A new academic study has warned that Nigeria’s heavy reliance on foreign aid is undermining long-term performance in the power sector. Published in the peer-reviewed journal Energy Research and Social Science, the research highlights how aid conditions often weaken institutions rather than strengthen them.
Authored by Monica Maduekwe, Founder of PUTTRU, the study examined West African countries and found that nations under financial pressure tend to accept aid terms that reduce planning capacity, weaken coordination, and erode technical expertise. Over time, this creates a cycle of reforms that appear effective on paper but fail to deliver stable electricity.
The research notes that high debt levels limit a country’s bargaining power, allowing donors to impose conditions that gradually undermine governance structures. It warns that without strategic negotiation, aid can trap power sectors in long-term inefficiency.
The study urges Nigeria to adopt a more deliberate approach to aid negotiations and introduces a Donor-Bargain Model to help governments assess the institutional cost of aid before agreements are signed.
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