ODA to Nigeria, other developing countries falls 2% amid global crises – UNCTAD
Omeiza Bilal
The UN Trade and Development (UNCTAD) have said that despite Official Development Assistance (ODA) reaching record levels in 2022, it still continues to fall short of the Sustainable Development Goals (SDGs) 17 targets.
Experts say ODA is more than just cash; it is aimed at improving economic development and welfare for millions of people.
It is one of the most stable and predictable sources of external financing for developing countries, especially in times of crises.
It is estimated that global ODA reached $287 billion at constant 2021 prices.
ODA from DAC donors remained $143 billion below the SDG 17 aid target of 0.7 per cent of their gross national income. Moreover, the aid landscape is undergoing shifts that may be detrimental to the development aspirations of some countries.
Notably, ODA increased during the COVID-19 pandemic when other external flows declined. Yet international crises leave visible marks on the ODA landscape, generating new demands and reshuffling priorities.
At a time when slowing economic growth, rising inflation and other macroeconomic challenges put pressure on aid budgets, dealing with new emergencies is inevitably complex even more so when crises directly affect donor countries.
Global ODA reached a record high in 2022 but not so in developing regions. From 2021 to 2022, ODA directly assigned to developing regions decreased by 2 per cent, while total ODA increased by 22 per cent.
“In 2022, ODA for developed countries increased by $28 billion and for asylum seekers and refugees in donor countries it increased by $20 billion, driving the overall increase of ODA.
“Aid flows to developing regions fell by $4 billion despite global ODA reaching record levels in 2022.
“ODA for developing countries decreased by 2 per cent. It fell by more than 3.5% for Africa, Asia and Oceania and least developed countries (LDCs) between 2021 and 2022. The decline in ODA affected the majority of developing countries, including 24 LDCs and 15 Small Island Developing States (SIDS),” the UN agency said.
