CHAPTER ONE

1.0     INTRODUCTION

1.1     Background of the Study

Available literature on world history reveals that nothing bothers national leaders more than the thought of economic development. Hence outstanding world leaders are always formulating and carrying out policies aimed at economic development of their nations. No prospect is more alluring to nation leaders than the thought of bringing in businesses to develop their nations economy.

Nation leaders have never ignored economic field in their quest for development. Fleet wood feels that most people would despise “the pains that are taken in making collection ‘ of so mean things as the price of wheat and oats (Chronicon Preciosum 1707). Mean things have however assumed dignity as they increasingly contributed to the economic power of the state.

During the first three decades of the 20th century, the development of the Nigerian economy was shaped primarily by Nigerian Farmers and Trader’s response to changing conditions in national markets.

Agriculture and trading were the major economic activities. Apart from mining and handcraft, there was practically no industrial production in Nigeria. The government played a conservative and essentially passive role in the economy. Except for a few major budget and trying not to interfere with the market system. The 1950’s witnessed the beginning of industrial development and the increasing government participation in nearly all sectors of the economy.

Available information unfortunately does not permit one to measure changes in the total level or the sectoral composition of economic activity in Nigeria with much precision, although data on external trade and on the budgets of different levels of government and of various public corporations do reveal absolute changes on these particular activities for example exports of goods and services increased in value by 11.7% between 1950 and 1962 while import rose by 24.6% during the same period. This situation supposes is now hanging with reverse being the case. The main reason for Nigeria’s present backward condition and indeed much of Africa compared with the rest of the world is simply lack of money for development.