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TABLE OF CONTENTS
Title page – – – – – – – – – – i
Certification – – – – – – – – -ii
Dedication – – – – – – – – – -iii
Acknowledgement – – – – – – – -iv
Abstract – – – – – – – – – -vi
Table of contents – – – – – – – – -viii
Table of figures – – – – – – – – -ix
CHAPTER ONE: INTRODUCTION
1.1 Background of the Study – – – – – -1
1.2 Statement of Problem – – – – – – -3
1.3 Objectives of the Study – – – – – -5
1.4 Significance of Study – – – – – – -6
1.5 Research Question – – – – – – -7
1.6 Statement of Hypothesis – – – – – -8
1.7 Scope and Limitations of the Study – – – -9
1.8 Definition of Terms – – – – – – -10
Reference – – – – – – – – – – -12
CHAPTER TWO: LITERATURE REVIEW
2.1 The National Economic Empowerment and
Development Strategy – – – – – – -13
2.2 The Micro Economic Frame Work – – – – -19
2.3 Reforming the Government – – – – – -20
2.4 Growing the Private Sectors – – – – – -28
2.5 The Social Chartered and Implementation Strategy – -40
2.6 Implementation and Financial Implementation – -54
2.7 Analysis of Microeconomic Indicator of Needs 2004 – -60
2.8 Possible Implementation Challenges of NEEDS – -63
Reference – – – – – – – – – – -65
CHAPTER THREE: RESEARCH DESIGN AND
3.1 Research Design and Method – – – – -67
3.2 Sources of Data – – – – – – – -67
3.3 Population of the Study – – – – – -68
3.4 Determination of Sample Size – – – – -69
Reference – – – – – – – – – -71
CHAPTER FOUR: DATE PRESENTATION,
4.1 Date Analysis – – – – – – – -72
4.2 Test of Hypothesis – – – – – – -80
CHAPTER FIVE: SUMMARY OF FINDING, CONCLUSION AND
5.1 Summary of Findings – – – – – – -86
5.2 Conclusion – – – – – – – -87
5.3 Recommendation – – – – – – -87
Bibliography – – – – – – – – -89
Appendix – – – – – – – – – -91
1.1 BACKGROUND OF THE STUDY
Nigeria has an estimated population of about 125 million people
and a land area of about 924 square kilometers, a large proportion of
which is arable. It has large deposit of oil, gas and solid minerals and a
sizeable educated and skilled workforce. Deposit these, the country has
not been able to effectively harness its endowment to develop the
economy sufficiently to improve the welfare of its people, with an
estimated population growth rate of 2.8% and a GDP growth rate of
about 2.5%, per capital income growth was negative for the greater part
of the 1990s. Nigerian’s urbanization rate of 5.3% is one of the highest in
the world, leading to loss of virile labour force for agriculture. Besides,
the rate of job creation has been far less than the rate of growth of the
urban labour force. This combined education system that is not attuned
to the population of the appropriate manpower required to support
robust growth has led to high levels of unemployment and
Income distribution in the country is also stewed high such that
probably less than 15% of the population actually benefits from the GDP
growth. The country has a debt overhang of about US $30 billion with
light servicing requirements. Currently, about 65.7% of the population
lives below the poverty line, half of which probably lives on less than half
a dollar per day. The situation rather than improve has been worsening
over time. This has become a source of embarrassment for a country that
is relatively so well endowed.
The weakness of the Nigeria economy in the past three decades is
not unrelated to its dependence on oil as the mainstay of its economy.
Indeed, the country is a textbook example of economy under the “Dutch
disease” with its deleterious impact on the development or other aspects
of the real sector. Oil currently is 90% foreign exchange earnings and
about 75% of government revenues. It contributes about 3% of the
available labour force. (Akpobash, 2004:2).
For several years therefore, the development challenge for Nigeria
because the diversification of the productive base away from oil.
Successive governments took up these challenges in the design and
implementation of several plans and policies. However, the attempts at
achieving a more rapid growth of the industrial sector led to involve
estimates in several projects, which turned out to be “white elephants”.
The reason for this development is not far fetched as (Akpobasah
2004:2) rightly put it. Firstly, the capacity to design/execute such project
was lacking. Secondly, the soft loans/funds required for sustaining the
projects after inception dried up following the collapse of oil prices in the
early eighties. However, there is an even more significant development
resulting from the attempt to put the economy right. Governments
inadvertently become the dominant force in an economy employing
about one million people. The huge resource accruing to government
turned into a centre for rent seeking and corruption. Though Nigeria’s
rating in world corruption table is often contested, the government has
acknowledged that the situation is sufficiently bad to warrant of frontal
These provide the background for the recent launched economy
reform agenda, the national Economic Empowerment and Development
Strategy (NEEDS). The Obasanjo’s regime has also taken other measures
such as the establishment of an independent corrupt practices
commission (ICPC), the Economic and Financial Crime Commission
(EFCC) and a due process office to screen contracts prior to execution.
1.2 STATEMENT OF PROBLEM
The National Economic Empowerment and Development Strategy
(NEEDS) came in to take over from the farmer structural adjustment
programmes (SAP) which was introduced by the Babangida’s
administration in 1986 which emphasizes deregulation and as he put it
belt tightening. Oleka (200:54) said that the devil took over economy’s
The National Economy Empowerment and Development Strategy
(NEEDS) also intend to correct the negative impacts of the SAP on the
country economic growth, which has led to an unprecedented social
dislocation. For example, industrial capacity utilization has fallen below
40 percent and over 30 percent of these industries have shut down
nation wide. The unemployment rate is now running at about 30%. This
has been difficult to keep count of the galloping figures of inflation rate
but they have ranged from 15-20 percent animally, in the last few years.
Over 70% of the population is now living below the perverted, that less
than 3 percent of the population now living below the poverty line. The
reward system is now so grossly perverted that less than three percent
(3%) of the population now controls over 60 percent of the nation’s
wealth without adding any significant value to its productive base. The
mono-cultural economy practiced by Nigeria [i.e. oil], has depressed
other beneficial and elastic sector, as the economy now depends on oil as
its major engine of growth and source of government revere. This and d
the environmental degradation caused by oil extraction have caused a
strain between the oil rest of country. Corruption has also done
inalienable damage to the economy. In the last five years, government
has not really implemented any of its budgets. The transparency
international [TI] currently rates Nigeria as the third most corrupt
country in the world, which to many observers is a gross under5
assessment of the level of corruption that takes pale here. Therefore, the
rampant outbreak of ethnic and religious violence are large attributable
to the sharp decline of Nigerian’s economy and pervasive corruption in
the society. [Umar, 2005:]. So, going by the above, Nigeria economic
.problems can be summarized but not limited to:
(i) poor industrial capacity utilization
(ii) massive unemployment and underemployment
(iii) The rate of inflation is galloping freely.
(iv) Embarrassing poverty rate
(v) Poor wealth distribution/circulation system
(vi) Over dependence on the oil sector as the major source of foreign
exchange and government revere
(vii) Outrageous level of corruption, e.t.c
1.3 OBJECTIVE OF THE STUDY
The main objectives;
In this research work, the main objective is to ascertain if NEEDS has
made any impact on the Nigeria economy and to analyses such impacts.
Other specific objectives:
(i) To investigate how diligently the government has been keeping
to its economics development roles.
(ii) To ascertain the condition of the Nigeria economy before the
invention of NEEDS.
(iii) To examine how effective the several options that the
government had employed to resuscitate the Nigeria economy
(iv) To critically analyses the features of NEEDS.
(v) To determine if NEEDS is a veritable tools to salvage the
deteriorating Nigeria economy.
(vi) To assess the performance of NEEDS so far.
(vii) To examine the possible implementation challenges that
NEEDS may encounter.
1.4 SIGNIFICANCE OF THE STUDY
(i) This work is in partial fulfillment of the requirements for the award
of Masters in Business Administration (MBA) in Accountancy.
(ii) This work will be an immense help to future researchers who will
carry out their own investigations in this subject matter.
(iii) This work will not fail to assist the government in regulating
the economy and serve as a guideline for future economic
polices and development strategies.
(iv) This work will also help stakeholders [i.e. Nigerians] in
understanding the working of the economy and how to better
(v) This work will be helpful in restoring or rather installing
public confidence on NEEDS, encouraging people to support
it through opinion pools, suggestions, and contribution by
accepting the NEEDS as a gamine remedy to the current in
conducive and in clement economic conditions.
1.5 RESEARCH QUESTION
(i) Have you heard of the national economic empowerment and
development strategy (NEEDS)?
(ii) How do you assess the performance of the Nigerian economy before
the invention of NEEDS?
(iii) Since the invention of the 4year reform programmers in the year
2004 until date, has NEEDS created any reasonably impacts of the
(iv) How do you assess the role of government in the nation’s
(v) Have you felt any impact of NEEDS on the Nigerian economy
since the invention of four year economic reform Package in
(vi) What type of impact has been felt?
1.6 STATEMENT OF HYPOTHESIS
1.6.1 HYPOTHESIS ONE
The hypothesis used in this work adopted to check if NEEDS has really
had any significant impact on the Nigerian economy. The adopted
Hypothesis is as follows:
HO: NEEDS has no significant impact on the Nigeria economy.
Hi: NEEDS has significant impact on the Nigerian economy.
The above hypotheses were tested using chi-square approach.
1.6.2 HYPOTHESIS TWO: This hypothesis is use to assess
whether the performance of Nigeria’s economy before the invention of
NEEDS. was as expected.
H1: the performance of Nigeria’s economy before the invention
NEEDS was as expected
HO: the performance of Nigeria’s economy before the invention of
NEEDS was below expectation.
1.7 SCOPE AND LIMITATIONS OF THE STUDY
The area of this project is Enugu. The research is to determine if
NEEDS can be used as a measure to buoy the sinking economy of
Nigeria. The period under study is March 2004 to September 2005.
In the process of carrying this study, the researcher
encountered some problems, which include- finance: cost of access to
areas where data are collected [i.e. Internet, libraries, banks, national
planning commission, state secretariat, etc] was too high for a
student. The negative attitudes of some CBN officials towards the
disclosures of information were a limiting factor. NEEDS is a new
programme and as such have not textbooks and a few articles written
on it. NEEDS being new in Nigeria has not gained popularity and
consequently offered only respondents to the questionnaires
distributed. Finally, the time for data collection always clashes with
that of attending lectures and pursing other academic and social
endeavors and as such was a limiting factor.
1.8 DEFINITION OF TERMS
To study NEEDS properly, it is pertinent that we understand the
words used in forming the name “National Economic Empowerment and
Economic Development: According to ude and shaibu [2003:12],
Economic growth is the increase in the quantity of goods and services
produced in a country over a year or stipulated period. While economic
development on the other hand is all about the maturity of the quality
and quantity of goods and services produced in a country over a
stipulated period usually a year.
Going by the above definition, goods are products of the private
sector [i.e. industries not under government’s control] or the public
sector[i.e.) Industries under government control that are tangible], while
services represents the products of the private or public sectors that are
intangible or invisible e.g. Banking, insurance, warehousing e.t.c.
Empowerment: The Longman contemporary [1995:450] defined
empowerment as to “give someone more control over his own life or
situation.  To give organization the power or legal rights do some
Strategy: The same Longman [1995:1426] also defined a strategy as “a
well planned series of action for achieving an aim, especially success
against an opponent.
An amalgamation of the above heading reveals that NEEDS can be
defined as a well- planned service of actions for achieving a maturity of
quantity of goods and services produced in Nigeria by Nigerians.
Akpobasah, M. (2004): Development Strategy for Nigerian. www
African online. Com
Axel, H. S. (2004): Reforming the Renter State Some Though
about NEEDS. WWW google.com
Berko S.Y (2005); an over view of and some comment on the national
economic and empowerment and development strategy. Special
edition vol.1. Enugu state university of science and Technology.
Nigeria: statistical facts sheet on the economic and social
development Federal office of statistics.
Umar, H. F. (2003) our National Economic Problems