WEEK 1
ECONOMIC GROWTH AND DEVELOPMENT
CONTENT
Definition and distinction between economic growth and development.
Underdevelopment and its characteristics.
Solutions to underdevelopment.
Strategies for economic development.
Economic Growth: A country is said to achieve economic growth when there is an increase in
the volume of National output (National Income) arising from an expansion in production.
When there is economic growth, it shows in the form of an increase in income level, an
expansion in the labour force, an increase in the total capital stock of the country and a higher
volume of trade and consumption.
While Economic development means economic growth coupled with the improvement in the
living standard of the people of the country. This arises from equitable distribution of the
National income. Economic development reveals all aspects of economic activities and
emphasizes more on distribution of facilities between various areas.
CHARACTERISTICS OF ECONOMIC DEVELOPMENT
1. Improvement in the general welfare of the people.
2. Equitable distribution of the National income
3. Reduction in the level of unemployment.
4. Increase in real income of the citizen.
5. Increase in the total capital stock.
In a nutshell, while economic growth emphasizes the increase in the volume of National output,
Economic development stresses growth coupled with improvement in the general welfare, of
the people arising from equitable distribution of the National Income.
UNDERDEVELOPMENT
A country is said to be underdeveloped when she lacks the human and material resources
needed to improve the welfare of her citizens.
WHY COUNTRIES ARE CONSIDERED UNDER DEVELOPED OR DEVELOPING
Most West African countries and part of Asia are considered to be underdeveloped or
developing due to the following features:
1. Overdependence on primary source of production e.g. Agriculture
2. High dependency on foreign countries for survival.
3. Poor living standard – poor housing, hunger.
4. Poor medical facilities.
5. Poor infrastructural base.
6. High level of illiteracy.
7. Increase in unemployment rate.
8. Inequality in the distribution of income.
9. Political and economic instability.
10. Low savings and investment arising from low per capital income.
CAUSES OF UNDERDEVELOPMENT
1. Low level of saving arising from low per capital income
2. As stated above, where savings is low, investment as well will be low resulting to
underdevelopment.
3. Political instability which transient to frequent change in economic policies.
4. Poor planning and implementation.
5. Corruption and embezzlement of fund by public officials.
6. High rate of population growth.
7. Over-reliance on importation.
8. Poor capacity building.
9. Poor infrastructural base
10. Low level of Technology.
SOLUTION TO UNDERDEVELOPMENT
For a country to eradicate poverty and be considered developed. The following steps should be
taken.
1. Capital accumulation i.e. encourage savings towards investment.
2. Capital formation – Investment should be made on social infrastructure and businesses.
3. Engage in Foreign Trade – In doing this the country must bargain for a favourable term
of Trade. Industrialization is important, this will ensure that the country export more
than she imports.
4. Borrowing from Financial Institution both local and foreign e.g. IMF, World Bank. But
effort must be geared towards enduring that loan obtained is used for capital project
that will add value to the economy.
5. Capacity Building – Training of man power is very essential. This could be achieved
through establishment of vocational centres, colleges, universities to enrich the
technical know-how of the citizens.
6. Adoption of socialist ideology since capitalist ideology is capable of widening the gap
between the rich and the poor.
STRATEGIES FOR ECONOMIC DEVELOPMENT
1. Diversification of the economy. That is to say Nigeria should develop other sectors apart
from oil.
2. Provision of social infrastructure e.g. roads, railways, school, hospitals etc.
3. Ensuring political stability.
4. Export promotion
5. Manpower development
6. Capital accumulation
7. Development of market
8. Borrowing from Foreign Lenders but with favourable interest rate.
WEEK 2
ECONOMIC DEVELOPMENT PLANING
As discussed earlier that economic development is an essential feature of any country. In
achieving this, there is need to influence some principal economic variables such as production,
distribution, inflation, import and export in order to achieve a predetermined goal and
objectives. Then Economic planning can be simply defined as a conscious governmental effort
to influence some principal economic variables such as: production, distribution, inflation
import and export in order to achieve a predetermined goal and objectives.
TYPES OF PLAN
The various types of economic planning are:
1. Financial economic planning.
2. Strategic planning.
3. Comprehensive economic planning.
4. Partial economic planning.
5. Controlled economic planning.
A. Financial Economic Planning – This plan deals with how National Income is distributed to
various sectors of the economy.
B. Strategic Planning – This is a plan designed to address a specific objective in the
economy.
C. Comprehensive economic planning – This type of plan covers all major aspects of the
national economy.
D. Partial Economic Planning – This is a plan directed or targeted at specific segment of the
national economy e.g. plans to boost agricultural production.
E. Controlled Economic Planning – This plan is common in a socialist economic system.
This is a plan in which government formulates and executes plans for the economy. This
is also known as authoritarian planning
PROBLEMS OF PLANNING
1. Frequent change in government i.e. political instability.
2. Insufficient capital to execute the project itemized in the plan.
3. Misplacement of priorities – Resources are sometimes diverted to white elephant
projects i.e. unproductive projects.
4. Inaccurate statistical data and information.
5. Lack of skilled personnel
6. Reliance on foreign aid.
7. Rapid population growth
8. Corruption and embezzlement.
10. Exchange rate volatility i.e. fluctuation in exchange rate.
WEEK 3
INTERNATIONAL ORGANIZATION
ECOWAS
The Economic Community of West African States was founded on May 28th 1975 in Lagos,
Nigeria. It comprised all the 16 independent nations of West African. Abuja and Lome serve as
the administrative and fund headquarter respectively. The body was formed under the
leadership of General Yakubu Gowon and President Eyadena.
MEMBERSHIP
Anglophone – Nigeria, Ghana, The Gambia’s Sierra Leone and Liberia.
Francophone – Senegal, Guinea, Togo, Mali, Benin Republic, Burkina Faso, Cote de voire,
Mauritania and Niger Republic.
Busophone or Portuguese speaking countries – Cape verde and Guinea Bissau.
AIMS AND OBJECTIVES OF ECOWAS
1. ECOWAS aimed at promoting cooperation and development in al fields of economic
activity e.g. transport, energy, agriculture, Telecommunication, etc. among the member
states.
2. It aimed at liberalizing trade within the region.
3. ECOWAS promotes economic stability.
4. Also, ECOWAS aimed at removing trade barriers and restrictions.
5. The body aimed at integrating both the fiscal and monetary policies of West African
State.
6. ECOWAS aimed at establishing common fund within the sub region.
ACHIEVEMENT
ECOWAS had helped to remove all custom duties that enhance free trade among
member nations.
The organization had established a common fund through which members are rescued.
It had played a mediating role among member state e.g. Nigeria and Chad, Liberia,
Sierra Leone etc.
To promote peace in the sub region, ECOWAS had formed ECOMOG to restore peace in
Liberia and Sierra Leone
The eradication of Apartheid and neo-colonialism in South African can be traced to
ECOWAS.
ECOWAS had enhanced growth and expansion of market in the region
ECOWAS had played a vital role in promoting unity in diversity among member nations.
PROBLEMS OF ECOWAS
1. Some of the member nations are still tied to the apron of their colonial masters.
2. The official language differs among member nations which constitute language barriers.
3. Differences in ideology among member nations offer hampers togetherness of the
community.
4. Political instability – Most member frictions had been affected with coup e.g Nigeria.
5. Fear of domination by big nations.
6. Poor funding due to member nations inability to contribute to ECOWAS fund.
7. Problem of where to locate investment by the body.
IMF
The International Monetary Fund (IMF) was established at an international conference held in
Bretton woods in 1944. It began operation in 1947 with its headquarters in the United States of
America. Presently it has 138 member countries. It was established to encourage balance of
payment equilibrium and to stabilize exchange rate among member countries.
OBJECTIVES AND FUNCTIONS OF IMF
1. IMF helps to stabilize exchange rate among member nations.
2. IMF assists members to finance balance of payment deficit.
3. IMF makes recommendations to member nations on economic policies to adopt.
4. IMF facilities settlement of debts in foreign transactions.
5. IMF promote co-operation among member countries on financial matters.
PROBLEMS OF IMF
1. Exchange rate volatility i.e. fluctuation in value of key currencies such as Dollar pounds.
2. Inability of developing nations to repay loans obtained.
3. Recommendation of policies to adopt to member nation leave some countries rich,
while some poor e.g privatization, wage freezing etc.
4. High rate of interest on loan obtained by developing nations makes repayment
impossible e.g. Nigeria.
5. Interference in the economic affairs of a country makes experts to see IMF as imperialist
monetary fund instead of what it claimed to be.
ACHIEVEMENT
1. Since its inception, IMF had helped nations to overcome economic problem e.g. Nigeria.
2. Relatively, IMF had helped to stabilize exchange value of currencies e.g. dollar in
relation to other currencies.
3. Debt forgiveness – due to inability of most nations to repay loan, IMF had written off
these loans.
4. Promotion of international trade.
IBRD
The International Bank for Reconstruction and Development (IBRD) popularly known as World
Bank was founded in 1944 exactly the same period IMF was founded at Bretton woods. IBRD
was its headquarter in Washington, United States of America. The World Bank started with 45
member nations at the beginning and as at 1992, the member has risen to 178 member
nations.
OBJECTIVES OF IBRD
1. IBRD grants long term loans for infrastructural development.
2. IBRD offers expert advice development problems.
3. IBRD offers training for experts.
4. It conducts feasibility studies relating to economic development.
5. World Bank helps to develop productive resources of member nations.
ACHIEVEMENTS OF IBRD
1. IBRD had helped developed as well as developing nations in area of infrastructural
development.
2. Educational development – Through world bank assisted programme education to
developing nation had been solved.
3. Long term loan for developing nation for socio-economic development had been made
feasible with the assistance of World Bank
PROBLEMS OF IBRD
1. Lack of capital.
2. Inability of nations to repay loan.
3. Financing of white elephant projects i.e. unproductive project.
4. Most of the Loans are directed towards the developed nations at the expense of the less
developed ones.
ADB
African Development Bank (ADB) came into being in 1964 with its headquarter in Abidjan, Cote
d’ivoire. It is a bank owned by African countries. It started full operation in 1966 with initial
membership of 23 African Countries and as at 1970, membership had risen to 31.
FUNCTION / OBJECTIVES OF ADB
1. To provide loan to aid social and economic development of member nation.
2. It provides fund for the agricultural development of member nations.
3. ADB provides fund for infrastructural facilities such as : electricity, water, transport and
telecommunication.
4. ADB helps to foster economic integration.
PROBLEMS OF ADB
1. Lack of capital due to low economic activities in member nations.
2. Poor infrastructural base of most nation in African.
3. Lack of Technical expertise.
EVALUATION
1. Outline four objectives of ADB
2. Mention four problems of ADB.
ECA
The economic commission for Africa (ECA) also known as the United Nations Economic
Commission for Africa was founded in 1958, with its headquarters in Addis Ababa, Ethiopia. It
is an Organ of the United Nations Organization (UNO).
OBJECTIVES AND FUNCTIONS OF ECA
1. ECA – ensures the economic development of African continent.
2. To foster cooperation of OAU now
3. ECA helps to develop manpower for the entire African continent.
4. It helps to accelerate economic growth and integration in Africa.
5. It helps to harmonize economic policies for African continent.
6. ECA conducts research in the areas of production and technology, to aid Africa in
economic development.
PROBLEMS OF ECA
1. Economic community for African lack the needed capital to execute some of its projects.
2. Differences in Economic policies of the country due to differences in ideology.
3. To accelerate the Economic development of Africans
4. To conduct research in the area of production and technology.
5. To modernize Agriculture and industry in Africa
UNCTAD
The United Nation Conference on Trade and Development (UNCTAD) was found in 1964 with its
heaquarters in Geneva, Switzerland. It was created as an organ of the United Nations by a
resolution passed by the United Nations Organisation (UN0). The first conference was held in
Geneva, Switzerland in 1968, the second in New Delhi, India in 1968.
OBJECTIVES AND FUNCTIONS OF UNCTAD
1. UNCTAD helps in promoting trade i.e. international trade in developing countries.
2. UNCTAD assists in solving the increasing balance of payments difficulties of the
developing countries.
3. It helps to accelerate economic development of underdeveloped nations.
4. To help in solving balance of payment deficit.
5. To promote trade for developing countries.
EUROPEAN ECOMONIC COMMUNITY
The European Economic Community (EEC) was established by the treaty of Rome, Italy in 1957
by six European countries. These countries were France, West Germany, Italy, Belgium, the
Netherlands and Luxembourg.
OBJECTIVES OF EEC
1. To adopt a common currency known today as the Euro.
2. To ensure economic and social progress.
3. To eliminate trade restriction, thereby ensuring free trade between members nations.
4. To eliminate barriers to free mobility of labour and capital between member states.
ACHIEVEMENTS OF EU
1. The EU had developed a common market involving the free circulation of goods and
capital.
2. Since its origin, the EU has established a single economic market across the territory of
all its members currently single currency is in use.
3. The twenty-seven member state EU had an agreed budget of E120. 7 billion for the year
2007 with 46.7% for Agriculture.
4. The EU is has diversified its energy supply.
5. The EU seventh Framework Programme (FP7) sponsors research conducted by consortia
from all EU members to work toward a single European Research Area.
6. Through its support of the Bologna process the EU is supporting comparable standards
and compatible degrees across Europe
PROBLEMS OF EU
1. Lack of capital
2. Heavy expenditure on energy importation the EU currently imports 82% of its oil.
3. Religion barrier – Christian in the EU are divided among followers of Roman Catholicism,
as of 2009, the EU had an estimated muslim population of 13 million.
WACH
The West African Clearing House (WACH) was established in June 1975 with its headquarters in
Freetown, Sierra Leone. WACH is multi- lateral clearing house which comprises 15 – member
Central Banks of West African States of Nigeria, Republic of Benin, Cote D’ivore, Niger, Senegal,
Togo Burkina Faso, the Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Mauritania and
Sierra Leone.
FUNCTIONS/OBJECTIVES OF WACH
1. WACH enhances trade liberalization.
2. It promotes the use of member national currencies for intra-sub-regional transactions.
3. WACH aimed at promoting monetary co-operation in the sub-region
4. It bring about savings in the use of foreign reserves.
WEEK 4
CURRENT ECONOMIC PLANS
CONTENT
MEANING AND OBJECTIVE OF MILLENNIUM DEVELOPMENT GOAL
MEANING AND OBJECTIVE OF NEEDS
MEANING AND OBJECTIVE OF VISION 2020
The millennium development plans are eight international development goal that were
officially established following the millennium summit of the United Nations in 2000.
OBJECTIVE OF MDGs
Goal 1: Eradicate extreme poverty and hunger.
Target 1: Half of the population between 1990 -2015 whose income is less than one dollar a day
be reduced.
Target 2: Half of the population that suffers from hunger be reduced
GOAL 2: Achieve Universal Primary Education
Target 3: To ensure that by 2015 all children are enrolled and have completed primary
education.
GOAL 3: Promote gender equality and empower women
Target 4. Eliminate gender disparity in primary and secondary education, preferably by 2005
and to all levels of education not later than 2015.
GOAL 4 Reduce child mortality rate.
Target 5. Reduce by two-thirds between 1990 and 2015 the under five mortality rate.
GOAL 5. Improve maternal health.
Target 6. Reduce by three quarter between 1990 and 2015, the maternal mortality rate.
GOAL 6.Combat HIV/AIDS, malaria and other diseases.
Target 7. Have halted by 2015 and begun to reverse the spread of HIV/AIDS.
Target 8. Have halted by 2015 and begun to reverse the incidence of malaria and other major
diseases.
GOAL 7. Ensure environmental sustainability.
Target 9. Integrate the principles of sustainable development into country policies and
programmes and reverse the loss of environmental resources.
Target 10. Halve by 2015 the proportional of people without sustainable access to safe drinking
water.
Target 11.By 2020 to have achieved a significant improvement in the lives of at least 100 million
slum dwellers.
GOAL 8. Develop a global partnership for development.
Target 12. Deal comprehensively with the debt problems of developing countries through
national and international measures in order to make debt sustainable in the long term.
Target 13. In cooperation with the private sector make available the benefits of new
technologies, especially information and communication.
NATIONAL ECONOMICS EMPOWERMENT AND DEVELOPMENT STRATEGIES ( NEEDS)
NEEDS is derived from the urgent requirement for value orientation, the objective of which is to
sound the message clearly that is not business as usual. Therefore the bedrock of NEEDS is its
vision of a Nigeria with a new set of values and principles which will facilitate the achievements
of national goals of wealth creation, employment generation and poverty reduction.
OBJECTIVES OF NEEDS
NEEDS is therefore fashioning for Nigeria, a common ground for all economic agents to
interplay in a healthy and sustainable manner. The objectives are mainly in threefold;
Poverty Reduction
Employment Generation
Wealth Creation.
VISION 2020
It is stated in the document VISION 2020Economic Transformation blueprint (2009) that by the
year 2020, Nigeria would have a large, strong, diversified, sustainable and competitive economy
that effectively harnesses the talents and energies of its people and responsibly exploits its
natural endowments guarantee a high standards of living and quality of life to its citizens. In
order to achieved this according to the same vision statement, a Gross Domestic Product of not
less than &900 billion is required.
OBJECTIVES OF VISION 2020
The social dimension: It envisions an equal society that can sustain a life expectancy of at least
70 years.
The economic dimension: It envisages a vibrant economy whose manufacturing sector can
contribute atleast 25% to Gross Domestic Product.
The institutional dimension: Expects a state democracy.
While the environmental dimension envisions effective management of our natural
environments. It is pretty clear from the objectives that the vision 2020 is a grandiose
adventure.
WEEK 5
ECONOMIC DEVELOPMENT CHALLENGES
CONTENT
POVERTY
Poverty is often used in conjunction with material possessions that belongs to people. it is
defined as a lack of a material possession belonging to a person. According to the world bank,
poverty is defined to a situation where ones income is below two dollars per day.
EFFECT OF POVERTY
Poverty can lead a person to experience the following:
Hunger
Malnutrition
Poor health care
Unemployment
Low life expectancy
Domestic violence
Large family size
HIV/AIDS
METHODS OF POVERTY ALLEVIATION
Applying appropriate combinations of mineral fertilizers using green manures to increase soil
facilities planting fertilizer trees, returning crop residuals to the soil, using improved
measures of soil erosion control and water conservation and using nitrogen fixing seeds
can improve soil health which can improve farming productivities whereby providing
employment opportunity so as to reduce poverty.
Improve water, sanitation, feeder and main roads, maternity energy sources such as kerosene
for cooking, rural electrification and women empowerment by allowing them to spend
less time doing basic shores such as fetching fire woods and water. Improved gender
equality does a whole lot of things such as increasing women’s chances to get job which
will lead to more gender equalities.
Nutritious school meals, farming improvement, clean water sanitation, hygiene education and
nutrition education can all lead to improved nutrition. Improved nutrition will lead to
improved health in general.
HIV/AIDS AND THE NIGERIA ECONOMY
HIV/AIDS have become a major treat to the economy. The disease is more common with the
youth which should form the greater percentage working population. Under this situation, the
economy will suffer as it will lead to low productivity and slow down the growth and
development of the nation.
CORRUPTION AND THE ECONOMY
Corruption is the usage of acquired power in a dishonest or in illegal way to acquire wealth that
belong to a person, state or government. In Nigeria, corruption has eaten deep into the fabric
of society. Money meant for the development is normally carried away by few individuals in
power. This practice do
POWER AND ENERGY INADEQUANCY
The power and energy supply with particular reference to electricity is a big problem to the
economy growth of a nation. Power supply to the economy for productivity is inadequate to
ensure rapid economy development.
WEEK 6
ECONOMIC REFORM PROGRAMS
CONTENT
Consolidation of financial institution
Privatization and Commercialization
EFCC and ICPC
NAFDAC
SON
Before June 2004, there were 89 banks in Nigeria with 3,382 branches network. The banking
sector was characterized with structural and operational weaknesses such as:
1. Low capital base: Dominance of a few banks.
2. Insolvency and illiquidity
3. Over dependence on public sector deposit and foreign exchange trading.
4. Poor asset quality.
5. Weak corporate governance – A system with low depositor confidence
6. Banks that could not effectively support the real sector of the economy at 24% of GDP,
compared to Africa average of 78% and 272% for developed countries.
The professor Charles Soludo led Central Bank, reduce the banks to 25 with capital base of N25
billion this led to merger and acquisition in the banking industries.
The aim of re-capitalization of banks includes:
1. To ensure strong financial base.
2. To increase deposits’ confidence in banks.
3. To enhance liquidity and solvency of the banks.
4. To increase loan to real sectors.
5. To encourage banks to practice real retail banking instead of depending on public
sectors fund.
INDIGENIZATION; NATIONALIZATION; COMMERCIALIZATION AND PRIVATIZATION POLICY
INDIGENIZATION
Indigenization may be defined as a process through which the government through the used of
law increase the level of participation of citizens (indigenes) of a country in the ownership and
management of business enterprises and the industrial sectors of the country’s economy.
The objective of the indigenization policy is to give Nigerians increased involvement in her
ownership , control and management of business enterprise that were formerly dominated by
foreigners in the country. The fulcrum of the policy was the Nigerian. Enterprises Promotion
Decree (1972)
The NEPD (1977) grouped businesses under three categories
A. The first group consists of businesses reserved exclusively for Nigerians (i.e. 100%
reserved for Nigerians) e.g. manufacturing of blocks, candles etc
B. The second group consist of businesses which can be undertaken by foreigners so long
as Nigerians hold or have not less than 60 per cent participating shares eg banking,
insurance, construction, mining, beer brewing
C. The third group consist of businesses which are open to foreign investments provided
Nigerians hold not less than 40 per cent participating shares eg textile, tobacco and drug
manufacturing hotels, synthetic resins, distilling etc.
The NEPD (1992) was revised in 1977
OBJECTIVES OF THE INDIGENIZATION POLICY
1. To promote and encourage the participation of indigenes of the country actively and
effectively in the industrial sector of their economy
2. To reduce foreign control of the country’s economy
3. To promote industrialization through the use of indigenous technology
4. To reduce the country dependency on foreigners
5. Creation of employment opportunities for indigenes
6. To encourage local retention of profits made
7. To avoid neo-colonialism and imperialism
8. To improve the income and standard of living of the people
9. To ensure economic stability in the country
Advantage / Importance of Indigenization
Increase in participation of indigenes in the economy
Reduction of foreign control of an economy
Encouragement of local retention of profits
Promotion of Industrialization
Creation of employment opportunities
Enhancement of self-reliance i.e. reduction in dependency
Improvement in standard of living
Economic stability is enhanced
Disadvantages of Indigenization Policy
Discouragement of Foreign investors
Concentration of wealth in the hands of few indigenes
It widens the gap between the rich and the poor
It may lead to economic instability
It may result in retaliation by the foreign countries involved
It may lead to political instability
PROBLEMS OF INDIGENIZATION IN NIGERIA
Shortage of Capital: The indigenes do not have enough capital to take over the business
Lack of technical and managerial skills
Reduction of Foreign investments
Widespread incidence of fronting i.e. collusion between indigenes and foreigners who uses the
indigenes as cover to perpetuate their continuing ownership of the businesses
Mismanagement of the business taken over by indigenes
NATIONALIZATION
This may be defined as the taking over by the government of privately owned businesses.
It involves the transfer of ownership of privately owned business enterprises to the government
for economic, social and political reasons.
Such industries taken over by the government are known as nationalized industries and the
individual owners of the affected businesses are paid compensation by the government.
Reasons why government nationalize industries
To prevent the exploitation of the consumer
To ensure state security and for political considerations.
To provide employment for the citizens
To generate revenue that will be used for development
To ensure fair and equitable distribution of social and economic amenities
To break private monopoly power
To provide the large capital required to establish or run some business especially where private
interests cannot raises such capital.
Advantages of Nationalization
It eliminates wasteful competition
It enables the government to provide essential goods and services to consumers at a affordable prices
It is used by the government to protect the consumer i.e. to prevent the exploitation of consumers
It promotes steady supply of goods and services
It leads to the elimination of monopoly by private businessmen
It [provides employment opportunities
It enhances government control of the economy
Disadvantages of Nationalization
It destroys private initiatives
It promotes state monopoly
Nationalized businesses become inefficient
Corruption and embezzlement of funds is rampant among nationalized industries
Bureaucracy and political interference in the nationalized businesses
COMMERCIALIZATION AND PRIVATIZATION
Commercialization is a process whereby state owned enterprises are restructured (re-
organized) and run with the primary aim of turning them into profit making entities. The policy
makes it possible for state owned enterprises to explore all avenue of making profit.
Privatization is the process whereby ownership and control of businesses, companies,
industries or corporations are transferred from government (public sector) to private
individual’s i.e. private sector.
Advantages of commercialization and privatization or the objectives of the government’s
privatization policy
It promotes efficiency in the business that are commercialized or privatized
Government generates a lot of revenue during the implementation of the policies
It leads to competition and innovation as well as improvement in the quality of goods and
services
There is a great reduction in the level of public expenditure one enterprises that are not viable
It deepens or widens the capital market
It gives the consumers an increase range of choice
Disadvantages of commercialization and privatization
It leads to uneven distribution of income
It leads to increases in prices
It leads to mass retrenchment of workers
Both commercialization and privatization fuel inflation
It leads to reduction or lowering of the standard of living of the citizen
It may result in strikes, protests and public unrest
The privatization process may not be transparent – allowing a few rich people to take over choice
government businesses
ECONOMIC AND FINANCIAL CRIME COMMISSION
The commission was established in 2003 to investigate financial crimes such as advanced free
fraud and money laundering. The agency has its head office in Abuja.
ROLES OF EFCC
Sanitization of banks
Aggressive investigation and prosecution of cases of past evasion.
Fighting cybercrime and advanced free fraud using smart technology.
Initiating legislative intervention in key areas that will aid anticorruption fight.
INDEPENDENT CORRUPT PRACTICE COMMISION
As provided in section 3(3) of the act 2000, the commission consist of the chairman and twelve
members. Two of whom represents each of the six geopolitical zones of the country.
ROLES OF ICPC
To receive and investigate complaints from members of the public on allegations on corrupt
practices.
To examine the practices system and procedures of public bodies.
To instruct, advise, and assist any officer, agency or parastatal on ways by which fraud or
corruption may be eliminated.
To advise heads of public bodies of any change in practice with the effective discharge with the
duties of public bodies.
To reduce incident of bribery.
To educate the public on and against bribery, corruption and related offences.
NATIONAL AGENCY FOR FOOD AND DRUG ADMINISTRATION AND CONTROL (NAFDAC)
The organization is headed by chairman who preside over a governing council appointed by the
president on the recommendation of the minister of health.
ROLES OF NAFDAC
Regulation and control of importation, exportation, manufacture, advertisement, distribution,
sales and use of drugs, cosmetics, medical devices, bottled water and chemicals.
Conducts appropriate tests and ensure complaint with standard specification designated and
approved by the council for effective control of quality control.
Undertake the registration of food, drugs, medical devices etc.
Establish and maintain relevant laboratories in strategic areas of Nigeria.
Undertake inspection of imported foods, drugs, cosmetics etc in order to establish a relevant
quality assurance system.
STANDARD ORGANIZATION OF NIGERIA (SON)
The highest decision making body of SON is the Nigeria Standard Council. The federal
government, on the recommendation of the minister of industry appoint members of the
council who are drawn from both public and private sectors hold office for a term of four years.
The permanent secretary in the ministry of industry is the chairman.
STATUTORY FUNCTIONS OF SON
To investigate the quality of facilities materials and products in Nigeria.
To ensure reference standard for verification of measures and measuring instruments.
To compile and inventory of products requiring standardization.
To foster interest in recommendation and maintenance of acceptable standard by industry and
general public.
To undertake preparation and distribution of standard samples.
To register and regulate standard marks and specifications.
