1.1 Introduction
The economy of Nigeria is a middle-income, mixed economy and emerging market, with expanding manufacturing, financial, service, communications, technology and entertainment sectors. It is ranked as the 27th-largest economy in the world in terms of nominal GDP, and the 24th-largest in terms of purchasing power parity. Nigeria has the largest economy in Africa. The country's re-emergent manufacturing sector became the largest on the continent in 2013, and it produces a large proportion of goods and services for the region of West Africa. In addition, the debt-to-GDP ratio was 16.075% as of 2019 (Wikipedia, 2021b).
As a prelude to other parts of this study, this chapter will discuss the background upon which this study was initiated, the statement of problems that led to this study, the Aim and Objectives of the study. Others are Significance of the study, Scope of work, Research hypothesis and questions, Limitations of the Study and Definition of technical terms.
1.2 Background of Study
Since 1900, life expectancy has improved across countries of the globe, and globally, average life expectancy has now doubled (Ospina, 2017). Hence, suffice to state that globalization is among the issues and phenomena that have attracted much attention everywhere. The process has existed from the beginning of human existence and with its modernization/development at different times and stages since its effects has been growing enormously in these modern times.
As developing countries attempt to open up their economies in recent years, they are concerned about globalization and its different effects on economic growth especially as poverty, inequality, environment and cultural dominance are increasing everyday (Samimi and Jenatabadi, 2014). As an important component of the developing world, Nigeria is faced with opportunities and costs of globalization. Although Nigeria is endowed with natural resources, these resources are not being utilized appropriately.
Nigerian GDP at purchasing power parity (PPP) has almost tripled from $170 billion in 2000 to $451 billion in 2012, though estimates of the size of the informal sector (which is not included in official figures) put the actual numbers closer to $630 billion. Subsequently, the GDP per capita doubled from $1400 per person in 2000 to an estimated $2,800 per person in 2012. Again, with the inclusion of the informal sector, it is estimated that GDP per capita hovers around $3,900 per person. The country's population increased from 120 million in 2000 to 160 million in 2010. The GDP figures were to be revised upwards by as much as 80% (percent) when metrics were to be recalculated subsequent to the rebasing of its economy in April 2014 (Wikipedia, 2021b).
In 2005, Nigeria reached an agreement with the Paris Club of lending nations to eliminate all of its bilateral external debt. Under the agreement, the lenders will forgive most of the debt, and Nigeria will pay off the remainder with a portion of its energy revenues. Moreover, human capital is underdeveloped Nigeria ranked 161 out of 189 countries in the United Nations Development Index in 2019 and non-energy-related infrastructure is inadequate (Wikipedia, 2021b).
In instances or situations where issues concerning globalization are brought up or analyzed, the link connecting economic development and globalization usually make important headlines. Ensuring economic growth and development is the aim of policy makers as it shows the success of a nation. Hence, the pattern of globalization, analyzing the consequence of globalization on economic development is very crucial. This stems from the premise that globalization has (and continues to have) a profound effect on the globe, and also in the way companies and even governments do business. According to World Bank data, trade accounted for more than 70% of global GDP in 2017, from less than 25% in 1960 (Trefler, 2019).
Therefore, in Nigeria where the research was carried out, the activities that was conducted is to know the problems and prospect of Nigeria economics development.
1.3 Statement of Problems
Investigation revealed that due to numerous challenges and harsh socio-economic environment, many Nigerian youths are now depending on themselves and driving their own future by creating opportunities and by undertaking different entrepreneurial ventures towards self-reliance. The strength of any nation depends on the policy framework and initiatives put in place by the public sector and Non-Governmental Organizations (NGOs) to develop and empower the youth in order to maximize their potentials, talents and untapped capacities in nation building.
The immediate result on the economy was current account and fiscal deficits and a rapid drawdown on external reserves as the government and other economic agents persisted in their import dependent consumption and production behaviour (Afolabe, 1992). The external reserve declined from annual average of N3063.3 billion for 1976-1980 periods to N1403.6 billion for the period 1981-1985. With the dwindling external asset and large scale accumulation of arrears on external trade payments, the nation began to lose its international credibility. The resulting external and internal imbalances are manifest in the adverse balance of payment position, high rate of unemployment, increasing public debt, raising rate of domestic inflation, and low capacity utilization in virtually all sections as well as the deteriorating purchasing power of the populace.
1.4 Aim and Objectives of Study
The aim of the study is to examine the problems and prospect of Nigeria economics development. In achieving this aim, the following specific objectives were laid out as follows:
- To investigate the factors inhibiting the economic development of Nigeria
- To find out the problems militating poor economic development process in Nigeria
- To proffer solution to the above stated problems affecting the Nigeria economics development
1.5 Research Questions
The study came up with research questions so as to be able to ascertain the above stated objectives. The specific research questions for the study are stated below as follows:
- Are there factors inhibiting the economic development of Nigeria?
- Are there problems militating poor economic development process in Nigeria?
- What are the possible solutions to the problems affecting the Nigeria economics development?
1.6 Research Hypothesis
In order to pursue the objective of this study, the following generalized statements have been designed to guide and aids in obtaining the result for the experiment to be conducted. For this work, the null hypothesis will be represented with H0 while the alternative hypothesis will be represented with hypothesis H1.
Hypothesis One
- H0: There are no significant problems militating poor economic development process in Nigeria
- H1: There are significant problems militating poor economic development process in Nigeria
1.7 Significance of Study
This study will be of immense benefit to researchers who intend to know more on this study and can also be used by non-researchers to build more on their research work. This study contributes to knowledge and could serve as a guide for other study.
1.8 Scope of Study
The study focuses on the problems and prospect of economics development in Nigeria.
1.9 Limitations of the Study
During the course of this study, many things militated against its completion, some of which are:
- Time Constraint: The time frame given to accomplish this project was very short due to school academic calendar and it was carried out under pressure which made the researcher not to implement some necessary features.
- Research material: availability of research material is a major setback to the scope of the study.
- Frequent power failure: This made the researcher append more money on fuel to ensure sustainable power.
- 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).
1.10 Definition of Terms
Organization: An organized group of people with a particular purpose, such as a business or government department.
Formation: The action of creating or process of being formed
Economy: The state of a country or region in terms of the production and consumption of goods and services and the supply of money
Security: The state of being free from danger or threat.
Treaty: A formally concluded and ratified agreement between states.
Integration: The act of combining two or more things together to produce a unique and better one.
