TABLE OF CONTENTS
TITLE ……………………………………………………………………………….. i
DECLARATION………………………………………………………………… ii
CERTIFICATION…………………………………………………………….. iii
DEDICATION…………………………………………………………………. iv
ACKNOWLEDGEMENT………………………………………………….. v
TABLE OF CONTENTS………………………………………………….. vii
LIST OF TABLES……………………………………………………………. x
ABSTRACT ……………………………………………………………………. xi
CHAPTER ONE
1.1. Introduction…………………………………………………………….. 1
1.2 Statement of Problem……………………………………………… 4
1.3 Objectives of the Study…………………………………………… 5
1.4 Hypothesis…………………………………………………………….. 7
1.5 The Significance of the Study…………………………………. 8
1.6Limitation and Scope of the Study………………………………. 8
1.7 Definition of Terms…………………………………………………..
9
CHAPTER TWO
REVIEW OF RELATED LITERATURE
2.1 Why Economic Theories have Failed …………………….. 12
2.2. Poor Quality of Leadership and Bad Governance….. 21
2.3. Corruption…………………………………………………………….. 33
2.4. Inflation………………………………………………………………… 42
2.5 Stagflation …………………………………………………………….. 46
2.6 Investment ……………………………………………………………. 48
2.7 Taxation……………………………………………………………….. 51
CHAPTER THREE
RESEARCH METHODOLOGY
3.1. Research Design…………………………………………………… 53
3.2 Sources of Data……………………………………………………. 54
3.3. Population of the Study…………………………………………. 56
3.4 Sample Size Selection………………………………………….. 56
3.5 Questionnaire Design …………………………………………… 60
3.6 Questionnaire Administration and Collection………….. 61
3.7 Validity and Reliability of the Measuring Instrument.. 62
3.8 Data Analysis Technique ……………………………………… 63
CHAPTER FOUR
PRESENTATION ANALYSIS AND INTERPRETATION OF DATA
4.1. Introduction …………………………………………………………… 65
4.2Tabulation Presentation, Descriptive Analysis
and Interpretation of data ………………………………………. 65
4.3. Test of Hypothesis………………………………………………… 79
CHAPTER FIVE
SUMMARY OF FINDINGS CONCLUSION AND RECOMMENDATION
5.1. Summary of Findings ……………………………………………. 88
5.2. Conclusions ………………………………………………………….. 89
5.3. Recommendations……………………………………………….. 90
BIBLIOGRAPHY…………………………………………………… 94
APPENDIX……………………………………………………………
99
LIST OF TABLES
Table 2.1Shows Comparative Price list of some Selected Goods Between 2005 – 2011 and 2012 years …………………………………………… 44
Table 3.1 Population Enugu, Lagos, Awka and Port-Harcourt 59
Table 4.2Educational Level of Respondents …………………. 66
Table 4.4.Are you Employed?………………………………………. 67
Table 4.6 Response to Question on Economic Hardship 69
Table 4.7Severity of Economic Hardship in Nigeria……….. 70
Table 4.8Score of Nigerian Leadership…………………………. 71
Table 4.9Severity of Economic Hardship in Nigeria……….. 72
Table 4.10Response on Question No. 10……………………… 73
Table 4.11Response on Question No. 11……………………… 74
Table 4.12Response on Question No. 12……………………… 75
Table 4.13Response on Question No. 13 ……………………… 76
Table 4.14Response on Question No. 14……………………… 76
Table
4.15Response on Question No. 15……………………… 77
ABSTRACT
This study was designed to appraise the causes,
effects and remedies of economic degeneration in a developing economy;
analyzing Nigerian situation. Today, our
economy is going down the drain, but the truthful and actual situation, is that
for over a decade now, Nigerian economy has been under severe stress. To
address this above problem, this work aims at taking a good look at the factors
that contribute to this degeneration of our economy, with a view on how to
elicit actions towards eradicating them. Data collected for this work was
through the use of questionnaires, survey and historical research method. Further extensive literature survey was also
carried out to expose all the possible areas of hypothesis. A total population figure of 106 million
(based on 1991 census figure) was used.
Out of this, a randomly selected sample size of 311 respondents was
computed through the use of Yarmane’s and Kumar’s model. Data analysis was done
using tables and percentages, while acceptance and rejection of hypothesis used
in this study was based on tests conducted using statistical test of z-test.
The details of results, indicated that political instability impinges adversely
on the economy through divestment, lack of new foreign investment and that
corruption is a major impediment to our development goals. Recommendations
offered in line with the findings of this study are thus: that corruption in
all its ramifications and manifestations, should be discouraged in the
strongest term: Legacy of lasting and enduring democracy should be bequested.
Conclusively, the unhealthy state of Nigerian economy today is as a result of
bad governance occasioned by poor quality of leadership or absence of it.
CHAPTER ONE
INTRODUCTION
1.1. BACKGROUND OF THE STUDY
Nigeria at independence joined the committee of nations with hope for a better tomorrow. she was able to feed herself and had a view of becoming independent. She had lofty ideas of leading the African Continent to the promised land of economic emancipation.
She believed that these were easily attainable goals due to her richly endowed economic and human resources, good climate and stable socio-political conditions.
Today, due to political and economic disequilibrium, she is yet to attain these hopes. The actual and truthful situation is that for over a decade now, the Nigerian economy has been under severe stress. She seems to be going deeper and deeper down the drain. The consensus is that it has never been this bad for Nigeria.
         The price of any conceivable item from Garri and Bread and Razor blade and Yam not to mention petrol and complex industrial products have been soaring in geometric proportions over the years.
The economy is truly in dire difficulty Factors such as stagflation, taxation, economic and political instability, foreign exchange ratio policy, outrageous cost of capital, subterranean cum subversive competition and market forces have compounded and complicated the situation even more.
Due to the adverse economic conditions prevailing in the country, many businesses have closed. For example, Leventis Plc at Enugu and banks declared distressed at an alarming rate by the Central Bank of Nigeria (CBN). All these has contributed in no small measure to the submerging of many businesses. Many of these that are still afloat are experiencing economic degeneration.
Thus, it is based on this background that the researcher wants to research on the causes, effects and remedies of Economic Degeneration in a stagflated developing Economy like Nigeria.
         This economic degeneration is much more pronounced in the industrial sector but not to say that it is not existing in the Agricultural Sector, perhaps other sectors and sub-sectors of the economy. This has contributed to low industrial output occasioned by low capacity utilization and socio political factors. In Agricultural sector, this is observable in the diminishing quantity and quality of both staple food items and cash crops.
Economic Degeneration in Nigerian Industries and Society
Nigerian Automobile industry epitomizes this concept aptly. None of Nigeria’s Automobile companies in these industries namely Leyland, Steyr, Fiat, Volkswagen of Nigeria (PAN) and ANNAMCO is anywhere near it’s installed capacity, notwithstanding that the market prices of their products have gone up astronomically, four out of the six, so far have closed their shops (Steyr, Leyland, Fiat, VOWN).
The degeneration is not limited to the Automobile industry alone. The iron and steel industry, banking industry, cement, paper machine tools etc and the civil service experience this degeneration too.
The spirit of the people have been so affected that only very few cares. This must not be allowed to go on otherwise, the adverse multiplier effects can ruin this nation irredeemably.
         This non-chalancy, deterioration and decay is much. Decay is much amplified in the public sector than the private sector. Equipment that cost millions are left under the rain to deteriorate. Public infrastructures are left in a sorry state of disrepair for intenable reasons. These developments are what formed the background of this research.
1.2 STATEMENT OF PROBLEM
