DEVELOPMENT POLICIES AND PROGRAMMES IN NIGERIA.
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DEVELOPMENT POLICIES AND PROGRAMMES IN NIGERIA.
Chapter one
1.0 INTRODUCTION
1.1 Background of the Study
Nigeria’s development strategies and programmes have not been steady throughout the years, and as a result, the country’s economy has seen numerous shocks and disruptions both within and outside over the decades.
Internally, some of the variables responsible for it include volatile investment and consumption habits, poor execution of public programmes, shifts in future expectations, and the accelerator.
Similarly, external factors such as wars, revolutions, population growth rates and migration, technical transfer and changes, and the openness of the Nigerian economy have been highlighted as contributing.
The cyclical changes in the country’s economic activities have resulted in recurrent increases in unemployment and inflation rates, as well as external sector imbalances (Gbosi 2001).
In other words, development policies are a major economic stabilisation tool that involves measures taken to regulate and control the volume, cost, and availability of money in an economy in order to achieve a specific macroeconomic policy goal and counteract undesirable trends in the Nigerian economy (Gbosi, 1998).
As a result, they cannot be left to market forces of demand and supply, and other instruments of stabilisation, such as monetary and exchange rate policies, are utilised to address the highlighted difficulties (Ndiyo and Udah 2003).
This may include an increase or decrease in taxes as well as government expenditures, which are the foundation of development policies; however, in reality, government policy requires a combination of fiscal and monetary policy instruments to stabilise an economy because neither of these single instruments can solve all of an economy’s problems (Ndiyo and Udah, 2003).
The Nigerian economy entered a recession in the early 1980s, which culminated in a depression in the mid-1980s. This depression lasted into the early 1990s, with little signs of improvement.
The government constantly implemented policy steps to address and overcome the deteriorating economy. Drawing on the Great Depression, government policy initiatives attempted to alleviate the depression included increased government spending (Nagayasu, 2003).
According to Okunroumu (1993), the management of the Nigerian economy to attain macroeconomic stability has been unproductive and harmful, as seen by the bad inflationary tendency, government budgetary policies, and undulating foreign exchange rates.
The fall and increase of GDP, an unfavourable balance of payments, and rising unemployment rates are all signs of increasing macroeconomic instability.
As a result, the Nicias economy is unable to function effectively in an environment characterised by poor capacity utilisation due to a lack of foreign cash and Nigeria’s chaotic and unpredictable government policies (Isaksson, 2001).
The purpose of this study is to evaluate the impact of development programmes on the macroeconomic stabilisation of the Nigerian economy. We structured this lesson into four portions to help with overtasking.
The next chapter reflects the conceptual framework, whereas Chapter 3 is the methodology, Chapter 4 is data analysis, and Chapter 5 finishes the study with appropriate suggestions.
1.2 Statement of the Problem
This study assesses the development policies and programmers on the level of economic acti This theme was chosen due to the country’s poverty predicament. The country has enormous economic potential due to its immense material and people resources, which are now underutilised.
As a result, the country is trapped in the poverty trap of low savings, which are produced by low income, and low productivity, which is caused by a lack of capital. The lack of capital is caused by poor income, which leads to low savings.
How can the chronic poverty cycle be stopped so that the country does not continue in a low-equilibrium growth trap? This is the study’s central issue.
This study extends the idea that poverty traps can be broken by government fiscal policy. Government policies will be improved in order to encourage economic growth. All of these will assist the country overcome its chronic poverty.
1.3 Aims and Objectives of the Study
This study aims to achieve the following objectives:
a. the use of development policies in developing the Nigerian economy.
b. To assess the impact of government expenditure on economic activity.
b. Determine the influence of capital expenditure on the level of economic activity.
d. to measure how taxes affect the level of economic activity.
e. To evaluate the impact of regulation in controlling economic development.
1.4 Significance of the Study
The importance of this study cannot be overstated. It will be valuable to the fiscal authorities, bank management and staff, workers, depositors, students, and the economy as a whole.
Regardless, it will increase the volume of research on the subject. The study will help to ensure fiscal stability as well as a stable, safe, and profitable banking environment, hence accelerating Nigeria’s economic growth and development.
1.5 RESEARCH QUESTION.
The following requirements must be addressed in order to prepare data for analysis.
a. Do the government’s development policies help Nigeria’s economy grow?
b. What incentives has the government offered to strengthen Nigeria’s economic development policies?
b. What development strategies are needed for Nigeria’s economic growth?
d. Why is fiscal policy important for economic development?
a. How did Nigeria’s economic situation improve after implementing development policies?
1.9HYPOTHESIS
The following hypothesis has been developed to help guide the study’s conduct. They should be tested using the results from the regression coordinated. The hypotheses are:
a. Ho: Government-led development programmes do not considerably boost economic growth.
b. H1: Government-led development programmes considerably promote economic growth.
I.e., Ho = Null Hypothesis.
Hi = Alternative Hypothesis.
1.10 Scope of the Study
Over the last decade, development strategies and programmers have produced a considerable body of theoretical and empirical work.
However, the majority of this study focused on developed economies, and the inclusion of underdeveloped nations in cross-country studies was primarily to provide sufficient degrees of freedom during statistical analysis (Aregbeyen, 2007).
There is a widespread belief in the empirical literature that public spending is negatively correlated with economic growth due to public sector inefficiency, particularly in developing countries where a large proportion of public spending is attributed to non-development expenditures such as defence and interest payments on debits (Husnain, 2011), and Nigeria is no exception.
However, modern fiscal administration trends have offered a variety of methods for decreasing such expenditures that add little to the national economy’s development goals.
This concept is reflected in the adoption of MTEF (1998) as part of a broader package of budget changes to encourage collaboration across multiple government arms in planning and strategy for minimising wasteful spending.
Nigeria’s development policies have failed to promote long-term economic growth. Although the findings appear to invalidate the Keynesian postulation of the need for an active policy to stimulate economic activity, factors such as policy inconsistencies, high levels of corruption
wasteful spending, poor policy implementation, and a lack of feedback mechanism for implemented policies in Nigeria, all of which are capable of reducing the effectiveness of development policies, make such a conclusion impossible.
To put the Nigerian economy on the path of long-term growth and development, the government must end the incessant unproductive foreign borrowing, wasteful spending, and uncontrolled money supply, and implement specific policies aimed at increasing and sustaining productivity in all sectors of the economy.
1.11 Limitations of the Study
It is widely assumed that studying nature necessitates a significant investment of time, money, and resources. The inadequacy of such criteria places significant restrictions on this investigation. Limitations in general include:
a. Financial and fiscal constraints.
b. Material restriction.
b. Time constraints.
d. Physical and geographical constraints.
1.9 Definition of Terms
1.9.1 Banking industry
These are the total number of banks and other financial institutions that perform banking functions, such as accepting deposits. Credit/loan issuance and precious asset storage.
Such banks include merchant banks, development banks, and so forth. The banking industry also involves fiscal authorities such as the Central Bank of Nigeria and other federal entities responsible for economic regulation.
1.9.2 Development Policies
Is the use of government revenue collection (taxation) and spending intended to influence the economy? The two primary instruments of development policy are adjustments in the level and content of taxation and government spending in specific sectors.
These changes affect the macroeconomic indicators listed below in an economy. Aggregate demand and economic activity levels, as well as income distribution. The allocation of resources within and between the government and commercial sectors.
1.9.3 Monetary Policy
This is the method by which a country’s monetary authority manages the supply of money by setting a target interest rate in order to promote economic growth and stability.
Official goals often include relatively steady prices and low unemployment. Monetary economics explains how to develop optimal monetary policy.
1.9.4 Economic Growth.
Is the long-term increase in market value of an economy’s goods and services. It is typically quantified as the percentage rate of rise in real gross domestic product, or GDP. One of the most important is the increase in the GDP-to-population ratio (DGP per capital), also known as per capita income.
1.9.5 INSURANCE BANK.
This signifies those banks whose risks are guaranteed by the Nigeria Deposit Insurance Commission (NDIC).
1.9.6 BANK DISTRESS
This is the period in the banking business when they are unable to reach their targets, such as objectives, dividends, and staff remuneration, in the overall economy.
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