Impact of national culture on aid effectiveness in Nigeria

For nearly 60 years since rich countries started channeling foreign aid resources to Nigeria, aid effectiveness is still being contemplated. This study sought to determine the impact of national culture on aid effectiveness, in order to develop frameworks for aid effectiveness in Nigeria. A combination of the Geert Hofstede’s dimensions of national culture; the Paris Declaration’s principles of aid effectiveness as well as the Easterly and Pfutze’s best practices of aid were used to underpin the study. The analytic survey research design was adopted. Data was collected through computerized self-administered Qualtrics web-based survey, using Likert scale questionnaire. The questionnaire was distributed to all 846 aid workers that composed the sampling frame across the six geographic regions of Nigeria. Out of this number, 416 were returned valid and analyzable. Descriptive (frequencies) and inferential (Chi-square and ANOVA) statistics were utilized for data analysis. In order to increase statistical rigor and control for biases, the Kruskal Wallis test of variance and Mantel-Haenszel procedures were conducted. Of the five principles deployed in this study, participants perceived aid effectiveness in four principle areas. That is, aid alignment to country systems, managing aid for results, country ownership of aid, and mutual accountability of aid. Harmonization of aid emerged from this study as ineffective. Of the four principles of aid effectiveness that were perceived to be effective, country ownership of aid had significant relationship with national culture. Therefore, culture sensitive institutional framework, as well as a conceptual framework for aid effectiveness were proposed for implementation to improve the effectiveness of aid; particularly, promoting culture sensitive ownership and harmonization of aid in Nigeria.