Economic history of Nigeria

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The economic history of Nigeria falls into three periods. They are the: pre-colonial, the colonial and the post-colonial or independence periods. [1] The pre-colonial period covers the longest the part of Nigerian history. The colonial period covers a period of 60 years, 1900-1960 while the independence period dates from October 1, 1960.

Contents

Colonialism

Colonialism is a period or time where one country takes over the political control of another country with the intention of profiting economically from the resources of the weaker country and having dominion over the colonised nation. [2] Colonialism can also be defined as a practice where one country dominates another country through subjugation of the weaker people over the stronger people. [3]

Colonialism is a major feature of the economic history of Nigeria. [4] Britain eventually gained control of the Nigerian administrators covering the period . [5] After independence, the Nigerian economy seemed very promising. Many saw Nigeria, with 15% of Africa's population, as an emerging economy. [6] However, this potential never materialized. A series of unfortunate political and economic events have stalled Nigerian growth. The country still plays an important economic role in the world, especially as a producer of fossil fuels. [7]

Nigeria during the Atlantic slave trade

In the Fifteenth century, Europe started direct trade. [8] The Portuguese had explored the coasts to avoid Saharan intermediaries in the trade of West African gold to Europe and that was a way to India. The Portuguese built coastal bases and introduced the Atlantic slave trade when they bought captives from the kingdom of Benin (nowadays Nigeria) and sold them to African tradesmen on the coast (nowadays Ghana). [9]

The period from 1680 to 1800 was dominated by a boom of the Atlantic slave trade because of the growth of the Atlantic plantation system. The effects on peaceful production and trade were terrible since slave trade was a cause of conflicts. However, the Atlantic trade still brought advantages. Especially, the currencies that West African tradesmen adopted were more efficient than earlier commodity currencies. This helped to reduce the cost of doing business. [10]

History of tax in Nigeria

In the mid-17th century to the mid-18th century, the European was on the quest to establish more trade posts for a wider competition in trade and empire in the Atlantic.

The British, like other newcomers to the slave trade, found they could compete with the Dutch in West Africa only by forming national trading companies. The first such effective English enterprise was the Company of the Royal Adventurers, chartered in 1660 and succeeded in 1672 by the Royal African Company. [11] Only a monopoly company could afford to build and maintain the forts considered essential to hold stocks of slaves and trade goods. In the early 18th century, Britain and France made inroads on the Dutch hold on West African trade; and by the end of the French Revolution and the subsequent Napoleonic Wars (1799–1815), Britain had become the dominant commercial power in West Africa. [12]

The slave trade was one of the major causes of the devastating internecine strife in southern Nigeria during the three centuries to the mid-19th century, when abolition occurred. In the 19th century, Britain was interested primarily in opening markets for its manufactured goods in West Africa and expanding commerce in palm oil. Securing the oil and ivory trade required that Britain usurp the power of coastal chiefs in what became Nigeria.

That was an unplanned consequence of the creation of the Sokoto Caliphate in 1804. At its peak, the Sokoto Caliphate was the most populous state in Africa. [13] Sokoto Caliphate remained a defining and reference point in West African history and Nigeria. [14] The Caliphate occupied most of north-central and north-west Nigeria, as well as parts of neighboring countries of nowadays Nigeria. [14] Internal peace and market integration was a basis of the commercial prosperity of the Caliphate. Hausa merchant diasporas ran an extensive export-trade network and the state had regular increase of the labor supply through the importation of “pagan” captives as slaves. Many cities became bigger, especially, its commercial capital Kano, which was the biggest manufacturing center in the region. The clothing was exported from Kano to all over West Africa. The formation of the Sokoto Caliphate made Islam a mass rural religion for the first time in the region. The Caliphate introduced Islamic taxes that facilitated economic expansion. [15] [16]

Formal "protection" and—eventually—colonization of Nigeria resulted not only from the desire to safeguard Britain's expanding trade interests in the Nigerian hinterland, but also from an interest in forestalling formal claims by other colonial powers, such as France and Germany. By 1850, British trading interests were concentrating in Lagos and the Niger River delta. British administration in Nigeria formally began in 1861, when Lagos became a crown colony, a step taken in response to factors such as the now-illegal activities of slave traders, the disruption of trade by the Yoruba civil wars, and fears that the French would take over Lagos. [17] Through a series of steps designed to facilitate trade, by 1906 present-day Nigeria was under British control.

Northern Nigeria, 1900-1945

The area that is now modern-day northern Nigeria was once dominated during prehistoric times by the Nok civilization.[ citation needed ] When the British arrived in what became Northern Nigeria, there were by then lets say for arguments sake two nations ruling the North predominantly the Fulani and then also the Indigenous Hausa, the latter of which the Hausa kingdoms were constantly being attacked by the Fulani who are conquerors by nature. The British, to keep a balance, assisted the Hausa and with their help confronted the Fulani. [18] When the 19th century opened, the Fulani appeared to be the predominant race in the Sudan. Fulani is the Hausa name for the people who call themselves Fulbe.[ citation needed ] From 1900 to 1946, the regional British government in Northern Nigeria made exportation a high priority and set up a system of regulation to control diseases and maintain quality. [19] In terms of exports, one of the main agricultural industries involved the production and export of hides and skins. It had been developed long before the British arrived, for the pre-colonial caravan trade and have reached an international market. World demand soared during the two world wars. The regional government imposed new, more efficient procedures in flaying, trimming, and drying hides and skins. It imposed new rules regarding minimum standards, and compulsory inspection, which had the effect of raising quality and obtaining higher prices. European merchants and industrialists had unlimited access to, and sometimes prevailed on, the colonial state, but the latter exercised autonomous decision-making power on matters affecting the economy and commerce of the colony. [20]

National Economic Interests in the Postwar Period

Starting in 1949, when Nigeria's elites were first consulted by the British as part of a constitutional review on emergent labor and commercial industry and in the ongoing debate over the pressure of decolonization, independence, and modernization. The two coup d'états of 1966 and the civil war of 1967-70 reflected economic as well as political elements. [21]

Between 1951 and 1960, the major political parties played leading roles in unifying and locally mobilizing the economic elite. Elites from majority parties in the regional assemblies who cooperated with the ruling federal coalition dispensed a wide range of rewards and sanctions, thus retaining their own positions and power and kept the masses subordinated. Positions in government services and public corporations, licenses for market stalls, permits for agricultural export production, rights to establish enterprises, roads, electrical service, running water, and the governing group allocated scholarships to its supporters. Each major party was backed by a bank, which assisted in the transfer of substantial public funds to the party. [21]

At all levels—local and regional after 1951 and federal after 1954—political leaders could use a range of controls, extending over local councils, district administration, police, and courts, to subdue any dissident minority, especially in the far north, where clientage was the social adhesive of the emirate system. Political superiors offered protection, patronage, and economic security in exchange for loyalty and the obedience of inferiors. [21]

The elites attracted clients and socially inferior groups not only in the far north, where Islam legitimized the traditional hierarchy, but even in Igboland, an area of southeastern Nigeria where power had been widely dispersed before the 20th century. The elites of the three regions preferred to close ranks to share the fruits of office and to prevent challenges to their positions, but by the time independence was achieved in 1960, policies designed to enhance the security of one regional elite threatened the security of others. [21]

Nigerian Political and Economic change between 1980s - 2020

Unlike the 1970s, a major feature of Nigeria's economy in the 1980s was its dependence on petroleum, which accounts for 87 percent of export receipts and 77 percent of the Federal government's current revenue in 1988. Falling oil output and prices contributed to another noteworthy aspect of the economy in the 1980s—the decline in per capita real gross national product, which persisted until oil prices began to rise in 1990. Indeed, GNP per capital per year decreased 4.8 percent from 1980 to 1987, which led in 1989 to Nigeria's classification by the World Bank as a low-income country (based on 1987 data) for the first time since the annual World Development Report was instituted in 1978. In 1989 the World Bank also declared Nigeria poor enough to be eligible (along with countries such as Bangladesh, Ethiopia, Chad, and Mali) for concessional aid from an affiliate, the International Development Association (IDA).

Another relevant feature of the Nigerian economy was an abrupt change in the government's share of expenditures. As a percentage of gross domestic product, national government expenditures rose from 9 percent in 1962 to 44 percent in 1979 but fell to 17 percent in 1988. In the aftermath of the 1967-70 civil war, Nigeria's government became more centralized. The oil boom of the 1970s" provided the tax revenue to strengthen the central government further. Expansion of the government's share of the economy did little to enhance its political and administrative capacity but did increase incomes and the number of jobs that the governing elites could distribute to their clients. [22]

The economic collapse in the late 1970s and early 1980s contributed to substantial discontent and conflict between ethnic communities and nationalities, adding to the political pressure to expel more than 2 million illegal workers (mostly from Ghana, Niger, Cameroon, and Chad) in early 1983 and May 1985.

Between 2009 and 2019, poverty in Nigeria declined by between 3–7 percentage points. [23]

Boko Haram's effect on Nigeria's economy

Nigeria has one of the largest populations in Africa with over 200 million citizens. [24] Its economy booms from the oil industry in the Niger Delta, and is said to be the leading economy in Africa in 2020. [25] Although Nigeria's economy is doing well, research has proven 35 percent of the population live in absolute poverty. [26] Approximately, 90 million Nigerians are believed to live on less than one US dollar a day. [27] With economic insecurity, high unemployment rates, and poverty, the Boko Haram group was able to emerge within Nigeria as political protests. Boko Haram is a violent social group that arose, partly in response to the social and economic deprivation of Nigeria's northeastern population. Starting out around 2008, Boko Haram has carried out attacks in order to spread their Islamic influence and defeat the westernization that began during colonialism.

They were able to recruit among the youths population of Nigeria because of unemployment; approximately 64 million youths are unemployed with 1.6 million being underemployed. [25] Boko Haram targets individuals or organizations who encourage lifestyles believed to follow western culture, like the US or Europe. One targeted attack was on women who were attacked while attending school, leading to roughly 250 girls being kidnapped. [28]

The Boko Haram is believed to be responsible for roughly 10,000 deaths and 2.6 million displaced Nigerians since 2011. [29] [30] Nigeria's economy suffered when attacks held by the Boko Haram began on local businesses, government buildings, and local facilities such as schools and churches. Local businesses began to migrate to Southern region of Nigeria as a result of being attacked or due to fear of the Boko Haram. Roughly 80 percent of the businesses in Kano had to close down due to power failure and security challenges caused by attacks. [31] In the capital city of Borno, Maiduguri, [16] a major market known as Market Monday was drastically hit by the Boko Haram causing over 10,000 shops to shut down . [31] Banks were said to be affected by the Boko Haram's violent attacks, and caused them to shorten their hours from eight to three hours to minimize the risk of getting hit by the Boko Haram; limiting citizens to their finances. [31] Citizens and the government had to pay for the retribution of damages caused by the Boko Haram. This stalled the economy in the northeast region because businesses were leaving, people began to lose jobs, and there was less money going into the local economy. Conflict impacts child health through multiple pathways. [32] Foreign investors began to withdraw their money from Nigeria because of the state of conflict Nigeria is in and the degrading economy as a result of the Boko Haram; causing Nigeria to lose 1.33 trillion dollars in foreign investments. [33] Nigerian refugees who were displaced or just seeking refuge from the Boko Haram migrated to neighboring countries such as Cameroon, Ghana, Niger, and Chad. Majority citizens migrated to the southern half of Nigeria where there are more opportunities for work, better economy, and more security. This further plays into the socioeconomic divide between the north and the south of Nigeria where the south is more financially stable from lack of conflict, government funding, and the oil industry in the Niger Delta. [25]

Related Research Articles

At the crossroads of West Africa and Central Africa, the territory of what is now Cameroon has seen human habitation since some time in the Middle Paleolithic, likely no later than 130,000 years ago. The earliest discovered archaeological evidence of humans dates from around 30,000 years ago at Shum Laka. The Bamenda highlands in western Cameroon near the border with Nigeria are the most likely origin for the Bantu peoples, whose language and culture came to dominate most of central and southern Africa between 1000 BCE and 1000 CE.

<span class="mw-page-title-main">Nigeria</span> Country in West Africa

Nigeria, officially the Federal Republic of Nigeria, is a country in West Africa. It is situated between the Sahel to the north and the Gulf of Guinea to the south in the Atlantic Ocean. It covers an area of 923,769 square kilometres (356,669 sq mi), and with a population of over 230 million, it is the most populous country in Africa, and the world's sixth-most populous country. Nigeria borders Niger in the north, Chad in the northeast, Cameroon in the east, and Benin in the west. Nigeria is a federal republic comprising 36 states and the Federal Capital Territory, where the capital, Abuja, is located. The largest city in Nigeria is Lagos, one of the largest metropolitan areas in the world and the largest in Africa.

<span class="mw-page-title-main">History of Nigeria</span> Country in West Africa

The history of Nigeria can be traced to the earliest inhabitants whose remains date from at least 13,000 BC through early civilizations such as the Nok culture which began around 1500 BC. Numerous ancient African civilizations settled in the region that is known today as Nigeria, such as the Kingdom of Nri, the Benin Empire, and the Oyo Empire. Islam reached Nigeria through the Bornu Empire between and Hausa Kingdom during the 11th century, while Christianity came to Nigeria in the 15th century through Augustinian and Capuchin monks from Portugal to the Kingdom of Warri. The Songhai Empire also occupied part of the region. Through contact with Europeans, early harbour towns such as Calabar, Badagry and Bonny emerged along the coast after 1480, which did business in the transatlantic slave trade, among other things. Conflicts in the hinterland, such as the civil war in the Oyo Empire, meant that new enslaved people were constantly being "supplied".

Shehu Usman ɗan Fodio was a Fulani scholar, Islamic religious teacher, revolutionary and a philosopher who founded the Sokoto Caliphate and ruled as its first caliph. After the successful revolution, the "Jama'a" gave him the title Amir al-Mu'minin. He rejected the throne and continued calling to Islam.

Hausa–Fulani are people of mixed Hausa and Fulani origin. They are primarily found in the Northern region of Nigeria, most of whom speak a variant of Hausa or Fula or both as their first language.

<span class="mw-page-title-main">Sokoto</span> Capital city of Sokoto State, Nigeria

Sokoto is a major city located in extreme north-western Nigeria, near the confluence of the Sokoto River and the Rima River. As of 2006, it has a population of over 427,760. Sokoto is the modern-day capital of Sokoto State and was previously the capital of the north-western states. Modern Sokoto is known for trading sheepskins, cattle hides, leather crafts, kola nuts and goatskins.

<span class="mw-page-title-main">Jihad of Usman dan Fodio</span> Military conflict in Nigeria and Cameroon (1804–1808)

The Jihad of Usman dan Fodio was a religio-military conflict in present-day Nigeria and Cameroon. The war began when Usman dan Fodio, a prominent Islamic scholar and teacher, was exiled from Gobir by King Yunfa, one of his former students.

<span class="mw-page-title-main">Sokoto Caliphate</span> Islamic state in West Africa (1804–1903)

The Sokoto Caliphate, also known as the Sultanate of Sokoto, was a Sunni Muslim caliphate in West Africa. It was founded by Usman dan Fodio in 1804 during the Fulani jihads after defeating the Hausa Kingdoms in the Fulani War. The boundaries of the caliphate are part of present-day Cameroon, Burkina Faso, Niger, and Nigeria. By 1837, the Sokoto state had a population of around 10-20 plus million people, becoming the most populous empire in West Africa. It was dissolved when the British, French and Germans conquered the area in 1903 and annexed it into the newly established Northern Nigeria Protectorate, Senegambia and Niger and Kamerun respectively.

<span class="mw-page-title-main">Islam in Nigeria</span> Muslims religion in Nigeria

Islam is one of the largest religions in Nigeria and the country has the largest Muslim population in Africa. In 2018, the CIA World Factbook estimated that 53.5% of Nigeria's population is Muslim. Islam is predominantly concentrated in the northern half of the country, with a significant Muslim minority existing in the southern region. Most of Northern Nigeria is governed under Sharia law, while the rest of the country is governed under secular law.

Muhammadu Bello was the second Sultan of Sokoto and reigned from 1817 until 1837. He was also an active writer of history, poetry, and Islamic studies. He was the son and primary aide to Usman dan Fodio, the founder of the Sokoto Caliphate and the first Sultan. During his reign, he encouraged the spread of Islam throughout the region, increasing education for both men and women, and the establishment of Islamic courts. He died on October 25, 1837, and was succeeded by his brother Abu Bakr Atiku and then his son, Aliyu Babba.

<span class="mw-page-title-main">Kebbi State</span> State of Nigeria

Kebbi State is a state in northwestern Nigeria. Kebbi State is bordered east and north of Sokoto and Zamfara states, and to the south by Niger state while its western border forms part of the national borders with Benin Republic for 103 km and Niger for 207 km. Named for the city of Birnin Kebbi—the state's capital and largest city, Kebbi state was formed from Sokoto state on 27 August 1991. Of the 36 states of Nigeria, Kebbi is the tenth largest in area and 18th most populous, with an estimated population of about 4.4 million as of 2016. The state is known as land of equity.

<span class="mw-page-title-main">Northern Region, Nigeria</span> Former autonomous division within Nigeria

Northern Nigeria was an autonomous division within Nigeria, distinctly different from the southern part of the country, with independent customs, foreign relations and security structures. In 1962, it acquired the territory of the British Northern Cameroons, which voted to become a province within Northern Nigeria.

<span class="mw-page-title-main">Colonial Nigeria</span> British colony and protectorate from 1914 to 1960

Colonial Nigeria was ruled by the British Empire from the mid-nineteenth century until 1960 when Nigeria achieved independence. Britain annexed Lagos in 1861 and established the Oil River Protectorate in 1884. British influence in the Niger area increased gradually over the 19th century, but Britain did not effectively occupy the area until 1885. Other European powers acknowledged Britain's dominance over the area in the 1885 Berlin Conference.

<span class="mw-page-title-main">Hausa people</span> Ethnic group in West Africa

The Hausa are a native ethnic group in West Africa. They speak the Hausa language, which is the second most spoken language after Arabic in the Afro-Asiatic language family. The Hausa are a culturally homogeneous people based primarily in the Sahelian and the sparse savanna areas of southern Niger and northern Nigeria respectively, numbering around 86 million people, with significant populations in Benin, Cameroon, Ivory Coast, Chad, Central African Republic, Togo, Ghana, as well as smaller populations in Sudan, Eritrea, Equatorial Guinea, Gabon, Senegal, Gambia. Predominantly Hausa-speaking communities are scattered throughout West Africa and on the traditional Hajj route north and east traversing the Sahara, with an especially large population in and around the town of Agadez. Other Hausa have also moved to large coastal cities in the region such as Lagos, Port Harcourt, Accra, Abidjan, Banjul and Cotonou as well as to parts of North Africa such as Libya over the course of the last 500 years. The Hausa traditionally live in small villages as well as in precolonial towns and cities where they grow crops, raise livestock including cattle as well as engage in trade, both local and long distance across Africa. They speak the Hausa language, an Afro-Asiatic language of the Chadic group. The Hausa aristocracy had historically developed an equestrian based culture. Still a status symbol of the traditional nobility in Hausa society, the horse still features in the Eid day celebrations, known as Ranar Sallah. Daura is the cultural center of the Hausa people. The town predates all the other major Hausa towns in tradition and culture.

<span class="mw-page-title-main">Fula jihads</span> Series of Jihads across West Africa during the 18th and 19th centuries

The Fulajihads sometimes called the Fulani revolution were a series of jihads that occurred across West Africa during the 18th and 19th centuries, led largely by the Muslim Fula people. The jihads and the jihad states came to an end with European colonization.

<span class="mw-page-title-main">Niger–Nigeria relations</span> Bilateral relations

Niger–Nigeria relations refer to the current and historical relationship between Niger and Nigeria, two neighbouring countries in West Africa. Relations are based on a long shared border and common cultural and historical interactions.

<span class="mw-page-title-main">Kano Emirate</span> Muslim state in northern Nigeria

The Kano Emirate was a Muslim state in Northern Nigeria formed in 1805 during the Fulani jihad when the Muslim Hausa-led Sultanate of Kano was deposed and replaced by a new emirate which became a vassal state of the Sokoto Caliphate. During and after the British colonial period, the powers of the emirate were steadily reduced. The emirate is preserved and integrated into modern Nigeria as the Kano Emirate Council.

Religious violence in Nigeria refers to Christian-Muslim strife in modern Nigeria, which can be traced back to 1953. Today, religious violence in Nigeria is dominated by the Boko Haram insurgency, which aims to establish an Islamic state in Nigeria. Since the turn of the 21st century, 62,000 Nigerian Christians have been killed by the terrorist group Boko Haram, Fulani herdsmen and other groups. The killings have been referred to as a silent genocide.

<span class="mw-page-title-main">Slavery in Nigeria</span> Traditional slave trade in southeastern Nigeria

Slavery has existed in various forms throughout the history of Nigeria, notably during the Atlantic slave trade and Trans-Saharan trade. Slavery is now illegal internationally and in Nigeria. However, legality is often overlooked with different pre-existing cultural traditions, which view certain actions differently. In Nigeria, certain traditions and religious practices have led to "the inevitable overlap between cultural, traditional, and religious practices as well as national legislation in many African states" which has had the power to exert extra-legal control over many lives resulting in modern-day slavery. The most common forms of modern slavery in Nigeria are human trafficking and child labor. Because modern slavery is difficult to recognize, it has been difficult to combat this practice despite international and national efforts.

References

  1. ↑ Njoku, Onwuka N. (2014). Economic History of Nigeria,19th-21st Centuries (2nd ed.). Nsukka, Nigeria: Great Ap Express Publishers Ltd. pp. iii–v. ISBN   978-978-8087-86-1.
  2. ↑ "What Is Colonialism? Definition and Examples". ThoughtCo. Retrieved 2022-06-09.
  3. ↑ Kohn, Margaret; Reddy, Kavita (2022), "Colonialism", in Zalta, Edward N. (ed.), The Stanford Encyclopedia of Philosophy (Summer 2022 ed.), Metaphysics Research Lab, Stanford University, retrieved 2022-06-09
  4. ↑ "The Colonial and Pre-Colonial Eras in Nigeria | AHA". www.historians.org. Retrieved 2020-05-29.
  5. ↑ "Nigeria - THE COLONIAL ECONOMIC LEGACY". countrystudies.us. Retrieved 2020-05-29.
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  10. ↑ Baten, Jörg (2016). A History of the Global Economy. From 1500 to the Present. Cambridge University Press. pp. 320–321. ISBN   9781107507180.
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  15. ↑ Baten, Jörg (2016). A History of the Global Economy. From 1500 to the Present. Cambridge University Press. pp. 323–324. ISBN   9781107507180.
  16. 1 2 Dunn, Gillian (2018). "The impact of the Boko Haram insurgency in Northeast Nigeria on childhood wasting: A double-difference study" (PDF). Conflict and Health. 12: 6. doi: 10.1186/s13031-018-0136-2 . PMC   5782364 . PMID   29410702.
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  20. ↑ Akanmu G. Adebayo, "The Production and Export of Hides and Skins in Colonial Northern Nigeria, 1900–1945." Journal of African history 33.2 (1992): 273-300.
  21. 1 2 3 4 Metz 1992, p. 160.
  22. ↑ Metz 1992, p. 157.
  23. ↑ Lain, Jonathan William; Schoch, Marta; Vishwanath, Tara (2024). Estimating a Poverty Trend for Nigeria between 2009 and 2019. The World Bank Economic Review. doi:10.1093/wber/lhad032.
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  25. 1 2 3 Shehu, Sani (September 2015). "The Impact of Boko Haram on Nigerian National Development". International Conference on Empowering Islamic Civilization.
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  30. ↑ Gam, Walter (September 2017). "Cameroon. Too Much to Carry: The Perception and Ramifications of Boko Haram's Activities on Cameroon". Conflict Studies Quarterly. 5: 67–87.
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  32. ↑ Dunn, Gillian (December 2018). "The impact of the Boko Haram insurgency in Northeast Nigeria on childhood wasting: a double-difference study". Conflict and Health. 12 (1): 6. doi: 10.1186/s13031-018-0136-2 . ISSN   1752-1505. PMC   5782364 . PMID   29410702.
  33. ↑ Adebayo, Anthony Abayomi (2014-07-04). "Implications of 'Boko Haram' Terrorism on National Development in Nigeria: A Critical Review". Mediterranean Journal of Social Sciences. 5 (16): 480. ISSN   2039-2117.

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