CRITICAL ANALYSIS OF THE PERFORMANCE OF NATIONAL ECONOMIC EMPOWERMENT AND DEVELOPMENT STRATEGY NEEDS ON THE NIGERIAN ECONOMY

Background of Study: Nigeria is a large nation with a population or about 120 million people made up of three main ethnic groups: Hausa, Yoruba and Ibo, plus many other minor tribes. Nigeria gained her independence in 1960 and become a republic in 1963. Since then, the country has been involved in development policies as a deliberate and calculated method for mobilizing her resources with the hope of improving the material well-being of her citizenry. It is worthy of note that since the attainment of political independence in 1960, five national development plans (1962-1968, 1970-74, 1974-80, 1981-85 and 1968-2010) where launched at different period but without resounding success (Saleman 1998:3).

This situation can be attributed to lack of the main ingredients required for the success not these developmental, efforts, which included political stability social, Economic, Educational and Industrial advancement are lacking in the Nigerian context.

Nigeria has a large deposit of oil, gas and solid Minerals and skilled workforce. Apart from these, Nigeria has not been able to effectively control its endowment to develop the economy sufficiently to improve the welfare of his people. With a computed population growth rate of 2.8% and a GDP growth rate of about 2.5% per capital income growth was negative for the greater part of the 1990s. Nigerians urbanization is one of the highest in the world, leading to loss of strong labour force for Agriculture. In addition the rate of job creation has been far less than the rate of growth of the urban labour force. This connected with an education system that is not attended to the population of the proper manpower required to support well growth has led to high levels of unemployment and underemployment. In Nigeria, oil currently is about 75% of government speedy growth of the industrial sector led to investment in some projects which turned out to be “white elephants”.

According to Akpabash, 2004, Nigeria contributes about 30% of Gross Domestic Profit but employs only about 3% of the available labour force. The two reasons for this development is not far fetch firstly, the ability to design such project was lacking. Secondly, the soft loans required diminish of oil prices in the early century.

These provide the background for the new started economy improvement agenda, the Nation Economics Empowerment and Development Strategy (NEEDS). During the regime of obasanjo’s, it has also taken other the measures such as the establishment of an independent corrupt practices commission (ICPC) the Economic and financial crime commission (EFCC) and due to process office to screen contracts sooner to execution.

1.2 Statement of Problem

The National Economics Employment and Development Strategy (NEEDS) came into takeover from the former structural adjustment programmes (SAP) which as introduce according to Babangida’s administration in 1986 which emphasizes. The National Economics Empowerment and Development Strategy (NEEDS) Intend to correct the negative impacts of the SAP on the country economic growth, which has led to an unprecedented social dislocation. The Mono-cultural economy practiced by Nigeria that is oil, has depressed other beneficial and elastic sector, sector, as economy now depends on oil as its major engine of growth and source of government revenue. According to Umar, 2005 summarized the problems of Nigeria economy.