ECONOMIC GAINS OF NIGERIA SINCE INDEPENDENCE
By UDO ETEFIA
Endowed with abundant human and natural resources, Nigeria's economy was very promising at independence in 1960. And with twenty-five percent of Africa's population; many saw Nigeria as an emerging economic power not only on the continent of Africa, but indeed in the world.
The first National Development plan was rolled out in 1962 to serve as a framework for economic development. However, series of unfortunate political events in the country thwarted the realization of the objectives of the plan. The second National Development Plan which spanned between 1970 and 1974 was launched after a bitter civil war, primarily to undertake the reconstruction and rehabilitation of infrastructure destroyed during the twenty-month war.
Government continued to rely on the medium term plan for economic development with the design of the third development plan in the mid 1970s. This came under a more favourable financial condition of enormous oil revenues which accrued to the nation. The plan emphasized diversification, balanced development and indigenization of the economy. The Indigenization Act enacted during the period was a major economic gain as it made it possible for Nigerians to takeover the running of the economy from foreigners who hitherto had entrenched themselves in all facets of the country's economic life.
However, some significant portions of the plans were not executed because of unanticipated constraints. For instance, the execution of the fourth plan was adversely affected by the unexpected collapse of the international oil prices. The Structural Adjustment Programme which was introduced by the government came as a response to the dwindling oil resources, macroeconomic policy distortion and increasing need to diversify the production base of the economy.
An important aspect of Nigeria's economic development process since independence is the role of public sector vis-à-vis the private sector. It was realized that government had been the prime mover of the economy. Apart from engaging in its conventional activities, government also had investments in a wide range of production and distribution activities. This resulted in the consumption of a large chunk of public resources. Besides, most of these public enterprises failed to meet public expectations.
That explains why the 1989 privatization law had to replace the Indigenization Act so that Nigerians and anyone else can have equal stake in the economy except where national security is affected.
Since the return to democracy in 1999, the government has embarked on a wholesome reform of the economy. Initially, the reform was anchored on the National Economic Empowerment and Development Strategy (NEEDS). NEEDS was designed to facilitate the achievements of national goals of wealth creation, employment generation and poverty reduction. The privatization of public enterprises witnessed in the country in recent years is embedded in the policy. The idea is to reposition these enterprises to meet national aspiration of wealth creation.
The most visible result of the implementation of the NEEDS agenda can be seen in the banking sector where there have emerged stronger banks with huge capital base to finance development in other sectors of the economy.
NEEDS implementation is being harmonized along side the seven point agenda of the Yar'Adua-Goodluck administration which is geared towards accelerated economic and general wellbeing of the Nigerian people.
Taking off from where late President Yar'Adua left, the Goodluck Jonathan Administration is continuing with the Vision 2020 action plan. The goal of this policy is to make Nigeria one of the twenty most developed economies in the world by the year 2020. While working towards the realization of this goal, relevant authorities must continue to monitor economic developments in both domestic and international arena. This is with a view to averting the uncertainty now being witnessed in the international financial markets.
Broadcast On Saturday October 2, 2010
