THE ROLE OF FINANCIAL INSTITUTION IN THE RURAL AND ECONOMIC DEVELOPMENT OF NIGERIA (A STUDY OF NIGERIA AGRICULTURAL AND CO-OPERATIVE BANK OKO
The study is an the effects of over dependency on oil on national development in Nigeria (A Study of Shell Petroleum Development Company S.P.D.C in Uzere Community Isoko South Local Government Delta state). The citizens of this country are supposed to be the major beneficiaries in terms of socio-economic development as a result of the negative effects of over dependency on oil on national development. The study gives some solution to these problems such as improvement of social amenities, economic diversification, finding agriculture and decentralization of industries etc. However, the study is sub-divided into five chapters, chapter one is the introduction of the research work, the scope the researcher adopted and it’s limitation. Chapter two is literature review is where all the work of other authorities are being quoted. Chapter three deals with methodology, the area of the study which is Uzere community in Isoko South Local government. Chapter four deal with data presentation and analysis, findings chapter five deals with the summary of the whole work conclusion, recommendation and the way forward on the effects of over dependency on oil on national development and economic diversification.
The scramble for oil as a mono economy is fast engendering crisis that are portends danger if drastic measures are not taken. With an increasing dependent on oil as the key of industrialization in the west.
It has expose the inability of successive governments in Nigeria to diversity the Nigerian economy, a once vibrant agricultural economy from the mono product.
Therefore, this work seeks to expose the impact of high dependency oil as mono economy which will obstruct the national development if care is not taken.
According to the Central Bank of Nigeria (CBN) (1998) annual report, it stated as follows oil which was first discovered in 1956 first exported in 1958 accounted for more than 90% of Nigerian exports by value and about 80% of government revenue as at December 31, 1981. the overall contribution of the oil sector to the national economy also grew from an insignificant 0.1% in 1959 to 87% in 1976.
There is no doubt that the Nigerian oil industry has affected the country in a variety of ways at the same time. On one hand, it has fashioned a remarkable landscape for the country, however on the negative side, petroleum exploration and production also have adverse effects on fishing and farming which are the traditional means of livelihood of the people of the oil productivity communities in the Niger Delta, and Nigeria in general.
If the oil industry is considered in view of its enormous contribution to foreign earning it has achieved a remarkable success. On the other scale, when considered, in respect of its negative impact on the socio-economic life and environment of the immediate oil hearing local communities and its inhabitants, it has left a balance sheet of ecological and socio-physical disaster.
This rightly provides a framework to evaluate the work of neo-classical economist who argues that the development of primary resource materials for export in the periphery is the basis for development in the peripheral countries.
Shell petroleum development company (SPDC) is the multi-national oil company actively involved in the exploration and production of oil and gas. Of course (SPDC) is the largest of the multi-national oil companies in Nigeria, and operates a join venture (owing 30%) with the Nigerian National Petroleum Corporation (NNPC) holding 55% Elf (French) holding 10% and Agip holding 5% SPDC discovered the first commercial oil field began in 1958 the federal government acquired 35% of the joint venture operation. SPDC produces almost half of the country’s oil from over 90 oil fields in the Niger Delta.
The effects of over dependency on oil on national development.
The truth is that no wise man/woman would love to put his/her eggs in one basket. The fear is that if he/she makes mistake all of them would break and the resultant effect would be total waste.
It is how even alarming that even though the above adage holds, as a nation, Nigeria that should be advising it’s public to be over-satisfied has only one source of foreign exchange since the discovery of oil in Nigeria.
However the core wastable of the leadership of this country is that they mismanage oil boom and did not use that opportunity to diversify by building so many industries before their God given oil boom turned into oil doom.
The only opportunity they have to rectify the abreaction was during the IBB military regime when he borrowed from IMF loan to revenge the economy but because of corruption and ostentatious life the money was also mismanage and diverted into his private accounts and the consequence is that we perpetual dependency on our former Colonial Masters.
This has posed a serious question to our so called independence. To be candled, Nigeria has not gotten her independence even less they pay all their depts. and become economically independent.
Nigerian whose senators are the highest paid law makers in the world are not ashamed that they cannot and can never pay back their IMF Loan. The only thing they can do is to service the loan. That is why they have been clamoring for cancellation of the loan. How can they be forgiven while the individual are richer than the government, with public fund they embezzled and diverted into their private accounts. That any serious decision as a sovereign nation without influence from the developed nations of the world. If truly we are a sovereign nation why can’t we carry out any solid project with out begging for developed nation to help us.
The truth of the matter is that corruption is the bane to our continued dependence in mono economy and our dependence on our ex-wife Colonial Masters.
To investigate why Nigeria is still dependent economically since independence.
To investigate why the leadership of this country being very corrupt an have decided to embezzle the money without diversifying.
To discover why the cost of government has continued to impoverish us and yet Nigeria still went to enact more state and more local government which will make room for more constituency and yet they are saying that there is no money.
To investigate the ways that the country can diversify:
To investigate the ways Nigerian can call their corrupt leaders to order by cutting ostentatious spending of the governance.
To find out if oil as a mono-economy has help in increasing the valve of exports in the country.
- SIGNIFICANCE OF THE STUDY
This research work will be of great benefit to the leadership of this country as they would practice and extentations way. It wall also help to cut the cost of governance in the country.
The research work will also be of great benefit to leadership of this country so that they will see the need to diversify.
The work will also help those that are, aspiring to be in the government to know that the nation is depending on them to move ahead and diversity it’s economy and also fight corruption in practice and not in principle it will also serve as a reference point for future researcher.
. Has Nigerian been keeping their eggs in one basket?
- To what extent is mismanagement a problem to the leadership of this nation?
- Are the leadership of this country corrupt?
- To what extent has the corruption in the leadership of this nation made their to divert public fund into personal account?
- To what extent has corruption and mismanagement made the leadership perpetual dependent on foreign nations today?
- To what extent has corrupt leader’s of this country turn our oil boom into oil doom by not investing very well?
- SCOPE/ DELIMITATION OF THE STUDY
The scope of this study is limited on the shell petroleum development company (SPDC) in finding out the effect of mono-economy on the national development. The scope was chosen because it is the largest of the multi-national oil, companies in Nigeria, and operates a joint venture with (NNPC) ELF and Agip, with 55%, 10% and 5% shares respectively.
The researcher encountered some problems during the course of the project work.
Some of the problems noticed were limited time, financial constraints, high transport fare and academic workload.
However, the researcher was able to accomplish this work to a logical conclusion.
Mono-economy According to oxford Advanced Dictionary, Mono means one or single.
- MONO-ECONOMY: A mono-economy can be defined as an economic system with one producer, distributor of commodity in the economy. It can also mean single or one economy.
- SHELL PETROLEUM DEVELOPMENT COMPANY: It is the largest fossil company in Nigeria. It is an operator of joint venture which is typically confirmed to the physical production and extraction of petroleum.
- CRUDE OIL: Oil in its natural state, before, it has been treated with chemical or refined.
- INDUSTRIALIZATION: It means the rapid development of industries.
- NIGERIA NATIONAL PETROLEUM CORPORATION: By law manage the joint venture between the Nigerian federal government and multi-national corporation.
- UNITED STATES DOLLAR: It is the currency most used in international transaction and is the world reserved currency.
- DEPENDENCY: It means a state of relying on some body for something, especially when this is not normal or necessary.
- NATIONAL DEVELOPMENT: Is the gradual manifestation of positive changes in the economic industrial political, socio-cultural and administrative life of a country.
————- this is an incomplete article ———– it’s a product of a high quality project researched work.
Project topic: THE ROLE OF FINANCIAL INSTITUTION IN THE RURAL AND ECONOMIC DEVELOPMENT OF NIGERIA