Apr
10
EFFECT OF GOVERNMENT REGULATION ON
BUSINESS (A CASE STUDY OF N.B.L. PLC)
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EFFECT OF GOVERNMENT REGULATION ON BUSINESS
(A CASE STUDY OF N.B.L. PLC)
ABSTRACT
Complete Project material on The effect of government regulation in
a developing economy has in the fact that will and down rules (laws)
guiding the operation of business organization all sorts of business
malpractices that wouldhave hnder the growth the and development
through economy boost will be discarded.
The purpose of this research work is to investigate and
examine the effect of government regulation on business using
Nigeria Brewery limited (NBL) as a case study wit the view to
establish an acceptable solution to their problems.
The source of this research work is from the secondary and primary
sources. It was found that:
There is instability in government policy which leads to the
various abandonment of many plans and programmes scheduled to
regulate the business developing economy.
Over regulation of business activities is mostly responsible for
the year performance of business organization.
All system of regulation and control of business in developing
economy is uncoordinated
TABLE OF CONTENTS
CHAPTER ONE
1.0
Introduction
1.1
Background of the study
1.2
Statement of the study
1.3
Objective of the study
1.4
Research Questions
1.5
Hypothesis Formulation
1.6
Significance of the study
1.7
Scope of the study
1.8
Limitations of the Study
1.9
Definition of Terms
Reference
CHAPTER TWO
Literature
Review
CHAPTER THREE
2.0
Research Design and Methodology
3.1 Research Design
3.2 Sources of Data Collection
3.3 Population of the study
3.4 Sample and Determination of Sample Size
3.5 Method of Data Collection
3.6 Method of Data Analysis
References
CHAPTER FOUR
4.0 Data presentation and analysis
4.1
Presentation and Analysis of Data
4.2
Testing of Hypothesis
4.3
Summary of Results
Reference
CHAPTER FIVE
5.0 Discussion, recommendation and conclusion
5.1
Discussion and Results Findings
5.2
Conclusions
5.3
Recommendations
Bibliography
Appendix
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
In a country with mixed economy such as Nigeria, both the
government and private individual turn the economy jointly. This
means that private individual, groups as well as the three levels of
government are free to establish business enterprises. The three
levels of government low include the local, the state and the Federal
Government, respectively. In this modern world, mixed economy
appears to the most prevalent economic system but what makes the
difference is the degree of the mixture.
Therefore, government has some important roles to play in this type
of economy. Based on the importance of government regulations on
business in the country, government regulatory power on business
activities was included in section 16 (1) and (s) of the 1979 federal
constitution. In 1984 as well, the former was modified by the then
federal military government. This modification was also included in
section 16 (1) and (3) of 1999 constitution of the federal republic of
Nigeria. And both constitutions specified the following as regards
our national economic activities.
Section 16 (1) states that the state shall within the context of the
ideal and objectives, for which provisions are made in this
constitution, control the national economy in such manner as to be
secure the maximum welfare, freedom and happens of energy
citizen on the basis of social justice and equity of status and
opportunity. Without prejudice to its right to operate or participate
in areas of the economy, other than the major sectors of the
economy.
According to sub-section 4 of section 16, the major section includes
activities directly concerned with the production, distribution and
exchange of wealth, or of goods and services. These major sectors
of the economy will be declared from time to time by a resolution of
each house of the National Assembly to be managed and operated
exclusively by the government of the federation.
Without prejudices to its right to operate or participate in areas of
the economy, to manage and operate the major section of the
economy.
Moreover, according to section 16 (3); a body shall be set up by an
act of the National Assembly which shall have power to review from
time to time the ownership and control of business enterprise
operating in Nigeria and make recommendation it some and to
administer any law for the regulation of the ownership and control
of such enterprise.
Therefore, it is clear that the role of government is to protect and
represent the interest of the society and the citizenry in which
business operates. It can be further said that government through
regulations protects consumers from abuse, they ensure efficiency
in the use of resources and promote equitable distribution of
income.
Government policies are the most dynamic of all government
influence on business in Nigeria. This is due to instability in
Government of Nigeria and has contributed to massive change in
policies affecting the operation of business.
These policies may include monetary or fiscal policies. Fiscal
policies which is a macro-economic tool that involves the use of
government spending and taxes (T) in guiding the nation’s economy
to achieve pre-determined economic good. Monetary policy on the
other hand is the regulation of money and the terms and availability
of credit. Government can regulation of business activities.
Conclusively, government can use other means such as import
duties and tariffs to regulates business in Nigeria, in order to
protect domestic industries and producers against foreign
competition.
1.2
STATEMENT OF PROBLEMS
The influence of government on business can take so many forms.
The study aims to look at the regulation or government regulation
towards Nigeria Breweries Plc Enugu and also suggest how to
increase the company’s efficiency through the regulation.
Government has realized that political independence without
economic independence is meaningless.
The research on government regulation with particular reference to
Nigeria Breweries Plc Enugu has raised some questions among
experts and professionals, which this study has attempted to
address. These include;
a.
Can government regulation in organization be minimized
and for untimely eliminated?
b.
Can organization exist without regulation?
c.
Is regulation beneficial or detrimental to organizational
goal?
d.
How can organization efficiency be increased by
regulation?
1.3
OBJECTIVES OF THE STUDY
The aim of emery firm such as Nigeria Breweries Plc is to be
efficient in the discharge of its service. It is through effective and
efficient regulation that organizational misconduct can be avoided.
The overall objective of these measures will be to ensure the
profitability of the organization. This is addition to the above stated
measure; the researcher wants to achieve through the study the
following objectives.
1.
To find out whether regulation exist in Nigerian Breweries
Plc Enugu
2.
To examine and assess various regulation traceable in the
company.
3.
To identifying whether a specific method of regulation
actually exist in Nigerian Breweries Plc Enugu.
4.
To identify problems if any encountered in regulating in
the organization.
5.
To find out the consequences of regulation in the Nigerian
Breweries Plc Enugu (activities).
6.
To recommend ways organizational efficiency can be
increased through regulation.
1.4
RESEARCH QUESTION
1.
What is really the reason why government regulation will
neglect by firms (company)?
2.
Why is it that companies at time refuse to give assistance
to government when they needed it.
HYPOTHESIS FORMULATION
Based on the study as had been discussed above, the following
hypotheses have been formulated;
Ho: Some government regulatory measures in business have not
adversely affected the growth and structure of Nigerian Breweries
Enugu.
H1: Some government regulatory measures in business have
adversely affected the growth and structure of Nigerian Breweries
Enugu.
H0: Because government does not always seek the opinion of
public in matters pertaining to business, its regulatory policies have
not been very effective.
H1: Because government always seek the opinion of public in
matters that concerns business, its regulatory measure have been
effective.
H0: Nigerian Breweries Plc may not be forced to sub-optimize
research due to increasing government regulatory measure.
H1: Nigerian Breweries Plc may be forced to sub-optimize research
due to increasing government regulatory measure.
1.5
SIGNIFICANCE OF THE STUDY
Business had been criticized seriously due to discriminatory rates
and policies. The economic power had been in the hands of all kind
of processing and manufacturing industries through trusts and
corporate merger. Meanwhile, due to this government in order to
rescue the economy has come up with so many regulatory
measures which are beneficial to the following people;
a.
Employers
b.
Employees
c.
Consumers etc.
In fact it is because of these, it becomes necessary to study the
effect of government regulation on the management of Nigerian
Breweries Plc Enugu.
1.6
SCOPE OF THE STUDY
The study of this topic the Effects Of Government Regulation On
Business is suppose to include many kinds of business sector both
private and public sector. In order to manage the topic and
carryout the study effectively and effectively the researcher deemed
it fit to restrict the topic to the effects of government regulation on
business and it affects Nigerian Breweries Plc Enugu.
Although, reference will be made on a general basis because of the
diverse native of business.
1.7
DEFINITION OF TERMS
The following terms or words used in this study will be defined:
Business: This simply means an economic activity undertaken to
produce goods and or services.
Mixed Economy:
It is a system of economy in which both
private individuals and government jointly run the economic
activities of the country.
Fiscal Policy:
It is a tool or measure which the government used
in regulating the economy through taxes and government spending.
Monetary Politic:
This is another measure used by the
government in order to control the supply of money and the terms
and availability of credit in the nation.
Government:
It is an agency designed to administer the affairs
of a state or nation.
Regulation:
This is the system which government in
controlling the economic activities of the nation.
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Sep
14
BANK CREDIT AND PRIVATE SECTOR
INVESTMENT IN NIGERIA: 1980-2007
ATTENTION:
BEFORE YOU READ THE PROJECT WORK, PLEASE READ THE
INFORMATION BELOW. THANK YOU!
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08068231953, 08168759420
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BANK CREDIT AND PRIVATE
SECTOR INVESTMENT IN
NIGERIA: 1980-2007
ABSTRACT
This study have been able to analyze the effects that bank credit
make on private sector investments in Nigeria. On research
question one which borders on volume of businesses/transactions
in the Private Sector, the study shows that Private investors expand
their businesses through bank facilities. This could be achieved
through expansion of space/office, purchase of large wears/stock
and involvement in large scale operations. Table 4.2 shows that
40(62%) of the respondents agree that bank credit actually increase
the volume of businesses of Private investors. Similarly, it was
ascertained that operational efficiency can be achieved in the
Private sector through acquisition of modern equipment,
optimization of facilities and involvement in research and
development. Table 4.3 shows that majority of the respondents
(42%) maintain that to a great extent, bank credit leads to increase
in operational efficiency in the private sector. Finally, on research
question three which borders on increase in total number of private
investments, it was found that growth in number of Private
Investments can be achieved through Bank Credit. Table 4.4 shows
that 42 (65%) of respondents share the opinion that Bank Credit
relates positively with private sector investment in Nigeria. Based on
the conclusions reached, the researcher recommends: the Central
Bank should device a means of compelling, Banks to channel credit
facilities to the private investors on soft terms, the regulatory
agencies of the private sector should do well to sensitize investors
on the benefits of credit facilities in business growth, the
government and Central Bank should encourage the rural banking
scheme as to provide credit facilities to rural investors. Based on
the findings mad, the research conclude that: there is a significant
relationship between Bank Credit and volume of
transactions/businesses of Private Investors in Nigeria, there is a
significant relationship between bank credit and operational
efficiency in Private investment in Nigeria, there is significant
relationship between bank credit and increase in total number of
Private investment in Nigeria.
TABLE OF CONTENTS
Title page
Declaration
Certification
Dedication
Acknowledgment
Table of contents
List of tables
List of figures
Abstract
i
ii
iii
iv
v
vi
vii
viii
x
Chapter One: INTRODUCTION
1.1 Background of the study
1
1.2 Statement of the problem
2
1.3 Objective of the study
3
1.4 Research Questions
4
1.5 Research Hypothesis
4
1.6 Significance of the study
5
1.7 Scope and Limitation of the study
5
1.8 Definition of the Terms`
6
References
7
CHAPTER TWO: LITERATURE REVIEW
2.1 Introduction
8
2.2 Origin and Objectives of Credit in Banks
8
2.3 Bank credit in Nigeria, types interest and control
10
2.4 Factors affecting bank credit in Nigeria
13
2.5 Central bank of Nigeria (CBN) credit police guidelines 15
2.6 Management of credit administration and policy
19
2.7 Review of credit policies in Nigeria (1980-2006)
21
2.8 Challenges and prospects of private sector
investment in Nigeria
32
2.9 Credit delivery channels in Nigeria
35
2.10 Factor acting as barriers and limitations
to credit delivery
39
2.11 Investment
40
References
42
CHAPTER THREE METHOD OF STUDY
3.1 Introduction
44
3.2
3.3
3.4
3.5
3.6
3.7
Research design
Population of the study
Sample and sampling procedure
Data collection method
Questionnaire design
Data analysis technique
Reference
44
44
45
45
45
46
47
CHAPTER FOUR: PRESENTATION AND ANALYSIS OF DATA
4.1 Introduction
48
4.2 Presentation of data
48
4.3 Testing of hypothesis
51
4.4 Discussion of finding
55
Reference
57
CHAPTER FIVE: DISCUSSION, CONCLUSION AND
RECOMMENDATIONS
5.1 Introduction
5.2 Discussion of findings
5.3 Recommendations
5.4 Conclusion
5.5 Suggestion for further studies
Bibliography
Questionnaire
58
58
59
60
60
61
62
LISTS OF TABLES
Table 4.1: Response rate of questionnaire
Table 4.2: Respondents view on bank credit and
increase in volume of businesses in private sector
Table 4.3: Response from bank credit customers
Table 4.4: Response from private sector
Table 4.5: Test data table for hypothesis I
Table 4.6: X2 Computation for hypothesis I
Table 4.7: Test data table for hypothesis
Table 4.8: X2 Computation for hypothesis II
Table 4.9: Test data table for hypothesis III
Table 4.10: X2 Computation for hypothesis III
48
49
49
50
51
52
53
53
54
54
LIST OF FIGURE
Fig:2.1
Growth in total credit and credit to private sector
Fig:2.2
Banking sector lending rate (prime) 1980-2006
27
28
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
The flexibility, adaptability and regenerative tendencies of the
private sector to propel economic development have made the sector
a pivotal focus for government industrial development efforts.
The sector is seen as the bedrock of industrialization based on
its expected impact and potential contribution towards a diversified
production base. Its accelerative effect in achieving macro-objectives
such as full employment, income distribution, development, of
local technology as well as diffusion of management skills
stimulation of indigenous entrepreneurship have been well
documented in economic development literature.
Presently, the Nigerian government, like other counterparts,
world over is placing much emphasis on the growth of private
sector. There is, presently, a renewed effort to encourage private
participation in economic activities. It is a foregone conclusion that
private investors are the bedrock of national economic development.
At least they retain a competitive advantage over public sector by
dispersed local market.
In recognition of the many benefit of private sector investment
to national development, the Nigerian government had put to place
a good number of policies aimed at encouraging the sector. The
concept of private sector investments, their roles, characteristics
and operational dynamics are not focus of this study. The research
however, concentrates on examining the impacts of bank credit on
the performance of the sector within the period 1980-2007. In the
past, several scholars (Nwabueze, 1990; Partker, 1994; Harty and
Partker 1991) have conducted studies in the area of Private Sector.
These studies, however, concentrated on justifying the need for
government support and commitment to the sector. Little or
nothing have been done in the area of the place of bank credit in
the sectors operations. These have left a serious vacuum in the
literature of financial and economic studies. It is this identified gap
in literature that this study seeks to cover.
1.2 STATEMENT OF THE PROBLEM
It is undisputable that the government has no moral right to
go into serious business because it lacks the necessary rudiments
to run such business. The government stated in 1996 budget that
the public sector would be seen as the provider of an enabling
environment for the Private Sector to meaningfully contribute to the
overall growth of the economy (Awujo 1996). Such categorical
statement entails that total support and encouragement should,
naturally, be accorded to the sector.
It is noteworthy however that majority of the investment in the
Private Sector are in the area of small and medium scale enterprises
(SMEs). This sub-sector, no doubt, has been beclouded by Myriads
of problems over the years in the country. Though the government
had in the past established a number of specialized credit financial
institution, in addition to the use of credit guidelines by the Central
Bank, the private sector still suffer lack of credit. This is because
most banks prefer to be penalized given the uneconomic nature of
most businesses.
Similarly, the private sector can only make the desired impact
in an economy if there are sustainable development in the areas of
volume of transactions/businesses, operational efficiency and
increase in number of investors. These indices can only be attained
when the financial sector of this economy provide the desired credit
facilities. Where the desired financial support is lacking, the
operators in the private sector can only operate below optimum
level.
The resultant effect is stagnation in the economy and the public
sector do of have the “Muscle to shoulder the load alone. This study
therefore, looks at Bank Credit vis a vis Private Sector Investment
within the period 1980-2007.
1.3 OBJECTIVES OF THE STUDY
This study is designed to exam how bank credit affect Private
Sector investment in Nigeria. The specific objectives therefore are to:
1. Examine if Bank Credit influence the volume of
transactions/businesses of private Investors in Nigeria.
2. Determine whether Bank Credit leads to operational efficiency
among Private Investors in Nigeria.
3. Ascertain whether Bank Credit gives rise to increase in total
number of private Investments in Nigeria.
1.4 RESEARCH QUESTIONS
This study is guided by the following questions:
1.
2.
3.
To what extent has Bank Credit influenced the volume of
transactions/businesses of Private Sector Investors in Nigeria?
To what extent has Bank Credit led to operational efficiency in
Private Sector Investments in Nigeria?
To what extent has Bank Credit given rise to increased in total
number of Private Investments in Nigeria?
1.5 RESEARCH HYPOTHESES
This study is conducted under the following assumptions:
H01: There is no significant relationship between Bank Credit and
volume of transactions/businesses of Private Investors in
Nigeria.
H02: There is no significant relationship between Bank Credit and
operational efficiency in Private Investments in Nigeria
between Bank Credit and increase in total number of private
Investments in Nigeria.
H03: There is no significant relationship between Bank Credit and
increase in total number of private investments in Nigeria.
1.6 SIGNIFICANT OF THE STUDY
The result of this study will be of immense benefit to
existing and prospective Private Investors in the economy. They will
realize the advantages derivable from bank credit. They will also
realize the mechanism of bank lending with a view to making
optimum use of facilities available. Similarly, the banking sector will
also benefit from the result of this study. They will realize how the
sector can help also find this study as an invaluable material.
Finally, this study will add to the existing bulk of knowledge
on bank credit and private sector investment. It will form the basis
for further studies in this direction.
1.7 SCOPE AND LIMITATION OF THE STUDY
In a study of this magnitude so many variable come to
play. However, the researcher concentrated on volume of
businesses, operational efficiency and increase in total number of
Private Sector Investments. The research questions and hypotheses
focus on this direction.
The geographical scope of this study is Port Harcourt
metropolis. This is because the city has a good concentration of
Private Investors who are in a better position to supply the relevant
data.
Proximity to the researchers base is another factor considered
in the choice Port Harcourt. The associated constraints of this study
include lack of literature materials insufficient fund and short time
period required to complete the study.
1.8 DEFINITION OF TERMS
The following are contextual meaning of key terms used for this.
Advances: Short-term accommodation by a bank for a specific
purpose with the repayment source know at the time of the
advance.
Bank Credit: Short-term loan given by a bank to its customers .
Private Sector: Investments economic embark upon by private
individuals in an economy.
Overdrafts: Credit facility offered by a bank to its current account
customer which allows such customers to overdraw his current
account either on the strength of financial instrument, or simply
more than the credit balance.
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Posted 14th September 2015 by DANIEL CHUKWUDI
Labels: BANK CREDIT AND PRIVATE SECTOR INVESTMENT IN NIGERIA: 1980-2007
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Sep
14
ANALYSIS OF NATIONAL INCOME AND POWER
GENERATION IN NIGERIA
ATTENTION:
BEFORE YOU READ THE PROJECT WORK, PLEASE READ THE
INFORMATION BELOW. THANK YOU!
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ANALYSIS OF NATIONAL INCOME
AND POWER GENERATION IN
NIGERIA
ABSTRACT
Electricity Consumption goes hand in hand with industrial
production and increase in per capital income of any nation’s
economy.
It is noted in Nigeria that effort has been made by various
government to boost the supply of electricity to suit the fast
breeding population but the supply of electricity is not
proportionate to the demand of it. Therefore this research is
conducted to examine the level of national income and power
generation in Nigeria from 1970 to 2007 under review. The ordinary
least square (OLS) regression method was employed to estimate our
model. Thus, the national income was used as our dependent
variables, while power generation was used as the independent
variable. Hence, the study found as positive and highly significant
relationship between power generation and national income. Thus,
the study concludes that power generation plays a vital role in
determining the level of national income of Nigeria. Therefore, the
study recommends that policies aimed at increasing a stable and
efficient amount of electrical power should be vigorously pursued.
TABLE OF CONTENTS
Title page
Certification
Dedication
Acknowledgment
Abstract
Table of contents
i
ii
iii
iv
v
vi
CHAPTER ONE: INTRODUCTION
1.1 Background of study
1.2 Statement of problem
1.3 Objectives of study
1.4 Research hypothesis
1.5 Scope of the study
1.6 Significance of the study
1.7 Limitation of the study
1.8 Organization of the study
1.9 Definition of terms
1
7
10
10
11
11
12
12
13
CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL
FRAMEWORK
2.0 Introduction
16
2.1 Rostow stages of economic growth
18
2.2 The great spurt theory
19
2.3 Critical minimum effort thesis
20
2.4 The big-push theory
21
2.5 Theory of balance growth
23
2.6 The concept of unbalance growth
24
2.7 Harold and Domar Model of economic growth
26
2.8 The concept capital formation in economic
development
28
2.9 Keynesian analysis of fiscal policy
29
2.10 The concept of deficit financing
30
2.11 The role of the state in economic development
32
2.12 Empirical literature review
33
2.13.1 Sources of electricity
48
2.14 State of electricity in Nigeria
53
CHAPTE THREE: METHOD OF STUDY
3.0
3.1
3.2
3.3
3.4
3.5
Introduction
Research design
Sources of data
Model specification and analysis
Estimation procedure
Evaluation technique
58
58
58
58
60
61
CHAPTER FOUR
NATIONAL INCOME AND POWER GENERATION IN NIGERIA
4.1 Introduction
62
4.2 Data presentation and analysis
62
4.3 Empirical regression result
64
4.4 Analysis of regression result
64
4.5 Policy implications
68
CHAPTER FIVE
SUMMARY, RECOMMENDATIONS AND CONCLUSION
5.1 Summary of major findings
5.2 Conclusion
5.3 Recommendations
References
Appendix
70
71
72
73
78
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Power generation which is also known as electricity supply is
most often generated at a power station by electro-mechanical
generators that are primarily generated by heat engines or fueled by
chemical combustion or unclear fission and also by other means
such as kinetic energy of flowing water and wind. There are many
other power generating technologies that are used to generate
electrical energy such as solar, biomass, thermoelectric devices,
wind vain and various others. In an economy like United State, 50%
of her power generations is produced from coal while Nigeria
basically generates her power from hydroelectric energy and gas
turbines, in fact about 90% of gas produced currently are used in
generating electricity.
Power generation is an important propeller to national income
growth. In this sense, power generation refers to the process of
converting non electrical energy to electricity, particularly for the
production of goods and services and the expansion of the living
standard of the people. Electricity is a major determinant of
national income growth which implies that an increase in gross
national income is a function of an increasing power generations
(Moro 1995: 59). There is a strong and persistent relationship
between electricity used and gross nation product. Basically power
generation affect the level of national income by increasing
productivity, employment level, consumption level, urban
socialization, and to an extent prices and other economic activities,
hence, economic growth and national development (Douglas, 2006:
101).
Sustainable power generation has become a strong area of
focus to increasing national income in Nigeria. This includes
managing the demand and supply of power since national income
growth and the performance of the economy are embedded in the
amount of electricity a nation can produce. The demand or
consumption of electricity has increased over the past four decades.
Its consumers could be grouped into three areas; the industrial
consumers the commercial consumers and domestic consumers.
Electricity influences performers in utilities, manufacturing,
wholesale and retail trade, mining and constructions, warehousing,
information and transportations, finance and insurance, leasing,
Real estates and rentals, professions, Scientific and technical
services, management of companies and enterprises, supports,
waste management Remediation service, Education services, Helath
care and social assistance, art, Entertainment and Recreation,
Accommodation and food Services and many other areas except
primary production areas of agriculture, forestry, fishing and
hunting. As economic activities grow, electricity generation and
consumption are expected to continue to increase (Douglas, 2006).
Due to the positive relationships between electricity and gross
national output or product, it is expected that close attention be
paid to the adequacy of electricity supply to sustain a high future
rate of economic growth. The adequacy of electricity supplies can be
maintained not only through new generation facilities but also
through efficient improvements that uses existing generating
capacity better (Bart, 2008:2).
Sustainable electricity supply is indeed the greatest challenge
of Nigeria’s development. It has been noted that the cost of
providing independent power (through generators) constitutes an
average of 30% or more of the total cost of production in Nigeria.
Considering the situation on how Nigeria fits-in electricity
availability calculation in comparison to other parts of the world. In
Africa, the total installed capacity of electricity on the continent is
103,000megwatts (MW). This represents less than 5% of the world’s
installed capacity in spite of Africa being the second largest
continent in the world with a population that is close to 20% of the
world’s population. Even more remarkable is that, much of this
electricity is in South Africa and North Africa; therefore the subSaharan Africa is left in darkness at night with extremely poor
electricity availability and even poorer accessibility by the rural and
urban poor. The United States with a population of 300 million has
over 900,000 MW. The United Kingdom with a population of 60
million has installed capacity of 77,000MW. Brazil with a
population of 180 million has installed capacity of 90,000MW.
Germany with a population of 83 million has installed capacity of
115,000MW. Thailand which has a population of 70 million has
installed capacity of over 40,000 MW even thought it was at the
same generation capacity as Nigeria in early 60s. (Bart 2008:3).
Many other countries who were at relatively the same level as
Nigeria in the 1960s and early 70s have found themselves at 10
times more than Nigerian installed capacity today. In Africa, South
Africa with a population of 45 million people has installed capacity
of over 46,000 MW. Even Ghana with a population of 21 million has
installed capacity of 1800MW. But Nigeria with a population of 150
million can only boast of installed capacity of 4,000MW. This is an
extra ordinary poor and embarrassing figure. More startling gap
would be seen if we find the per capital power capital measured in
watts/persons. For the U.S.A. it is about 2900 watts/persons.
South Africa is 105 watts/person; Brazil is 480; India is 110; even
Ghana is 85 watts/persons. But Nigeria is 29 watts/person, not
even enough to light a bulb how much more to power an industrial
machine (Bart, 2008). How then will the country’s gross national
income be improved when no light means on life.
Adequate power supply will courage industrialization, it is
clear then that all the country’s noted above are either
industrialized or emerging industrialized nations, largely because
their electricity production has kept pace with their economic
growth needs.
Electricity consumption goes hand in hand with industrial
production and increase in per capital income. In general, the
greater the level of electricity consumption, the higher the gross
national product thus the correlation between these two point to a
basic conflict between societies. Conuntries that can afford to
consume great amount of electrical energy continue to expand and
increase their living standard whiles those without greater access to
electricity energy declines in national output, this create a gap
between their economic prospects. Bell-Gam, Arokoyu and
Umeuduji (2004:84) stated that power generations still stand-out as
a principal driver of development mark by corresponding growth in
national income (Y).
The trend of electricity struggles in Nigeria was 335.9
megawatt per hour (MWh) in 1981; it increase respectively to 898.5
MWh in 1990. Then, 1,017.3 MWh in 2000 and 1,873.1 MWh in
2006. Currently, it is said to be between 4,000 and 4,200 MW with
the population of about 150 Million people (CBN, 2006).
Policies have also been formulated in Nigeria in order to
increase power generation. One of such is the National Economic
Empowerment and Development strategy (NEEDS) which proposed
to increase electricity generation from 4,000 MW to 10,000 MW as
at 2010 by exploring alternative energy sources such as coal, solar,
power wind power, and hydropower and also to include power
sector in participation. However this policy when effectively
implemented may increase the percentage contribution of
hydroelectricity supply, will extend electricity to rural areas and
encourage private investment in the power sector hence increase in
national income of Nigeria.
Finally, this study is an empirical analysis of National Income
and Power generation in Nigeria, it cover the period from 19702007.
1.2 STATEMENT OF THE PROBLEM
Despite Nigeria’s endowment in National resources; Renewable
and non-renewable such as sun, wind running waters, waves, tide,
geothermal energy, fossil fuel, nuclear fuel and variety of nonfuel
mineral both metallic and non-metallic.
There are present shortfalls in power generation and suppy as
compared to United State, China, Japan, Russia and even SouthAfrica, which generates a higher quantity and quality electricity
using some of the mentioned sources.
Over decades Nigeria has been contending adversely with poor
electricity generating capabilities. The real GDP of a country are the
people’s economic activities. In the world today, the economic
performances of any country are calculated in GDP and are
basically influence by electricity. Electricity worldwide is the
bedrock of every nations economic growth and development, it
influences production activities, employment and prices of goods
and services. Therefore absent of this vital variable, productions will
be delayed, investment may be discourage, structural
transformation may be perturbed and economic resources not
fully employed, which will further lead to closure of many business
and stunt the desired growth rate of a nations.
The country inability of harness her bountiful energy
resources into power production weakness her technological
capabilities. It is technology capability that distinguishes a strong
economy from a weak economy and strong country from a weak
country Kalu (2001:63). This then means that the supply of
electricity in excess can stimulate advancement in technological
industrialization and alleviate technical reliance to a great extent.
Electricity incorporates, reflects and perpetuates the value of
developing industries tending towards an increase in National
income.
Due to the inconsistencies post by the Nation’s electricity
supply to business and comfort, many people have resorted to
having “small” generators which produces tremendous decibels of
noise as well as the highly toxic carbon monoxide and other
dangerous gasses, this is call pollutions. Of recent people
experiences all manner of ailments and death arousing from over
exposures and debilitating effect cause by these dangerous gasses
exert by the “small generators”. On the road, we are constantly
fighting with tanker trucks hauling fuel product to various
destination in our nation. How about issues of corruption militating
against the progress of this sector. These and various others are
considered as negative externalities to national economic
development.
1.3 OBJECTIVES OF THE STUDY
The main objective of this study is an econometric analysis of
national income and power generation in Nigeria. To this end
specially, it aims;
i.
To analyze the relationship between electricity generation and
national income in Nigeria.
ii.
To determine whether power generation is significant to
national income.
iii. To review the sources of power generation in Nigeria.
1.4 RESEARCH HYPOTHESIS
This study shall verify the following hypothesis, which are
stated in the null and alternative forms as:
H0: There is no relationship between power generation and
national output in Nigeria.
H1: There is a relationship between power generation and national
output in Nigeria.
1.5 SCOPE OF THE STUDY
The study shall cover the period from 1970-2007. Its analysis
however, will be centered on the national income and power
generation in Nigeria although the experience of other economies
would be sighted.
1.6 SIGNIFICANCE OF THE STUDY
The study benefits the ministry of power and steel in Nigeria,
policy makers, and the power holding company of Nigeria (PHCN),
investors, scientist, and the Nigeria coal corporation, the national
Biotechnology agencies, the Government, private sector, researchers
and other developing economies. This is due to its utilization of the
modern econometric research method in its analysis, including the
latest econometric view software (E-view 3.1) to analyze its liner
multiple regression model. It shall also include other variable such
as investment as a check variable for national income in the model.
Finally, this work has covered the vacuum of previous researchers
who lacks the econometric facilities in their analysis and who
centered their analyses on developed economies.
1.7 LIMITATION OF THE STUDY
The limitations faced in this study were basically the absence of
economic theories on power generation, and the technically of the
study including limited literatures on developing economies.
1.8 ORGANIZATION OF THE STUDY
This study shall be comprised of five chapters. Chapter one is
the introduction which statement of problem, objectives of the
study, hypothesis, scope, significance, limitations, organization of
the study and the definition of terms. Chapter two shall cover the
literature review and theoretical framework. Chapter three is the
method of study, which shall include the sources of data, model,
variables and the analytical frame work. Chapter four shall be the
data presentation and analysis, which shall include the discussion
of our findings. Chapter five shall be the summary,
recommendations and conclusion of the study.
1.9 DEFINITION OF TERMS
This section shall define the following non-economic terms below to
and the understanding of the study.
i.
Kilowatt (KW): Refers to the unit for the retail price of
electricity. It is measured in hours.
ii.
Megawatt (MW): A unit of power generating capacity. It
represents an instantaneous. Power flow and should not be
confused with units of produced energy (i.e. MWh, or megawatthours).
iii. Megawatt-thermal (MWth): A unit of heat-supply capacity used
to measure the potential output from a heating plant, such as light
supply a building or a neighborhood. More recently, it is used to
measure the capacity of solar hot water or heating installations.
iv. Micro-generation: Micro-generation systems typically range in
size from a few kilowatts (KW) to 500KW. Simply, they are small
generators installed close to the point of use, either in a small
business or for household use.
v.
Renewable Energy: Refers to the use of energy from a source
that does not result in the depletion of the earth’s resources,
whether this is from a central or local source.
vi. Hydropower: Simply means electricity from water flowing
downhill, typically from behind a dam.
vii. Solar System: A battery and charge controller that can provide
modest amount of power to homes not connected to the electric
grid. Typically, it provides and evening’s lighting, using efficient
lights and TV viewing from one day’s battery charging.
viii. Photovoltaic (PV): Isa a device that converts sunlight into
electricity.
ix. Nuclear, Fission: Is the splitting of the nucleus if an atom to
produce a large amount of heat energy or cause a large explosion.
x.
Turboelectric effect unit lighting:
xi. Solar energy: Energy that radiate from the sun.
xii. Thermoelectric devices: A device use in measuring the
percentage output of heat from a generating appliance.
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Posted 14th September 2015 by DANIEL CHUKWUDI
Labels: ANALYSIS OF NATIONAL INCOME AND POWER GENERATION IN NIGERIA
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Sep
14
AN EVALUATION OF THE OKOWA’S URBAN
BIAS THESIS IN IHIALA L.G.A OF ANAMBRA
STATE
ATTENTION:
BEFORE YOU READ THE PROJECT WORK, PLEASE READ THE
INFORMATION BELOW. THANK YOU!
TO GET THE FULL PROJECT FOR THE TOPIC BELOW PLEASE CALL:
08068231953, 08168759420
TO GET MORE PROJECT TOPICS IN YOUR DEPARTMENT, PLEASE
VISIT:
www.easyprojectmaterials.com
www.easyprojectsolutions.com
www.worldofnolimit.com
AN EVALUATION OF THE OKOWA’S
URBAN BIAS THESIS IN IHIALA
L.G.A OF ANAMBRA STATE
ABSTRACT
This research work focuses on the evaluation of the Okowa’s urban
bias thesis in Ihiala local Government Area of Anambra State. The
objective that guided this research work was to review the Okowa’s
urban bias thesis and then determine how public policy
implementation affects in Ihiala Local Government Area. Based on
the above objectives, a hypothesis was formulated and we used
questionnaires to collect the data from primary source. These sets
of questionnaires were drawn from three categories of respondentsfarmers, students, traders, civil servants, are classified by three
selected sectors namely, Agriculture, education and health, as
regards the composite six towns in Ihiala. The Chi-square was used
in testing the hypothesis, while frequency tables and simple
percentages were used in the data analysis and presentations.
However, we found that public sector expenditure, particularly on
Agriculture, education and health is highly urban biased in Ihiala.
This finding conforms with the Okowa’s thesis on urban bias in
Nigeria Development, which therefore suggests the inequitable
distribution of potential development programmes in both the
urban and rural sectors in Nigeria. The government should adopt
some of the potential development policies and programmes to be
effective in reaching out to the rural towns and communities.
Human resources development should be equitably extended to
both the rural and urban sector.
TABLE OF CONTENT
COVER PAGE
Title page
Certification
Dedication
Acknowledgment
Abstract
Table of content
i
ii
iii
iv
v
vi
CHAPTER ONE: INTRODUCTION
1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Research questions
1.5 Research hypothesis
1.6 Significance of the study
1.7 Scope and limitation of the study
1.8 Organization of the study
1
3
4
4
4
5
5
6
CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL
FRAME-WORK
Literature Review
7
2.
Theoretical framework
16
2.1 Harris and Todaro model
17
2.2 Jorgenson’s Neo-Classical Theory
18
2.3 Fei-Rains theory
19
2.2.4 Lewis theory of development
20
2.2.5 Development and urban bias in Ihiala
22
2.2.6 The Keynesian economic theory
23
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
3.1 Research design
24
3.2 Population of the study
24
3.3 Sampling technique
24
3.4 Sample size determination
25
3.5 Data collection instruments and procedure
26
3.6 Method of data analysis
27
CHAPTER FOUR:
4.1 Introduction
DATA PRESENTATION AND ANALYSIS
29
4.2
4.3
4.4
4.5
4.6
Allocation of questionnaires and rate of returns
Analysis of respondents
Analysis of relevant questions
Test of hypothesis
Discussion of results
29
30
31
32
35
CHAPTER FIVE: SUMMARY, RECOMMENDATIONS AND
CONCLUSION
5.1 Summary
37
5.2 Recommendations
38
5.3 Conclusion
39
Appendices
41
References
44
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Urban bias may be referred to a situation of the development
process, whereby the urban sector benefits relatively more in the
rural-urban distribution of public sector expenditure in an
economy, during a particular period of time. Thus, the provision of
social and physical infrastructure through public investment and
expenditure on some goods and services can directly improve
productivity and development in both the urban and rural sector
through a more efficient and equitable allocation of resources.
However, a developing region maybe classified into two; urban
sector and the rural sector. The urban sector is the region that is
defined by town or cities; it is classified as the industrial or modern
areas, whereas, the rural sector is an area that is defined by
communities, it is largely dominated by traditional agricultural
activities. Some developmental economists of the structuralist
school posit that some categories of government expenditure on the
urban sector are necessary to overcome constraints of economic
growth.
Hence, the responsibility of the government in any economic
system irrespective of the political arrangement is to initiate policies
towards the achieving of four basic micro-economic goals which are
price stability, the government regulates the distribution of public
goods and services in stimulating the productive capacity of the
economy.
Over the years, Nigeria has made conscious and determined
effort to attain a high level of social and economic transformation of
the economy. So far, the Nigeria economy has had four (4) national
development plans in which varying emphasis were made on the
achievement of the development goals and objectives, several policy
tools were adopted including monetary policy, fiscal policy,
exchange control measures, changed from time to time to reflect the
changing economic environment and circumstances.
Okowa’s (1991) urban bias thesis stated that a Development
policy should include;
i.
Enhanced economic growth
ii.
Reduction over time of economic dependency
iii. Reduction over time of economic inequality
iv.
v.
Reduction over time of unemployment
Maintenance of stable price (inflation)
We can therefore identify urban bias with respect of any one of
the mentioned development aim. If economic growth could have
been enhanced by a distribution of public sector resources that
allocated more to the urban sector than to the rural sector, then we
say that the given rural-urban perspective is such as to generate
greater rural-urban economic dependence than would have been
the case. Thus, inequality bias is a situation whereby distribution of
income has a relative greater benefit in the sector, in this light, the
ratio of unemployment and inflation between the rural and urban
sector is used as a measure for inequality bias.
In this line, many development scientists have stated that the
rationale for balanced and equitable development to take place in
any economy, certain efforts should be made to develop the rural
and urban sector simultaneously. In this thesis, Professor Okowa
(1991) held the view that development effort in Nigeria has been
urban biased, although severe measures have been taken by the
Nigeria government to develop the rural areas.
However, our concern in this study is to evaluate the Okowa’s
urban bias thesis in Ihiala local government area of Anambra State
this study cannot cover the entire country, the researcher focuses
on his local government area of origin.
1.2 STATEMENT OF PROBLEM
Prof Okowa’s thesis was published in 1991, about 18 years
now and on other research to the best of my knowledge has been
carried out to affirm or dispute his urban bias thesis. There is
urgent need to do this, in order to see if there are policy changes to
develop the rural areas. Again, we also need to study the rural
areas to find out empirically, how the policy changes (if there is)
have affected the rural areas. We do not have ready evident to show
that such research are carried out especially in the researcher’s
Local Government Area-Ihiala Local Government Area of Anambra
State.
This research is intended to bridge this observed gap. As at
when this research was carried out this findings could be said to be
correct in many respects. Therefore, it is in the light of the above
that this research is undertaken to evaluate the Okowa’s urban bias
thesis in Ihiala Local Government Area of Anambra State.
1.3 OBJECTIVES OF THE STUDY
The activities of this research project include:
i.
To review the Okowa’s urban bias Thesis and the various
development theories.
ii.
To determine whether government policies are urban bias
iii. To find out how the policies are implemented in Ihiala Local
Government Area.
1.4 RESEARCH QUESTIONS
Some of the questions the study will attempt to proffer
answers to include the following;
a.
What are the urban development strategies employed by the
government in developing Ihiala Local Government Area?
b.
To what extent are these government strategies employed to
cause urban bias?
c.
How do these government expenditure strategies compared in
there relative effectiveness in the rural and urban sector?
d.
Does public sector expenditure in the rural and urban areas
complement each other synergistically?
e.
What are the implications of urban bias?
1.5 RESEARCH HYPOTHESIS
The hypothesis have been put forward for testing
H0: Public sector expenditure in Ihiala Local Government Area is
not urban bias
H1: Public sector expenditure in Ihiala Local Government Area is
urban bias.
1.6 SIGNIFICANCE OF THE STUDY
The significance of this study lies on the fact that our rural
communities to a large extent need to be developed. It is our belief
that this study will serve as an important reference to local
government for future development of rural area, based on
suggestions advanced therein. It will also serve as a reference point
to others who find time of reason alongside with us on the issue of
the rural development in Nigeria.
Based on the findings of the research project, the government
will be in a better position of either adding or dropping some public
sector expenditure programmes in the rural or urban sector in
Nigeria.
1.7 SCOPE AND LIMITATION OF THE STUDY
The scope of this study on the evaluation of the Okowa’s
urban bias thesis focuses in the Ihiala Local Government Area of
Anambra State in Nigeria.
Ihiala Local Government Area is made up of about six (6)
towns (Uburu, Mbosi, Iseke, Azia, Orsumaonyu and Lilu) with
various villages. The researcher may not go beyond the above scope.
However, there are two limiting factors that affected the
researcher’s progress in this work. One is that of inadequate funds
to carryout an elaborate research that concern Anambra State in
Rivers State. Whereas, the second factor is that of time constraint,
hence, the researcher was working within a time frame despite the
prolonged academic staff union of universities strike action.
1.8 ORGANIZATION OF THE STUDY
This study is organized into five interrelated chapters.
Chapter one introduces the background of the study, statement of
the problem, objectives, research questions, hypothesis,
significance, scope, limitations and the organization of the study.
Chapter two reviews related literature and theoretical frame of the
study.
The three is the research design and method of the study.
Chapter four presents and analyzes the data. Finally, chapter five
summarizes, recommends and concludes the study.
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www.easyprojectmaterial.com.ng
www.projectmaterial.com.ng
www.projectmaterials.com.ng
www.projectmaterials.com
www.myprojectmaterial.com.ng
www.myprojectmaterials.com
www.researchprojectmaterial.com
www.researchprojectmaterials.com
www.nairaproject.net
www.nairaprojects.net
www.nairaproject.biz
www.nairaprojects.biz
www.nairaproject.com.ng
www.nairaprojects.com.ng
www.nairaproject.edu
www.nairaprojects.edu
Posted 14th September 2015 by DANIEL CHUKWUDI
Labels: AN EVALUATION OF THE OKOWA’S URBAN BIAS THESIS IN IHIALA L.G.A OF ANAMBRA STATE
0
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Sep
14
AN EVALUATION OF THE OKOWA’S URBAN
BIAS THESIS IN IHIALA L.G.A OF ANAMBRA
STATE
ATTENTION:
BEFORE YOU READ THE PROJECT WORK, PLEASE READ THE
INFORMATION BELOW. THANK YOU!
TO GET THE FULL PROJECT FOR THE TOPIC BELOW PLEASE CALL:
08068231953, 08168759420
TO GET MORE PROJECT TOPICS IN YOUR DEPARTMENT, PLEASE
VISIT:
www.easyprojectmaterials.com
www.easyprojectsolutions.com
www.worldofnolimit.com
AN EVALUATION OF THE OKOWA’S
URBAN BIAS THESIS IN IHIALA
L.G.A OF ANAMBRA STATE
ABSTRACT
This research work focuses on the evaluation of the Okowa’s urban
bias thesis in Ihiala local Government Area of Anambra State. The
objective that guided this research work was to review the Okowa’s
urban bias thesis and then determine how public policy
implementation affects in Ihiala Local Government Area. Based on
the above objectives, a hypothesis was formulated and we used
questionnaires to collect the data from primary source. These sets
of questionnaires were drawn from three categories of respondentsfarmers, students, traders, civil servants, are classified by three
selected sectors namely, Agriculture, education and health, as
regards the composite six towns in Ihiala. The Chi-square was used
in testing the hypothesis, while frequency tables and simple
percentages were used in the data analysis and presentations.
However, we found that public sector expenditure, particularly on
Agriculture, education and health is highly urban biased in Ihiala.
This finding conforms with the Okowa’s thesis on urban bias in
Nigeria Development, which therefore suggests the inequitable
distribution of potential development programmes in both the
urban and rural sectors in Nigeria. The government should adopt
some of the potential development policies and programmes to be
effective in reaching out to the rural towns and communities.
Human resources development should be equitably extended to
both the rural and urban sector.
TABLE OF CONTENT
COVER PAGE
Title page
Certification
Dedication
Acknowledgment
Abstract
Table of content
i
ii
iii
iv
v
vi
CHAPTER ONE: INTRODUCTION
1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Research questions
1.5 Research hypothesis
1.6 Significance of the study
1.7 Scope and limitation of the study
1.8 Organization of the study
1
3
4
4
4
5
5
6
CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL
FRAME-WORK
Literature Review
7
2.
Theoretical framework
16
2.1 Harris and Todaro model
17
2.2 Jorgenson’s Neo-Classical Theory
18
2.3 Fei-Rains theory
19
2.2.4 Lewis theory of development
20
2.2.5 Development and urban bias in Ihiala
22
2.2.6 The Keynesian economic theory
23
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
3.1 Research design
24
3.2 Population of the study
24
3.3 Sampling technique
24
3.4 Sample size determination
25
3.5 Data collection instruments and procedure
26
3.6 Method of data analysis
27
CHAPTER FOUR:
4.1 Introduction
DATA PRESENTATION AND ANALYSIS
29
4.2
4.3
4.4
4.5
4.6
Allocation of questionnaires and rate of returns
Analysis of respondents
Analysis of relevant questions
Test of hypothesis
Discussion of results
29
30
31
32
35
CHAPTER FIVE: SUMMARY, RECOMMENDATIONS AND
CONCLUSION
5.1 Summary
37
5.2 Recommendations
38
5.3 Conclusion
39
Appendices
41
References
44
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Urban bias may be referred to a situation of the development
process, whereby the urban sector benefits relatively more in the
rural-urban distribution of public sector expenditure in an
economy, during a particular period of time. Thus, the provision of
social and physical infrastructure through public investment and
expenditure on some goods and services can directly improve
productivity and development in both the urban and rural sector
through a more efficient and equitable allocation of resources.
However, a developing region maybe classified into two; urban
sector and the rural sector. The urban sector is the region that is
defined by town or cities; it is classified as the industrial or modern
areas, whereas, the rural sector is an area that is defined by
communities, it is largely dominated by traditional agricultural
activities. Some developmental economists of the structuralist
school posit that some categories of government expenditure on the
urban sector are necessary to overcome constraints of economic
growth.
Hence, the responsibility of the government in any economic
system irrespective of the political arrangement is to initiate policies
towards the achieving of four basic micro-economic goals which are
price stability, the government regulates the distribution of public
goods and services in stimulating the productive capacity of the
economy.
Over the years, Nigeria has made conscious and determined
effort to attain a high level of social and economic transformation of
the economy. So far, the Nigeria economy has had four (4) national
development plans in which varying emphasis were made on the
achievement of the development goals and objectives, several policy
tools were adopted including monetary policy, fiscal policy,
exchange control measures, changed from time to time to reflect the
changing economic environment and circumstances.
Okowa’s (1991) urban bias thesis stated that a Development
policy should include;
i.
Enhanced economic growth
ii.
Reduction over time of economic dependency
iii. Reduction over time of economic inequality
iv.
v.
Reduction over time of unemployment
Maintenance of stable price (inflation)
We can therefore identify urban bias with respect of any one of
the mentioned development aim. If economic growth could have
been enhanced by a distribution of public sector resources that
allocated more to the urban sector than to the rural sector, then we
say that the given rural-urban perspective is such as to generate
greater rural-urban economic dependence than would have been
the case. Thus, inequality bias is a situation whereby distribution of
income has a relative greater benefit in the sector, in this light, the
ratio of unemployment and inflation between the rural and urban
sector is used as a measure for inequality bias.
In this line, many development scientists have stated that the
rationale for balanced and equitable development to take place in
any economy, certain efforts should be made to develop the rural
and urban sector simultaneously. In this thesis, Professor Okowa
(1991) held the view that development effort in Nigeria has been
urban biased, although severe measures have been taken by the
Nigeria government to develop the rural areas.
However, our concern in this study is to evaluate the Okowa’s
urban bias thesis in Ihiala local government area of Anambra State
this study cannot cover the entire country, the researcher focuses
on his local government area of origin.
1.2 STATEMENT OF PROBLEM
Prof Okowa’s thesis was published in 1991, about 18 years
now and on other research to the best of my knowledge has been
carried out to affirm or dispute his urban bias thesis. There is
urgent need to do this, in order to see if there are policy changes to
develop the rural areas. Again, we also need to study the rural
areas to find out empirically, how the policy changes (if there is)
have affected the rural areas. We do not have ready evident to show
that such research are carried out especially in the researcher’s
Local Government Area-Ihiala Local Government Area of Anambra
State.
This research is intended to bridge this observed gap. As at
when this research was carried out this findings could be said to be
correct in many respects. Therefore, it is in the light of the above
that this research is undertaken to evaluate the Okowa’s urban bias
thesis in Ihiala Local Government Area of Anambra State.
1.3 OBJECTIVES OF THE STUDY
The activities of this research project include:
i.
To review the Okowa’s urban bias Thesis and the various
development theories.
ii.
To determine whether government policies are urban bias
iii. To find out how the policies are implemented in Ihiala Local
Government Area.
1.4 RESEARCH QUESTIONS
Some of the questions the study will attempt to proffer
answers to include the following;
a.
What are the urban development strategies employed by the
government in developing Ihiala Local Government Area?
b.
To what extent are these government strategies employed to
cause urban bias?
c.
How do these government expenditure strategies compared in
there relative effectiveness in the rural and urban sector?
d.
Does public sector expenditure in the rural and urban areas
complement each other synergistically?
e.
What are the implications of urban bias?
1.5 RESEARCH HYPOTHESIS
The hypothesis have been put forward for testing
H0: Public sector expenditure in Ihiala Local Government Area is
not urban bias
H1: Public sector expenditure in Ihiala Local Government Area is
urban bias.
1.6 SIGNIFICANCE OF THE STUDY
The significance of this study lies on the fact that our rural
communities to a large extent need to be developed. It is our belief
that this study will serve as an important reference to local
government for future development of rural area, based on
suggestions advanced therein. It will also serve as a reference point
to others who find time of reason alongside with us on the issue of
the rural development in Nigeria.
Based on the findings of the research project, the government
will be in a better position of either adding or dropping some public
sector expenditure programmes in the rural or urban sector in
Nigeria.
1.7 SCOPE AND LIMITATION OF THE STUDY
The scope of this study on the evaluation of the Okowa’s
urban bias thesis focuses in the Ihiala Local Government Area of
Anambra State in Nigeria.
Ihiala Local Government Area is made up of about six (6)
towns (Uburu, Mbosi, Iseke, Azia, Orsumaonyu and Lilu) with
various villages. The researcher may not go beyond the above scope.
However, there are two limiting factors that affected the
researcher’s progress in this work. One is that of inadequate funds
to carryout an elaborate research that concern Anambra State in
Rivers State. Whereas, the second factor is that of time constraint,
hence, the researcher was working within a time frame despite the
prolonged academic staff union of universities strike action.
1.8 ORGANIZATION OF THE STUDY
This study is organized into five interrelated chapters.
Chapter one introduces the background of the study, statement of
the problem, objectives, research questions, hypothesis,
significance, scope, limitations and the organization of the study.
Chapter two reviews related literature and theoretical frame of the
study.
The three is the research design and method of the study.
Chapter four presents and analyzes the data. Finally, chapter five
summarizes, recommends and concludes the study.
AFFILIATE LINKS:
www.easyprojectmaterials.com.ng
www.easyprojectsmaterials.com.ng
www.easyprojectsmaterials.com
www.easyprojectsmaterial.com
www.easyprojectsmaterial.com.ng
www.easyprojectmaterial.com.ng
www.projectmaterial.com.ng
www.projectmaterials.com.ng
www.projectmaterials.com
www.myprojectmaterial.com.ng
www.myprojectmaterials.com
www.researchprojectmaterial.com
www.researchprojectmaterials.com
www.nairaproject.net
www.nairaprojects.net
www.nairaproject.biz
www.nairaprojects.biz
www.nairaproject.com.ng
www.nairaprojects.com.ng
www.nairaproject.edu
www.nairaprojects.edu
Posted 14th September 2015 by DANIEL CHUKWUDI
Labels: AN EVALUATION OF THE OKOWA’S URBAN BIAS THESIS IN IHIALA L.G.A OF ANAMBRA STATE
0
Add a comment
Sep
14
AN EVALUATION OF THE OKOWA’S URBAN
BIAS THESIS IN IHIALA L.G.A OF ANAMBRA
STATE
ATTENTION:
BEFORE YOU READ THE PROJECT WORK, PLEASE READ THE
INFORMATION BELOW. THANK YOU!
TO GET THE FULL PROJECT FOR THE TOPIC BELOW PLEASE CALL:
08068231953, 08168759420
TO GET MORE PROJECT TOPICS IN YOUR DEPARTMENT, PLEASE
VISIT:
www.easyprojectmaterials.com
www.easyprojectsolutions.com
www.worldofnolimit.com
AN EVALUATION OF THE OKOWA’S
URBAN BIAS THESIS IN IHIALA
L.G.A OF ANAMBRA STATE
ABSTRACT
This research work focuses on the evaluation of the Okowa’s urban
bias thesis in Ihiala local Government Area of Anambra State. The
objective that guided this research work was to review the Okowa’s
urban bias thesis and then determine how public policy
implementation affects in Ihiala Local Government Area. Based on
the above objectives, a hypothesis was formulated and we used
questionnaires to collect the data from primary source. These sets
of questionnaires were drawn from three categories of respondentsfarmers, students, traders, civil servants, are classified by three
selected sectors namely, Agriculture, education and health, as
regards the composite six towns in Ihiala. The Chi-square was used
in testing the hypothesis, while frequency tables and simple
percentages were used in the data analysis and presentations.
However, we found that public sector expenditure, particularly on
Agriculture, education and health is highly urban biased in Ihiala.
This finding conforms with the Okowa’s thesis on urban bias in
Nigeria Development, which therefore suggests the inequitable
distribution of potential development programmes in both the
urban and rural sectors in Nigeria. The government should adopt
some of the potential development policies and programmes to be
effective in reaching out to the rural towns and communities.
Human resources development should be equitably extended to
both the rural and urban sector.
TABLE OF CONTENT
COVER PAGE
Title page
Certification
Dedication
Acknowledgment
Abstract
Table of content
i
ii
iii
iv
v
vi
CHAPTER ONE: INTRODUCTION
1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Research questions
1.5 Research hypothesis
1.6 Significance of the study
1.7 Scope and limitation of the study
1.8 Organization of the study
1
3
4
4
4
5
5
6
CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL
FRAME-WORK
Literature Review
7
2.
Theoretical framework
16
2.1 Harris and Todaro model
17
2.2 Jorgenson’s Neo-Classical Theory
18
2.3 Fei-Rains theory
19
2.2.4 Lewis theory of development
20
2.2.5 Development and urban bias in Ihiala
22
2.2.6 The Keynesian economic theory
23
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
3.1 Research design
24
3.2 Population of the study
24
3.3 Sampling technique
24
3.4 Sample size determination
25
3.5 Data collection instruments and procedure
26
3.6 Method of data analysis
27
CHAPTER FOUR:
4.1 Introduction
DATA PRESENTATION AND ANALYSIS
29
4.2
4.3
4.4
4.5
4.6
Allocation of questionnaires and rate of returns
Analysis of respondents
Analysis of relevant questions
Test of hypothesis
Discussion of results
29
30
31
32
35
CHAPTER FIVE: SUMMARY, RECOMMENDATIONS AND
CONCLUSION
5.1 Summary
37
5.2 Recommendations
38
5.3 Conclusion
39
Appendices
41
References
44
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Urban bias may be referred to a situation of the development
process, whereby the urban sector benefits relatively more in the
rural-urban distribution of public sector expenditure in an
economy, during a particular period of time. Thus, the provision of
social and physical infrastructure through public investment and
expenditure on some goods and services can directly improve
productivity and development in both the urban and rural sector
through a more efficient and equitable allocation of resources.
However, a developing region maybe classified into two; urban
sector and the rural sector. The urban sector is the region that is
defined by town or cities; it is classified as the industrial or modern
areas, whereas, the rural sector is an area that is defined by
communities, it is largely dominated by traditional agricultural
activities. Some developmental economists of the structuralist
school posit that some categories of government expenditure on the
urban sector are necessary to overcome constraints of economic
growth.
Hence, the responsibility of the government in any economic
system irrespective of the political arrangement is to initiate policies
towards the achieving of four basic micro-economic goals which are
price stability, the government regulates the distribution of public
goods and services in stimulating the productive capacity of the
economy.
Over the years, Nigeria has made conscious and determined
effort to attain a high level of social and economic transformation of
the economy. So far, the Nigeria economy has had four (4) national
development plans in which varying emphasis were made on the
achievement of the development goals and objectives, several policy
tools were adopted including monetary policy, fiscal policy,
exchange control measures, changed from time to time to reflect the
changing economic environment and circumstances.
Okowa’s (1991) urban bias thesis stated that a Development
policy should include;
i.
Enhanced economic growth
ii.
Reduction over time of economic dependency
iii. Reduction over time of economic inequality
iv.
v.
Reduction over time of unemployment
Maintenance of stable price (inflation)
We can therefore identify urban bias with respect of any one of
the mentioned development aim. If economic growth could have
been enhanced by a distribution of public sector resources that
allocated more to the urban sector than to the rural sector, then we
say that the given rural-urban perspective is such as to generate
greater rural-urban economic dependence than would have been
the case. Thus, inequality bias is a situation whereby distribution of
income has a relative greater benefit in the sector, in this light, the
ratio of unemployment and inflation between the rural and urban
sector is used as a measure for inequality bias.
In this line, many development scientists have stated that the
rationale for balanced and equitable development to take place in
any economy, certain efforts should be made to develop the rural
and urban sector simultaneously. In this thesis, Professor Okowa
(1991) held the view that development effort in Nigeria has been
urban biased, although severe measures have been taken by the
Nigeria government to develop the rural areas.
However, our concern in this study is to evaluate the Okowa’s
urban bias thesis in Ihiala local government area of Anambra State
this study cannot cover the entire country, the researcher focuses
on his local government area of origin.
1.2 STATEMENT OF PROBLEM
Prof Okowa’s thesis was published in 1991, about 18 years
now and on other research to the best of my knowledge has been
carried out to affirm or dispute his urban bias thesis. There is
urgent need to do this, in order to see if there are policy changes to
develop the rural areas. Again, we also need to study the rural
areas to find out empirically, how the policy changes (if there is)
have affected the rural areas. We do not have ready evident to show
that such research are carried out especially in the researcher’s
Local Government Area-Ihiala Local Government Area of Anambra
State.
This research is intended to bridge this observed gap. As at
when this research was carried out this findings could be said to be
correct in many respects. Therefore, it is in the light of the above
that this research is undertaken to evaluate the Okowa’s urban bias
thesis in Ihiala Local Government Area of Anambra State.
1.3 OBJECTIVES OF THE STUDY
The activities of this research project include:
i.
To review the Okowa’s urban bias Thesis and the various
development theories.
ii.
To determine whether government policies are urban bias
iii. To find out how the policies are implemented in Ihiala Local
Government Area.
1.4 RESEARCH QUESTIONS
Some of the questions the study will attempt to proffer
answers to include the following;
a.
What are the urban development strategies employed by the
government in developing Ihiala Local Government Area?
b.
To what extent are these government strategies employed to
cause urban bias?
c.
How do these government expenditure strategies compared in
there relative effectiveness in the rural and urban sector?
d.
Does public sector expenditure in the rural and urban areas
complement each other synergistically?
e.
What are the implications of urban bias?
1.5 RESEARCH HYPOTHESIS
The hypothesis have been put forward for testing
H0: Public sector expenditure in Ihiala Local Government Area is
not urban bias
H1: Public sector expenditure in Ihiala Local Government Area is
urban bias.
1.6 SIGNIFICANCE OF THE STUDY
The significance of this study lies on the fact that our rural
communities to a large extent need to be developed. It is our belief
that this study will serve as an important reference to local
government for future development of rural area, based on
suggestions advanced therein. It will also serve as a reference point
to others who find time of reason alongside with us on the issue of
the rural development in Nigeria.
Based on the findings of the research project, the government
will be in a better position of either adding or dropping some public
sector expenditure programmes in the rural or urban sector in
Nigeria.
1.7 SCOPE AND LIMITATION OF THE STUDY
The scope of this study on the evaluation of the Okowa’s
urban bias thesis focuses in the Ihiala Local Government Area of
Anambra State in Nigeria.
Ihiala Local Government Area is made up of about six (6)
towns (Uburu, Mbosi, Iseke, Azia, Orsumaonyu and Lilu) with
various villages. The researcher may not go beyond the above scope.
However, there are two limiting factors that affected the
researcher’s progress in this work. One is that of inadequate funds
to carryout an elaborate research that concern Anambra State in
Rivers State. Whereas, the second factor is that of time constraint,
hence, the researcher was working within a time frame despite the
prolonged academic staff union of universities strike action.
1.8 ORGANIZATION OF THE STUDY
This study is organized into five interrelated chapters.
Chapter one introduces the background of the study, statement of
the problem, objectives, research questions, hypothesis,
significance, scope, limitations and the organization of the study.
Chapter two reviews related literature and theoretical frame of the
study.
The three is the research design and method of the study.
Chapter four presents and analyzes the data. Finally, chapter five
summarizes, recommends and concludes the study.
AFFILIATE LINKS:
www.easyprojectmaterials.com.ng
www.easyprojectsmaterials.com.ng
www.easyprojectsmaterials.com
www.easyprojectsmaterial.com
www.easyprojectsmaterial.com.ng
www.easyprojectmaterial.com.ng
www.projectmaterial.com.ng
www.projectmaterials.com.ng
www.projectmaterials.com
www.myprojectmaterial.com.ng
www.myprojectmaterials.com
www.researchprojectmaterial.com
www.researchprojectmaterials.com
www.nairaproject.net
www.nairaprojects.net
www.nairaproject.biz
www.nairaprojects.biz
www.nairaproject.com.ng
www.nairaprojects.com.ng
www.nairaproject.edu
www.nairaprojects.edu
Posted 14th September 2015 by DANIEL CHUKWUDI
Labels: AN EVALUATION OF THE OKOWA’S URBAN BIAS THESIS IN IHIALA L.G.A OF ANAMBRA STATE
0
Add a comment
Sep
14
AN EVALUATION OF THE OKOWA’S URBAN
BIAS THESIS IN IHIALA L.G.A OF ANAMBRA
STATE
ATTENTION:
BEFORE YOU READ THE PROJECT WORK, PLEASE READ THE
INFORMATION BELOW. THANK YOU!
TO GET THE FULL PROJECT FOR THE TOPIC BELOW PLEASE CALL:
08068231953, 08168759420
TO GET MORE PROJECT TOPICS IN YOUR DEPARTMENT, PLEASE
VISIT:
www.easyprojectmaterials.com
www.easyprojectsolutions.com
www.worldofnolimit.com
AN EVALUATION OF THE OKOWA’S
URBAN BIAS THESIS IN IHIALA
L.G.A OF ANAMBRA STATE
ABSTRACT
This research work focuses on the evaluation of the Okowa’s urban
bias thesis in Ihiala local Government Area of Anambra State. The
objective that guided this research work was to review the Okowa’s
urban bias thesis and then determine how public policy
implementation affects in Ihiala Local Government Area. Based on
the above objectives, a hypothesis was formulated and we used
questionnaires to collect the data from primary source. These sets
of questionnaires were drawn from three categories of respondentsfarmers, students, traders, civil servants, are classified by three
selected sectors namely, Agriculture, education and health, as
regards the composite six towns in Ihiala. The Chi-square was used
in testing the hypothesis, while frequency tables and simple
percentages were used in the data analysis and presentations.
However, we found that public sector expenditure, particularly on
Agriculture, education and health is highly urban biased in Ihiala.
This finding conforms with the Okowa’s thesis on urban bias in
Nigeria Development, which therefore suggests the inequitable
distribution of potential development programmes in both the
urban and rural sectors in Nigeria. The government should adopt
some of the potential development policies and programmes to be
effective in reaching out to the rural towns and communities.
Human resources development should be equitably extended to
both the rural and urban sector.
TABLE OF CONTENT
COVER PAGE
Title page
Certification
Dedication
Acknowledgment
Abstract
Table of content
i
ii
iii
iv
v
vi
CHAPTER ONE: INTRODUCTION
1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Research questions
1.5 Research hypothesis
1.6 Significance of the study
1.7 Scope and limitation of the study
1.8 Organization of the study
1
3
4
4
4
5
5
6
CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL
FRAME-WORK
Literature Review
7
2.
Theoretical framework
16
2.1 Harris and Todaro model
17
2.2 Jorgenson’s Neo-Classical Theory
18
2.3 Fei-Rains theory
19
2.2.4 Lewis theory of development
20
2.2.5 Development and urban bias in Ihiala
22
2.2.6 The Keynesian economic theory
23
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
3.1 Research design
24
3.2 Population of the study
24
3.3 Sampling technique
24
3.4 Sample size determination
25
3.5 Data collection instruments and procedure
26
3.6 Method of data analysis
27
CHAPTER FOUR:
4.1 Introduction
DATA PRESENTATION AND ANALYSIS
29
4.2
4.3
4.4
4.5
4.6
Allocation of questionnaires and rate of returns
Analysis of respondents
Analysis of relevant questions
Test of hypothesis
Discussion of results
29
30
31
32
35
CHAPTER FIVE: SUMMARY, RECOMMENDATIONS AND
CONCLUSION
5.1 Summary
37
5.2 Recommendations
38
5.3 Conclusion
39
Appendices
41
References
44
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Urban bias may be referred to a situation of the development
process, whereby the urban sector benefits relatively more in the
rural-urban distribution of public sector expenditure in an
economy, during a particular period of time. Thus, the provision of
social and physical infrastructure through public investment and
expenditure on some goods and services can directly improve
productivity and development in both the urban and rural sector
through a more efficient and equitable allocation of resources.
However, a developing region maybe classified into two; urban
sector and the rural sector. The urban sector is the region that is
defined by town or cities; it is classified as the industrial or modern
areas, whereas, the rural sector is an area that is defined by
communities, it is largely dominated by traditional agricultural
activities. Some developmental economists of the structuralist
school posit that some categories of government expenditure on the
urban sector are necessary to overcome constraints of economic
growth.
Hence, the responsibility of the government in any economic
system irrespective of the political arrangement is to initiate policies
towards the achieving of four basic micro-economic goals which are
price stability, the government regulates the distribution of public
goods and services in stimulating the productive capacity of the
economy.
Over the years, Nigeria has made conscious and determined
effort to attain a high level of social and economic transformation of
the economy. So far, the Nigeria economy has had four (4) national
development plans in which varying emphasis were made on the
achievement of the development goals and objectives, several policy
tools were adopted including monetary policy, fiscal policy,
exchange control measures, changed from time to time to reflect the
changing economic environment and circumstances.
Okowa’s (1991) urban bias thesis stated that a Development
policy should include;
i.
Enhanced economic growth
ii.
Reduction over time of economic dependency
iii. Reduction over time of economic inequality
iv.
v.
Reduction over time of unemployment
Maintenance of stable price (inflation)
We can therefore identify urban bias with respect of any one of
the mentioned development aim. If economic growth could have
been enhanced by a distribution of public sector resources that
allocated more to the urban sector than to the rural sector, then we
say that the given rural-urban perspective is such as to generate
greater rural-urban economic dependence than would have been
the case. Thus, inequality bias is a situation whereby distribution of
income has a relative greater benefit in the sector, in this light, the
ratio of unemployment and inflation between the rural and urban
sector is used as a measure for inequality bias.
In this line, many development scientists have stated that the
rationale for balanced and equitable development to take place in
any economy, certain efforts should be made to develop the rural
and urban sector simultaneously. In this thesis, Professor Okowa
(1991) held the view that development effort in Nigeria has been
urban biased, although severe measures have been taken by the
Nigeria government to develop the rural areas.
However, our concern in this study is to evaluate the Okowa’s
urban bias thesis in Ihiala local government area of Anambra State
this study cannot cover the entire country, the researcher focuses
on his local government area of origin.
1.2 STATEMENT OF PROBLEM
Prof Okowa’s thesis was published in 1991, about 18 years
now and on other research to the best of my knowledge has been
carried out to affirm or dispute his urban bias thesis. There is
urgent need to do this, in order to see if there are policy changes to
develop the rural areas. Again, we also need to study the rural
areas to find out empirically, how the policy changes (if there is)
have affected the rural areas. We do not have ready evident to show
that such research are carried out especially in the researcher’s
Local Government Area-Ihiala Local Government Area of Anambra
State.
This research is intended to bridge this observed gap. As at
when this research was carried out this findings could be said to be
correct in many respects. Therefore, it is in the light of the above
that this research is undertaken to evaluate the Okowa’s urban bias
thesis in Ihiala Local Government Area of Anambra State.
1.3 OBJECTIVES OF THE STUDY
The activities of this research project include:
i.
To review the Okowa’s urban bias Thesis and the various
development theories.
ii.
To determine whether government policies are urban bias
iii. To find out how the policies are implemented in Ihiala Local
Government Area.
1.4 RESEARCH QUESTIONS
Some of the questions the study will attempt to proffer
answers to include the following;
a.
What are the urban development strategies employed by the
government in developing Ihiala Local Government Area?
b.
To what extent are these government strategies employed to
cause urban bias?
c.
How do these government expenditure strategies compared in
there relative effectiveness in the rural and urban sector?
d.
Does public sector expenditure in the rural and urban areas
complement each other synergistically?
e.
What are the implications of urban bias?
1.5 RESEARCH HYPOTHESIS
The hypothesis have been put forward for testing
H0: Public sector expenditure in Ihiala Local Government Area is
not urban bias
H1: Public sector expenditure in Ihiala Local Government Area is
urban bias.
1.6 SIGNIFICANCE OF THE STUDY
The significance of this study lies on the fact that our rural
communities to a large extent need to be developed. It is our belief
that this study will serve as an important reference to local
government for future development of rural area, based on
suggestions advanced therein. It will also serve as a reference point
to others who find time of reason alongside with us on the issue of
the rural development in Nigeria.
Based on the findings of the research project, the government
will be in a better position of either adding or dropping some public
sector expenditure programmes in the rural or urban sector in
Nigeria.
1.7 SCOPE AND LIMITATION OF THE STUDY
The scope of this study on the evaluation of the Okowa’s
urban bias thesis focuses in the Ihiala Local Government Area of
Anambra State in Nigeria.
Ihiala Local Government Area is made up of about six (6)
towns (Uburu, Mbosi, Iseke, Azia, Orsumaonyu and Lilu) with
various villages. The researcher may not go beyond the above scope.
However, there are two limiting factors that affected the
researcher’s progress in this work. One is that of inadequate funds
to carryout an elaborate research that concern Anambra State in
Rivers State. Whereas, the second factor is that of time constraint,
hence, the researcher was working within a time frame despite the
prolonged academic staff union of universities strike action.
1.8 ORGANIZATION OF THE STUDY
This study is organized into five interrelated chapters.
Chapter one introduces the background of the study, statement of
the problem, objectives, research questions, hypothesis,
significance, scope, limitations and the organization of the study.
Chapter two reviews related literature and theoretical frame of the
study.
The three is the research design and method of the study.
Chapter four presents and analyzes the data. Finally, chapter five
summarizes, recommends and concludes the study.
AFFILIATE LINKS:
www.easyprojectmaterials.com.ng
www.easyprojectsmaterials.com.ng
www.easyprojectsmaterials.com
www.easyprojectsmaterial.com
www.easyprojectsmaterial.com.ng
www.easyprojectmaterial.com.ng
www.projectmaterial.com.ng
www.projectmaterials.com.ng
www.projectmaterials.com
www.myprojectmaterial.com.ng
www.myprojectmaterials.com
www.researchprojectmaterial.com
www.researchprojectmaterials.com
www.nairaproject.net
www.nairaprojects.net
www.nairaproject.biz
www.nairaprojects.biz
www.nairaproject.com.ng
www.nairaprojects.com.ng
www.nairaproject.edu
www.nairaprojects.edu
Posted 14th September 2015 by DANIEL CHUKWUDI
Labels: AN EVALUATION OF THE OKOWA’S URBAN BIAS THESIS IN IHIALA L.G.A OF ANAMBRA STATE
0
Add a comment
Sep
14
AN EVALUATION OF THE OKOWA’S URBAN
BIAS THESIS IN IHIALA L.G.A OF ANAMBRA
STATE
ATTENTION:
BEFORE YOU READ THE PROJECT WORK, PLEASE READ THE
INFORMATION BELOW. THANK YOU!
TO GET THE FULL PROJECT FOR THE TOPIC BELOW PLEASE CALL:
08068231953, 08168759420
TO GET MORE PROJECT TOPICS IN YOUR DEPARTMENT, PLEASE
VISIT:
www.easyprojectmaterials.com
www.easyprojectsolutions.com
www.worldofnolimit.com
AN EVALUATION OF THE OKOWA’S
URBAN BIAS THESIS IN IHIALA
L.G.A OF ANAMBRA STATE
ABSTRACT
This research work focuses on the evaluation of the Okowa’s urban
bias thesis in Ihiala local Government Area of Anambra State. The
objective that guided this research work was to review the Okowa’s
urban bias thesis and then determine how public policy
implementation affects in Ihiala Local Government Area. Based on
the above objectives, a hypothesis was formulated and we used
questionnaires to collect the data from primary source. These sets
of questionnaires were drawn from three categories of respondentsfarmers, students, traders, civil servants, are classified by three
selected sectors namely, Agriculture, education and health, as
regards the composite six towns in Ihiala. The Chi-square was used
in testing the hypothesis, while frequency tables and simple
percentages were used in the data analysis and presentations.
However, we found that public sector expenditure, particularly on
Agriculture, education and health is highly urban biased in Ihiala.
This finding conforms with the Okowa’s thesis on urban bias in
Nigeria Development, which therefore suggests the inequitable
distribution of potential development programmes in both the
urban and rural sectors in Nigeria. The government should adopt
some of the potential development policies and programmes to be
effective in reaching out to the rural towns and communities.
Human resources development should be equitably extended to
both the rural and urban sector.
TABLE OF CONTENT
COVER PAGE
Title page
Certification
Dedication
Acknowledgment
Abstract
Table of content
i
ii
iii
iv
v
vi
CHAPTER ONE: INTRODUCTION
1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Research questions
1.5 Research hypothesis
1.6 Significance of the study
1.7 Scope and limitation of the study
1.8 Organization of the study
1
3
4
4
4
5
5
6
CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL
FRAME-WORK
Literature Review
7
2.
Theoretical framework
16
2.1 Harris and Todaro model
17
2.2 Jorgenson’s Neo-Classical Theory
18
2.3 Fei-Rains theory
19
2.2.4 Lewis theory of development
20
2.2.5 Development and urban bias in Ihiala
22
2.2.6 The Keynesian economic theory
23
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
3.1 Research design
24
3.2 Population of the study
24
3.3 Sampling technique
24
3.4 Sample size determination
25
3.5 Data collection instruments and procedure
26
3.6 Method of data analysis
27
CHAPTER FOUR:
4.1 Introduction
DATA PRESENTATION AND ANALYSIS
29
4.2
4.3
4.4
4.5
4.6
Allocation of questionnaires and rate of returns
Analysis of respondents
Analysis of relevant questions
Test of hypothesis
Discussion of results
29
30
31
32
35
CHAPTER FIVE: SUMMARY, RECOMMENDATIONS AND
CONCLUSION
5.1 Summary
37
5.2 Recommendations
38
5.3 Conclusion
39
Appendices
41
References
44
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Urban bias may be referred to a situation of the development
process, whereby the urban sector benefits relatively more in the
rural-urban distribution of public sector expenditure in an
economy, during a particular period of time. Thus, the provision of
social and physical infrastructure through public investment and
expenditure on some goods and services can directly improve
productivity and development in both the urban and rural sector
through a more efficient and equitable allocation of resources.
However, a developing region maybe classified into two; urban
sector and the rural sector. The urban sector is the region that is
defined by town or cities; it is classified as the industrial or modern
areas, whereas, the rural sector is an area that is defined by
communities, it is largely dominated by traditional agricultural
activities. Some developmental economists of the structuralist
school posit that some categories of government expenditure on the
urban sector are necessary to overcome constraints of economic
growth.
Hence, the responsibility of the government in any economic
system irrespective of the political arrangement is to initiate policies
towards the achieving of four basic micro-economic goals which are
price stability, the government regulates the distribution of public
goods and services in stimulating the productive capacity of the
economy.
Over the years, Nigeria has made conscious and determined
effort to attain a high level of social and economic transformation of
the economy. So far, the Nigeria economy has had four (4) national
development plans in which varying emphasis were made on the
achievement of the development goals and objectives, several policy
tools were adopted including monetary policy, fiscal policy,
exchange control measures, changed from time to time to reflect the
changing economic environment and circumstances.
Okowa’s (1991) urban bias thesis stated that a Development
policy should include;
i.
Enhanced economic growth
ii.
Reduction over time of economic dependency
iii. Reduction over time of economic inequality
iv.
v.
Reduction over time of unemployment
Maintenance of stable price (inflation)
We can therefore identify urban bias with respect of any one of
the mentioned development aim. If economic growth could have
been enhanced by a distribution of public sector resources that
allocated more to the urban sector than to the rural sector, then we
say that the given rural-urban perspective is such as to generate
greater rural-urban economic dependence than would have been
the case. Thus, inequality bias is a situation whereby distribution of
income has a relative greater benefit in the sector, in this light, the
ratio of unemployment and inflation between the rural and urban
sector is used as a measure for inequality bias.
In this line, many development scientists have stated that the
rationale for balanced and equitable development to take place in
any economy, certain efforts should be made to develop the rural
and urban sector simultaneously. In this thesis, Professor Okowa
(1991) held the view that development effort in Nigeria has been
urban biased, although severe measures have been taken by the
Nigeria government to develop the rural areas.
However, our concern in this study is to evaluate the Okowa’s
urban bias thesis in Ihiala local government area of Anambra State
this study cannot cover the entire country, the researcher focuses
on his local government area of origin.
1.2 STATEMENT OF PROBLEM
Prof Okowa’s thesis was published in 1991, about 18 years
now and on other research to the best of my knowledge has been
carried out to affirm or dispute his urban bias thesis. There is
urgent need to do this, in order to see if there are policy changes to
develop the rural areas. Again, we also need to study the rural
areas to find out empirically, how the policy changes (if there is)
have affected the rural areas. We do not have ready evident to show
that such research are carried out especially in the researcher’s
Local Government Area-Ihiala Local Government Area of Anambra
State.
This research is intended to bridge this observed gap. As at
when this research was carried out this findings could be said to be
correct in many respects. Therefore, it is in the light of the above
that this research is undertaken to evaluate the Okowa’s urban bias
thesis in Ihiala Local Government Area of Anambra State.
1.3 OBJECTIVES OF THE STUDY
The activities of this research project include:
i.
To review the Okowa’s urban bias Thesis and the various
development theories.
ii.
To determine whether government policies are urban bias
iii. To find out how the policies are implemented in Ihiala Local
Government Area.
1.4 RESEARCH QUESTIONS
Some of the questions the study will attempt to proffer
answers to include the following;
a.
What are the urban development strategies employed by the
government in developing Ihiala Local Government Area?
b.
To what extent are these government strategies employed to
cause urban bias?
c.
How do these government expenditure strategies compared in
there relative effectiveness in the rural and urban sector?
d.
Does public sector expenditure in the rural and urban areas
complement each other synergistically?
e.
What are the implications of urban bias?
1.5 RESEARCH HYPOTHESIS
The hypothesis have been put forward for testing
H0: Public sector expenditure in Ihiala Local Government Area is
not urban bias
H1: Public sector expenditure in Ihiala Local Government Area is
urban bias.
1.6 SIGNIFICANCE OF THE STUDY
The significance of this study lies on the fact that our rural
communities to a large extent need to be developed. It is our belief
that this study will serve as an important reference to local
government for future development of rural area, based on
suggestions advanced therein. It will also serve as a reference point
to others who find time of reason alongside with us on the issue of
the rural development in Nigeria.
Based on the findings of the research project, the government
will be in a better position of either adding or dropping some public
sector expenditure programmes in the rural or urban sector in
Nigeria.
1.7 SCOPE AND LIMITATION OF THE STUDY
The scope of this study on the evaluation of the Okowa’s
urban bias thesis focuses in the Ihiala Local Government Area of
Anambra State in Nigeria.
Ihiala Local Government Area is made up of about six (6)
towns (Uburu, Mbosi, Iseke, Azia, Orsumaonyu and Lilu) with
various villages. The researcher may not go beyond the above scope.
However, there are two limiting factors that affected the
researcher’s progress in this work. One is that of inadequate funds
to carryout an elaborate research that concern Anambra State in
Rivers State. Whereas, the second factor is that of time constraint,
hence, the researcher was working within a time frame despite the
prolonged academic staff union of universities strike action.
1.8 ORGANIZATION OF THE STUDY
This study is organized into five interrelated chapters.
Chapter one introduces the background of the study, statement of
the problem, objectives, research questions, hypothesis,
significance, scope, limitations and the organization of the study.
Chapter two reviews related literature and theoretical frame of the
study.
The three is the research design and method of the study.
Chapter four presents and analyzes the data. Finally, chapter five
summarizes, recommends and concludes the study.
AN EVALUATION OF THE OKOWA’S
URBAN BIAS THESIS IN IHIALA
L.G.A OF ANAMBRA STATE
ABSTRACT
This research work focuses on the evaluation of the Okowa’s urban
bias thesis in Ihiala local Government Area of Anambra State. The
objective that guided this research work was to review the Okowa’s
urban bias thesis and then determine how public policy
implementation affects in Ihiala Local Government Area. Based on
the above objectives, a hypothesis was formulated and we used
questionnaires to collect the data from primary source. These sets
of questionnaires were drawn from three categories of respondentsfarmers, students, traders, civil servants, are classified by three
selected sectors namely, Agriculture, education and health, as
regards the composite six towns in Ihiala. The Chi-square was used
in testing the hypothesis, while frequency tables and simple
percentages were used in the data analysis and presentations.
However, we found that public sector expenditure, particularly on
Agriculture, education and health is highly urban biased in Ihiala.
This finding conforms with the Okowa’s thesis on urban bias in
Nigeria Development, which therefore suggests the inequitable
distribution of potential development programmes in both the
urban and rural sectors in Nigeria. The government should adopt
some of the potential development policies and programmes to be
effective in reaching out to the rural towns and communities.
Human resources development should be equitably extended to
both the rural and urban sector.
TABLE OF CONTENT
COVER PAGE
Title page
Certification
Dedication
Acknowledgment
Abstract
Table of content
i
ii
iii
iv
v
vi
CHAPTER ONE: INTRODUCTION
1.1 Background of the study
1.2 Statement of problem
1.3 Objective of the study
1.4 Research questions
1.5 Research hypothesis
1.6 Significance of the study
1.7 Scope and limitation of the study
1.8 Organization of the study
1
3
4
4
4
5
5
6
CHAPTER TWO: LITERATURE REVIEW AND THEORETICAL
FRAME-WORK
Literature Review
7
2.
Theoretical framework
16
2.1 Harris and Todaro model
17
2.2 Jorgenson’s Neo-Classical Theory
18
2.3 Fei-Rains theory
19
2.2.4 Lewis theory of development
20
2.2.5 Development and urban bias in Ihiala
22
2.2.6 The Keynesian economic theory
23
CHAPTER THREE: RESEARCH DESIGN AND METHODOLOGY
3.1 Research design
24
3.2 Population of the study
24
3.3 Sampling technique
24
3.4 Sample size determination
25
3.5 Data collection instruments and procedure
26
3.6 Method of data analysis
27
CHAPTER FOUR:
4.1 Introduction
DATA PRESENTATION AND ANALYSIS
29
4.2
4.3
4.4
4.5
4.6
Allocation of questionnaires and rate of returns
Analysis of respondents
Analysis of relevant questions
Test of hypothesis
Discussion of results
29
30
31
32
35
CHAPTER FIVE: SUMMARY, RECOMMENDATIONS AND
CONCLUSION
5.1 Summary
37
5.2 Recommendations
38
5.3 Conclusion
39
Appendices
41
References
44
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Urban bias may be referred to a situation of the development
process, whereby the urban sector benefits relatively more in the
rural-urban distribution of public sector expenditure in an
economy, during a particular period of time. Thus, the provision of
social and physical infrastructure through public investment and
expenditure on some goods and services can directly improve
productivity and development in both the urban and rural sector
through a more efficient and equitable allocation of resources.
However, a developing region maybe classified into two; urban
sector and the rural sector. The urban sector is the region that is
defined by town or cities; it is classified as the industrial or modern
areas, whereas, the rural sector is an area that is defined by
communities, it is largely dominated by traditional agricultural
activities. Some developmental economists of the structuralist
school posit that some categories of government expenditure on the
urban sector are necessary to overcome constraints of economic
growth.
Hence, the responsibility of the government in any economic
system irrespective of the political arrangement is to initiate policies
towards the achieving of four basic micro-economic goals which are
price stability, the government regulates the distribution of public
goods and services in stimulating the productive capacity of the
economy.
Over the years, Nigeria has made conscious and determined
effort to attain a high level of social and economic transformation of
the economy. So far, the Nigeria economy has had four (4) national
development plans in which varying emphasis were made on the
achievement of the development goals and objectives, several policy
tools were adopted including monetary policy, fiscal policy,
exchange control measures, changed from time to time to reflect the
changing economic environment and circumstances.
Okowa’s (1991) urban bias thesis stated that a Development
policy should include;
i.
Enhanced economic growth
ii.
Reduction over time of economic dependency
iii. Reduction over time of economic inequality
iv.
v.
Reduction over time of unemployment
Maintenance of stable price (inflation)
We can therefore identify urban bias with respect of any one of
the mentioned development aim. If economic growth could have
been enhanced by a distribution of public sector resources that
allocated more to the urban sector than to the rural sector, then we
say that the given rural-urban perspective is such as to generate
greater rural-urban economic dependence than would have been
the case. Thus, inequality bias is a situation whereby distribution of
income has a relative greater benefit in the sector, in this light, the
ratio of unemployment and inflation between the rural and urban
sector is used as a measure for inequality bias.
In this line, many development scientists have stated that the
rationale for balanced and equitable development to take place in
any economy, certain efforts should be made to develop the rural
and urban sector simultaneously. In this thesis, Professor Okowa
(1991) held the view that development effort in Nigeria has been
urban biased, although severe measures have been taken by the
Nigeria government to develop the rural areas.
However, our concern in this study is to evaluate the Okowa’s
urban bias thesis in Ihiala local government area of Anambra State
this study cannot cover the entire country, the researcher focuses
on his local government area of origin.
1.2 STATEMENT OF PROBLEM
Prof Okowa’s thesis was published in 1991, about 18 years
now and on other research to the best of my knowledge has been
carried out to affirm or dispute his urban bias thesis. There is
urgent need to do this, in order to see if there are policy changes to
develop the rural areas. Again, we also need to study the rural
areas to find out empirically, how the policy changes (if there is)
have affected the rural areas. We do not have ready evident to show
that such research are carried out especially in the researcher’s
Local Government Area-Ihiala Local Government Area of Anambra
State.
This research is intended to bridge this observed gap. As at
when this research was carried out this findings could be said to be
correct in many respects. Therefore, it is in the light of the above
that this research is undertaken to evaluate the Okowa’s urban bias
thesis in Ihiala Local Government Area of Anambra State.
1.3 OBJECTIVES OF THE STUDY
The activities of this research project include:
i.
To review the Okowa’s urban bias Thesis and the various
development theories.
ii.
To determine whether government policies are urban bias
iii. To find out how the policies are implemented in Ihiala Local
Government Area.
1.4 RESEARCH QUESTIONS
Some of the questions the study will attempt to proffer
answers to include the following;
a.
What are the urban development strategies employed by the
government in developing Ihiala Local Government Area?
b.
To what extent are these government strategies employed to
cause urban bias?
c.
How do these government expenditure strategies compared in
there relative effectiveness in the rural and urban sector?
d.
Does public sector expenditure in the rural and urban areas
complement each other synergistically?
e.
What are the implications of urban bias?
1.5 RESEARCH HYPOTHESIS
The hypothesis have been put forward for testing
H0: Public sector expenditure in Ihiala Local Government Area is
not urban bias
H1: Public sector expenditure in Ihiala Local Government Area is
urban bias.
1.6 SIGNIFICANCE OF THE STUDY
The significance of this study lies on the fact that our rural
communities to a large extent need to be developed. It is our belief
that this study will serve as an important reference to local
government for future development of rural area, based on
suggestions advanced therein. It will also serve as a reference point
to others who find time of reason alongside with us on the issue of
the rural development in Nigeria.
Based on the findings of the research project, the government
will be in a better position of either adding or dropping some public
sector expenditure programmes in the rural or urban sector in
Nigeria.
1.7 SCOPE AND LIMITATION OF THE STUDY
The scope of this study on the evaluation of the Okowa’s
urban bias thesis focuses in the Ihiala Local Government Area of
Anambra State in Nigeria.
Ihiala Local Government Area is made up of about six (6)
towns (Uburu, Mbosi, Iseke, Azia, Orsumaonyu and Lilu) with
various villages. The researcher may not go beyond the above scope.
However, there are two limiting factors that affected the
researcher’s progress in this work. One is that of inadequate funds
to carryout an elaborate research that concern Anambra State in
Rivers State. Whereas, the second factor is that of time constraint,
hence, the researcher was working within a time frame despite the
prolonged academic staff union of universities strike action.
1.8 ORGANIZATION OF THE STUDY
This study is organized into five interrelated chapters.
Chapter one introduces the background of the study, statement of
the problem, objectives, research questions, hypothesis,
significance, scope, limitations and the organization of the study.
Chapter two reviews related literature and theoretical frame of the
study.
The three is the research design and method of the study.
Chapter four presents and analyzes the data. Finally, chapter five
summarizes, recommends and concludes the study.
AN ASSESSMENT OF THE ROLE
OF INTEREST RATE IN
ENHANCING INVESTMENT IN
DEVELOPING COUNTRIES:
THE NIGERIAN EXPERIENCE
(1981-2005)
ABSTRACT
This work examines the role of interest rate in enhancing
investment in Nigeria from 1980-2004. In carrying out the study we
employ and econometric data analysis techniques of multiple
regressions to text the relationship between interest rate, real
income and investment. Our result reveals that interest rate is
negatively related to investment while real GDP was positively
linked to investment. The low level of investment and economic
growth in Nigeria make it imperative to involve a policies that will
enhance favourable interest rate and income level that will
encourage investors to borrow money to invest in the economy. The
study therefore, recommends a reduction of interest rate, upward
review of personal income diversification of the productive base of
the economy among others.
TABLE OF CONTENTS
PAGE
Title page
Certification
Dedication
Acknowledgment
Abstract
Table of content
List of table
i
ii
iii
iv
vi
vii
x
CHAPTER ONE: INTRODUCTION
1.1 Background of the study
1.2 Statement of the problem
1.3 Objectives of the study
1.4 Research Hypothesis
1.5 Scope and limitation of the study
1.6 Significance of the study
1.7 Organization of the study
1
5
8
9
9
10
10
CHAPTER TWO: LITERATURE REVIEW
2.0 Introduction
12
2.1 Theories of interest rate determination
2.2 Determinants of investment in Nigeria
2.2.1 Interest rate structure
2.2.2 Exchange rate volatility
2.2.3 Investment capital
2.2.4 High inflation
2.2.5 Maturity structure of bank credit
2.2.6 Incentives to encourage foreign private investment
2.2.7 Inadequate infrastructural facilities
2.2.8 Debt overhang and debt service burden
2.2.9 Inadequate legal framework
2.2.10 Complex regulatory framework
2.2.11 Corruption
2.3 Interest rate and investment
12
20
21
23
26
29
29
30
34
35
36
37
39
39
CHAPTER THREE: METHOD OF STUDY
3.1 Introduction
3.2 Research design
3.3 Data required
3.4 Data collection method
3.5 Method of data analysis
3.6 Model specification
46
46
46
46
47
48
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1 Introduction
49
4.2 Data presentation
49
4.3 Data analysis
51
4.4 Interpretation of regression result
52
4.5 Finding and implications of our regression result
53
CHAPTER FIVE: SUMMARY, RECOMMENDATION AND
CONCLUSION
5.1 Summary
55
5.2 Recommendations
56
5.3 Conclusion
58
Reference
60
LIST OF TABLE
PAGE
Table 4.1: Investment, interest rate, and real GDP in
Nigeria 1980-2004
Table 4.2: Regression Result
50
51
CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Interest rate is one of the most critical and controversial of all
monetary and financial policies of developing economies. The policy
is critical because, any interest rate policy has a direct effect on
series of marco-economic variables which go beyond the monetary
sector. It is controversial because the debate on the appropriate
level and direction of interest rates in developing countries is largely
unresolved (MCKINNON 1973; Shaw 1973, and Ogiogio 1989).
While some analyst perceive the interest rate as the cost of
investment which should be kept low to encourage investment in
developing countries, others regard it as basically the cost of capital
which is in short supply in these countries. According, proponents
of the later view argue that interest rate should be kept higher in
Developing countries than developed ones. However, which ever
view one holds there is no gain saying the fact that interest rate
policy of any economy is very crucial to it’s development primarily
because of the effect of the policy on savings/investment and
through the financial intermediation role of the banking sector.
From the Lender’s point of view, interest rate is the reward for
saving now and spending later. Thus, of primary concern to Lenders
deciding how much to save and what financial assets to acquire, is
the purchasing power of the funds returned when the financial
asset are sold or returned later (Lombra,1984). This underlines the
concept of the real interest rate in which the normal interest rate
demanded by the Lender is viewed as being made up of two
components. An inflation rate component which is perceived as a
premium for saving now and paying later by the lender and
secondly, a real interest rate component. Thus, savings assumed to
be positively related to the real interest rate and investment at a
given rate of economic growth. Proponents of this thesis,
recommend that policy endavour to ensure lower real interest rate
and expansion of the financial net work (Bhatia and Khatkhate,
1975). Anything short of this, like the policy of administrative
control of interest rate and credit, will hold the real interest rate
below its equilibrium level and thus leads to financial repression.
The role interest rate play in determining investment and,
hence economic growth, has been a matter of controversy over a
long period of time. Yet, what constitutes an appropriate interest
rate policy still remains to be a puzzling question. Until the early
1970’s, the main line of argument was that because the interest
rate represents the cost of capital, low interest rate will encourage
the acquisition of physical capital (investment) and promotes
economic growth. Thus, during this era, the policy of low real
interest rate was adopted by many countries including the
developing countries of Africa. This position was however,
challenged by what is now known as the orthodox financial
liberalization theory. The orthodox approach to financial
liberalization (Mckinnon-Kapar and the broader Mckinnon-Shaw
hypothesis) suggests that high positive real, interest rates will
encourage saving and later investment and growth in the long run,
on the classical assumption that saving is necessary for investment,
the orthodox approach brought into focus not only the relationship
between investment and real interest rate, but also the relationship
between the real interest rate and saving. It is argued that financial
repression which is often associated. With negative real deposit
rates leads to the withdrawal of funds from the banking sector. The
reduction in credit availability, it is argued, would reduce actual
investment and hinder growth. Because of this complementarily
between savings and investment, the basic teaching of the orthodox
approach is to free deposit rates-positive real interest rates will
encourage saving; and the increased liabilities of the banking
sectors will oblige financial institution to lend more resources for
productive investment in a more efficient way. Higher loan rates,
which follow higher deposits rates, will also discourage investment
in low-yielding projects and raise the productivity of investment.
This orthodox view became highly influential in the design of IMFWorld Bank Financial liberalization programmes which were
implemented by many Africa countries including Nigeria, under the
umbrella or Structural Adjustment Programme. In this study there
we seek to assess the extent interest rate has gone in stimulating or
effecting the level of investment in Nigeria.
1.2 STATEMENT OF THE PROBLEM
Since independence in 1960 Nigeria has been struggling to
achieve a sustainable economic growth and development. The
country has consistently witnessed low rate of growth and per
capital income. One of the factors that accounted for this poor
economic growth and performance is the low level investment.
Prior to the present period privatization the bulk of investment
in Nigeria was done by the public (government). Investment by the
public was over 70%. While the private sector has the rest. As a
result of the relinquishing of the productive sector to the private
individual (privatization) the private sector is yet to take over the
bulk of investment in the economy even when government had
withdrawn.
In reaction to the above scenario, the Nigerian government
with the aid of the IMF adopted a comprehensive programme of
economic reform known as the Structural Adjustment Programme
(SAP) in 1086. Prior to this period, especially in the first half of
1980’s the Nigeria economy was in severe crisis arising from the
defective structure of the economy, falling prices of crude oil in the
international market, huge external dept stack and low level of
investment.
The main aim of the economic reform process was therefore, to
restructure the production and consumption patterns of the
economy, through the elimination of price distortion and reduction
of the economy, on crude oil export and import of raw material and
consumer goods. Thus the adoption of relevant pricing policies in
all economic sectors with greater reliance on market forces and
consequently reduction in complex administrative control became
one of the three basic policy instruments of the adjustment
programme (Uwatt, 1999).
While the reform programme touched all sectors of the
economy, the financial sector reforms aimed at removing the
pervasive distortions introduced into the system through prolonged
use of direct controls and excessive government intervention and
improving the efficiency of the financial resources for economic
development (Oke, 1995) one major sources of distortion in the
financial resources of distortion in the financial sector was
regulated interest rate. Beginning from March 1970 up to December
1986, interest rate was institutionally determined and administered
in Nigeria. The Central Bank of Nigeria (CBN) was charged with this
responsibility and throughout the period interest rates were fixed at
very low level to promote investment and growth in the private
sector and to keep interest payment on public sector borrowing as
low as possible. Unfortunately this became a bane to funds
mobilization through personal savings.
However, the posture of government to deregulate the economy
in order to enhance competition and investment necessitated the
introduction of interest rate, based on market forces with effect
from august 1987. The general argument therefore is that interest
rates in Nigeria have been high and unrealistic to enhance the
required level of investment and economic growth.
Though some marginal improvements have been recorded in
the country since the inception of the present administration due to
its pressure on financial institutions to reduce interest rates in
order to stimulate investment and economic growth, we are not
sure that such improvement is captured by government effort.
Therefore there is the need to critically examine the role of interest
rate in enhancing investment in Nigeria. This is what has promoted
this study.
1.3 OBJECTIVES OF THE STUDY
This study has its main objective to examine the impact of real
interest rate on the level of domestic investment in Nigeria from
1981-2005. In specific terms, the study has the following objectives:
i.
To find out the interest rates obtainable in Nigeria from 19812005.
ii.
To determine the level of investment in Nigeria from 19812005.
iii. To examine the impact of real interest rate on the level of
investment in Nigeria from 1981-2005.
1.4 RESEAERCH HYPOTHESIS
This study was guided by the following hypothesis
H0: ao=O: There is no significant relationship between real interest
rate and the level of domestic investment in Nigeria from
1981-2005.
Hi: ao = O: There is a significant relationship between real interest
rate and the level of domestic investment in Nigeria from
1981-2005.
1.5 SCOPE AND LIMITATION OF THE STUDY
This study is concerned with real interest rates with emphasis
on the implications on domestic investment in Nigeria from 19812005. Prior 1986 represents the regulated era with government
determining the cost of funds which was investment friendly due to
low interest rates. The 1981-2005 period represents the
liberalization period with market mechanism determining cost of
funds. Thus, these time frames, the economic scenarios and there
implications on interest rates and investments serve as limitations
for this study.
1.6 SIGNIFICANCE OF THE STUDY
The result of this study will provide a director for policy
makers on the role interest rate play in fund mobilization and
investment in Nigeria. It will also assist policy makers on designing
economic policies aimed at mobilizing domestic resources for
investment.
The study also provide a window for financial institutions on
strategies for fund mobilization and allocations (financial
intermediation) in order to improve their performance in particular
and that of the economy at large. Finally a study of this type will
add to literature in monetary economics and serves as basic for
further studies.
1.7 ORGANIZATION OF THE STUDY
This is organized into five chapters. We begin by X-raying the
interest rate and the level of investment in Nigeria, followed by the
statement of problem, objectives of the study, research hypothesis,
significance of the study, scope and limitation of the study and
organization of study. Chapter two covers the review of
relevant/related literature. Here emphasis is placed on findings of
other scholars as a basis for establishing the points of departure of
this investigation. The procedure followed in carrying out this
investigation i.e the research design, type of data required, sources
of data, method of data analysis and model specification are
contained in chapter three. Chapter four centres on the
presentation of data analysis of data and interpretation of results
and major findings, finally chapter five provides the summary,
conclusion and recommendations for the study.
AGRICULTURAL DEVELOPMENT
AND ITS IMPACT ON THE
NIGERIAN ECONOMY
ABSTRACT
The purpose of this work was meant to examine Agricultural
development and its impact on the Nigerian economy. The employed
variables are Agricultural productivity and gross domestic product.
Our result show that R2 is 41 percent that is 41 percent changes in
the employed variables account for the down fall of the Agricultural
sector. Our F test will show that our F calculator was much higher
than our F theoretical in the table at 5% alpha probably level. Thus
the researcher will reject the alternative hypothesis agricultural
productivity has not contributed much to the GDP. Based on the
findings of the research, the researcher will give some
recommendations such as:
i. Government should allocate substantial amount if financial
resources to the agricultural sector.
ii. Government should make efforts to encourage the Nigerian
farmers with finance and other agricultural incentives and put in
place corporate body to make sure that farmer benefits of this
because individuals more especially those in the government will
deprive them of it.
iii. Policies made on agriculture should be consistent.
TABLE OF CONTENTS
Title Page i
Certification
ii
Dedication
iii
Acknowledgement
iv
Abstract v
Table of Contents
vi
List of Tables vii
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CHAPTER ONE:
INTRODCUTION
1.1 The Background of the Study 1
1.2 Statement of the Problem 3
1.3 Objective of the Study
4
1.4 Significance of the Study 5
1.5 Research Question/Hypothesis 5
CHAPTER TWO:
REVIEW OF LITERATURE
2.1 Literature Review
6
2.2 Past Efforts Improving Agriculture in Nigeria
9
2.3 Agricultural Development Programme
9
2.4 The National Agricultural Policy
10
2.5 Agriculture in Economic Development
13
CHAPTER THREE: METHODOLOGY
3.1 Introduction
16
3.2 Sample to Study
16
3.3 The Model 16
3.4 The Model Estimation Technique
17
3.5 Type of Data Required and Sources
17
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CHAPTER FOUR: PRESENTATION OF DATA
4.1 Introduction
18
4.2 Presentation of the Results on Ordinary Least
Technique (OLS)
4.3 Interpretation of Results 19
Square
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CHAPTER FIVE:
SUMMARY, RECOMMENDATION AND
CONCLUSION
5.1 Discussion of Findings
21
5.2 Summary 21
5.3 Conclusion
23
5.4 Recommendation
24
Reference 27
18
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CHAPTER ONE
1.1 BACKGROUND OF THE STUDY
The contemporary Nigerian society has in the last two decades
witnessed an upsurge of socio-economic difficulties associated from
neglect of the agricultural sector of the economy. Though, the
economy was predominantly depended on agricultural products
before such as cocoa, palm kernel, palm produce, groundnuts,
cashew nuts, before the political independent in 1960. The advent
of discovery of crude oil in large quality has shifted the focus of
economy earning from agriculture to oil sector, causing over
dependence on crude oil production at the detriment of other
sectors.
Most non-oil sectors in Nigerian economy suffer setback, even some
that are productive become less or non-productive because of focus
diversion and lack of proper financing especially in agricultural
sector of the economy. Thus, the fact is that over the years, the
inflecting pains of neglect of non-oil or agricultural products
experienced in the Nigerian economy especially as it affects the
production of Agro-Allied, semi processed manufacturing products
which result to general fall in standard of living, affecting the
volume of non-oil production adversely.
As a result of this ugly development, the Nigerian economy has
since last two decades experiencing various forms of economic
deformities as shortages or non-availabilities of primary products,
also increasing the level of unemployment. Thus, a situation which
in several occasions has resulted to social unrest in the Nigerian
Economy.
It is in the height of the above and other fundamental causes of the
growing decline in the contribution of the agricultural sector to
economic development that the federal government (and the state
government) introduced a variety of integrated policy measures
towards strengthen the agricultural sector.
Some of these measures include government direct participation in
food production; embodied in the reforms or changes directed
towards re-examining the country’s agricultural policies.
Government’s mean instrument for direct production in agriculture
is the National Accelerated Food Production Programme (NAFPP),
launched 1973. It was tailored specifically to increase the
production of the main food crops, rice maize guinea corn, millet,
wheat, cassava and yams large scale irrigation farms of the eleven
River Basin Development Authorities (RBDA) launched in 1973, also
with the mandate to harness the water resources of the country
provide infrastructure such as road and electricity and distribute
various farm inputs. Operation Feed the Nation (OFN) of 1976
aimed at food self-sufficiency. Also was the green revolution,
introduced in 1980 which attempted to combine the above
mentioned features of NAFPP and ADP. It is the early success of
these pilot ADP and others still under implementation at that period
that have gingered the federal government into adopting the world
bank ADP concepts as the core of its agricultural development
efforts, and adopt the approach as a nationwide programme.
Agricultural development programme is a new state-wide policy,
which the federal government introduced to aid farmers in various
ways to increase their output and also develop rural areas. Thus
ADP can be termed as a progressive and systematic transformation
of the traditional agricultural system in order to increase the total
output and productivity per farms, minimize underemployment,
improve the living conditions of farmers and the rural population in
general.
1.2 STATEMENT OF PROBLEM
Agriculture is the main occupation of Nigeria and so far a lot of
development programmes has taken place under the regime of
Olusegun Obasanjo, such as National Agricultural Policy (NAP),
National Economic and Empowerment Development Strategy
(NEEDS) which is vigorously implemented in the various subsectors within the limits if available resources. But productivity has
stagnated, slowing wider economic growth and exacerbating poverty
with it. Agriculture can be said to be developed when it contributes
immensely to the growth and development of a nation by;
i. Supplying raw materials required by the industrial sector
ii. Contributing immensely to country’s Gross Domestic Product
(GDP).
iii. Provide employment for the teeming population
1.3 OBJECTIVES OF STUDY
The objectives of this study are to:
i. To increase in production and processing of exportable
commodities with a view to increasing their foreign exchange
earning capacity and further diversify the country’s export base and
sources of foreign exchange earnings.
ii. Modernize agricultural production processing, storage and
distribution through the fusion of improved technologies and
management so that agriculture can be more responsive to the
demands of other sectors of the economy.
iii. To create more agricultural and rural employment
opportunities to increase the income of farmers and rural dwellers
and productively absorb and increasing labour force in the nation.
1.4 SIGNIFICANCE OF THE STUDY
A study of this type is to tell how important the agricultural sector
is to the development of the Nigerian economy. We know that
Agricultural does not just affect the lives of individuals, but as far
as industrializing a country. With the various development
programmes taking place in the Agricultural sector in the
president’s reform programmes, it is imperative to know that for a
country to develop the basic need of its people must be met, it has
to be able to accommodate the teeming population with its produce
then the surplus can be used for exchange of technologies to
develop the country.
1.5 HYPOTHESIS
Ho: Null hypothesis
There is no significant difference between agricultural productivity
and gross domestic product
Hi: Alternative Hypothesis
There is a significant difference between agricultural productivity
and gross domestic product.