Globalization And The Challenges In Poverty Eradication In Nigeria: An Assessment Of Buhari’s Administration

Project and Seminar Material for Economics

Globalization And The Challenges In Poverty Eradication In Nigeria: An Assessment Of Buhari’s Administration


Abstract


The study examines globalization and the challenges in poverty eradication in Nigeria. Globalisation is the driving force for change, growth and development of several countries, and this is expected to be so in Nigeria.

The study made use of qualitative method/secondary data. Document analysis/content analysis was used as the main method of data collection which include all kinds of academic articles, textual and multi-media products, ranging from television programmes to web sites on the internet.

The findings revealed that: the impact of globalization on Nigeria economy in the Buhari’s administration is positive and negative in nature. Nigeria is highly dependent on other countries for the importation of goods and services, including refined petroleum. The impact of globalisation has had negative implications on the Nigerian economy as it has contributed to the upsurge of unemployment in Nigeria and has stagnated the process of national development. Globalization has led to migration of the best brains in Nigeria to UK and USA at the detriment of the economy. The impact of poor leadership and high level of corruption in some countries cannot assume even twenty percent in terms of the factors that are presently causing the underdevelopment and heightening poverty.

The study concludes that the problem of poverty, underdevelopment, weak institutions, bad governance and corruption are the major factor militating against Nigeria’s success in gaining from the process of globalization, Poverty eradication is the major challenge Nigeria is faced with even though it is fully engaged in the process of globalisation and has a democratic system of government. The study recommended that: Government of Nigeria should as a matter of urgency address the problem of corruption in order to achieve the goal of poverty eradication. Effective policies should be formulated to regulated foreign direct investments if the country if the country is to benefit from globalization. Economic globalization should both be driven by desire to make money. The global economy should be regulated and should not be dominated by corporations that recognize money as their only value.


Chapter One


Introduction

1.1 Background to the Study

Globally, poverty eradication has been used by governments as a strategic tool for development. Poverty eradication is a crisis arising mainly from economic problems which is related to hardship and unemployment (Abdin, 2017). Governments all over the world face a lot of difficulties in eradicating poverty due to high competition among the citizens and bad decisions or policy making on the part of government in order to satisfy and maintain equity within the nations (Horn, 2011). One of the immediate challenges in poverty eradication is the fall in the values of financial resources, which hinders the lending capabilities of financial establishments and has discouraged the consumption of goods and services, especially in United States and other advance nations (Ayres & Warr, 2019).

Conversely, African countries are also confronted with the issue of poverty eradication. Bradshaw (2016) indicated that economic growth is a key determinant of poverty in Africa which is indicated by unemployment and underemployment. In most developing countries in Africa, labour is often the only asset the poor can use to improve their well-being. However, Poverty entails more than the lack of capital and productive resources to ensure sustainable livelihoods, but it can also be by hunger and malnutrition, limited access to education and other basic services, social discrimination as well as the lack of participation in decision-making. Hence the creation of productive job opportunities is essential for achieving poverty eradication and sustainable economic and social development (Hamilton, 2012). It is crucial to provide decent employments that will both secure income and empowerment for the poor to achieve a sustainable livelihood.

In Nigeria, efficient and sustainable poverty eradication depends on strong relationship between production and consumption which is based on significant involvement of the citizens of the country in adding values to productive activities (Obadan, 2011). Due to the expansion in industrial production activities, more people get employment, earn income and are able to improve their standard of living. This reduces the stress on governments thereby making public services and social welfare programs to be efficient and effective. However, various governments have adopted one poverty eradication measure or the other in a bid to reduce the increasing rate of poverty in Nigeria, (Ager, 2010). In Nigeria, poverty eradication programmes have been handled with so much noise on awareness rather than achieving results. The government of Yakubu Gowon, 1972 set up the National Accelerated Food Production Programme (NAFPP) and the Nigerian Agricultural and Cooperative Bank (NACB) with the focus on ensuring adequate funding of Agricultural production in the country and in 1976, Gen. Olusegun Obasanjo initiated the Operation Feed the Nation (OFN) which also was geared towards encouraging food production and food security in Nigeria but these two programmes did not achieve its objectives. The civilian president of Nigeria in 1979, Alhaji Shehu Shagari established the Green Revolution Programme. The programme was focused on providing more food for Nigerians by reducing importation of food through increasing crop and fibre productions but the programme does not achieve its objective of empowering the poor farmers by providing them with modern agricultural equipments needed for the production but the programme only favoured those who had no business with farming like, both serving and retired army officers, Senior Civil Servants, business men and politicians(Yakubu and Aderonmu, 2010). It was only used to improve their affluence and to acquire areas of land and certificate of occupancy in the pretence of wanting to establish a farm which ended up by widening the gap between the rich and the poor where the rich becomes richer and the poor becomes poorer.

More recently, other social welfare programmes has been setup to eradicate poverty in Nigeria, but they have not been effective. The administration Goodluck Jonathan created Subsidy Reinvestment Programme SUREP, but the level of corruption that pervades the air has rendered it ineffective since the people that are supposed to benefit are sidelined. Also, the current administration of Mohammadu Buhari has also contributed to social welfare and poverty eradication through his own programmes such as School feeding programme, Trader money, Npower, Its effect on poverty eradication has continued to be subject of controversy because poverty rate has continued to increase in the nation since the country has been recently named “headquarters of poverty”.

The advancement in technology, transport, communication, education, and regulations of trade that makes trade fair to all parties, globalization has simplified business management in the world. This attracts more people to engage in international business and international trade (Asgary & Walle, 2012). Companies enjoy economies of scale in the business due to reduction of cost in the management. Hence, globalization makes business management easier and efficient for the company. United States seems to have powerful impact upon many other countries and societies. The world today has a popular cultural force (Kiggundu, 2012). The popular consumer culture of the economically dominant West is relentlessly and inevitably transforming other regions, cultures, nations and societies. In addition, such perspective imply that technological change, mass media, and consumer oriented marketing campaigns work in tandem to remake whatever they touch in their own image. Even attitudes and ideas about society, religion and technology are transformed by cultural diffusion brought by globalization (Harris, 2012). Multinational corporation is a result of globalization. They occupy a central role within the process of globalization as evidenced through global foreign direct investment inflows. Their concentrations within Europe in western economies has led to size constraints, therefore there is a need for new geographical areas to operate whereby they will face a lot of competition in the market. Through this they will enlarge their market and enjoy economies of scale as globalization facilitates time space compression, economies compete at all levels including that of attracting investors (Smith & Omar, 2015).

Globalization has brought benefits in terms of development to African countries as well as negative effects. The positive effects include a number of factors which are education, trade, technology, competition, investments and capital flows, employment, culture and organization structure (Gettu, 2011). Most successful emerging markets in developed countries are a result of privatization of state owned industries. In order for these industries to increase consumer demand many of them are attempting to expand and extend their value chain to an international level. The impact of globalization on business management is seen by the sudden increase of number of transactions across the borders (Oboh, 2015). In protecting yields and maintaining competitiveness, businesses are continuing to develop a wide range of their footprint as it lowers cost and enjoys economies of scale.

Globalization tend to be the realm of elite because in many parts of the world especially in Nigeria. They are the only people who are affluent enough to buy many of the products available in the global marketplace (Aina, 2016). Highly educated and wealthy people from different backgrounds interact within a westernized milieu. Western styles, since are symbols of affluence and power, the elite often embraces western styles of products and pattern of behavior in order to impress others. Today Western culture and patterns of behavior and language are staples of international business (Akinboye, 2018).

In developing countries like Nigeria, globalization is offered as the answer to poverty eradication. However, globalization has played various positive roles in the lives of nations as well as individuals (Orubu & Awopegba, 2014). Globalization has increased access to information through cable and information super highways and has also created new global network that have disseminated national boundaries and barriers which resulted in a greater integration of the world economy (Obioma & Osanyintuyi, 2016). Akinbowo (2014) stated that many western governments have benefited tremendously from globalization, but most developing countries like Nigeria are yet to gain the full benefits of this process in their various areas of administration such as governance, economy and poverty eradication. For them, globalization often increase inequalities and reduces developing nation’s capability to achieve national or local food and nutrition security. Such concerns and anxiety among groups are often not virtual but real. It is on this premises that this research is analyzing globalization and the challenges in poverty eradication in Nigeria with focus on assessment of Buhari’s administration.


1.2 Statement of the Problem

Nigeria is one of the countries with greatest development potentials in Africa given that is vast in resources and above all, Nigeria is rich in human resource endowment. But regardless of these potentials Nigeria is still among the poorest countries of the world (Adewuyi, 2014). The economy is caught up with multiple difficulties. On the basis of widespread economic crisis, and the recent global economic meltdown, the country is unable to improve the standard of living of its citizens to an appreciable height. Thus poverty is both absolute and relative terms which are the most serious problems facing Nigeria. Due to the continued rise in poverty level, successively government in Nigeria have not relented in formulating one policy or the other in order to address this social recession but, the poverty level has continued to rise (Ozughalu & Ajayi, 2014). The sorry state of poverty in Nigeria has led the World Bank (1996) to describe Nigeria as a “paradox”. This is because Nigeria is a country of immense wealth endowed with human and material resources, yet her citizens are wallowing in abject poverty. By 1999, the World Bank estimated that Nigeria has earned $300 billion from oil. Between1999 and 2011, the country netted nearly $300billion in oil and gas. In spite of growth indications as a result of these inflows over the years, Nigeria currently ranked among the poorest countries in the world (World Bank, 2010). Recently in 2019, Nigeria was ranked as the country with the highest number of people living in poverty. It is worthy of note that no research has been conducted on globalization and the challenges in poverty eradication in Nigeria with focus on assessment of Buhari’s administration, therefore, this study intends to fill that gap.


1.3 Objectives of the Study

The main objective of this study is to analyze the relationship between globalization and the challenges in poverty eradication in Nigeria with focus on assessment of Buhari’s administration.

The specific objectives are to:

  1. Analyze the impact of globalization on Nigeria economy during Buhari’s administration.
  2. Find out the effect of globalization on poverty eradication during Buhari’s administration.
  3. Find out challenges and prospects of achieving remarkable poverty eradication during Buhari’s administration.
  4. Analyse how economic opportunity can be expanded in order to achieve remarkable poverty eradication during Buhari’s administration.

1.4 Research Questions

  1. How does globalization affect Nigeria economy during Buhari’s administration?
  2. What is the effect of globalization on poverty eradication during Buhari’s administration?
  3. What are the challenges and prospects of achieving remarkable poverty eradication during Buhari’s administration?
  4. How has economic opportunity can be expanded in achieving remarkable poverty eradication during Buhari’s administration?

1.5 Significance of the Study

The outcome of this study will enlighten government, policy makers, stakeholders and the general public on globalization and the challenges in poverty eradication in Nigeria with focus on assessment of Buhari’s administration.

The findings from this study will constitute a basis for future research and also contribute to the body of knowledge since it will be used as empirical literature. Outcome of this study will also be a guide for policy formulation both at national and state level as a way of eradicating poverty.


1.6 Scope of the Study

This study will cover globalization and the challenges in poverty eradication in Nigeria. It will also focus on assessment of Buhari’s administration. It will also cover issues spanning 2015 to 2019.


1.7 Methodology

Methodology is part of the research that shows the ways and approaches of collecting the data (Oliver, 2004). This research is primarily qualitative as it is based on globalization and challenges in poverty eradication in Nigeria – An assessment of Buhari’s administration. The reason for choosing the qualitative analysis strategy is the exploratory and the qualitative nature of study. According to Robson (1993), flexibility is always the main strength of the case study strategy in terms of interpretation and getting access to the specified places. The research is a based on secondary data. We used document analysis/content analysis as main method of data collection. Document analysis/content analysis also called “textual analysis” (Travers, 2001) in the study will include all kinds of academic articles, textual and multi-media products, ranging from television programmes to web sites on the internet.


1.8 Operational Definition of Terms

Globalization:

Is the process by which businesses or other organizations develop international influence or start operating on an international scale.

Challenge:

Is the situation of being faced with something that needs great mental or physical effort in it.

Poverty Eradication:

Is a set of measures, both economic and humanitarian, that are intended to permanently lift people out of poverty

Poverty:

Is the state of being extremely poor.

Assessment:

Is the act of judging or deciding the amount, value, quality, or importance of something.

Administration:

Refers to the group of individuals who are in charge of creating and enforcing rules and regulations, or those in leadership positions who complete important tasks.


Chapter Five


Summary of Findings, Conclusions and Recommendations

5.1 Summary of Findings

The study addresses the subject of globalization and the challenges in poverty eradication in Nigeria. It is said that globalisation is the driving force for change, growth and development of several countries, and this is expected to be so in Nigeria. Findings however revealed the impact of globalization on Nigeria economy in the Buhari’s administration to be positive and negative in nature.

Nigeria is highly dependent on other countries for the importation of goods and services, including refined petroleum. Hence, any attempt made by these exporting countries to increase the cost of their products would ultimately result in a cost-push inflation. Secondly, Nigeria operates a mono-commodity based economy hence, currency devaluation would only do more harm to her economy that is heavily dependent on the revenue obtained from oil sales coupled with the falling oil price that has left the economy battered with inflation.

The impact of globalisation has had negative implications on the Nigerian economy as it has contributed to the upsurge of unemployment in Nigeria and has stagnated the process of national development. Globalization has led to migration of the best brains in Nigeria to UK and USA at the detriment of the economy. The impact of poor leadership and high level of corruption in some countries cannot assume even twenty percent in terms of the factors that are presently causing the underdevelopment and heightening poverty. Nigeria must address the problem of corruption in a bid to eradicate poverty in the country.


5.2 Conclusions

This research identified the problem of poverty, underdevelopment, weak institutions, bad governance and corruption as a major factor militating against Nigeria’s success in gaining from the process of globalisation. The importance of this research cannot be overstated because poverty eradication is a major challenge Nigeria is faced with even though it is fully engaged in the process of globalisation and has a democratic system of government. In comparison with other advanced countries with leading democracies such as United Kingdom or the United States. These countries have systems in place to manage the challenges of the rapidly changing global economy, Nigeria, on the other hand, is yet to familiarise herself with the intricacies of a democratic system of government, hence, her failure to keep up with the demands of running a democratic system of governance.

The gross mismanagement of fund, deficient educational system, corrupt public official and high unemployment rate, to say the least, are poverty eradication indicators that needs to be resolved before the positive impact of globalisation can fully engulf the Nigerian polity. A phenomenon as complex as globalisation and poverty eradication can only work properly in the absence of a dysfunctional political, economic and social sector. That is the reason why, institutional reforms, formulation of new policies and adherence to prescribed policies have failed to remove Nigeria from the cue of disadvantaged countries engaged in the process of globalisation.

Nigeria economy holds great potential judging from her extensive pool of resources ranging from human to natural resources. However, the future of her economy lies in her ability to aggressively end the endemic corruption in the public and private sector, diversify the economy, judiciously manage her natural resource, repair her weak institutions, reform substandard taxation and educational policies, equip the health care sector financially and physically and create more jobs opportunities in order to put her human resources to lucrative use. If these pre-requisites are met, then Nigeria has a shot at attaining a full-scale economic growth and national development. Nigeria might as well end up becoming the economic powerhouse of the African continent if Nigerian leaders strive to maintain order and stability in all spheres of the country.

Nigeria have also take measures to safeguard against the negative challenges of a fast globalizing world system. Nigeria just like the rest of the developing world has to understand the world and its future direction with a view to taking it for necessary development and poverty eradication. For Nigeria to reap the gains of globalization it is recommended that she must embrace good governance, which incorporates political, economic and corporate components as a veritable culture for enhancing the benefits which any country can derive from globalization.

The poverty situation in Nigeria is complex and therefore requires a complex intervention process. This process must necessarily involve the state, market and civil society institutions. The argument is that each sector potentially contributes to poverty eradication. The complexity of the relationship between poverty eradication and globalisation makes it necessary to focus on the role of good governance in eradicating poverty, the inclusion and empowerment of the poor, through the adoption of a right based approach and of participatory mechanisms for decision-making. Also an unregulated economy dominated by corporation having the desire to make profit will only increase poverty. While globalisation may promote economic growth and employment, it may have an adverse effect on the livelihood of small rural producers in the absence of institutions that ensure an equitable distribution of its benefits. Furthermore, the nexus between poverty and globalisation also requires careful consideration. The impact of globalisation on poverty eradication hinges on the extent to which the poor participate in the income-growth process, and this is something that cannot be guaranteed.


5.3 Recommendations

Following the summary of findings and conclusion, the following recommendations are made:

  1. The government of Nigeria should as a matter of urgency address the problem of corruption in order to achieve the goal of poverty eradication.
  2. Effective policies should be formulated to regulated foreign direct investments if the country if the country is to benefit from globalization.
  3. The view that poverty is only a matter of “money” needs to be abandoned so as to recognise access to services as a critical component of poverty eradication, especially in the formulation of policies and strategies, and fundamental institutional changes.
  4. Economic globalization should both be driven by desire to make money. This is because profit motive rarely takes into account the poor and the disadvantage or the long term need of the planet.
  5. The global economy should be regulated and should not be dominated by corporations that recognize money as their only value. It should be noted that unregulated global economy is inherently unstable.

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