In 2003 watchdog group Transparency International rated Nigeria the second most corrupt country across the world and, for years, the country struggled with a debt which restricted its ability to make any real economic progress. In spite of these obstacles, the programs of reform begun in the 2000s and changes over the last decade have earned Nigeria a place as one of the fastest developing countries in the world.
What in particular has steered Nigeria in the right direction?
First off was making a move to overcome its crippling national debt. In October 2005, Nigeria and the Paris Club announced a final agreement for debt relief worth $18 billion and an overall reduction of Nigeria’s debt stock by $30 billion in order to gear its national budget towards promoting private sector development and economic reform. The debt cancellation was not without its controversy, given the country’s poor track record of governance. However, conditions placed on the debt relief by the IMF helped assure Nigeria met monetary targets in the years following the agreement and helped establish poverty reduction policies to pave the way for progress. In 2006, the Guardian reported that the accrued savings were used to train 145,000 teachers; put over 3.5 million children into school; build 166 new health centres and provide 79,000 doses of anti-retroviral drugs for HIV/AIDS patients.
Increased engagements with international players have also facilitated Nigeria’s development. China is now Africa’s largest trading partner (it seems highly fitting to note here that the African Union headquarters built in Ethiopia was funded by the Chinese), and its growing involvement with Africa has provided ample opportunity for trade for Nigeria; indeed, in 2013, President Goodluck Jonathan agreed to a deal with China which would provide Nigeria with a low-interest loan of $1.1 billion to build infrastructure. Whatever suspicions you may have over the near ubiquitous presence of another giant economic power on the African continent, newly forged political ties like these have played an important role in stimulating economic activity.
Challenges to development
Whilst we should acknowledge the steps forward the country has taken to securing a better future, it’s important not to lose sight of the fact Nigeria still faces major issue hindering its success.
For instance, despite funding poured into infrastructure, the country is still plagued by power cuts and other structural weaknesses. It also faces an over-reliance on its oil industry, in spite of tentatively thriving industries such as manufacturing.
Something else fundamental to national development in Nigeria is acknowledgement of the nexus that exists between development and security. Without real political stability, it’s difficult to be positive about any potential for economic growth. Self-determination is a state of being that all nations have the right to strive for, but it’s by no means a panacea, capable of erasing all of a country’s political problems.
The movements for independence which took place in the 20th century did not challenge the artificial – and nonsensical – borders created by the colonial powers, but today there are some who question whether true development can take place without shifting Nigeria’s geographical set-up. Despite this, modern day institutions of economic development worldwide work on the assumption that development within existing countries is possible – and perhaps rightly so, as the sharp, impressive rise of states like South Korea seems to suggest that any country can develop with the right policies. If it is to commit itself to preserving the present make up of its border and encouraging national unity, the government must work harder to improve living conditions in the most destitute areas and promote harmony amongst its different ethnic groups.
The dynamics of human rights promotion in an emerging power
Alongside its monetary development, international spectators will be sure to monitor how it addresses its human rights record in the face of its status as an emerging power. Consider the anti-gay laws banning same-sex marriages, gay groups and displays of same-sex affection as an example. There is more spotlight on the state of gay rights and gay rights activists in Nigeria, but how does this translate into political action?
Nigeria’s economic development and relationship with western institutions makes for a complicated dynamic in terms of human rights promotion. Given that it is a key regional power in Africa, some world leaders may be hesitant to put any pressure on the country to reform the way it handles human rights. On the flipside, many western powers are reluctant to put in place aid conditionalities promoting LGBT rights in order to avoid a situation where they are left pitting gay rights against the right to development, or end up giving the impression that they are imposing their societal norms on other cultures.
What lies ahead for the giant of Africa?
In the coming years, Nigeria will most likely continue to encourage foreign investment and strengthen its infrastructure. What many people hope to see in the future is Nigeria ensuring that it benefits from its international agreements interactions, as well as addressing its own internal troubles – such as corruption – in the hope of it lessening its dramatic wealth gap and spreading development equally throughout the country. After all, what use is it being Africa’s largest economy and leading oil producer if more than half its people live in poverty?
I have had and heard many conversations with Nigerians who will tell you that the country is blessed with resources and potential, but riddled with corruption (commonly and somewhat wryly known as ‘419’) and instability. The next decades will be important in deciding whether it tackles these issues, or plunges itself into social and economic chaos.
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