NIGERIA IN PERSPECTIVE

BY OBIKEZE, OBIAJULU S.A.****

&

OBI EMEKA ANTHONY*****

Nigeria is one of the countries in West Coast of Africa. The name was coined by Flora
Shaw who later became the wife of Lord Lugard. The name was derived from River Niger one of
the most influential rivers that has given Nigeria its strategic position in the comity of nations.
So that today, Niger-Area is now shortened as Nigeria. Nigeria occupies a total area of 9,23, 768
square kilometers to rank as one of the countries with the largest land mass in Africa.

Nigeria has the following countries as her neighbours; The Republics of Niger and Chad
form our northern neighbours. The Republic of Benin is Nigeria's Western neighbour while the
Republic of Cameroun forms the eastern neighbour. Nigeria equally lies north of the Gulf of
Guinea while the Atlantic Ocean forms the Southern boundary of Nigeria.

POPULATION

Nigeria is the most populous black nations in the world. It is said that one out of every
four black persons in the world, is a Nigerian. The population of Nigeria has continued to grow
since 1960. By 1960, the population of Nigeria was put at 52 million people. In 1963, the
population rose to 55.7 million. After the 1991 head count, the population of Nigeria came up
88.5 million. Before the 2006 population census, the population of Nigeria was projected to
have reached about 130 million people.

Before we leave this segment, it is necessary to review a bit the history of the population
of Nigeria. Jega and Wakili (2002:48) have helped us to note that the first recorded population
census in Nigeria was in 1911, some three years before amalgamation. The census estimate
gave the total population of Nigeria to be 16,054,000. In 1921, another census which was
reputed to be more reliable than the one of 1911 put the total population of Nigeria at
18,720,000.

The 1931 and 1952/1953 censuses, put the figures at 20,056,000 and 30,402,000
people respectively.

VEGETATION:

Nigeria has three main vegetations. One is the rain forest found in all the Southern part
of the country. This is further divided into salt water swamp found in Niger Delta, fresh water
swamp found in further inland of river valley and high forest in the East, West and Niger Delta.

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 Next is the Savannah grassland which covers most of Benue, Plateau, Kaduna, Kwara,
Kogi, all along the middle section of the country. This part of the country witnesses light rainfall,
low relative humidity and high temperature but not as high as is the case in the far North

There is also Sahel Savannah or the Semi desert area of the country found in Sokoto,
Katsina, Kano, Bornu and some parts of Gongola. In this area, tall grasses grow, forest trees are
absent instead, trees like the oil bean, Shea butter and locust bean trees dominate the
vegetation.

CLIMATE

Nigeria lies within the tropics and has generally tropical climate with two main seasons.

i. The Rainy Season:

This starts in April, mostly in the Southern part of the country, and may last up to
September same year. In the North, rains do not come until July or August and could even stop
earlier than in the South. In the Coastal parts of the country, the rains may be on all the year
round with June and July being the peak months. What is being said is that it is not unusual to
see heavy rains in December or January in such areas as Port Harcourt, Warri and Calabar.

ii. The Dry Season:

In Nigeria, the dry season starts in September and ends in March. But we must observe
that in places such as Sokoto, Kano, Katsina to mention but a few, the dry season lasts longer
than the periods already stated.

Crops: Nigeria is blessed with abundant arable land. Although farming is the principal
occupation but this is done largely on subsistence level ie for domestic consumption. It is of
interest to note that the Nigerian soil can produce the following crops in large quantities. These
are: millet, groundnuts/peanuts, cocoa, cassava, beans. yam, coco-yam, guinea corn, maize,
fruits, rice, melon, cotton, coffee, vegetables, tomatoes, onions, potatoes, benniseed, sesame
seeds, tobacco, kola, palm produce, rubber, etc.

It should be noted that the crops found in a particular location are determined by soil
texture and other natural factors. It is sad to observe that since the discovery and mining of
crude oil, the agricultural sector has been allowed to suffer in Nigeria. There is however some
succour that in Northern parts of the country irrigation is being used in massive farming. This is
in the sudden realization that no matter how we pretend to be rich, a country that is unable to
feed itself cannot boast of being a world power, Nigerians are therefore urged to go back to the
land and devote substantial interest, energy and money to farming.

Livestock: The following domestic animals are found in Nigeria. They are; cattle, sheep,
pigs, poultry, goats, horses. These are in addition to large variety of wild animals which are fast
becoming endangered species as they are being caught and killed without efforts to replenish
them.

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Minerals: Gasses, Liquids and Solid

This is another area that God has endowed Nigeria enormously. Unfortunately many of
these minerals are untapped while the gasses are being flayed to tap the ones needed for now.
The poor state of our technological development and lack of vision by our leaders have
continued to make some of these minerals submerged underground. Some of these minerals
are: crude oil or petroleum, limestone, tin, columbite, kaolin, gold, silver, iron-ore, stone, zinc,
natural gas, talc, bentonite, and bitumen, alluvial gold, to mention but only these. These
minerals are deposited in various parts of Nigeria yearning to be exploited.

Ethnic Groups In Nigeria

As we have abundant resources so do we have abundant ethnic groups in Nigeria. The

Vanguard Newspaper (2006) has a catalogue of the ethnic groups in Nigeria. About 389 were
listed. They are; Abanyon, Abual (Odual), A chipa (Achipawa Dame), Adim, Adara (Kadara)
Adum, Affade, Aeoqworo (KAGORO), Afizero, Afo, Aho, Akaju-Ndem (kajuk),-Akweya-Yachi,
Alago (Arago) Amo, Anaguta, Anang, Andoni, Anghan (Kamantong), Angas, Ankwei, Attakar
(Takab), Atyap (Kataf) Auyoka (Auyokawa), Awori, Ayu, Bachama, Bacheve, Bada, Bade,
Bahumono, Bejju (Kaje), Bakulu (Iklu), Bali,;1 Bambara (Bambarawa), Bambukal Bamkuba,
Banda (Bandawa), Bangawa, Bankal (Bankalawa) Banso (Panso), Bara (Barawa, Badara), Barke,
Baruba (Barba), Bashiri (Bashirawa), Bassa, Batta, Baushi, Baya, Bekwara, Bele (Belewa), Besto
(bete), Bette, Bilei, Bille, Bina (Binawa), Bini, Birom, Bobua, Boki (Nki), Bokkos, Boko (Bussawa,
Borgawa), Bole (Bolewa), Bollere, ma (Bomawa, Burmano), Bomboro, Buwa, Bwall, Bwanye
(Bwatiye), Bwazza, Challa, Cham (Chamawa Fitilai), Chamba (Samba), Chamo, Chawai (Tsam),
Chibok (Chibbak), Chinine, Chip, Chokobo, Chukwa), Degama, Deno (Denawa), Dghwede
(Dghuede), Diba, Doemak (Dumuk), Duguri, Duka (Dukawa, Hunnu), Ebana (Ebani), Ebirra
(Igbirra), Ebu, Efik, Egbema, Egede (Igedde), Eggon Egun (Gu), Ejagham, Ekajuk, Eket, Ekoi,
Engenni (Ngene), Enyima, Epiw, Esan (Ishan), Etche, Etolu (Etilo), Estako, Etung, Etuno, Fakkawa
(Paeknu), Falli, Fantswam (Kafanchan), Fulbe (Fulani), Fyem (Fer), Ga"anda, Gade, Galambi,
Gamargu-Mulgwa, Ganagana, Ganawuri, Gavoko (Govoko), Gbari (Gbengi), Gbedde, Gelawa,
Gengle, Geji, Gera (Gere, Gerawa), Gerka (Gerkawa), Gemma (Gerumawa), Gingwak, Gira, Gizigz
(Gizga), Gobirawa, Goe-Gungawa (Reshe), Gure, Gurmana, Gurumtum, Gusu (Gusawa), Gwa
(Gurawa), Gwamba, Gwandara, Gwari (Gbagi), Gwong (Kagoma), Gwoza (Waha), Gyem, Hamla,
Igbo, Ijumu, Ikom, Ikwere, Irigwe, Isoko, Isekiri (Itsekiri), lyala (lyalla), Izon (Ijo), Jahuna
(Jahunawa), Jaku, Jara (Jaar Jarawa Jarawa-Dutse), Jere (Jare, Jera, Jerawa), Jero, Jibu, Jidda-
Abu, Jimbin (Jimbinawa), Jirai, Jonjo (Jenjo), Jukun, Kaba (Kabawa), Kacecere, Kaka, Kamuku
(Kamukawa), Kambari (Kambariwa), Kambu, Karno, Kamukawa (Katsinawa, Laka), Kanakuru
(Dera), Kanembu, Kantana, Kanufi, Kanuri, Karekare (Karaikarari), Karimjo, Kariya, Kelawa,
Kenem (Koenoem); Kenga (Kyenga, Kyengawa), Kenton, Kiballo (Kiwollo), Killba, Kirfi (Kirfawa),
Koma, Kona, Koro (kwaro), Kubi (Kubawa), Kudachano (Kudawa), Kugama, Kulere, (Kalere),
Kunini, Kurama, Kurdul, Kushi, Kuteb, Kutin, Kwalla, Kwami (Kwom, Kwanchi, Kwanka
(Kwankawa), Kwato, Kyenga (Kengawa, Kenga). Laaru (Larawa), Lakka, Lala, Lama, Lamji, Lau,
Libbo, Limoro (Limaro), Lopa (Lupa, Lopawa), Longunda (Lunguda), Mabo, Mada, Maguzawa,
Mama, Mambilla, Manchok, Mandara (Wandala), Manga (Mangawa), Margi (marghi), Matakam,
Mbembe, Mbol, Mbube, Mbula, Mbum, Mernyang (Meryan), Maingo, Miligili (Migili)Myia

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(Miyawa), Mobber, Montol, Moruwa (Moro"a;Morwa), Muchalla, Mumuye, Mundang, Munga,
Mupun (Mupung), Mushere, Mwahavul (Mwaghavul), Ndoro, Ngamo, Ngizim, Ngweshe
(NgosheNdhang), Ninkyob (Kaninkon), Nindare, Ningi (Ningawa), Ninzam (Ninzo), Njayi (Nzanyi),
Nkim, Nkum, Nokere (Nakere), (Nakere), Nunku, Nupe, Nufawa, Nyandang, Ododop, Ogoni,
Ogori, Okobo (Okkobor), Okamheri, Olulumo, Oron, Owan, Owe, Oworo, Pa"a (Pa"awa, Afawa),
Pabur, Pai, Panyam, Pero, Pire (Pere), Pkanzom, Poll, Polchi Habe, Pongo (Pongu), Potopo,
Pynapun (Papung), Qua, Rekuba, Rumada, Rumaya, Sakbe, Sakkwatawa, Sanga, Sarkawa, Sate,
Saya (Sayawa Za"ar), Segidi (Sigidawa), Shanga (Shangawa), Shagawa, (Shagau), Shan-Shan,
Shira (Shirawa), Shomo, Shuwa, Sikidi, Siri (Sirawa), Srubu (Surubu), Sukur, Sura, Tangale, Tarok,
Teme, Tera (Terawa), Teshena (Teshenawa), Tigon, Tikar, Tiv, Tula, Tur, Ufia, Ukelle, Ukwani
(Kwale) Uncinda, Uneme, (neme), Urhobo, Utonkong, Uyanga, Vomgo, Verre, Vomni, Wagga,
Waja, Waka, Warja, (Warjawa), Warji, Wula, Wula-Marakam, Wurbo, Wurkun, Yache, Yahe,
Yagba, Yakurr (Yako), Yalla, Yandang, Yergan (Yerguni), Yoruba, Yotti, Yumu, Yungur, Yuom,
Zabarwa (Zarma, Zabarmawa), Zamfarawa, Zaranda, Zayam (Zeem), Zul, (Zulawa). C

Some Political Events in Nigeria.

Nigeria came into being as one political entity in 1914 when Lord Lugard amalgamated
the Southern Protectorate and Colony of Lagos with the Northern Protectorate. By 1922 what
could be regarded as the first constitution of Nigeria was imposed on the country by Hugh
Clifford, with Elective Principle as its major feature.

In 1946, another constitution was foisted on the country by Arthur Richard. The major
feature of the constitution was that it created three regions out of Nigeria. Other constitutions
that emerged through constitutional conferences during the colonial period were the 1951
Constitution also referred to as John Macpherson's Constitution and Oliver Lyttleton's
Constitution of 1954, Macpherson's Constitution strengthened regionalism while Oliver
Lyttleton's Constitution could be regarded as the first major steps in making Nigeria a
federation.With much pressure from the nationalists such as Dr. Nnamdi Azikiwe (Zik) Herbert
Macaulay, Chief Obafemi Awolowo, Alhaji Ahmadu Bello, Nwafor Orizu to mention but a few but
not forgetting Chief Anthony Enahoro, Nigeria got Independence from Britain in 1960,
October 1. The contributions of external forces should be mentioned in this regard especially
the role played by President Roosevelt of United States of America in signing the Atlantic
Charter in 1941. The Atlantic Charter became the propelling force that pulled Nigeria along until
independence was achieved. Independence ushered in the First Republic with a coalition
government between Northern Peoples Congress (NPC) and National Council of Nigerian
Citizens (NCNC). The third major party Action Group (AG) was the opposition party. The First
Republic was parliamentary democracy modeled after the British style but we have to note that
between 1960 and 1963 when Zik was the Governor-General, he had little mandate but was
rather holding forth for the Queen of England who was the authentic Head of State of Nigeria.
The Queen ceased to be the Head of State of Nigeria on October 1, 1963 when Zik then become
the first indigenous President of Nigeria. He was however, a ceremonial head with real executive
power residing in the Prime Minister who was Alhaji Abubakar Tafawa Balewa. The First
Republic collapsed on the 15th of January 1966, through a military coup. The soldiers accused
the politicians of destroying the country and promised to salvage the situation.

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 Within the same year, precisely on 27th July1966, a counter coup took place removing
General Aguiyi Ironsi from office with Col. Yakubu Gowon taking over. The seed of disaffection
was sowed even within the military and before long events degenerated to a 30 months civil
war. The war ended in favour of Nigeria, while Biafra was given the privilege of a no victor, no
vanquished. Nigerians had expected General Gowon to prepare grounds for democratic
elections and hand over to the civilians but he did not do so when in 1975, General Murtala
Mohammed master-minded another coup that removed Gen. Gowon from office. Murtala,
showed commitment to conducting elections but his regime and life ended in 1976, by a bloody
but an abortive coup organized by Col. Dimka and others. With Murtala Mohammed out of the
way, the next in command, Gen. Olusegun Obasanjo took over and executed the programmes
mapped out by Murtala till 1979 when he handed over to Alhaji Shehu Shagari of the National
Party of Nigeria (NPN). Three major political parties contested elections in 1979. These were the
National Party of Nigeria (NPN) which had much recognition in the North, the Unity Party of
Nigeria (UPN) which was a Yoruba party and the Nigeria Peoples Party (NPP) which had its base
in the South East of the Igbo enclave. A point should be made that between 1963 to 1979,
Nigeria has moved from 3 regions in 1960, to four regions in 1963 when the Mid-Western
Region was carved out of Western Nigeria, to 12 states in 1967 created by Gowon and 19 states
in 1976 created by Gen. Murtala Mohammed.

By 1983, the civilian government of Alhaji Shehu Shagari which had received a mandate
for a second tenure in the controversial elections of 1983 was sent packing by General Buhari
and his cohorts. With the coming into power of Buhari, what was then known as the Second
Republic in Nigeria was brought to an end. Suffice it to state that the Second Republic was a
departure from the parliamentary democracy to presidential system which vests power in one
man known as the Executive President.

From 1983 to 1999, Nigeria witnessed several military regimes. Buhari was removed by
Gen, Babangida in 1985. Gen. Babangida was in power until 1993 when he stepped aside after
the cancellation of what has been referred to as the freest and fairest election to be conducted
in Nigeria and suspected to have been won by Chief M.K.O Abiola of the Social Democratic Party
(SDP). The crisis generated by the annulment nearly brought down the nation. IBB then
constituted the Interim National Government led by Chief Ernest Shonekan. It should be noted
that before the conduct of the annulled presidential elections, Babangida had already organized
gubernational elections and elections to both the national and state legislatures. It is because of
the presence of these democratic institutions at the federal and state levels that existed
between 1991 to 1993 that some people regard the period as the Third Republic.

However, there are some others like Shehu Shagari who argue that as long as the
democratization process was not complete that such regime cannot be regarded as a Republic.

Chief Ernest Shonekan accepted the position of Head of the Interim National
Government but his own people (the Yoruba) invited the army to take over hoping that when
that was done, Chief Abiola's mandate would be returned to him. On the 18l of November

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1993, Gen. Sani Abacha forced Shonekan to hand over to him. Abacha, a maximum dictator was
in power until he died on June 8 1998. With the sudden demise of Gen. Sani Abacha, Gen. A.
Abubakar took over and put in motion a democratization process that ended on 29lh of May,
1999. On the 29th of May 1999, Chief Olusegun Obasanjo became the second executive
President of Nigeria after President Shehu Shagari. Obasanjo was in power from 1999 to 2007
which we now refer to as the Fourth Republic. Nigeria now just like in the Second Republic
operates presidential system, where one man is both the Head of State as well as the
Commander in Chief of the Armed Forces and also the Head of Government. His cabinet
members are loyal to him and not to the political party. Another striking feature of Presidential
system is a clear cut separation of powers. This means that the three organs of government, the
legislature, the Executive and the judiciary are in their different compartments although
mutually co-ordinate. They check and balance one another but we must point out that there is
no country where we have water-tight separation of powers. Each of the organs must relate
with others for the effective running of government.

The capital of Nigeria was in Lagos until 1992 when the capital was moved to Abuja.
Nigeria runs a state structure known as a federal system. In a federation, the country is made of
relatively independent units which cannot easily pull out from the union. Presently there are 36
states and a federal capital territory and 774 Local Government Councils in Nigeria.

THE NIGERIAN ECONOMY

The Nigerian economy is really an underdeveloped and dependent one. At the time
of political independence in 1960, the economy was almost an agrarian one. Agriculture
contributed about 63.4% to the GDP while over 80% of the population were equally engaged in
Agriculture. Also over 85 percent of Nigeria's foreign exchange earnings came from the export
of agricultural produce which covered farm produce, wood and livestock products.

By 1970 the economy had witnessed some structural changes. First the population
engaged in agriculture has fallen to about 60%, its contribution to G.D.P was 39%. Ten years
later, by 1980 agriculture had maintained its downward slide on all fronts. It stood at less than
25% of GDP and about 4,5% of our export earning. The relative weak position of agriculture in
Nigeria's economy after independence was as a result of the prominence of oil in our national
life. Thus minerals mostly petroleum rose from less than one percent of GDP in 1960 to around
14.6 percent in 1970 and jumped to about 27 percent by 1979, Since more than 75 percent of
government revenues and more than 90 percent of Nigeria's foreign exchange earnings come
from petroleum, Nigeria is thus a mineral dependent economy.

Okowa has listed the key features of the Nigerian economy thus:

1. Dependence on foreign technology

2. Mono-cultural dependence on crude oil

3. Dependence on the foreign sector for raw materials and spares.

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4. Inadequate supply of skilled labour

5. Low productivity and low per capita income

6. Underdeveloped agricultural sector

7. High rate of unemployment

8. In-egalitarian distribution of income and wealth

9. High rates of inflation and interest rates

10. Excessive government involvement in the economy

11. Heavy external debt burden

12. Poor attitude to work, particularly in the public sector

13. Systemic corruption.

We will now take a brief look at these features.

Dependence on Foreign Technology

Dependence on foreign technology is the lot of most undeveloped economies. In fact it

can be said that this is one of the characteristics of their underdevelopment. Apparently this
condition arises due to the lack of capacity to adapt nature to suit the people. It is therefore
implied that the first step by any nation that wants to develop its economy is to develop the
capacity of its people towards confronting the environment (Technology).

Unfortunately in the case of Nigeria, no real or conscious attempt was made towards
technological development until the fourth national development plan 1981-85.

Our industrialization policy followed the path of import substitution. It concentrated on

consumer goods. Capital goods were not given priority. Till date less than 20% of the locally
made goods are capital goods, the rest are consumer goods. The major industries that would
have acted as a push to our industrialization like the Iron and Steel Industry, the Petrol-chemical
and Machine Parts industry are still underdeveloped. The end result is that the industrial sector
imports virtually all industrial machinery and spares from the developed countries of the West
and the developing countries of the East.

Mono-cultural Dependence on Crude Oil

As has Already been pointed out else where in this study, crude oil contributed less than
1% to the country's GDP at independence, but by 1979 it was already contributing 27 percent.
From 1973 till date oil still accounts for almost 90 percent of the country external earnings. The
effect of this over dependence on oil is quite apparent. It means that the country's economy is

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very fragile since it still depends almost solely on oil revenue. Therefore any thing that affects oil
prices negatively, will negatively affect the Nigerian economy. It equally shows that agriculture
that used to account for about 85% of our foreign exchange earnings has almost collapsed due
to neglect. The feeble attempts by government to promote non-oil exports have not really
yielded much dividend, while the oil sector is still dominated by foreign companies.

Dependence on Foreign Sources for Raw Materials and Machinery.

As we stated above, the country adopted the import substitution method of

industrialization. While establishing these industries, little thought was given to the type of raw
materials they will need. In some cases, where the raw materials for a particular product was
available locally, it was found out that the type of machines or production mechanisms in our
factories could not use these materials, it therefore meant that the industries can only operate
on imported raw materials. It follows, therefore, that Nigerian industrialization cannot in the
end reduce her dependence. The promise held out by the manufacturers at each stage was
illusory: the Nigerian industries have continuously consumed more imports than they have
saved; what is worse they have become so import dependent that any decline in foreign
resources leads at once not to a resort to domestic substitutes but to reduction in capacity
utilization (Okigbo 1987).

Secondly, the investment in industry has been overtly costly in terms of factory
buildings, machinery and equipment and even expatriate workers. Over capitalized and so
import dependent, Nigerian industrialization did not and could not, if it was to make profits,
generate the promised absorption of the large numbers of young men and women being
disgorged regularly from the farms and schools.

Finally, industrialization that is not supported by a local civil engineering industry for the
design; fabrication and manufacture of equipment, spares and tools cannot for long remain self
reliant. The lack of a Nigerian engineering base has made it difficult for Nigeria to produce and
transform her raw intermediate materials as inputs for the manufacture of final products
(Okigbo 1987).

Inadequate Supply of Skilled Labour

For a country to record an appreciable level of development, it must be interested in

people. The reason for this is that development is human centered. Development at the
individual level could be seen in terms of substantial intellectual and physical skills possessed
and applied by individuals within a social setting for the ultimate good of the state. It also
implies man's increasing capacity for dealing with the environment through the laws of nature
i.e science and technology, and the manner in which work is organized to ensure maximum
production and distribution of social goods and services.

Unfortunately, Nigerian leaders have failed to comprehend the role of man in

development. They have not paid enough attention to manpower development. Consequently
they have had to treat universities as if they were mercantile houses to be created and
dispersed such that each of them could display every commodity. None of them now seems

8
capable to expand rapidly enough in any direction to achieve outstanding excellence in
chosen fields. All of them have had to face simultaneously the same critical shortage of
resources. Every one was looking for an easy solution; rationing and zoning of admissions,
multiplication of institutions, corruption and lowering of standard of admissions of
institutions, politicization of appointments, and promotions, of teaching and of
certification.

What is the result like? We now have Computer Engineers that never saw simple tools in
school, English graduates that can't write letters and management science graduates that can't
define management not to talk about knowing how to manage anything well.

The few well trained Nigerians have responded to the un-conducive working
environment by voting with their legs. Many have left the country through what we refer to as
brain drain. The question remains, who will develop the country's technology? Every year our
universities and polytechnics pump out thousands of engineers but for any kilometer of road we
want to construct, expatriates are fully in charge. Truly there is a problem with our manpower
development strategy.

Low productivity and low capita income

The per capita income of Nigeria today is 260 dollars making it one of the poorest
countries in the world today. This low per capita income is indicative of low productivity. In fact
a Political Economist, Dr. Pat Utomi once said that the problem of Nigeria is lack of production.
Very many Nigerians are not involved in any real productive activity. The wealthiest Nigerians
are the least productive. Most of them are indeed parasites.

For those who took the risk of getting involved in manufacturing, it has been tales of
woes. The environment has been most un-conducive. With the low income of the people, they
have not been enable to make real demand. The manufacturing sectors' major problem remain
the poor basic infrastructure, weak demand, high cost of credit, and near absence of
intermediate raw material base such as the governments steels and petrol chemical industries
were to provide. Though capacity utilization of industries is about 32% unsold inventory remains
high.

Underdeveloped Agriculture

The role of agriculture in transforming both the social and economic framework of an
economy cannot be over emphasized. It is a source of food and raw materials for the industrial
sector. It is also essential for expansion of employment opportunities, for reduction of poverty
and improvement of income distribution, for speeding up industrialization and easing the
pressure on balance of payment.

In 1960, the year of independence, Agriculture was the main stay of the economy.
However the discovery of oil shifted emphasis from this all important sector. The 1970's came
with the feeling of affluence, all eyes got riveted on the oil sector. There was money to be made
for little or no effort. Agriculture required such massive expenditure of physical effort on the

9
part of the farmers that the farms soon got abandoned. The external resources looked so
buoyant from petro-dollars that the foreign exchange earnings from farm produce looked a
pittance compared to petroleum earnings, simultaneously, the country's rapid expansion of
schools and colleges and universities, the expansion of administrations, the huge public works-
skilled urban wage labour: those who could not get direct wage employment; employed
themselves in merchandise trading. The blight had set in and efforts at reversing that trend have
remained relatively unsuccessful (Okigbo 1987).

These efforts like the Operation Feed the Nation (OFN), the Green Revolution etc have
not really been able to modernize inputs from what it was in the 60's. With an increasing
population and an expanding industrial base that needed the products as raw materials, Nigeria
has been witnessing a food crises for decades now. The country has remained a net food
importer. This has been happening despite the billions of naira that successive governments
have sunk into the sector.

These resources were apparently wasted for as Okigbo (1987) said, the planning of
agriculture and the programmes developed from the plans seemed condemned by the ultimate
judgement that they were irrelevant to the life and needs of the farmers. They responded
mostly to the needs of business-men, middlemen and agents in agriculture; suppliers of
mechanical equipment-tractors, harvesters, etc, stocks of chemicals and mechanical equipment
were purchased by the authorities and legitimately counted as investment in agriculture; but
whether they were applied, how they were applied and how effectively they served were of
little interest to those who spent the resources. With the underdeveloped nature of agriculture
in Nigeria, the sector cannot feed the nation despite employing more than 60% of the country's
work force.

High Rate of Unemployment:

At present, the government puts the rate of unemployment at about 6%. This is a gross
understatement for as Okigbo (1987) argued that after making adjustments for those who for
any reason did not seek work which represent about 7.3% of the labour force, and the exclusion
of those between 55 and 65 years of age who in most cases are still active and quite employable
but are excluded and unemployed, the rate of the unemployed will be about 28% of the labour
force. Also if the rate of the under-employed which seems to be greater is considered, the
picture becomes quite grim. Now in the rural areas, the situation is even worse, where the
youth too educated to go to the farm and work, yet not educated enough or not well connected
enough to acquire urban paid employment, constitute an ever enlarging army of trouble
makers, petty criminals and political thugs. The problem of unemployment is one which the
government has not really taken a serious step at solving, instead various programmes meant to
tackle the scourge have remained avenues for siphoning and looting the treasury. Nobody seem
to be linking the high crime rate in the country to the rate of unemployment. The government is
bent on combating violent crimes by spending billions on ammunition and vehicles for various
anti-crime patrols scattered all over the country. What we may need to ask, is whether the fight
against armed robbery can ever be won, when the environment is daily been made conducive
for robbery?,.

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 Also the fact that about a quarter of the active population are either unemployed or
underemployed has a direct affect on aggregate demand in the country. These millions of
unemployed Nigerians are effectively cut-off from the market since they lack the ability to make
effective demand. Little wonder then that manufacturers are complaining of unsold inventory.

For now the problem is still being ameliorated by the traditional extended family system,
but with the gradual collapse of the system due mainly to westernization and economic
hardship, the unemployed are in for a real rough and harsher time ahead.

Inegalitarian Distribution of Income and Wealth

It is widely accepted in a capitalist society that inequality is natural. Capitalism as a

system is built on inequality. However, despite this acceptance of inequality, it is also known
that extreme polarization of wealth in any society is unfair and even dangerous. Governments
therefore fashion a lot of policies to help reduce the level of inequalities in society. .Thus, the
progressive tax system is very popular all over the world as a mechanism for reducing inequality.
In Nigeria, the government in the past seemed to have recognized the need for an acceptable
level of equality in sharing societal resources. Thus, the Second National Development Plan
(1970-74), has as one of its five principal national objectives to maintain "a just and egalitarian
society" while the aim of the plan was among others, to "reduce inequalities in inter-personal
incomes and promote balanced development among the various communities in the different
geographic areas of the country".

Despite the objective of the development plan and other measures introduced by the
government, the level of inequality has terribly increased. In fact wealth is highly polarized in
the country. We now have a tiny cabal of extremely wealthy Nigerians on one side and a mass of
poor people on the other side with nothing in-between. The middle class that used to act as a
buffer between the two has been destroyed by the Structural Adjustment Programme. In the
absence of a social security system, the poor are left to their fate, which is hunger,
homelessness and death. They stay by and watch a few Nigerians corner the entire wealth of
the country. Breaking the poverty cycle has been a very difficult task for the poor in Nigeria.
Thus, it is a sad reality that most people who were born poor in Nigeria that eventually
conquered poverty, were those who engaged in one crime or the other. Drug trafficking,
embezzlement, fraud, advance fee fraud (419) etc are about some of the easiest ways of
conquering poverty in the country today. It appears that about 80% of Nigeria's wealth is owned
by less that 3% of the population. The next 10% is owned by another 15% of the population
while the last 10% of the country's wealth is owned by the remaining 82% of the population
(Cookey 2000). The problem of inequality in Nigeria also has a geographical dimension.
Urban/Rural dichotomy in terms of facilities also show in income levels and opportunities for
self advancement.

While majority of Nigerians are poor, on average the rural dwellers are poorer, without
any opportunities for bettering their lives, except migrating to the urban areas where they
constitute the army of the unemployed, societal drops out and are faced with high chances of
turning to crime and probably violent ones for survival.

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 Sadly enough, the government doesn't seen to have a solution to this problem. The
Poverty Alleviation Programme of the Obasanjo government did not prove capable of tackling
the problem in a meaningful and conclusive manner. There were serious fears then that like
previous programmes it may end up an avenue for a few rich men to steal more millions for
themselves, a sort of wealth elevation programme for the wealth and poverty elevation for the
poor, and that was what it eventually ended up.

High Rates of Inflation

The problem of inflation is characteristic of most Third World economies. That of Nigeria
has been really very chronic. Between 1960 to 1985, the general price level rose nine fold, food
prices rose over twelve fold, clothing eleven fold and transport six fold. Breaking this down,
shows that in the period 1960-66 the general price level rose on the average by less than 3% per
annum, between 1971-1979 saw the rate jump, on the average to 20.7% per annum, while it
remained at 20.1 on the average for the period 1980-84 (Okigbo 1987).

The major sources of this inflationary spiral were the rapid growth of money supply
occasioned by increased revenue from petroleum, the increased salaries and wages that
accompanied the Udoji Commission (1974) and the profligate expansion of public expenditure
as a result of the heavy borrowing at home and abroad. Between 1980-84. the minimum wage
legislation also added to the spiral. The serious decrease in foreign exchange earnings from oil
owing to the glut, affected seriously the capacity to import consumer goods, and capital goods
needed for local manufacture. The progressive depreciation of the naira and the increasing
prices of equipment and raw materials would be reflected in the prices of local manufactured
products for the manufacturers to make profit. The utter neglect of agriculture in the oil boom
period caused serious food shortage thereby pushing up food prices by an average of 23.8% per
annum in 1975-70 and by 24.4% per annum between 1980 and 1984.

The massive devaluation of the naira in 1986 as a result of the Structural Adjustment
Programme (SAP), added a rather serious dimension to the inflationary spiral. By raising import
prices within a year to over four times the level in December 1985, a cost-push dimension was
added to what was before 1985, a demand push inflation. Raw materials, intermediate
products., spares and equipment, which are all imported, have by 1988, rose more than eight
fold the cost of import-dependent local production so that the final prices of finished goods
have become unaffordable (Okigbo 1987).

The inflation rate kept rising till it hit an all time high of 72.8% in 1995. Strict fiscal
control measures adopted by the government coupled with growing consumer resistance
gradually reduced the rate to about 12.2% in May 1999 when the military handed over power to
a democratically elected government. By February 2002 it has crashed to about 3.9% which is its
lowest level in the last two decades.

Excessive Government Intervention in the Economy:

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 From independence in 1960, the government has been playing a key role in the
economy. This role was informed by the need to provide social infrastructure, invest in areas
that were necessary for the nations economic development but were too capital intensive for
the private sector and to also maintain an indigenous control of the economy. The above
imperatives and more, made successive governments at all levels to get involved in economic
activities. The result has not been quite salutary as these enterprises have acted as a heavy
drain on the economy through corrupt and inefficient practices which have remained their
modus operandi.

President Olusegun Obasanjo aptly captured the extent and position of government
investments when he said:

It is estimated that successive Nigerian Governments have invested up to 800 billion

naira in public owned enterprises. Annual returns on this high investment have been
well below 10 percent. These inefficiencies and in many cases high losses, are charged
against the treasury. With declining revenue and escalating demand for effective and
affordable social service, the general public has stepped up its yearnings for state-
owned enterprises to become efficient (Obasanjo 1999).

It is based on the negative impact of this involvement that the government embarked on
the privatization programme in order to;

Concentrate resources on their core functions and responsibilities, while enforcing

the "rules of the game "so that the markets can work efficiently with provision of
adequate security and basic services like education, health and environmental
protection. (Obasanjo 1999).

Whether the programme will succeed in creating a “Synergy between a leaner and more
efficient government and a vitalized, efficient and service oriented private sector” (Obasanjo
1999), is yet to be seen.

Heavy External Debt Burden

"The most incapacitating constraint against Nigeria's economic recovery and indeed a
veritable threat to our new form democracy is the external debt over hang". The above
statement by Vice President Atiku Abubakar clearly shows the problem which the debt crises
poses to Nigeria.

The nations march to the debt crises started during the Obasanjo military administration
that took the first jumbo loans. The Shagari government that succeeded it went on a borrowing
spree which increased the debt which was hitherto less than $2billion to $14.6 billion. The past
four military regimes; Buhari, Babangida, Abacha and Abubakar raised the debt to over $30
billion. The intriguing thing about the debt was that nobody actually knows what the nation is
owing. While th World Bank puts the debt at $37 billion, the Federal Government insists
it was $28 billion. All attempts made by the government to reduce the debt have not actually

13
yielded much dividend. The Debt Conversion Programme (DCP) introduced by the Babangida
regime redeemed only $825 million from the debt.

While the debt is not the main problem, what has constituted major headache to the
country is debt servicing. Between 1994 and March 1999, Nigeria spent as high as 40% of its
foreign exchange earnings in debt servicing. The present government was compelled to pay $1.6
billion as debt servicing in its first year in office. It is due to these huge amount that is used in
servicing debt that has resulted in Nigeria being one of the 41 poorest countries in the world
and one of the Heavily Indebted Poor Countries (HIPC). With about 40% of foreign exchange
earnings spent on debt servicing little was now left to provide basic amenities for the people.
The burden was really excruciating.

However the Obasanjo regime paid over $ 12 billion to the Paris Club to secure
Nigerias' exit from the club and debt peonage.

Poor Attitude To Work, Particularly in the Public Sector.

Nigeria has been described as a country where nobody and nothing works. The level of
indolence in the public sector is overwhelming. People are not ready to put in their best; the
overall result is that the level of productivity in the country is abysmally low. This poor attitude
to work by Nigerians, has made national utilities inefficient. Perhaps the prevailing situation in
the country where the richest people seem to be those who cannot be described as really
hardworking contributed to peoples perception of hardwork. It is believed that career
advancement and subsequently economic and social elevation do not depend on how hard you
work, but on who you know or where you come from. In summary we would say that
mediocrity, nepotism and quota system have all combined to entrench bad work ethics in
Nigerians.

Systemic Corruption

Okowa(l 997), defines systemic corruption as aSituation in which corruption has

been institutionalized and raised to the level of a structural parameter. It has become part of
the culture of society. The problem is so pervasive that no sector of the society is free from it. It
has become part of the Nigerian culture and expectedly Nigeria's problem.

According to Akpakpan(1994):

The problem is so deep-rooted and widespread in our society that many people now
tend to accept it as a norm, you are expected to do it and people lobby for offices/posts
mainly to have opportunities to do it. The stealing of public funds by whatever means
had the effect of intensifying the societys’ socio-economic problem.

Presently, Nigeria is rated as the third most corrupt country in the world by the
Transparency International (TI). Recently, the nations Inspector General of Police Mr. Tafa
Bolagun was removed from office based on revelations of serious corrupt activities. Apart from
owing choice properties, it was discovered that, he had over Nl billion naira in deposits in one
bank in Lagos. Meanwhile he was the nations Chief Crime Officer.

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 The National Assembly in Nigeria today is better known for 'Ghana-Must-Go Bags' (an
acronym for corruption). In fact, governance in Nigeria is synonymous with corruption. Our
leaders do not see anything wrong with looting the treasury. While the masses live in squalor,
the leaders live in offensive opulence. It may therefore not be an over statement to say that
most Nigerian leaders both past and present have taken turns in looting the treasury.

In a study of the Nigerian economy, Michael Todaro and Stephen Smith (2004), asserts
that Nigeria exhibits most of the common characteristics of low-income developing countries. It
is primarily rural, depends on primary product exports, has high population growth, suffers from
widespread poverty and rising unemployment, and must deal with tribal and ethnic conflicts.
The most populous country in Africa, Nigeria accounts for one in five of sub-Saharan Africa's
people. Although fewer than 16% of Nigerians are urban dwellers, at least 24 cities have
populations of more than 100, 000. The varieties of customs, languages, and traditions among
Nigeria's 250 ethnic groups gives the country a rich diversity.

The Nigerian economy underwent profound changes during the 1980s, once an
agriculturally based economy and a major exporter of cocoa, peanuts, and palm products,
Nigeria now relies on oil for more than 90% of its export earnings, 30% of its GDP, and 70% of its
federal budget resources. However, a combination of declining oil prices, overly ambitious
industrialization programmes, neglect of the agricultural sector, excessive foreign borrowing,
and widespread economic corruption and mismanagement during those decades caused the
Nigerian economy to experience a prolonged period of economic stagnation and decline.

Prior to the oil boom of the 1970s, Nigeria was one of the world's poorest and least
economically developed countries. It had a per capita GNP of only $90 in 1968. But with the oil
boom of the 1970s and the discovery of large new deposits, Nigeria embarked on a decade of
rapid economic expansion and major structural transformation. Between 1968 and 1980, per
capita GNP grew by more than 1,000%, to $1,020. But this growth process was reversed in the
1980s, so that by 1994, GNP per capita had declined by more than 70% to $240, the same level
as in 1972.

With by far the largest population in Africa (over 127 million in 2000) and a current
growth rate of almost 3% per annum. Nigeria adds about 3.7 million people every year. If
population growth is not reduced, Nigeria will have a population in excess of 150miliion by the
year 2010 and 200 million by 2025.

Significantly, the oil boom and the consequent neglect of agriculture in the 1970s and
early 1980s caused a massive movement of people from rural to urban centers and a major
problem of high urban unemployment. Moreover, regional income disparities are among the
worst in the world. For example, the gap in per capita income between a rich state, Delta, and a
poor one, Kaduna, is 5 to 1. Adult literacy in Borno is 12%, less than one quarter the national
average.

15
 If Nigeria is to turn the tide of its economic misfortunes and mismanagement, it will
have to take steps to raise domestic food production and labour productivity; use oil revenues
more rationally to diversify economic activity and reduce the burden of its foreign debt;
lower population growth through a combination of effective family planning programmes,
improved rural health and education, and a reduction in absolute poverty; seek increased
foreign aid and investment, including significant debt relief, make greater use of market price
incentives to allocate resources while endeavouring to improve public and private decision
making; and maintain political stability between rural ethnic and religious groups. Only then will
Nigeria begin to achieve its potential as the major economic force on the African continent and
a leader of the developing nations.

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Anyanwu, J.C. (1997). The Structure of The Nigerian Economy (1960-1997). Onitsha: Jonee
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Chinweizu (1978). The West and Rest of Us. Lagos: Nok Publishers.

Cookey, A.E. (2000). Other Economies and Ours A Comparative Approach. Onitsha: Abbot
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Dike, C. (1985). The Nigerian Civil Service. Owerri: Affa Publishing Company.

Nnoli, O. (1980). Ethnic Politics in Nigeria. Enugu: Fourth Dimension Publishers.

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Okigbo, P.N.C. (1987). Essays in the Political Philosophy of Development (1960-1980) Vol. 1.
Enugu: Fourth Dimension Publishers Ltd.

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Okowa, W.J. (1997). Systemic Corruption Abdulstic Capitalism and Nigerian Development Policy.
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