DEMOCRACY AND ECONOMIC DEVELOPMENT IN NIGERIA, 1999 – 2007

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TABLE OF CONTENTS

Title Page        –           –           –           –           –           –           –           –           i

Approval Page            –           –           –           –           –           –           –           –           ii

Dedication      –           –           –           –           –           –           –           –           iii

Acknowledgements    –           –           –           –           –           –           –           iv

Table of Contents       –           –           –           –           –           –           –           v

List of Tables and Figure        –           –           –           –           –           –           vii

Abbreviations –           –           –           –           –           –           –           –           viii

Abstract          –           –           –           –           –           –           –           –           x

CHAPTER ONE: Introduction       –           –           –           –           –           1

  1. Background to the Study       –           –           –           –           –           1
    1. Statement of the Problem       –           –           –           –           –           5
    1. Objective of the Study           –           –           –           –           –           7
    1. Significance of the Study       –  –           –           –           7         

CHAPTER TWO: Literature Review        –           –           –           –           9

2.1       Literature Review       –           –           –           –           –           –           9

CHAPTER THREE: Methodology            –           –           –           –           39

3.1       Theoretical Framework           –           –           –           –           –           39

3.2       Hypotheses     –           –           –           –           –           –           –           44

3.3       Method of Data Collection     –           –           –           –           –           44

3.4       Method of Data Analysis       –           –           –           –           –           47

3.5       Logical Data Framework        –           –           –           –           –           48

CHAPTER FOUR: Democratic Governance and Economic

Development in Nigeria, 1999 – 2007          –           –           –           49

4.1       Absence of Electoral Legitimacy and Underdevelopment

Of Nigeria’s Productive Forces          –           –           –           –           50

4.2       Lack of Transparency and Accountability in Governance

And Pervasive Public Sector Corruption in Nigeria   –           –           62

CHAPTER FIVE: Insecurity and Economic Development

In Nigeria, 1999 and 2007    –           –           –           –           –           85

5.1       Governance and Security Deficit in Nigeria since 1999         –           86

5.2       Insecurity and the standard of living of Nigerians     –           –           114

CHAPTER SIX: Summary, Conclusion and Recommendations –          131

6.1       Summary and Conclusion       –           –           –           –           –           131

6.2       Recommendations      –           –           –           –           –           –           133

BIBLIOGRAPHY    –           –           –           –           –           –           –           134

LIST OF TABLES AND FIGURE

Table 3.1: Logical Data Framework (LDF) for the Study      –           –           48

Table 4.1: The Last Minute Award of Oil Block Bazaar During

Obasanjo’s Tenure (1999-2007)          –           –           –           –           73

Table 4.2: The Halliburton Scandal indicating the beneficiaries

And the amount          –           –           –           –           –           –           78

Table 4.3: Nigeria’s ranking in the CPI since 1996    –           –           –           79

Table 5.1 Democracy Index for Nigeria         –           –           –           –           99

Table 5.2: Summary of Reported Crime Cases in Nigeria 1994-2003 –         102

Fig 5.1: Graphic Representation of Reported Crime Cases in

Nigeria 1994-2003      –           –           –           –           –           –           103

Table 5.3: Level of Crime from 2000 to 2008            –           –           –           113

Table 5.4: Nigeria and other West African Countries on the

Global Peace Index Ranking –           –           –           –           –           114

Table 5.5: Relative Poverty Headcount, 1980-2010   –           –           –           119

Table 5.6: Relative Poverty: Non-poor, Moderate poor and

The Extremely poor, 1980 – 2010      –           –           –           –           120

Table 5.7: National Poverty Incidence 2003/2004 and 2009/2010    –           121

Table 5.8: National Unemployment Rates (2000 – 2009)      –           –           121

Table 5.9: Manufacturing Capacity Utilization (2000 – 2008)           –           122

Table 5.10: Growth Rate of the Economy (2000 – 2009)      –           –           123

Table 5.11: Inflation Rate (2000 – 2009)       –           –           –           –           124

Table 5.12: Federal Government Capital Expenditure as Percentage

Of GDP (2000 – 2009)           –           –           –           –           –           124

Table 5.13: A Chronological Presentation of Petroleum Product

Prices in Nigeria Since the 1970’s      –           –           –           –           127

Table 5.14: PMS Price per liter in OPEC countries (in Naira)            –           128

Table 5.15: Showing the Net Enrolment in Primary Schools

1990 – 2009    –           –           –           –           –           –           –           129

ABBREVIATIONS

CAST                         Center for American Studies

CBN               Central Bank of Nigeria

CHS                Commission on Human Security

CM                 Chikoko Movement

COG               Commonwealth Observer Group

COMA           Coalition for Militant Action

CPI                 Corruption Perception Index

DFID              Department for International Development

DPR                Department of Petroleum Resources

EBA                Egbesu Boys of Africa

ECOWAS      Economic Community of West African States

EFCC                         Economic and Financial Crimes Commission

EIU                 Economic Intelligence Unit

ERC               Electoral Reform Commission

EU-EOM        European Union – Election Observation Mission

FDI                 Foreign Direct Investment

FNDIC           Federated Niger Delta Ijaw Communities

FOI                 Freedom of Information

GCDD            Ghana Center for Democratic Development

GDP               Gross Domestic Product

GMD              Group Managing Director

GNI                Gross National Income 

GNP               Gross National Product

GPI                 Global Peace Index

HDR               Human Development Report

HIV/AIDS      Human Immunodeficiency Virus /Acquired Immune Deficiency Syndrome

HRW              Human Rights Watch

HSU                Human Security Unit

ICG                International Crisis Group

ICPC              Independent Corrupt Practices and Other related Offences Commission

IDPs                Internally Displaced Persons 

IGA                Itsekiri General Assembly

IMF                International Monetary Fund

INEC              Independent National Electoral Commission

IRI                  International Republican Institute

IYC                 Ijaw Youth Council

JRC                Joint Revolution Council

LDCs              Less Developed Countries

LNG               Liquefied Natural Gas

MB                  Martyrs Brigade

MD                 Managing Director

MEND            Movement for the Emancipation of the Niger Delta

MOSIEND     Movement for the Survival of the Ijaw Ethnic Nationality in the Niger Delta

MOSOP          Movement for the Survival of the Ogoni People

NBS                National Bureau of Statistics

NDDC            Niger Delta Development Commission

NDI                 National Democratic Institute

NDLA            Niger Delta Liberation Army

NDPVF          Niger Delta People Volunteer Force

NEEDS          National Economic Empowerment Development Strategy

NEITI             Nigerian Extractive Industries Transparency Initiative

NGOs                         Non-Governmental Organisations

NIPP               National Independent Power Project

NNPC             Nigerian National Petroleum Corporation

NPEB                         National Poverty Eradication Blueprint

NSPMC          Nigerian Security Printing and Minting Company

ODI                 Overseas Development Institute

OECD            Organisation for Economic Co-operation and Development

OMPADEC   Oil Mineral Producing Areas Development Commission

OPEC             Organization of Petroleum Exporting Countries

PDI                 People’s Democratic Institute

PDP                People’s Democratic Party

PLASIEC      Plateau State Independent Electoral Commission

PMS                Premium Motor Spirit

PPMC            Pipeline and Products Marketing Company

PPP                 Purchasing Power Parity 

RMAFC         Revenue Mobilisation Allocation and Fiscal Commission

SALW            Small Arms and Light Weapons

TAM               Turn-Around Maintenance

TI                    Transparency International

UN                  United Nations

UNDP             United Nations Development Programme

UNN               University of Nigeria, Nsukka

UU                  Urhobo Union

ABSTRACT

Democracy and development are both highly contested concepts. Similarly, the interface between both concepts is also a subject of contestation. On the one hand are neoliberal theorists who believe that liberal democracy is essential, in fact a desideratum for economic development and human security and therefore an ideal form to which all nations of the earth must aspire. On the other are what may be termed neo-Marxist theorists who interpret liberal democracy as an ideological fig wig for masking the mindless exploitation and atrocious inequality that characterizes the global capitalist system, particularly the peripheral states. In line with the former position which has been on the ascendancy since the end of the cold war, the restoration of democratic rule in Nigeria in 1999 elicited high expectations among the citizenry that it would usher in an era of economic prosperity and security of lives and property both of which had been eroded under prolonged military rule. This study empirically examines the impact of the first eight years of democratic experiment in Nigeria on economic development and human security. Specifically, it examines the impact of democratic governance on economic development and the implication of the high level of insecurity witnessed during the period on the standard of living of the citizens. The study made use of qualitative descriptive method of collecting secondary data and employed content analysis in the analysis of the data. The theory of the postcolonial state was adopted as its framework of analysis. The study found that the democratic rule as implemented in Nigeria between 1999 and 2007 did not translate to economic development or increased security of lives and property and that the high rate of insecurity as witnessed during the period adversely impacted on the standard of living of the citizens. The study therefore recommends among other things the bridging of the high level of inequality in Nigeria and the opening up of the democratic space to make for greater citizen participation and which would in turn ignite their creative energy for national development.

CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

Democracy is a contested concept. In its liberal conception, democracy is the political form through which political power is said to reside in the people. This political power could be directly exercised by the people especially in modern times through their decisions on sensitive matters expressed in form of plebiscite or referendum; or indirectly through their representatives in government (Magstadt, 2009). The import of this notion therefore is that democracy is a process and indeed a developmental process which encompasses the people. In other words, the people are so central to democracy in that when the people develop politically, then the democratic process is bound to transform to maturity stage (Omodia, 2013: 569). This, he said, implies that democracy is a dynamic process that is expected to bring about the growth and evolution of a society and that democracy, if fairly practiced, should bring about a reduction in poverty, socio-economic empowerment and other quantitative and qualitative indices of development of man and the society he lives in.

In Africa, the need for democratization especially as witnessed in most nation-states in the 1990’s is based on the conception that democratic governance constitutes a major tool for socio-economic and institutional transformation or development (Olagunju et.al 1993; Omodia 2007; Johari 2011; Omodia 2012a). Thus, the pattern of democratization was majorly anchored on the transition from either one-partyism to competitive party democracy or from military rule to competitive party democracy.

In the case of Nigeria, although under military governance, developmental strides at reducing poverty and strengthening national integration were intended through the adoption of various strategies (Aku et.al 1997; Omodia 2005; Omodia 2007b), it has been recorded that political development was quite minimal as a result of the nature of military governance which is not designed to be integrative of the people. This factor no doubt also negatively impacted on the success of poverty reduction and economic development strategies of military regimes. Thus, democratic governance especially in the mid 1990’s and late 1990’s in Nigeria was viewed as a functional mechanism that would bring about an enduring development to the Nigerian state.

Meanwhile, the concept of development is no less contested with the most pronounced contestation being that between the Liberal and Marxist perspectives. To the liberalists, development means change which results due to maximization of the growth of GNP through capital accumulation and industrialization. Todaro (1979), for instance, saw development as the capacity of a national economy, whose initial economic conditions have been more static, to generate and sustain an annual increase in its Gross National Product (GNP) at the rate of 5% or 7%. On the other hand, the Marxists view development differently. To them, development is above economic progress and encompasses multidimensional processes. It is beyond economic variables and focuses on man and his well-being. Taking a hard look at development, Rodney (1972) posited that development in human society is many sided process. At the level of individual, it implies increased skill and capacity, greater freedom, creativity, self-discipline, responsibility and material well-being, while at the level of the society, it implies an increasing capacity to regulate both internal and external relations.  It is the Marxists opinion that development starts at the individual level of the society and therefore, for real development to emerge the Marxists advocate the following:

  1. Free, compulsory and universal basic education;
  2. Improvement in the education and training of the working population;
  3. Raising the standard of living of the people;
  4. Improvement in the health of the people, by all round provision of health facilities;
  5. Making sure that level of consumption of material, social and spiritual goods and services are raised.

They contend that if these conditions are met, it will engender all round individuals with the capacity to contribute to development.

Sanusi (2010:4) acknowledges that economic progress is merely a component of development and that development goes beyond pure economics. In an ultimate sense, he said, development must encompass more than the material and financial side of people’s lives. Development, according to him, is therefore a multidimensional process involving the reorganization and reorientation of the entire economic and social systems which, in addition to improvements in incomes and output, typically involves radical changes in institutional, social and administrative structures, as well as in popular attitudes and in many cases even customs and beliefs.

Mindful of these conceptual polemics, we take as our point of departure Dudley Seers’ injunction that the questions to ask about a country’s development are:

What has been happening to poverty? What has been happening to unemployment? What has been happening to inequality? If all of these have declined from high levels, then beyond doubt this has been a period of development for the country concerned. If one or two of these central problems have been growing worse, especially if all three have, it would be strange to call the result “development”, even if per capita income doubled. This applies of course to the future too. A “plan” which conveys no targets for reducing poverty, unemployment and inequality can hardly be considered a “development plan” (Seers 1972 cited in Oyugi, 2008: 1-2).

Meanwhile, the concept of democracy and its relationship with economic development has equally been an area of debate (Rodrik, 1997). The debate has revolved around whether or not democracy promotes economic development or, conversely, whether or not economic development produces an environment that allows democracy to thrive and be sustained in the longer term (Matlosa, Elklit and Chiroro, 2007). Going further back, the debate may however properly be situated within the classical liberal theory and its concern with the best form of government to promote economic development. The liberals believe that government is best which governs the least, and that the primary function of government, which comes into existence as a result of a social contract, is the maintenance of national security and the protection of private property. On the basis of the classical liberal theory, Immanuel Kant, several centuries ago wrote a book titled Perpetual Peace in which he argued that peace depended on the establishment of liberal democracies in all nation-states and the translation of the principles of liberal democracy into the international realm.

This has been further expounded and propagated by neo-liberal theorists notable among who is Francis Fukuyama. He argued, following the collapse of the Soviet Union, that liberal capitalism provides the best solution for national progress and international peace and that in it mankind has finally discovered the ideal state. Implicit in this liberal cum neo-liberal assumption is that the implementation of liberal capitalism along with its political correlate liberal democracy would lead, as if by automatism, to greater economic development and guarantee the security of lives and properties of the citizens of any given state. In this sense therefore, democracy has become widely recognized as prerequisites for sustainable economic development (Johnson 1982; White and Wade 1988) essentially because it fosters transparency, accountability, the rule of law, respect for human rights, civic participation, and civic inclusiveness; all of which are necessary for securing economic productivity, equitable distribution and state legitimacy (The Ghana Center for Democratic Development, 2001). With respect to Nigeria however, it would appear that the restoration of democratic rule neither stimulated economic growth nor did it guarantee greater security of lives and properties of the citizens. 

It is against this backdrop therefore that this study examines the impact of Nigeria’s democratic experiment on the nation’s economic development between 1999 and 2007. 

1.2       Statement of the Problem

DEMOCRACY AND ECONOMIC DEVELOPMENT IN NIGERIA, 1999 – 2007