...CAUSES OF ECONOMIC RECESSION (MELTDOWN) IN NIGERIA Broadly defined, a recession is a downturn in a nation's economic activity. The consequences typically include increased unemployment, decreased consumer and business spending, and declining stock prices.[1] Recessions are typically shorter than the periods of economic expansion that they follow, but they can be quite severe even if brief. Recovery is slower from some recessions than from others. The global financial crisis, brewing for a while, really started to show its effects in the middle of 2007 and into 2008. Around the world stock markets have fallen, large financial institutions have collapsed or been bought out, and governments in even the wealthiest nations have had to come up with rescue packages to bail out their financial systems. Many blame the greed of Wall Street for causing the problem in the first place because it is in the US that the most influential banks, institutions and ideologies that pushed for the policies that caused the problems are found. For the developing world, the rises in food prices as well as the knock-on effects from the financial instability and uncertainty in industrialized nations are having a compounding effect. Governor of the Central bank of Nigeria Prof. Chukwuma Soludo on the 18th of March, 2009 at a special briefing of the Federal Executive Council said "resource flows and capital flows around the world are frozen up. Nigeria depends for more than 95 percent...
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...FINANCIAL AND ECONOMIC DEVELOPMENT OF NIGERIA PETROLEUM PRICE DEREGULATION IN NIGERIA: AN INTRODUCTION TO THEORETICAL, INSTITUTIONAL AND POLICY ISSUES. Nigeria once flush with oil boom revenues, is now a country of unfinished petrol station construction sites, ghost refinery depots, abandoned petrol stations, an unintended monuments to unrealized expectations. It is therefore not a surprise that in such an environment the appetites for risk should naturally abate often such catastrophic losses and situation. ORIGIN OF FREE MARKET IDEOLOGY IN NIGERIA Overview/introduction A careful study of Nigeria’s economic… reveals that… Economic policies in Nigeria have in the last two decades reflected a drive for accelerated economic development through economic and financial liberalizations. The outcomes have been largely disappointing, even in the honest estimates of their designers. Both urban and rural livelihood has become more insecure, and the expected economic development and growth has rarely materialized. Social and political insecurity are etched into the growth pattern. Ironically, the same liberalization policy that has been so deeply adverse to many sectors of the economy, somehow provided new opportunities to some individuals and groups that have the absorptive capacity to embrace, absorb and integrate both the policy and transfer of technology that it brought into their operation (especially retail and marketing segments of the downstream sector of the oil industry)...
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...CHAPTER ONE INTRODUCTION 1.1 BACKGROUND OF STUDY Nigeria banking sector has experienced a boom-and-burst cycle in the past 20-25 years. After the implementation of the structural adjustment programme (SAP) in 1986 and de-regulation of the financial sector, new banks proliferated mainly driven by attractive arbitrage opportunities in the foreign exchange market (Heiko 2007), but prior to the de-regulation period, financial intermediation never took off and even declined in the1980’s and 1990’s (Capirio and Kligbiel). The sector was highly oligopolistic with remarkable features of market concentration and leadership. Lemo noted that there are ten banks that control more than 50% of the aggregate assets of the banking sector, more than 51% of the aggregate deposits liabilities and more than 45%of the aggregate credits. The sector was characterized by small scale banks with high overheads; low capital base averaging less than $10 million; heavy reliance on the government patronage and loss making. Nigeria‘s banking sector was still characterized by a high degree of fragmentation and low level of financial intermediation up to 2004. This research work is motivated by the need to look into the Central bank (CBN)’s recent reform (consolidation) that employed certain measures to strengthen the Nigeria banking system by drastically increasing the minimum capital requirement from N2 million to N25 billion ($190 million-US). Through review of relevant literatures, analysis...
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...| UK | Nigeria | Government stability | Very StableFollowing the market reforms instituted by Prime Minister Margaret Thatcher in the 1980s, Britain experienced steady economic growth throughout the 1990s; political stability continued throughout the years. However, the government’s size and spending grew significantly under successive Labour governments. Prime Minister David Cameron’s Conservative–Liberal Democrat coalition government, formed after the 2010 general election, has cut public services but maintained spending on the National Health Service and foreign aid. The government’s debt continues to increase. The economy was in recession in early 2012 but has bounced back to positive growthIn essence, The United Kingdom (UK) is a country with very lowlevels of risk.Recently, the UK was hit particularly hard by the global financia lturmoil, partially due to its sizeable financial sector. Yet, the economy has continued to recover slowly with growth between 0-2% and an expected 0.7% in 2013. Forecasted growth should be between 1-2% going forward driven by marginally higher employment, lower inflation, improved demand and easing concernsover the Eurozone. | Very instable.Tribalism, religious persecution, and ethnic rights have played a visible role in Nigerian politics both prior and subsequent to independence in 1960. Kin-selective altruism has made its way into Nigerian politics and has spurned (spurred?) various attempts by tribalists to concentrate Federal power to a particular...
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...Lagos: the survival of the determined Lagos is a city where near anarchy prevails rather than government. Lagosins respond to the chaos by relying on their own ingenuity to get by It’s rush-hour near the stadium in Lagos where Nigeria has just lost a football match. Streams of young men run through the street to let off steam as crowds dive into the tangle of battered yellow minibuses. A dozen passengers pack into one bus, and the driver grinds into gear, lurching at full throttle to gain a six-inch lead over his competitor. The side-view mirror has to be pulled in for the bus to squeeze through. Girls balancing bags of water on their heads edge their way through the traffic to vend their wares. Toilet brushes, cutting shears, smoked fish, hankies, inflatable globes and even a steering wheel are sold by boys as the coil of traffic becomes ever more ensnared. But the action never stops for a moment. That’s Lagos—a city that moves, miraculously, against the odds. A mighty magnet It’s difficult to find the centre, let alone the logic, of this city reputed to be the most dangerous in Africa. Three bridges connect about 3,500 square kilometres of lagoon, islands, swamp and the mainland, where unlit highways run past canyons of smouldering garbage before giving way to dirt streets weaving through 200 slums, their sewers running with raw waste. So much of the city is a mystery. No one even knows for sure the size of the population—officially it’s 6 million, but most experts estimate...
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...Human development in a basis of brainpower is one of the most fundamental cause not only economic development but also in terms of development in general. Human endures intellect toward productive growth in developed countries which mainly relies on technological innovation. However, as for developing countries, growth and development follows developed countries by forcing the technology mechanism and changing the structure of production towards activities with higher levels of productivity. The evidence show that during 1970s and 1980s there were of structural changes in economic activities where developing countries enters the global markets. In his preface, Giplin (2001; xi) point out that “…important step toward the creation of a truly global economy, since the mid-1980s the world has also witnessed the extraordinary growth of economic regionalism as a countermovement to economic globalization.” Similarly, Magdoff (1992; 50) state that “In fact, capital exports have helped shape the evolving global economy ever since the end of the Second World War”. Moreover, Glyn and Sutcliffe (1992; 79) point out that “…left the world economy leaderless in the 1970s and 1980s with increasingly open economies disciplined by market forces, but without a unique center of gravity.” This implies that global economies forces t To provide a well-structured discussion, this essay will begin by briefly introducing into how neo-liberalism in the mainstream of development thinking greatly achieve...
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...The debt crisis of Nigeria and Greece Introduction National debt is a problem that can inflict any country including the developed countries. Almost all countries go into budget deficit one way or the other and end up borrowing money. The most direct effect of the government debt is to place a burden on future generations of taxpayers. When these debts and accumulated interest come due, future taxpayers will face a difficult choice. Inheriting such a large debt cannot help but lower the living standard of future generations. In the 1960s and 1970 some developing countries were encouraged to borrow money to service old debts and also to finance development projects in their country like infrastructure. This has been necessitated by the availability of huge oil earnings deposited by OPEC member countries and were eager to lend at very low rates. Moreover, it is misleading to view the effects of government debt in isolation. Government debt can be divided into two categories namely domestic debt and international debt. The International debt is facilitated by the formation of such institutions like the International Monetary Funds (IMF) the International Bank for Construction and Development (World Bank). Governments borrow money from the private sector and foreign governments if they can't pay for all their spending with taxes and government revenues. A government will issue bonds at bond auctions every so often and market participants will come in and bid for them. Market participants...
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...ENERGY POLICY AND CONSERVATION IN NIGERIA: IMPLICATIONS FOR RURAL DEVELOPMENT BY O.ADEGBUYI AND O.O. FASORANTI (PhD) ABSTRACT To impact visible advances in rural communities in Nigeria for achieving meaningful economic goals, the effective policy of energy usage as a vessel for the acquisition and utilization of required technologies to develop and recover the present depreciating national economy associated with poor food production must be focussed strategically. The socio-economic growth of any developing nation is generally a function of the level of maintenance of her energy demand supply balance and sustainable food production. Nigeria may attain the potential status of an industrialised nation by the year 2010 if all available manpower and other natural resources are well utilized before then to effectively harness her potentials of cheaper alternative energy technologies for long term economic and rural developmental goals. This paper presents the nation’s requirement of a well- articulated energy policy and urgent implementation strategies emphasizing on appropriate energy conservation concepts to promote optimal utilization of existing energy resources in her rural areas. It is therefore suggested that the development of available alternative energy resources be encouraged for integrated rural growth, sufficient food production and small scale industrialization thereby alleviating poverty in the rural communities of the...
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...CHAPTER ONE 1.0 INTRODUCTION 1.1 BACKGROUND OF THE STUDY For decades now, Nigeria has been experiencing disappointing performance in terms of growth in gross domestic product (GDP) and the general development of her economy. As a result, there’s no improvement in the level of poverty. In the 90s, came the era of globalization which connotes external opening and increased role of markets domestically (i.e. the market economy). To the developing world, market economy is a modern way of turning the economy around. The essence of globalization is to move the economy towards external liberation, focusing on market oriented economic system, export-led strategy and stabilization of the economy. In Nigeria, it was the era of structural adjustment programme in collaboration with the IMF and World Bank. The governments in the developing world, believes that it is more desirable to globalize which simply means to open up the economy and penetrate international markets. In time past, the world economy has undergone a fundamental shift towards an integrated and coordinated global division of labour in production and trade. In the 1950s and 1960s, productions were within national boundaries. The increase of oil prices in the late 1970s and the contractionary monetary policies of the United States during 1979 and 1982 period led to the increased interest rates and consequently indebted developing countries found they unable to service their debts. Continual refinancing was the only...
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...Journal of Economics and Sustainable Development ISSN 2222-1700 (Paper) ISSN 2222-2855 (Online) Vol.4, No.10, 2013 www.iiste.org An Evaluation and Forecast of the Impact of Foreign Direct Investment in Nigeria’s Agriculture Sector in A VAR Environment Ayodeji Adetunji Idowu* Liu Ying Huazhong Agricultural University, No.1, Shizishan Street, Hongshan District, Wuhan, Hubei Province · 430070 · P.R. China * E-mail of the corresponding author: ayodeji.idowu@hotmail.com The research is financed by project (NCET-12-0868) New Century Excellent Talents and Project (2013PY017). Abstract This study evaluated and forecasted the impact of FDI in the agricultural sector from 1980-2007, specifically its impact on agricultural output and labor in a Vector Auto Regression (VAR) environment. Data used in this study were sourced from Central Bank of Nigeria (CBN) statistical bulletin (2009). Results from the analysis revealed that FDI in the period under review had no significant impact on agricultural output. In addition, results of the forecast estimates showed that the current volume of FDI would not significantly affect agricultural output but will have significant positive impact on labor (employment generation). This study recommended for increase in the volume of FDI and advised government and other stakeholders to seek FDI that will improve existing or introduce new technology in the agricultural sector and enhance domestic capacity or domestic investment, even if the opportunity...
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...03.06.2008 Economic Development through Globalisation in Nigeria An analysis of Shell & the IMF Structural Adjustment Programs Sven Bokhari 820619-P291 Fabrizio Del Duca 791225-P114 Group number: 1983 Summary Date: Level: Authors: 2008/06/03 Master thesis in International Business and Entrepreneurship, 10p (15ECTS) Sven Bokhari Västerås Date of birth: 19820619 Fabrizio Del Duca Västerås Date of birth: 19791225 Title: Economic Development through globalisation in Nigeria. An analysis of Shell & the IMF Structural Adjustment Programs Leif Linnskog, Ph.D. Tutor: Research Question: Can globalisation be seen as positive or negative for the Economic Development of Nigeria? A focus on Shell and the International Monetary Fund Research Issue: Globalisation in its current form is viewed in the Western world as a positive influence for the Economic Development of under developed countries. However these views on the benefits brought to developing countries have been frequently disputed. The research we are undertaking is a pilot study based on documentary research. Our source of information is secondary data such as books, articles, newspapers and journals. The study employs a qualitative approach. Even though globalisation is often viewed as positive we have discovered that this is not always the case in relation to its effects in Nigeria. Judging from our analysis, globalisation through the IMF and Shell has had an overall negative impact on Economic Development...
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...Federal Government budget in Nigeria between 1999 and 2013. The analysis of this study showed that for more than a decade of democratic dispensation in Nigeria, there has been a consistent increase in the total recurrent expenditure of the Federal Government. This has led to budget deficits. Thus a key macroeconomic issue addressed in this study is the rationale underlying government fiscal deficit, the significance of the rational expectation hypothesis in Nigerian economy and the consequences and impact of this action on the economy. Data for this study were collected from CBN statistical bulletin and gazette of the Federal Ministry of Finance. The study employed a descriptive analysis. Government has been allocation more fund to recurrent expenditure over the period under study. Using key fiscal indicators the study recommended that for overall sustained economic growth and development; federal government should increase substantially allocation to capital projects in rural Nigeria to trigger economic growth and development. Introduction A Budget is focused on the Government’s drive to achieve its developmental goals as entrenched in its Vision. It is also anchored on the commitment of the Government to improve the socio-economic status its people by strategically implementing plans and programmes to boost economic activity and launch the nation onto a path of sustained development. In the above respect, a Budget is planned to accelerate economic recovery through targeted...
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...Impact of Nigeria's Bilateral Investment Agreements in Oil and Gas on the Right to Health and the Right to a Healthy Environment: A Case Study of the Niger Delta” Full Name of Student (Your student registration number) A XXXXXXXXXXX DISSERTATION SUBMITTED IN PARTIAL FULFILMENT FOR THE REQUIREMENT OF DEGREE OF XXXXXXXXX XXXXXXXXXXXXXXXXXXXXXXXXXXXXX UNIVERITY Declaration I hereby declare that research thesis is my original work and has never been used presented for any degree or diploma in any university or institution. Where material is obtained from published or unpublished works, this has been fully acknowledged by citation in the main text and inclusion in the list of references. Table of Contents Declaration 2 Table of Contents 3 CHAPTER ONE: INTRODUCTION 11 1.1 Background of the study 11 1.2 Statement of the Problem 27 1.2 Research Aims 29 1.3 Research Objectives 30 1.4 Research Questions 31 1.5 Justification of the Research 32 1.6 Research Methodology 42 1.6.2 Research design 45 1.6.2 Target population 45 1.6.3 Sampling 46 1.6.4 Data collection 46 1.6.5 Data presentation 46 1.7 Definition of terms 46 1.8.2 Environment 47 1.8.3 The right to health and the right to a healthy environment...
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...the Crude Oil and Natural Gas Sector of Nigeria Table of Contents A State Intervention Approach to International Trade and the Right to Health in the Crude Oil and Natural Gas Sector of Nigeria 1 Chapter 1 General Introduction 6 1.1. Background 6 1.1.1. Definitions 14 1.1.2. Trade Liberalization 14 1.1.3. International Trade Law 15 1.1.4. Right to Health 16 1.1.5. Human Right Laws 17 1.2. Research Questions 18 1.3. Justification of the Research 21 1.4. Research Objectives 30 1.5. Research Methodology 31 1.6. Research Structure 37 Chapter 2 Theoretical Framework and Literature Review 40 2.1. Introduction 40 2.2. International Trade Rules and Protection of People’s Right to Health 41 2.2.1. Sources of International Trade Rules 41 2.2.2. Trade Liberalization and the Protection of the Right to Health 44 2.3. Scope of the Right to Health 54 2.4. Brief Overview of State Intervention Theory 59 2.5. States Duty towards the Fulfilment of the Right to Health 65 2.6. Legislative and Institutional Regulations Protecting the Right to Health in Nigeria 73 2.6.1. The International Covenant on Economic Social and Cultural Rights (ICESCR) 1966 76 2.6.2. The African Charter on Human and People’s Rights (ACHPR) 78 2.6.3. The International Health Regulations, 2005 81 2.6.4. The Nigerian Constitution 82 2.7. Conclusion 83 Chapter 3 State Intervention in the Negative Effects of Trade in Crude Oil and Natural...
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...Full Report can be downloaded at: http://www.un.org/en/development/desa/policy/wesp/index.shtml World Economic Situation and Prospects Executive Summary 2012 1 Executive Summary Global economic prospects for 2012 and 2013 The world economy is on the brink of another major downturn The world economy is teetering on the brink of another major downturn. Output growth has already slowed considerably during 2011 and anaemic growth is expected during 2012 and 2013. The problems stalking the global economy are multiple and interconnected. The most pressing challenges lie in addressing the continued jobs crisis and declining prospects for economic growth, especially in the developed countries. As unemployment remains high, at nearly 9 per cent, and incomes stagnate, the recovery is stalling in the short run owing to the lack of aggregate demand. But, as more and more workers are out of a job for a long period, especially young workers, medium-term growth prospects will also suffer because of the detrimental effect on workers’ skills and experience. The rapidly cooling economy has been both a cause and an effect of the sovereign debt crisis in the euro area, and of fiscal problems elsewhere. The sovereign debt crises in a number of European countries worsened further in 2011 and aggravated weaknesses in the banking sector. Even bold steps by the Governments of the euro area countries to reach an orderly sovereign debt workout for Greece have been met with continued financial...
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