Table of Contents
Structural Adjustment Programme (SAP) was adopted by the Nigeria government in July 1986. In the colonial era up to the 1960s, Nigeria’s economy depended to a large extent on the agricultural sector. This dependence was both for domestic food supply raw materials for the agro-allied industries as well as foreign exchange earnings. Hence, following the oil boom of the 1970s, the structure of the economy changed. Thus by 1975, the petroleum sector accounted for 23.2 percent of the GDP. This is against 1.7 percent in 1962, with time Nigeria economy had come to depend on the oil sector. The dependence was both as the major source of foreign exchange earnings for the economy. Foreign exchange (petroleum) earned in the process was routinely monetized by the government. All manner of projects were embarked upon against economic rationality. The steady rise in the price of crude oil in the world market ensured that huge budget deficit was conveniently accommodated.
Meanwhile, agriculture that flourished in the 1950s and 1960s was rejected in favour of imported food, the other non-oil sector equally suffered from the neglect. During this period there was enough money but how to spend it was the problem, a massive programme of frivolous foreign debt was accumulated. However, the world oil market collapsed in 1981. This development imposed a severe limitation on Nigerian’s ability to repay the loans as and when due. The first attempt at dealing with these economic problems was made by former president Shehu Shagari in 1982. With the benefit of LMI sight, it can now be said that the Act was grossly inadequate in arresting the problems that confronted the economy.
The SAP was introduced in Babangida administration in other to solve the problem facing the economy. The general objectives of the SAP are;
the realignment of exchange rate
the rehabilitation of existing infrastructures
strengthening the administrative machines relating to being administration and budget control and
revision in the incomes policy and diversification of the export base (Nnanna, 1987:41)
The SAP adopted by the Nigeria government in July 1986 whose policies were to be in place by June 1988 had the following objectives which are to enable Nigeria to;
Restructure and diversify the productive base of the economy in order to reduce dependence on the oil sector and on imports.
Achieve fiscal and balance of payment viability over the period
Lay the basis for a sustainable non-inflationary or minimal inflationary growth and
Lessen the dominance of unproductive investment in the public sector, improve the efficiency of the sector and intensify the growth potential of the private sector.
The Millennium Development Goals MDGs, became the policy thrust of the government of the federal republic of Nigeria after they signed the United Nation-sponsored drive for development in 200. The goals are eight in number;
Achieve universal primary education
Eradication of extreme poverty and hunger
Promote gender equality and women empowerment
Reduce child mortality
Improve maternal health
Combat HIV/AIDs, malaria and other diseases
Ensure environmental sustainability
Develop Global partnership for development.
These goals were initiated as a result of the globalization of the world, thus for any nations to manage their economy to avoid global economic crisis when other nations, who are better positioned politically, economically and socially are recovering from this global economic crisis, those who are political, socially and economically inept will take by time to recover from this global crisis.
Nigeria being the main focus of this paper is the global village, whatever happened will affect Nigeria either negatively or positively.
The gravity of the effect will be determined by our political, social and economic advantage or disadvantage. It is important to look at the development planning in Nigeria which will serve as a base that will aid easy understanding of this paper. This will be discussed as a form of policy framework of development in Nigeria.
Conceptual and theoretical issues
Nigeria economic planning started in the colonial era, at that time, the ten-year development plan was established. The first national development planning started in 1962, between 1962 and 1985, Nigeria experienced fine development plans. Most of these plans were long-term plans from 1989 and finally introduced perspective planning in 1990. Development planning in Nigeria started from the colonial era and it has become mere rhetoric. Nigeria has beautiful and wonderful plans and programmes, at the end of the day the objectives will not be achieved.
In 1980’s and 1990’s we were hearing health for all by the year 2000, housing for all by the year 2000. The year 2000 came and went, it became vision 2010 rolling was achieved it is now vision 20 2020. Average Nigeria still suffers from lack of basic amenities; no potable water, the health condition is in a deplorable state, nothing seems to be working. All we could boast of is a wonderful and good programme that are symbolic in nature, i.e. symbolic policies but no proper implementation. According to Weivers (1962:160) development is a process of guiding on organization (national administrative system) towards the achievement of progressive political, economic and social objectives that are authoritatively determined in one manner or the other
Economists, scholars and management experts have given greater attention to globalization, Millennium Development Goals and it’s effect on both the more developed countries and the less developed countries. New Partnership for Africa Development (NEPAD), the new partnership for Africa Development (NEPAD) is a vision and strategic force for Africa’s renewal.
The NEPAD strategic framework document arises from a mandate given to five (5) states (Algeria, Egypt, Nigeria, Senegal, and South Africa) by the organization of African Unity to develop an integrated socio-economic, development framework for Africa.
The 37th Soviet of the Unions in July 2001 formally adopted the strategic framework document.
The need for NEPAD
NEPAD is designed to address current challenges facing the Africa continent. The escalating poverty levels, underdevelopment and the continued marginalization, Africa needs radical intervention, spearheaded by Africans leaders, to develop a new vision that will help Africa’s renewal.
NEPAD primary objective
to eradicate poverty
to half the marginalization of Africa in the globalization process
to place Africa countries both individually and collectively on a path of sustainable growth
to help accelerate the empowerment of women
The principle of NEPAD
Ensuring that all partnership with NEPAD is linked to the Millennium Development Goals and targets.
Acceleration of regional and continental intergration.
Building the competitiveness of Africa countries and the continent
African ownership and leaders, as well as broad and deep participation by all sectors.
Anchoring the development of Africa on its resources and resourcefulness of its people.
Good governance as a basic requirement for peace, security and sustainable political and economic development.
The partnership between and among African people.
Forgoing a new international partnership that changes the unequal relationship between developing world and developing countries.
NEPAD’s programme of action
The NEPAD’s programme of action is a holistic comprehensive and integrated sustainable initiative for the revival of Africa, guided by aforementioned objectives and principles. NEPAD priorities
Establishing the conditions for sustainable development by ensuring
Peace and security
Democracy and goal, political, economic and corporate governance
Regional co-operation and integration
policy reforms and increase investment in the following priority sector;
Human development with a focus on health, education, science and technology development.
Accelerating intra-African trade and improving infrastructure, including information and communication, technology, energy, transport, water and sanitation.
Promoting diversification of production and exports, particularly with respect to manufacturing, mining.
Mobilization of resources by;
Increasing capital flows through further debt reduction and increasing other flows
Improving management of public revenue and expenditure
Increasing domestic savings and investment
Accelerating foreign direct investment
Improving Africa’s share in global trade
Immediate desired outcome of NEPAD
The genuine partnership is established between Africa and the developed countries with respect and accountability
Africa adopts and implements principles of democracy and good political economy good governance and the protection of human rights becomes further entrenched in Africa continents
Regional integration is further accelerated and higher level of sustainable economic development is achieved
Africa becomes more effective in conflict prevention and the establishment of an enduring continent
Africa achieves increase levels of domestic savings, as well as investment
African develops and implements effective poverty eradication programmes and accessibility of achieving set African development goals, particularly human development.
Key priority action areas
Monitoring and intervening as appropriate to ensure that the millennium development areas of health and education are met.
Facilitating implementation of the food security and agricultural development programme for regions.
Operation arising from the African preview mechanism.
Facilitating and supporting the implementation of the short-term regional infrastructure covering, transport, energy, ICT, water and sanction.
Facilitating the preparation of a co-coordinated Africa position on market access debt reforms.
Conclusion and recommendations
Millennium Development Goals as the policy thrust to globalize the world needs, some urgent measures to be taken especially by the third world countries of Africa and the Asian continent. Research and recent writers have proven that the Millennium Development Goals can only be achieved when necessary machinery is put in place.
Although a review of most developing countries especially Nigeria have shown that there is still a long way to go, with the recent uprising in different parts of most countries of the world.
Most people that were interview were of the opinion that Nigeria can not achieve Millennium development goals with the myriad of problems in the policy of electoral malpractices, corruption, bomb blast issues.
Some of the interviewed are of the opinion that whatever policy the government is proposing that is merely cosmetic that they do not have due process to implement it, and also that the policies are merely symbolic, and it will not see the light of the day.
Electoral malpractices and self-perpetuation of power have been the bane of Africa in general and Nigeria in particular, to solve this problem people should vote those they want to govern them through a free and fair election. People in government should perform when they go, into office with a stable policy development.
Power and energy is the strong base of any economy without power business will crumble, even those who are into business, use a generator with either fuel or diesel, which goes a long way to increase production cost. Economics makes us understand that when the marginal cost per unit increases the product in other to make a profit, most Nigeria may not be able to pay for those goods and services.
Most businesses have also closed down because they cannot meet the running cost of business and when this happens or gross domestic product (GDP) reduces, which invariably affect our balance of payment.
Hence, for Nigeria to be among the best twenty economies in the next twenty years our leader should develop our area of comparative advantage over other nation, for any nation to be powerful in the committee of nations, you must be economically viable because economy breeds political and economic power.
The Abuja Management Review (2009) Vol. 6, issue no. 1, published by the Faculty Management Sciences, University of Abuja, Nigeria.
Tadaro M.P and S.C. Smith (2009) Economic Development
Agba, V. A (1994) Principles of Macroeconomics