UN Urges Nigeria To Embrace Domestic Funding As ODA Dwindles

The United Nations has advised Nigeria to prioritise domestic resource mobilisation as the primary driver of economic growth, citing a decrease in Official Development Assistance (ODA) from traditional donor countries.

This recommendation was made by Mohamed Fall, the UN Resident and Humanitarian Coordinator in Nigeria, during a press briefing on Monday, ahead of the 2025 Africa Social Impact Summit (ASIS), which the UN will co-host next month.

Fall emphasised the importance of a paradigm shift in development financing, saying, “We are entering a new era in which ODA, development financing, and humanitarian financing will never be the same as they have been for the past decade.

This is why we believe it is time to focus on what alternative model is most viable for financing development in contexts such as Nigeria. And today, domestic resources are the only way to finance development.”

He emphasised the potential of private sector investment, not just as charity or Corporate Social Responsibility (CSR), but as a strategic investment with shared value and benefits.

“This summit is taking place at a time when we really need to pull together our effort, our reflection, and see which direction we need to take to make sure that the private sector comes to development financing not only as a charity or as a corporate social responsibility, but as an investment for development with a shared value and a shared understanding that any investment or gain you make in development will benefit the private sector, to the share

Fall also drew attention to Nigeria’s significant losses from illicit financial flows, which are estimated at $17 billion annually.

He contended that redirecting these funds could significantly benefit the country’s development efforts, potentially covering up to half of the state’s annual expenditure, including debt servicing.

“If you compare how much Africa receives in ODA to how much Africa loses in illicit financial flows or other financial flows that take capital out of the continent, you can agree that what we receive in ODA is probably five, six, or seven times less than the money we lose through those kinds of mechanisms,” Fall said.

Abubakar Suleiman, Managing Director and CEO of Sterling Bank PLC, a partner in the upcoming ASIS, echoed this sentiment, emphasising the private sector’s critical role in driving sustainable development.

He emphasised the need for “programs and products that put money where it can create value,” and urged the private sector to fill the resource gap left by declining ODA.

“The days of relying on cross-border resources to solve our problems are over… We will have to accept the fact that there will be insufficient international resources to solve our problem,” Suleiman warned.

He urged the private sector to use its resources to address social issues, noting that it controls a sizable portion of the country’s wealth.

Olapeju Ibekwe, Chief Executive Officer of Sterling One Foundation, stated that the upcoming ASIS, titled “Scaling Action: Bold Solutions for Climate Resilience and Policy Innovations,” will serve as a platform for collective action.

“This is an execution platform for people to collaborate,” she explained. “We aim to achieve three main goals: effective partnerships, impact investments in scalable, viable solutions, and policy advocacy.”

The UN’s call for Nigeria to prioritise domestic resource mobilisation and private sector involvement reflects a growing recognition of the importance of long-term and self-sufficient development strategies in the face of shifting global aid dynamics.

The 2025 ASIS is expected to play a critical role in fostering these important partnerships and driving impactful solutions.