LIST OF REASONS

In Nigeria, a growing body of research has begun to shed light on the multiple factors that contribute to the persistently low rate of capital formation , a challenge that has significant implications for the nation’s overall economic development. The discussion often begins with the recognition that the low level of national income and per capita income is at the heart of the issue. In Nigeria, many citizens struggle with inadequate earnings, and this insufficient level of disposable income has a direct impact on the ability to save and invest. When individuals do not have enough income to cover basic needs, they are left with little or nothing to set aside for investments that could enhance production and drive economic growth. As a result, the cycle of low income and low savings reinforces itself, creating a self-perpetuating trap where the lack of capital inhibits the establishment of more productive industries, which in turn means that national income remains stagnant. This viciou...

The success of indirect rule in Northern Nigeria is a story of how colonial strategy intertwined with deeply entrenched indigenous institutions, creating a hybrid system of governance that not only sustained colonial control but also resonated with local customs and political traditions. When Lord Frederick Lugard introduced indirect rule between 1900 and 1906, he was not merely exporting a foreign model of administration; he was capitalizing on an existing sociopolitical structure that was already firmly established in the region. In the traditional societies of Northern Nigeria , power was centralized in the hands of native rulers whose legitimacy was derived from long-standing customs, rituals, and historical continuity. These rulers, known as Emirs or Sultans, were not appointed by an external authority but were traditionally installed by the people themselves. Their enstoolment or installation followed customs that were deeply respected and widely recognized across various commun...

Since 1967, Nigeria’s federating units have been known as states—a transformation that followed the creation of 12 states by General Yakubu Gowon. Before that historic change, Nigeria was divided into regions, a system that emerged with the Richards Constitution of 1946 and was later modified in 1963 when the Mid-Western region was carved out of the Western Region. In the era of regionalism, minority ethnic nationalities frequently agitated for separate administrative entities, arguing that they were being marginalized by the dominant big three ethnic groups: the Hausa in the Northern Region, the Igbo in the Eastern Region, and the Yoruba in the Western Region. Even as early as 1957, concerns over minority fears led to the establishment of the Henry Willink Commission, which was tasked with investigating these apprehensions and proposing remedies. Although the commission ultimately did not recommend state creation for the minorities, various movements soon emerged. Agitations such as t...

Food security which is simply the availability and accessibility of foods, is instrumental to understanding food insecurity. Practically, food security can be defined as the condition in which every person has access to enough food to meet their daily energy needs—roughly 2,200 to 2,300 calories for an adult female and about 2,900 to 3,000 calories (which is approximately 8–10 kilograms of maize flour) for an adult male—with children needing proportionally less to remain healthy. When a nation is unable to provide these minimum calorie levels for its citizens, it is typically described as experiencing food insecurity. In recent times, food insecurity in Nigeria has reached unprecedented levels, emerging as one of the nation’s most pressing challenges. A closer examination of the current situation reveals a complex interplay of factors that have exacerbated the struggle for food among millions of Nigerians. Over the past several years, severe food shortages have become a recurring cri...

In recent times, Nigerian officials and economic experts have been increasingly vocal about the underlying factors fueling the nation’s burgeoning public debt in Nigeria , painting a picture of a country caught in a cycle of unsustainable fiscal practices. The prevailing narrative centers on a confluence of high government spending, systemic challenges in revenue generation, and an overreliance on external borrowing. These issues, which are deeply intertwined, have culminated in a situation where fiscal imbalances threaten the very fabric of Nigeria’s economic stability and its prospects for future development. The nature of the Nigerian government expenditures is one of the primary causes of the growing public debt in Nigeria. In fact, public debt in Nigeria has grown significantly, not solely due to an inability to generate sufficient revenue, but largely because of a pattern of imprudent and unchecked government spending. Over the years, substantial sums have been allocated to proj...

In recent discussions among government officials and financial watchdogs across Nigeria, considerable emphasis has been placed on understanding the inception and evolution of the Economic and Financial Crimes Commission (EFCC) as an agency designed to combat the complex and pervasive threat of economic and financial crimes. The EFCC was established at a time when Nigeria was grappling with a surge in sophisticated financial malpractices and criminal activities that threatened not only the integrity of its economic systems but also the trust of its citizens in public institutions. A robust mechanism to investigate, prosecute, and ultimately penalize those who sought to exploit the nation’s financial systems for illicit gain was the rationale behind the formation of the EFCC in Nigeria.  From its inception, the EFCC was envisaged as more than just a law enforcement body; it was to serve as a sentinel against the myriad forms of financial crimes that had become increasingly common in ...

Deregulation , defined as the reduction or elimination of government oversight within specific industries, has emerged as a critical policy direction for fostering market competition and stimulating economic growth in Nigeria . The government has increasingly argued that deregulation allows businesses to operate with fewer bureaucratic constraints, thereby freeing up capital and resources that can be reinvested into further innovation and expansion. In Nigeria’s context, proponents of deregulation contend that by transferring the role of supplier from the government to the private sector, particularly in strategic areas like the petroleum industry, market forces can determine prices more efficiently, leading to a more dynamic and responsive economic environment (Stiglitz, 1989). Deregulation stimulates competition, ensures efficiency, and promotes transparency in the economy of Nigeria. Extensively, the issues are hereunder discussed.  One of the core arguments for deregulation, as...

The National Broadcasting Commission (NBC), established in 1992 by Decree 38,  serves as Nigeria’s apex regulatory authority for the broadcast industry. It derives its powers from the NBC Act Cap N11, Laws of the Federation of Nigeria, 2004. The Act mandates the Commission to license, monitor, and regulate the industry while also addressing public complaints. However, the NBC faces significant challenges in fulfilling its responsibilities , particularly in regulating certain content—especially political broadcasts—which have become increasingly pervasive. Additionally, the Commission is frequently accused of inaction or bias in favor of certain interests, despite its statutory duty to address public complaints and enforce broadcasting regulations. NBC regulates broadcast stations, accredits educational programs, enforces ethical standards, and mediates industry conflicts. Pundits explain that the National Broadcasting Commission was established to create a regulatory framework that...

Industrialization is the process of transforming an economy from one based primarily on agriculture and raw material extraction into one centered on manufacturing and production. It involves the adoption of modern technologies, increased mechanization, and structural shifts that boost productivity, foster innovation, and drive economic growth. Poor industrialization in Nigeria results from inadequate access to credit, emanates from insufficient skilled labour, and among other things, suffers insecurity in the country. Authors explain that Nigeria’s failure to transition from an extraction-based economy to a manufacturing powerhouse largely stems from its chronic inability to secure sufficient credit. They argue that industrialists often refuse to share ownership of their enterprises with potential investors, a decision that limits the infusion of necessary capital. Banks and financial institutions impose onerous loan requirements and steep interest rates, while government policies exh...