THE DEVELOPMENT CHALLENGE: With the 1998-9 transition from military to elected government in Nigeria, the U.S.-Nigeria bilateral relationship moved from confrontation to intensive cooperation on a full range of economic, political, and security issues. The United States strongly supports Nigeria's democratic transition, recognizing its immediate and long-term implications for the country and the region as a whole. Nigeria is Africa's most populous country, accounts for 8% of U.S. oil imports, and is the dominant economic and political force in West Africa. There is more U.S. investment in Nigeria than in any other country in Africa. Nigeria's population is extremely diverse. It has the largest Muslim population in Africa. Nigeria has supported regional stability through its diplomacy and through its peacekeeping efforts throughout West Africa. Nigeria, however, has not yet overcome a legacy of disastrous military rule and statist economic mismanagement. It continues to struggle to consolidate democratic institutions and the rule of law, develop a sustainable market-based economy, and boost public confidence in the democratic transition. The fast-approaching national, state, and local elections in 2003 bring additional urgency to reform efforts.
| Nigeria's is the third fastest growing population in the world, behind India and Pakistan. The population of 120 million will double in 24 years. Life expectancy is 55 years; literacy rate is 50%; under-five mortality is 143 per 1,000 live births; and HIV/AIDS affects over 2.7 million people. |
Despite Nigeria's relative oil wealth, poverty is widespread. It ranks 136 out of 162 on the UN Human Development Index of social indicators. GNP per capita, at about $260, is below the level at independence 40 years ago. About 66% of the population now falls below the extreme poverty line of roughly one U.S. dollar a day. Life expectancy is only 52 years and the infant mortality rate is 143 per 1,000 live births. A high annual population growth rate (3%) will double the population in 24 years and health crises, including the HIV/AIDS pandemic, are worsening. Although Nigeria's 5.8% HIV prevalence rate reported in a November 2001 Government of Nigeria sentinel survey, is relatively low compared to other African countries, the United Nations ranked Nigeria as the fourth worst affected country in the world in 1999 based on the number of HIV infections. Nigeria's political and economic development is hampered by the failure to develop its non-oil sectors, pervasive corruption, underdeveloped economic, political and legal institutions, poor infrastructure, limited foreign and domestic investment, poor economic management, and a high population growth rate.
THE USAID PROGRAM:
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FY 2002 Estimate: $55.614 million | FY 2003 Request: $66.235 million |
The USAID program in Nigeria has four objectives: (1) to sustain Nigeria's transition to democratic civilian government; (2) to strengthen the country's capacity to undertake key economic reforms and revive growth in the agriculture sector; (3) to develop a foundation for education reform; and (4) to increase the use of family planning, HIV/AIDS prevention, and child survival services.
For FY 2002, funds will be used to implement ongoing institutional capacity-building programs as well as programs with more direct people-level impact, in support of these objectives. In democracy and governance, funds will be used to: strengthen key governance institutions such as the National Assembly, state legislatures, and state courts; support national, state and local elections; increase political party participation; and strengthen civil society organizations. In economic reform and agriculture, efforts will continue to improve economic management, privatize key enterprises, extend improved agricultural technologies to rural communities, accelerate efforts in biotechnology development, increase the availability of financing to micro and small enterprises, and address key environmental concerns. In education, efforts will continue to improve English language literacy and math skills in primary schools and provide workforce development training and job opportunities for unemployed youth. In health, efforts will continue to eradicate polio, increase coverage of routine immunizations, improve maternal and child nutrition, increase the use and quality of voluntary family planning services, and prevent and control infectious diseases such as malaria. For HIV/AIDS, the program will continue to focus attention on prevention and assisting HIV positive individuals as well as persons affected by HIV/AIDS, including orphans. Specific activities to be funded by FY 2002 and FY 2003 appropriations are described in more detail in the following Program Data Sheets.
ONGOING PROGRAMS FOR WHICH NO FY 2002 OR FY 2003 FUNDING IS REQUESTED: The USAID program in Nigeria includes the following special objective for which USAID is not requesting new funds, but is continuing to expend funds already appropriated:
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| 620-010 | Infrastructure and Energy | FY02CBJ, p. 473 | FY 2003 |
OTHER PROGRAM ELEMENTS: The West Africa Regional Program (WARP) being implemented in Nigeria aims to enhance economic integration through assistance to public and private sector institutions, including the development of competitively priced and reliable supplies of energy. WARP also focuses on the development of early detection and response mechanisms to prevent regional conflicts. WARP activities provide support to ECOWAS in Nigeria through technical assistance and training for the West Africa Power Pool, West Africa Gas Pipeline, and other economic integration and regional conflict prevention activities. The African Rural Social Science program provides small research grants for policy analysis in rural development, building capacity for researchers and providing analyses and data for policy decisions. The Sustainable Tree Crop Program, being implemented by the International Institute for Tropical Agriculture, strives to improve the quality of production and marketing of coffee and cocoa for export.
OTHER DONORS: USAID is one of the largest bilateral donors, second only to the British, and plays a key role in macroeconomic management, agriculture, democracy and governance, education and the health sector. USAID collaborates with the World Bank, UNESCO, the United Nations International Children's Education Fund (UNICEF), the United Nations AIDS Program, the United Nations Development Program (UNDP), World Health Organization, the British Department of International Development (DFID), the European Union, the Japanese International Cooperation Agency (JICA), and other international organizations such as the Gates Foundation, Rotary International, and the Packard Foundation. USAID co-chairs the in-country donor committees on democracy and governance with UNDP, and education with UNESCO. USAID is the largest bilateral donor in the democracy and governance and education sectors. USAID is a key player in macroeconomic reform and collaborates with the World Bank and the International Monetary Fund on key macroeconomic policy initiatives and capacity building in key economic management institutions. In health, USAID has joined forces with the Japanese government on a joint effort to address HIV/AIDS and infectious diseases. As a result of USAID's technical expertise and knowledge of the HIV/AIDS situation in Nigeria, the Japanese are developing a program to fund both HIV/AIDS prevention and infectious disease programs that will complement USG and other donor efforts to date.
Program Data Sheets
- 620-006 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 Increased Use of Family Planning/Maternal and Child Health/HIV Services and Preventive Measures within a Supportive Policy Environment (FP/MCH/HIV/AIDS)
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