Economic Management Capacity Building program (EMCAP) which is aimed at macroeconomic reform. USAID is one of the largest donors in the area of macroeconomic reform and capacity building of key economic institutions. USAID and the World Bank are the largest donors in the education sector, followed by UNESCO and UNICEF. USAID remains the largest bilateral donor in the health sector. Other donors active in child survival are UNICEF, the World Health Organization, and Rotary International. The British Department for International Development (DfID), UNAIDS, the World Bank and the Gates Foundation are active in HIV/AIDS in Nigeria. In the democracy and governance sector, USAID is the largest overall donor and is joined by the United Nations Development Programme (UNDP), the British and the European Union, who are followed by several other bilateral donors and private foundations.
FY 2002 Program
Since the democratic transition, USAID's assistance to Nigeria has evolved from a small limited assistance program focused solely on non-governmental organization (NGO) projects in the health and governance area to the largest USAID program in sub-Saharan Africa. The USAID transition strategy, approved in September 1999 is currently effective through December 31, 2001, but USAID plans to extend the transition strategy through December 31, 2003. The USAID Office of Transition Initiatives (OTI) program on conflict mitigation and police/military-civilian affairs concludes at the end of FY 2001. USAID is conducting assessments to decide which specific OTI activities will be continued under the mission's FY 2002 program. USAID is currently working jointly and collaboratively with the Government of the Federal Republic of Nigeria (GFRN), other donors, the private sector and the NGO sector. The key objective of USAID's transition program is to shore up support for democratic government through a broad integrated program that: (1) strengthens the democratic transition by enhancing the capacity and performance of key democratic institutions such as the National Assembly, executive branch, judiciary, Electoral Commission and civil society; (2) improves economic management and promotes private sector and agricultural growth by strengthening economic policy reform coordination, rapid dissemination of agricultural technologies, and creation of micro-enterprise activities; (3) reinvigorates the education and health systems by improving the provision of essential social sector services that lay the foundation for sound economic growth; and (4) restructures key infrastructure and energy sector government agencies to increase their efficiency and reliability. USAID plans to continue to implement these activities in 2002, and does not anticipate any major program revisions.
Activity Data Sheets
- 620-006, Sustain Transition to Democratic Civilian Governance Sustained
- 620-007, Strengthen Institutional Capacity for Economic Reform and Enhance Capacity to Revive Agricultural Growth
- 620-008, Develop the Foundation for Education Reform
- 620-009, Increase use of Family Planning/Maternal and Child Health/HIV/AIDs Services and Preventive Measures Within a Supportive Policy Environment
- 620-010, Improved Management of the Infrastructure and Energy Sectors
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Last Updated on: May 29, 2002 |
