Economic Reforms and Modernization in Nigeria, 1945-1965

Toyin Falola

Description

A critical study of a progressive period in Nigerian historyCreated as a result of British colonialism, Nigeria emerged as a nation-state during the mid-twentieth century. The British colonial administration, in a state of economic crisis and with huge debts to the United States, was uninterested in any rapid economic development in Nigeria after WWII. Britain needed resources to rebuild its economy, and nationalism was rising in Nigeria, where colonial subjects were complaining about exploitation. A rapid transformation in Nigeria's economy and political arena then took place.Reform came through politics and the transfer of power, with the first generation of the new political class inheriting power during the 1950s as colonialism ended. An age of ideas and actions began, and the country witnessed an expansion of its infrastructure, health services, schools, and industries. These were the first crucial steps in Nigeria's march toward modernization.Early on the agenda of the emerging nation-state was the issue of economic development. Most Nigerians defined progress by earning more money, living in better houses, wearing nice clothes, eating well, and being able to send their children to school. Independence was associated with the banishment of poverty. Unfortunately, as colonialism ended, Nigeria's focus switched from economic development to observing what their new leaders would do with opportunity. Politics became a competition between ethnic groups instead of a fight against colonialism.Economic Reforms and Modernization in Nigeria details the process and outcome of late-colonial and post-colonial Nigerian history. While its focus is on economic reforms, it includes a discussion of twentieth-century politics in order to place the events of the period in context. Author Toyin Falola presents statistical data on Nigeria's economy that illustrate the nature of the changes made throughout the mid-twentieth century. Much of this information is presented here for the first time.Those interested in African history and the economy, culture, and politics of non-Western societies will find this a valuable contribution to the study of the era and the place.

Sujets

• Histoire
• Central Africa
• History of Africa

Informations

• Publié par: The Kent State University Press
• Date de parution: 20 janvier 2013
• Nombre de lectures: 0
• EAN13: 9781631010460
• Langue: English

Extrait

Economic Reforms and Modernization in Nigeria, 1945–1965
Economic Reforms and Modernization in Nigeria, 1945-1965

T OYIN F ALOLA
The Kent State University Press
KENT & LONDON
© 2004 by The Kent State University Press, Kent, Ohio 44242
ALL RIGHTS RESERVED
Library of Congress Catalog Card Number 2004010975
ISBN 0-87338-801-1
Manufactured in the United States of America
LIBRARY OF CONGRESS CATALOGING-IN-PUBLICATION DATA
Falola, Toyin.
Economic reforms and modernization in Nigeria, 1945-1965 / Toyin Falola.
p.     cm.
Includes bibliographical references and index.
ISBN 0-87338-801-1 (hardcover : alk. paper) ∞
1. Nigeria—Economic conditions—To 1960. 2. Nigeria—Economic policy. I. title.
HC 1055.F355 2004
330.9669′03—dc22
2004010975
British Library Cataloging-in-Publication data are available.
13   12   11   10   09            5   4   3   2
For the parents of my two friends Vik Bahl and Manuel Callahan: L. Prem and Sulakshna Lakshi Bahl, and Carmen Callahan
Contents
Preface and Acknowledgments
1 Economy and Politics in a Colonial Society
2 The Political Context of Economic Reforms and Modernization
3 The Economy, 1945–1960
4 “Separate Economies”: Regionalism and Development Institutions
5 The Economy, 1960–1965
Postscript: Economy and Society after 1965
Appendix: Statistical Tables on the Nigerian Economy
Notes
Selected Bibliography
Index
Tables
1 Earnings from Agricultural and Domestic Exports
2 Gross Domestic Product of Nigeria, 1952–1953
3 Output and Value of the Principal Export Crops in Selected Years, 1900–1959
4 Agricultural Investments by Regional Boards: Western Region
5 Agricultural Investments by Regional Boards: Eastern Region
6 Agricultural Investments by Regional Boards: Northern Region
7 Annual Average Yield of Important Food Crops, 1960–1971
8 Earnings from Agricultural Exports, 1960–1974
9 Contribution of Manufacturing Industries to Gross National Product
10 Growth Rates of Manufacturing Industries
11 Federal and Regional Recurrent Revenues, 1959–1966
12 Investment in Manufacturing and Processing
13 Oil Contribution to Federal Government Revenue, 1961–1977
A1 The GDP at Factor Costs by Economic Sector, 1950–1957
A2 Sectoral Composition of the GDP , 1960–1982
A3 Growth of the GDP , 1960–1982 at 1973–1974 Factor Cost
A4 GDP at 1977–1982 Factor Cost: Percentage Distribution
A5 GDP by Activity Type
A6 Nigeria’s Term of Trade, 1949–1960
A7 Earnings from Commodity Trade
A8 Food Imports as Proportion of Total Imports and Per Capita Food Imports, 1961–1983
A9 Expansion of the Nigerian Road Network, 1962–1980
A10 Tonnage of Non-Oil Cargo Handled by Nigerian Ports, 1961–1982
A11 Performance of the Nigerian Railway Corporation, 1961–1965
A12 Electricity Demand in Nigeria, 1970–1980
A13 Nigeria Gas Development, 1971–1980
A14 Some Indicators of the Growth in Transport and Communication in Nigeria, 1945–1960
A15 Sectoral Growth Rates of the Economy, Selected Years 1962–1982
A16 Index of Agricultural Production in Nigeria, 1979–1983
A17 Fiscal Structure under the Nigeria (Constitution) Order in Council, 1960
A18 The Funding of Agricultural Development Projects
A19 Crude Oil Production
A20 Public Capital Expenditure in the Agricultural Sector, 1962–1985
A21 Proposed Changes in Revenue Allocation Formula, 1977–1981
A22 Recurrent Expenditure of Nigerian Federal Government, Selected Years 1959–1983
A23 Total Federal Government Expenditure at Current Prices, Selected Years 1959–1985
A24 Nigerian Federal Government Revenue from Crude Petroleum, 1961–1985
A25 Revenue of Nigerian Federal Government, Selected Years 1959–1985
A26 Federal Government’s Oil Revenues and Total Current Revenues, 1969–1976
A27 Gross Manufacturing Contribution, 1959–1960
A28 Foreign Investments in the Economy, 1975–1981
A29 Foreign Private Capital Outflows and Unremitted Profits, 1975–1981
A30 Foreign Private Investment as Percent of Total
A31 Sectoral Composition of Planned and Actual Expenditures in the 1962–1968 Development Plan
Preface and Acknowledgments
This is my second book on the period covering the last years of colonial rule, a successor to Development Planning and Decolonization in Nigeria . After 1940 the Nigerian economy and politics were transformed so rapidly that the country began to look different in many ways than it had looked in its previous history. The first generation members of the political class inherited power in the 1950s, and the agenda of an emerging nation-state turned primarily to the issue of development. The country became obsessed with the transfer of power from the British to the Nigerians, and what the new power-holders would do with this opportunity. The country entered its most crucial stage thus far in its so-called march toward “modernization.” This was an age of ideas and actions, all focused toward achieving rapid changes in the economy. The colonial administration, previously uncommitted to development, had to change course after 1940, in part driven by the fear of losing its colony, and in part forced out of its lethargy by nationalist forces. If before 1940 progress had been slow, it was a different story thereafter, as the country began to witness an expansion in its infrastructure, schools, health services, and industries. It is both the process and the outcome of the major economic changes after 1940 that form the subject of this book.
However, this book is different in two ways from its predecessor, Development Planning and Decolonization in Nigeria . Unlike the previous book, it deliberately seeks to reach a larger audience by combining synthesis with new research findings on various issues. The presentation is very much geared to general readers, while specialists will find newness in interpretations and data that is being used for the first time. This book deliberately provides additional analysis on politics in order to capture the general events of the period and to transcend the narrowness imposed by a strictly economic analysis. Politics determined in part how the major economic objectives of the period were arrived at. In addition, politics provided the enabling forces to initiate and implement political programs. During the period covered by this book, politics also determined the management of issues, as politicians were at that time among the major economic planners.
The book covers one of the most important phases in the history of modern Nigeria. Indeed, many regard the period as the “golden era” in the development of regional and national consciousness. Driven by the need to be free of British rule, many Nigerians, especially the elite, were proud of themselves. Nationalism emboldened them to think big about power, development, and individual achievements and self-esteem. The most commonly used word was “change.” Many more people went to school, in the hope of attaining social mobility. The first university in the country, the University of Ibadan, was established in 1948. Those who could not gain admission to Ibadan sought opportunities abroad, traveling to Britain, the “mother country,” also to the United States and other places. The regional governments in the 1950s made education their primary goal and contributed to the massive expansion of both primary and secondary schools. The farmers, craftsmen, market women, and others who did not go to school were also conditioned to dream of a great future: the inheritors of power promised to transform their lives within a generation. Most people expected progress, variously defined to mean earning more money, living in better houses, wearing good clothes, eating better food, and being able to send children to school. In short, independence was associated with the banishment of poverty.
The book captures the great changes of the era, and it pushes a little bit further into the period dominated by oil, if only to sketch the trends and the major issues. Several statistical tables are provided on the post-independence economy to indicate the nature of changes after independence. Two themes loom large in the study, one peripherally and the other my major concern. My major concern is with the economy, providing an analysis of the growth and characteristics of the era under consideration. I focus on the broad trends in the economy, as well as providing original accounts of the development agencies created during the period. Considerations of development plans and agencies ultimately revolve around the issues of economic growth. But, as the analysis indicates growth in Gross Domestic Product ( GDP ), per capita income, capital formation, aggregate savings and productivity, and also reviews the performance of the leading sectors (notably agriculture and industries), it can reveal profound changes which may nevertheless leave out the most important consideration: the betterment of people’s lives. I have included aspects of development as part of the larger context of economic history. Thus, issues of standard of living and capacity of government to provide more amenities to the ever-growing population are included in my analysis. On the one hand, we see an economy showing impressive evidence of economic growth, but, on the other hand, we see that the capacity for Nigerians to improve their living standard was not always enhanced.
The second theme, albeit analyzed in the context in a single chapter, is that of politics, which involved a process of transfer of power from the British to Nigerians and the mismanagement of this great opportunity by first generation members of the political class. Chapter 2 examines the formation of political parties, the various constitutions of the era, the competition for election, and the entrenchment of ethnicity that ultimately led to the civil war in 1967. All these political issues impacted upon the economic reforms and programs discussed in this book.
Both the economic