In Nigeria, the stakes for development are unmistakable. Every pothole, power outage, and overcrowded classroom is a daily reminder of just how much work lies ahead and how much promise is waiting to be unlocked.
The big question isn’t whether development is needed, but how it’ll be funded. For years, international aid has filled the gap, but the world is changing. As global priorities shift, Africa needs a new approach.
Hennie Heymans, CEO of DHL Express Sub-Saharan Africa, puts it succinctly:
“If Africa is to reach necessarily ambitious development goals, policymakers, investors and other stakeholders will have to show ingenuity. We will have to do more with less.”
The message is clear: aid and investment both matter, but the rules are shifting.
Rethinking Aid: A Time of Change
For decades, aid has played a vital role in Africa’s growth story. Sub-Saharan Africa has historically received almost a third of all global aid. But recent figures tell a different story a 7% drop in global aid flows in 2024, the first decline in six years. Projections suggest this could fall by as much as 40% in the near future. For Nigeria, with its massive infrastructure needs, that’s a call to action.
Akinwumi Adesina, President of the African Development Bank, makes the reality plain:
“The era of aid or free money is gone. Africa must overhaul its approach toward achieving fast-paced development.”
Aid has its place. Programs like PEPFAR have saved millions of lives. But as economist Dambisa Moyo and others have warned, aid also carries risks: dependency, distorted economies, and sometimes, lost opportunities for self-driven growth. The consensus? Aid works best in targeted, well-governed environments think health, post-conflict recovery, or infrastructure that unlocks productivity. But aid alone won’t build Nigeria’s factories or create enough jobs.
Why Investment Especially FDI Matters
Aid can provide a lifeline, but investment is what powers sustainable growth. Foreign direct investment (FDI) is about building for the long term factories, ports, jobs, skills. Unlike foreign portfolio investment (FPI), which moves at the first sign of trouble, FDI plants roots.
Research covering 1989 to 2018 shows FDI consistently drives growth in Africa, more so than other forms of capital. Nigeria stands among Africa’s top FDI destinations, but competition is fierce. Investors look for strong governance, skilled workers, and reliable infrastructure.
How Investment Transforms Economies
The impact of FDI is tangible:
Job Creation: FDI brings jobs to communities, lifts households, and supports diverse groups across age and gender. In West Africa, long-term FDI is closely linked to job growth.
Industrialisation: Countries like Tanzania have used FDI to boost manufacturing, kicking off a cycle of growth and further investment.
Skills and Technology Transfer: New investments bring new technologies and management know-how, helping local firms modernise and compete.
Better Health Outcomes: In 39 African countries, more FDI has coincided with lower infant and neonatal mortality—thanks to rising incomes and better healthcare access.
Stronger Value Chains: Uganda’s dairy sector is now a top export, driven by targeted investment in processing and logistics.
Infrastructure and Connectivity: Investment in roads, telecoms, and logistics increases productivity and attracts even more growth.
Take South Africa: a 1% rise in FDI led to nearly 3% growth in exports, connecting local businesses to the global marketplace.
What Nigeria and Africa Need to Do
To attract the kind of investment that transforms economies, the basics must be in place. Research by DHL and GIBS highlights these priorities:
Clarity and Transparency: Investors need fair rules and predictable enforcement.
Smart Regulation: Prioritise FDI over “hot money” that destabilises economies.
Open Trade: Connecting to regional and global markets draws capital in.
Global Standards: Adopting international reporting and governance norms boosts confidence.
Digital and Skills Focus: Investments in ICT and workforce training pay off.
Infrastructure: Efficient transport, energy, and social systems multiply FDI’s impact.
Strong Institutions: Democracy and economic freedoms are magnets for capital.
Nigeria’s Path: From Aid to Ambition
Foreign assistance will always have a role, especially in health and emergencies. But real, sustainable growth in Nigeria will come from within—from turning natural resources, young talent, and entrepreneurial energy into opportunity.
Investment will drive this change. It will build our factories and farms, create jobs for graduates, and deliver the roads, ports, and digital networks that connect us to the world. By targeting sectors like manufacturing, logistics, digital services, and renewable energy, Nigeria can unlock transformational growth.
The priorities are straightforward:
Shift focus from aid to investment.
Develop skills to match global industry needs.
Tackle corruption and improve the business climate.
Channel FDI into strategic sectors for maximum impact.
Partnering for Progress: DHL’s Role
There’s never been a better time to take development personally. At DHL, we believe in connecting Africa to the world, one shipment at a time.
Open a DHL business account and access the reach, reliability, and efficiency you need to scale. Whether you’re fulfilling orders across borders or integrating into global markets, DHL is your partner for growth.
Africa’s story is changing from aid to ambition, from dependency to self-driven opportunity. If you’re ready to take your business to the next level, let’s deliver Africa’s future together.
From Aid to Opportunity
Africa’s future and Nigeria’s rests on moving beyond handouts. As global dynamics evolve, it’s time to seize new opportunities, harness innovation, and attract the investment that can lift millions. Let’s invest in ourselves, connect to global markets, and show the world what’s possible together.
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