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CHAPTER ONE
1.0 INTRODUCTION
1.1 BACKGROUND OF STUDY
The Nigerian economy has over the decades been characterized by galloping inflation, unequal foreign exchange rate exasperated by devalued currency and persistent dependence on importation, widespread unemployment, and dilapidated infrastructures among others (Eme 2013). These features clearly portray the development challenges Nigeria faces which historically is hinged on dependence on foreign capitalist economies of North America and Europe and further worsened by leadership crises as evidenced in corrupt and inept leadership (Nnadozie 2010).
The reasons for this gory situation of the nation’s economy and overall socio-economic underdevelopment are not far-fetched. According to Adeyeri and Adejuwon (2012) a comprehensive analysis of Nigeria’s economic crisis reveals a relationship between the periods of slavery, colonialism, and neo colonialism and the backwardness or distortion of the Nigerian economy.
Likewise, Babawale (2007:1) argues that the history of economic crisis in Nigeria can be traced to the period of British colonialism which led to the disruptions and dislocation of the country’s pre-colonial mode and relations of production. For him, colonialism brought about distortions into the economy and deepened the country’s dependence on the metropolis.
Adeyeri and Adejuwon (2012), further stressed that colonialism saw the incorporation of Nigerian peasant producers into the world market, removing millions of Nigerian from the comfort and stability of subsistent and semi-subsistent production and placing them in the web of an uncertain, volatile, and exploitative world market, which ensures a systematic subjugation of raw-material producers to the forces and vagaries of the world market.
The implication of this situation on the economic system of production is that the colonial economic structure made it impossible for the Nigerian economy to be self-sufficient. The economy rather become absorbed into the world capitalist system in which it serves as mere agent of Europeans economic institutions (Adeyeri & Adejuwon 2012).
The direct outcome of this is that the country is now dependent on externally oriented export–import foreign trade, characterized by foreign domination of the local economy, and the appropriation of surplus value by foreign firms (Falola, 2007, p. 39; Aghahowa & Ukpebor, 1999).
At independence, Nigeria according to Babawale (2007) was bequeathed an economy that was not only distorted but also responsive to the vagaries in the international capitalist system into which it had been incorporated and it is characterized by a low productive base, with poorer technology, dependence on a narrow range of cash crops and later crude oil. The post-independence period as rightly observed by Adeyeri and Adejuwon (2012) has witnessed the Nigerian economy to be perpetually dependent on foreign markets, foreign aid and foreign technology.
1.2 STATEMENT OF THE PROBLEM
Virtually every economy depend on each other for development of the country. Nigeria is one of the developing countries that have it means of survival depending on other countries which might give to her what she wants. Often at times, the challenges that the country faces as a result of depending on other countries for development could be as a result of war break out, language barriers, discrimination of people from their country that might not non-citizens. Finally, several research has been carried out on the economic dependency and its effects on the country but not even a single research has been carried out on economic dependency and development in Africa; a case study of Nigeria during the fourth republic.
1.3 AIMS AND OBJECTIVES OF STUDY
The main aim of the study is to examine the economic dependency and development in Africa. Other specific objectives of the study include;
1. to determine the effect of economic dependency in the development of Nigeria in Africa during the fourth republic.
2. to determine the factors affecting economic dependency and development in Africa.
3. to determine the influence of economic dependency and development in Africa during the fourth republic.
4. to proffer possible solutions to the problems.
1.4 RESEARCH QUESTIONS
1. What is the effect of economic dependency in the development of Nigeria in Africa during the fourth republic?
2. What are the factors affecting economic dependency and development in Africa?
3. What is the influence of economic dependency and development in Africa during the fourth republic?
4. What are the possible solutions to the problems?
1.5 STATEMENT OF RESEARCH HYPOTHESIS
H0: Economic dependency has no significant effect on the development of Africa.
H1: Economic dependency has a significant effect on the development of Africa.
1.6 SIGNIFICANCE OF STUDY
The study on the economic dependency and development in Africa will be of immense benefit to the entire Nigeria both the government and the private sector in the sense that it will enable the country not to be overdependence on one of the natural resources that they have which happens to be crude oil, rather it will enable them to invest with the oil income for the development of the country and more so, create new job opportunities for the cititzens. The study will help direct attention of the federal government and the oil sector on the need for diversification into other sources of revenue like agriculture, for economic growth. Finally, the study will contribute to the body of existing literature and knowledge to this field of study and basis for further research.
1.7 SCOPE OF STUDY
The study on the economic dependency and development in Africa is limited to Nigeria during fourth republic.
1.8 LIMITATION OF STUDY
Financial constraint- Insufficient fund tends to impede the efficiency of the researcher in sourcing for the relevant materials, literature or information and in the process of data collection (internet, questionnaire and interview).
Time constraint- The researcher will simultaneously engage in this study with other academic work. This consequently will cut down on the time devoted for the research work.
1.9 DEFINITION OF TERMS
Economic DependencyIs an unending situation in which countries, economies and economic agents depend on each other and a variety of different economic and non-economic factors for economic and non-economic reasons.
DevelopmentThe process of developing or being developed.
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