Covenant University Journal of Politics & Internationall Affair. Vol. 7 No. 1, June 2019 ISSN: p. 2354-3558 e. 2354-3493
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Covenant University Journal of Politics & International Affairs
Vol. 7 No. 1, June, 2019
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Articles
Xenophobic Attacks in South Africa and Nigeria’s Foreign Policy: Rethinking Nigeria’s Afro-Centric Foreign Policy Posture Oluwaseyi Ogunnowo and Segun Joshua 1
Girl-Child Education for National Development in Nigeria: A Critical Discourse Edidiong E. Udofia & Daniel E. Gberevbie 17
Exploring Nigeria’s Potential for Labour Exportation: Lessons from the Republic of Philippines Maureen Fubara & Sheriff Folarin 29
Bleeding the Commonwealth: An Assessment of Odu’a Investment Company Limited, 1985-2008 Abimbola Oyarinu 48
The Politics of Foreign Aid: A Study of China-Zambia Economic Relations Praise A. Ayinla & Sheriff F. Folarin 76
Resurgence of Militancy and the Challenges of Sustainable Peace and Development in the Niger Delta Oyinlola Abodunrin 97
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Oluwaseyi Ogunnowo & Segun Joshua CUJPIA (2019) 7(1) 1-16
Covenant University Journal of Politics & Internationall Affair. Vol. 7 No. 1, June 2019
ISSN: p. 2354-3558 e. 2354-3493 DOI: 10.20370/7vp4-x223
An Open Access Journal Available Online
Xenophobic Attacks in South Africa and Nigeria’s Foreign Policy: Rethinking Nigeria’s Afro-Centric Foreign Policy Posture
Oluwaseyi Ogunnowo & Segun Joshua
[email protected]; [email protected] [email protected]
Received: 11.02.2019 Accepted: 03.06.2019 Date of Publication: June, 2019
Abstract: This study advocates for a review of Nigeria’s foreign policy from its afro-centric posture in response to the recent xenophobic attacks in South Africa. The xenophobic attacks in South Africa have drawn the focus of state and non-state actors in the international system. Among other nationals, the attacks in South Africa have been against Nigerians. A total of 121 Nigerians have been killed since February 2016. Nigeria’s response to these attacks have been conservative and more declaratory than retaliatory, casting her as a weak country in the realm of international politics. This study makes use of secondary data from academic journals, books and newspapers. The study also adopts political realism as its theoretical framework. This study takes the position that Nigeria’s foreign policy should be reviewed from her afrocentric posture, to gaurantee the protection of her interests specifically the lives of her citizens in diaspora. Keywords: Afro-Centrism; Foreign Policy Nigeria; South Africa; Xenophobia
Introduction foreign policy particular to that state The concept of foreign policy is through which such an entity will ascribed great significance and is an speak with a single voice (Waltz, essential characteristic of States. 2001:179) (Cited in Erbaş, 2013). Waltz argues that the existence of a States in the domain of international state necessitates the existence of a politics possess certain policies that
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Oluwaseyi Ogunnowo & Segun Joshua CUJPIA (2019) 7(1) 1-16 help guide their interactions with that recurring decimals of other actors in the foray of world unemployment and poverty among politics. Foreign policies usually South Africans have given rise to fear encompass outlined objectives which of competition from more educated are aimed at managing resources to foreigners who might eventually engender profitable outcomes replace the lesser equipped and (Rolenc, 2013). Nigeria’s foreign educated South Africans. On the other policy has in past and recent times hand, Harris (2002) explains that the pronounced an afro-centric posture in xenophobic attacks in South Africa diverse issues in world politics. A can be attributed to a deep sense of pointer to this fact is captured in anger that arises over deprivation of Nigeria’s foreign policy principles basic amenities and needs left and national interest which surround unsatisfied. Recent attacks areas such as regional integration in particularly in 2015, were incited by West Africa and Africa, non- the words of the Zulu king (Babalola, interference in the domestic affairs of 2017). King Godswill Zwelithini was States, African unity and quoted saying “immigrants should independence, peaceful resolutions of pack their bags and leave” (Mhlongo, conflicts and so on (Ezirim, 2011). In 2015) (cited in (Mkandawire, support of this argument, Iganga 2015:193). (2013) further reiterates that the Nigerians have however not been nation’s foreign policy has birthed the spared in the recent spate of advocacy for issues at no benefit to xenophobic attacks which have taken herself. This has in diverse ways the lives of many and at the same time amounted to inestimable contributions caused the destruction of businesses to Africa. One of the notable and private properties belonging to contributions made by Nigeria as a non-nationals including Nigerians. result of her afro-centric foreign David (2018) asserts that, since policy is her struggles against the state February 2016, a total of 121 policy of apartheid as entrenched in Nigerians have been killed as a result South Africa by the minority Dutch of xenophobic attacks. On January 21 Boers beginning from 1948 2018, 14 Nigerians were arrested and (Danfulani, 2014) detained after protesting the incessant In recent times, the term Xenophobia killings of Nigerians. has garnered attention in the Juxtaposing the xenophobic attacks international system, particular among against Nigerians in South Africa with African States, owing to the killings Nigeria’s afro-centric foreign policy perpetrated by South Africans against which birthed support for the anti- non-nationals (Fayomi, Chidozie, & apartheid struggle raises questions Ayo, 2015). Through diverse efforts, about the relevance of Nigeria’s afro- several scholars have established why centric foreign policy. To this end, these killings are committed. Fayomi, this paper makes an argument in Chidozie and Ayo (2015) establish
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Oluwaseyi Ogunnowo & Segun Joshua CUJPIA (2019) 7(1) 1-16 support of rethinking Nigeria’s (2015) attempt a dichotomization. The African centred foreign policy. term xenophobia is of Greek origins This work is arranged into five made up of two terms, xenos sections. The first section is the translated to mean “stranger” or introduction. The second section “foreigner” and phobos translated to reviews relevant literature. The third mean “fear”. Hence xenophobia to section presents the realist theory as Fayomi et al (2015) suggests a fear or the theoretical framework of the dislike of foreigners. Harris (2002) study. The fourth section argues for explains xenophobia as a negative the rethinking of Nigeria’s afro- attitude stemming from dislike, hatred centric foreign policy. The fifth or fear. Solomon and Haigh (2009) section offers conclusions and explain xenophobia as the fear or recommendations. hatred of foreigners leading to
Research Methodology discriminatory behaviours including This study is qualitative in nature and violence. The term xenophobia can makes use of secondary sources of also be explained as “the deep dislike data which include: books, academic of non-nationals by nationals of a journals, magazines, newspapers and recipient state” (Bekker 2010:127) online sources. The research does not (cited in Hågensen, 2014:1). Saleh employ quantitative analysis. The (2015) explains the term xenophobia study makes use of a theory of as hate and violence premised on international relations specifically prejudiced discourses, leading to the political realism as revised from stigmatization of people based on available literatures to analyse the nationality. Hence xenophobia can be relationships between the independent explained as the exhibition of hatred and dependent variables. The or dislike for people of other independent variable in this study is nationalities, through violence, the xenophobic attacks in South sabotage, looting, etc. Xenophobia is Africa while the dependent variable in however not limited to violence this work is Nigeria’s foreign policy. against immigrants and non-nationals.
Literature Review It could also be portrayed in other The Concept of Xenophobia forms including exploitation, looting, Xenophobia is a social phenomenon property destruction and verbal abuse. with political significance. This is as a In highlighting its characteristics, the result of the fact that it embodies phenomenon of xenophobia can be hatred and fear of foreigners and linked to the philosophies of indirectly influences the policies of nationalism and ethnocentrism which government. As a concept however, highlight the belief in the superiority the term xenophobia is bereft of a of one’s country or ethnicity over singular definition. This is no fault of another (licata & Klein, 2002; the concept but due to the various Schirmer, 1998) (cited in Yakushko, submissions of scholars. In defining 2009). In support of this argument, the term, Fayomi, Chidozie and Ayo Watts (1996) (cited in Yakushko,
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2009) suggests that the chances of of a State and the arena of world xenophobia is hightened when politics (Evans and Newnham, 1999) ethnocentrism connects with a sense (cited in Rolenc, 2013). To Iganga of threat as a result of the presence of (2013), foreign policy beyond crafted a non-national resulting in prejudice. objectives interests and principles, is An example of such is holding the process which a state applies foreigners or non-nationals elements of national power for the responsible for the prevalent levels of projection of national interest on the unemployment. stage of international politics.
The Concept of Foreign Policy Nigeria’s Foreign Policy The quest of a nation to pronounce Nigeria’s foreign policy can be and actualise its interests and explained as the set of principles objectives within the purview of the guiding her actions taken during her international system makes necessary interactions with foreign powers. the phenomenon of foreign policy. Origins of Nigeria’s foreign policy Foreign policy also aids a state in can be traced to the colonial epoch in choosing its allies and maintaining her history. During this period, the international political and economic formation of Nigeria’s foreign policy relations that are advantageous to its was the perogative of Her Majesty’s development. However, within the government in Great Britain. field of social science, concepts such Invariably, the decision of the British as foreign policy do not have a government concerning Nigeria’s singular or universal definition. This interactions with the international is due to definitions offered by system formed Nigeria’s foreign scholars from different viewpoints. policy. An indeginous foreign policy Foreign policy can be explained as the for Nigeria was formed after category of policy that deals with a independence in October 1960. nations defence, economy, Nigeria’s foreign policy during the international political and economic early days of her independence was relations in the international system. crafted with specific focus on Africa According to Frankel (1978:26-27) and still retains this focus even in (cited in Ezirim, 2011) foreign policy current times. In his speech at the referes to “a range of actions, as well United Nations, Nigeria’s first Prime as a set of principles influencing these Minister, Tafawa Balewa highlighted actions, taken with reference to reasons for specific focus on Africa: external situations and factors”. To So far, I have concentrated on Adeniji (1968:15) the term foreign the problems of Africa. Please policy denotes a “projection of the do not think that we are not country’s national interest into the interested in the problems of trans-national arena, and the the rest of the world: We are intensely interested in them and consequent interaction of one with the hope to be allowed to assist in other”. Foreign policy serves as a finding solutions to them bridge between the domestic politics through this organization, but
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being human we are naturally in Ezirim, 2011). From the preceding, concerned first with what it can be firmley asserted that affects our immediate Nigeria’s foreign policy can be neighbourhood (Afinotan, analysed through concetric circles, 2015:167). with the first and innermost circle From the preceding, it can be being her national interests. The explained that the Afrocentric nature second circle represents West Africa of Nigeria’s foreign policy is and Nigeria’s contributions to the attributed to finding solutions to integration of the sub-region. The Africa’s problems which were third circle centres on Africa and the prevailent at the time. A significant fourth and outermost circle deals with issue confronting Africa was Nigeria’s relations with the different colonialism as some African countries countries of the world. The afore- had not attained independence. mentioned have guided Nigeria’s As a result, Nigeria’s foreign policy actions in the continent and on the was crafted inculcating the following stage of world politics. Different principles: non alignment, legal States in Africa have been equality of all States, non beneficiaries of Nigeria’s afro-centric interference, mulitaleral diplomacy, polity through peace keeping efforts, afrocentricism (Olusanya & Akindele, etc. Sule (2013) asserts that Nigeria 1986:3-5) (cited in Ezirim, 2011). has contributed enormous amount of Hence, the 1999 constitution of the troops as well as advisors to more Federal Republic of Nigeria in than 40 United Nations (UN), African Section 20 asserts that: “the state shall Union (AU) and Economic promote African unity, as well as total Community of West African States political, economic, social and (ECOWAS) missions. Amongst the cultural liberation of Africa and all peacekeeping efforts conducted by other forms of international Nigeria as a result of her african cooperation conducive of the centered foreign policy include: consolidation of universal peace and Congo from 1960-1966, Chad in mutual respect and friendship among 1979, Lebanon from 1978-1983, all peoples and States, and shall Liberia in 2003, etc. Nigeria, as a combat racial discrimination in all its result of her afro-centric foreign manifestations”. Nigeria’s foreign policy has also supported integration policy is guided by certain objectives efforts in West Africa, leading to the which revolve around the sovereignty, creation of ECOWAS in 1975. integrity and development of the Nigeria’s foreign policy possesses Nigerian state, liberation and unity of certain fundamental components Africa, engendering corporation and which form a major part of its regional integration, promotion of formation as well as its world peace and promotion of the implementation. According to Njoku principles of freedom, mutual respect and Nwafor (2005), these and equality in the international fundamental components include: system (Akindele & Ate, 2000) (cited
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I. The principles guiding the state Nigeria’s foreign policy seems II. The goals to achieve ambiguous as it does not articulate III. The means of pursuit what exactly are Nigeria’s national
The principles guiding the state: interest, Ade-Ibijola (2013) explains Like every other nation of the world, that Nigeria’s national interests Nigeria possesses guiding laws, rules basically refer to the general and regulations. These basic economic wellbeing of the country. principles could also include certain Succinctly, the foreign policy philosophies and underlying objective of promoting and protecting ideological inclinations responsible Nigeria’s national interest is simply a for the societal construct in Nigeria. goal of guaranteeing Nigeria’s One of the many social and economic wellbeing and prosperity. ideological principles that have over The Means of Pursuit: A very time shaped the Nigerian society. An important component of Nigeria’s instance, in Nigeria it is believed that foreign policy is the available means Marriage is between man and woman. of pursuit. This not only refers to the As such, there is a lot of rejection means of pursuing and actualising towards homosexuality in Nigeria. Nigeria’s foreign policy goals, but According to Onuche (2013:91), also the extent and the intensity “there is a framework of ethical involved in the pursuit of the oppositions toward homosexuality in actualisation of these goals. This also Nigeria”. As a result, Nigeria has involves the establishment of foreign instituted an anti-gay law that will of missions, recruitment of diplomatic course clamp down and stop staff and positioning of diplomatic homosexual practices in Nigeria. This service. The means for which a state has to an extent has influenced like Nigeria can utilise to implement Nigeria’s bilateral relations with the her foreign policy constitutes a vital United States of America. The Anti- component of her foreign policy. This gay law has engendered diplomatic influences her practice of diplomacy rows between Nigeria and the United (Njoku and Nwafor, 2005).
States and other western powers Theoretical Framework The Goals to Achieve: Apart from The theory adopted in analysing this the basic principles guiding the study is political realism. In offering a Nigerian state, one of the fundamental definition of the realist paradigm or components of Nigeria’s foreign realism, Donnelly (2000) opines that policy are the different goals it aims as a theory, political realism explains to achieve. These goals usually centre that the actions of entities in the on and are built around Nigeria’s sphere of international politics are national interests. An example of such motivated by self-interests. By so goals is the promotion of national doing, the realism upholds the belief interest as espoused in the 1999 that the international system is Constitution of the Federal Republic without a central authority. The of Nigeria. Although this objective of realists further believe that States are
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Oluwaseyi Ogunnowo & Segun Joshua CUJPIA (2019) 7(1) 1-16 the principal actors in the interact in anarchy, they are driven by international system. In such a domain competition, difference and anarchy” as viewed by realism a State’s power (Donnelly, 2000:32). In recent times, and capabilites are key to achieving scholars have made contributions to set interests and objectives. However, the already existing theories of the continuous pursuit of interests by political realism. One of such scholars States, unregulated gives way for is Hans Morgenthau. Morgenthau Anarchy in the international system argues that in the realm of (Slaughter, 1994). The theory of international politics, for a state to political realism has developed as a ensure its survival, its national interest result of age long contributions made must be taken with utmost by scholars and Statesmen alike. In importance. That is, a state can only other words, realism is an approach to guarantee its survival if its national international relations that has interests are achieved. Its national developed through the works of interest can only be achieved through different analysts, statesmen, the instrumentality of power (Jervis, strategists and scholars (Donnelly, 1994). Kenneth Waltz however 2000). presented opposing arguments, by Realists are of a consensus that the urging States to exercise caution in origins of the theory originated from the pursuit of power. Waltz the writings of Thucydides on the maintained that it is disadvantageous Peloponnesian War (Mosley, n.d.). In for States to attempt to maximize analysing the war between the Greek power as the system will inevitably city States of Athens and Sparta, punish them if they try to gain too Thucydides established the much power (Mearsheimer, 2006). importance of the pursuit of power The theory of political realism or the and interest in politics. Thucydides realist paradigm possess certain pointed out that in the realm of assumptions. These include: politics, the strong must rule over the 1. Politics is governed by objective weak (Klimova, Antonow & laws that have their roots in Antonow, n.d.). Machiavelli, in human nature. building on the works of Thucydides, 2. The main signpost that helps explained that the realm of politics is political realism to find its way witness to the behaviours of actors through the landscape of which are influenced majorly by self- international system is the interest (Donnelly, 2000). In other concept of interest defined in words, the realm of international terms of power. politics consists of actors that are 3. Power and interest are variable in motivated to act majorly by their content. interests and quest for survival. 4. Universal moral principles Thomas Hobbes building on the cannot be applied to the action of already laid foundations, made three States assumptions: “Men are equal, they
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5. Political realism refuses to foreigners. Fayomi, Chidozie and identify the moral assumptions of Ayo (2015) point out that xenophobia a particular nation with the moral is increasingly being potrayed in laws that govern the universe African States and regions from 6. The autonomy of the political Kenya to the Maghreb and so on. sphere (Morgenthau, 1954:4-10) However the most pronounced (cited in Donnelly, 2000). xenophobic attacks have occurred in In employing the theory of political South Africa against foreigners who realism to the study, it is established include Congolese, Ethiopians, that Nigeria’s foreign policy has not Malawians, Mozambicans, Somalis, guaranteed the protection of her Zimbabweans, etc (Smith, 2015). primary national interest which in this Despite the prominence of these case refers to the lives of her nationals attacks, xenophobia in South Africa is in South Africa. This goes against the not of a recent origin as its tenets of realism which emphasise foundations lay in the countries that the actions of state which are historical antecedents. South Africa's implemented through foreign policy history is associated with the scramble in the realm of international politics for Africa in 1884/1885 which led to must be geared at protecting and the advent of colonialism in the achieving set objectives and interest. African continent (Mhlauli, Salani & Furthermore, operating an afro-centric Mokotedi, 2015). Prior to this foreign policy does not in any way conference, South Africa had already directly guarantee the interests of been occupied by two European Nigeria and also stems from a moral Powers, the Netherlands (1652-1795 perspective to international politics. and 1803-1806) and Britain (1795- For instance, Nigeria’s roles in the 1803 and 1806-1961) (Oliver & anti-apartheid struggle did not directly Oliver, 2017). The Dutch had guarantee the safety of Nigerians in migrated into the landmass currently South Africa. As such, Nigeria’s known as South Africa in 1652 and foreign policy can be classified as subsequently became known as subjective and weak. To secure her Afrikaners. By 1810, the British interests in the domain of began exerting authority over South international politics, Nigeria’s Africa as a colony and this continued foreign policy must shift from its through the periods of the Scramble of complacent and subjective nature, to a Africa until 1961. By 1948 however, foreign policy that aggressively seeks following the Second World War, The to protect her interests and objectives. Nationalist Party won the general
Xenophobic Attacks in South elections in South Africa and ruled the Africa and Nigeria’s Afrocentric country under British supevision till Foreign Policy 1961 (Oliver & Oliver, 2017). In the Countries in Africa have been witness year 1961, South Africa became a to the rise of xenophobia in forms of republic and three decades following discrimination, violence, etc against this, the African nation witnessed
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Oluwaseyi Ogunnowo & Segun Joshua CUJPIA (2019) 7(1) 1-16 white Africkaner supremacy which rest of the African continent and from was earmarked as the Apartheid era in its people as exhibited by some South South Africa. Africans can be partly blamed on the This period in South Africa’s history political isolation of South Africa witnessed the deaths of thousands of during the Aparteid years. One of the Africans which occurred by brutal manifestations of apartheid in South means (Lelyveld, 2003). According to Africa was the unsavory HRC statistics, 21,000 South Africans instrumentality of immigration died during the reign of apartheid, policies. Prior to the prevalence of 14,000 of which died during the democracy, the official definition of transition period between 1990 and an immigrant was one who was “able 1994 (Tshabalala, 2001). Hickson and to assimilate into the white Kriegler (1991) also explains that population” (Crush, 2008). Hence, apartheid also negatively affected the Africans were not considered as health of the black children in South immigrants. This laid the foundation Africa, leading to psychological for the immigration act of 2002 which disorders as a result of growing up in enabled draconian measures to a divided society. There were also regulate undocumented migration efforts aimed at the extensive through the mechanism of community exploitation of South Africa’s policing (Crush, 2008). As such, resources under white domination, the Africans from other countries were entrenchment of white superiority, deemed unwanted. However this has deliberate exclusion of the blacks not stopped or dwarfed the rates of from the economic and legal rule. immigration into South Africa. The apartheid regime saw However foreigners who emigrated discrimination against blacks with from their home States into South restrictions to townships with no Africa risked being attacked as a apparent form of sanitation, resulf of this. Hence it can be asserted electricity in combination with high that “xenophobia in South Africa is rates of crime (chengu, 2015). This rooted in the nature and character of was coupled with the systematic apartheid and its discriminatory imprisonments of African nationalists policies against the black majority Such as Nelson Mandela, Steve Biko which incidentally denied them of and so on (Beinart & Dubow, 1995). economic opportunities, ultimately In essence, the apartheid regime fuelling the attitude of suspicion and glorified the importance of race in hate for foreigners” (Fayomi et al., arrangement of society and by so 2015:8). doing, racism and segregation were Xenophobia in South Africa is institutionalized. Apartheid South characterized by popular sentiments Africa also isolated itself from other against foreigners. As such if South African States. In line with this Africans had any differences which argument, De Vos (2014) points out led to their disunity, xenophobia aptly that the policy of apartness from the unifies them (Valji, 2003). South
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Africans blame foreigners for the rise (2002) suggests that foreigners are in crime rates, the spread of HIV/ blamed for ongoing poverty and AIDS and other diseases (Dube, 2000) deprivation in parts of the Country. (cited in Valji, 2003). Among the This is because they are viewed as different nationalities who are victims threats to jobs, housing and health of this form of violence and care. Another reason for xenophobic discriminatory violence in South violence immigration regulation Africa are Nigerians. policies whose foundations were laid Below are some of the attacks against by the Immigrants Regulation Act of Nigerians in South Africa. This table 1913 which provided exclusion of gives details on the location of the undesirables (Babalola, 2017). attacks, the form of the attacks and the Current policies on migration in South number of Nigerian casualties. Africa include the Immigration Act of In certain cases in table I, Nigerians 2002 and the Refugees Act of 1998 were not the only nationals killed in (Department of Home Affairs, 2017). the attacks. However, as a result of A fundamental cause of the the scope of this study, only Nigerian xenophobic attacks in South Africa is casualties are recorded. Asides the values attributed to race. Although killings, the properties of Nigerians the foundations for this were laid have also been destroyed in South during the apartheid period, it has Africa. According to the News enforced differences between South Agency of Nigeria (2018), in January Africans and non-nationals especially 2018, four houses and shops Nigerians. Cronje (2008) notes that belonging to Nigerians were Thabo Mbeki’s tenure as President of destroyed. Also, certain Nigerians had South Africa witnessed the re- been unlawfully arrested in South racialising of South Africa by Africa. In February 2017, 14 assigning values to race. This in Nigerians were arrested for protesting return repudiated Nelson Mandela’s the killings of fellow Nigerians as a efforts at improving race relations. result of the xenophobic attacks. This also further invigorated the These form of attacks have been ethnic tensions already existent in studied by several scholars for the South Africa. purpose of deducting reasons as to Another factor contributing to the rise why they are perpetrated. Hågensen of xenophobic attacks against (2014:54) explains that “economic Nigerians in South Africa is the competition” is one of the reasons for government’s hesitation in punishing violence against non-nationals in perpetrators. “The fact that the victims South Africa. South Africans who are were black, foreign, and may have without jobs feel slighted that been here without the proper foreigners are employed while they authorisation obviously contributed to are left without jobs (Kerr & Durheim the police thinking that no matter 2013) (cited in Hågensen, 2014). In what pain they inflicted, they would support of this argument, Harris not be held accountable” (Handmaker
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& Parsley, 2000:45) (cited in Valji, same vein foreswore any participation 2003). in sports involving South Africa. In
Rethinking Nigeria’s Afrocentric initiating this, Nigeria sought the Posture expulsion of South Africa from The xenophobic attacks in South Olympic Games Committee Africa have led to the deaths of (Lawrence, 2016). Also as a result of numerous Nigerians among other her antagonistic movement against nationalities and the destructions of apartheid, Nigeria spearheaded the properties of the same. However placement of embargoes on South juxtaposing this with Nigeria’s Africa under the auspices of the then- contributions to the anti-apartheid Organisation of African Unity, struggles, questions the relevance of expulsion from the Commonwealth in her Afrocentric foreign policy. 1961 and complete isolation of Nigeria was one of the frontline States apartheid South Africa from the in the struggle against apartheid in international community (Chibuzor, South Africa. Nigeria’s immense Ajah, Onyedikachi, & Chukwuma, support for the anti-aprtheid 2017). strugggles in South Africa, was born In juxtaposing Nigeria’s support for out of the Africa centred nature of her the emancipation of South Africa foreign policy which involved the from forceful domination and total independence of all African segregation with the deliberate attacks States from colonization. Hence, as against Nigerians in South Africa, the she was opposed to minority rule in relevance of Nigeria’s afrocentric South Africa, She was radically in foreign policy is questioned. With support of an African majority Nigeria’s contributions to the government coming to power emancipation of South Africa from (Adegunrin, 2009). In support of this apartheid, it was expected that Nigeria argument, Danfulani (2014:54) asserts would be accorded her due respect as that “Nigeria led the campaign against one of the front liners in the anti- apartheid at the continental and global apartheid struggle. However with the levels. Nigeria mobilized sister killings of Nigerians in South Africa, nations who got self rule in the early Nigeria’s contributions to the sixties and at the OAU level to fight independence of South Africa have for freedom of blacks in Southern been ignored. Going by the Africa”. understanding that the purpose of One of the Major ways by which foreign policy is to gauranty the Nigeria fought the policy of achievement of certain interests of a “apartness” in South Africa was to state, and one of the primary interests encourage all other anti-apartheid of any state is the protection and countries at the time which included: preservation of the lives and Kenya, Liberia, Ghana, Sierra Leone, properties of its citizens, Nigeria’s etc. to boycott South African afro-centric foreign policy is not participation in games. Africans in the effective as it did not gaurantee the
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Oluwaseyi Ogunnowo & Segun Joshua CUJPIA (2019) 7(1) 1-16 reciprocation that she offered South punish perpetrators. Nigeria’s foreign Africa in her time of need (Erbaş, policy has been characterized by 2013; Morgenthau, 1952). In specific focus on Africa. And this has February 2017, the National encouraged her to participate in Assembly condemned the attacks efforts towards regional integration, against Nigerians in South Africa peacekeeping, etc. Nigeria’s (Premium Times, 2017). However no afrocentric foreign policy posture was worthwhile action has been taken also the rationale behind her struggle against the South Africa, giving proof against apartheid. However Nigeria’s of irritation over the attacks. In all, foreign policy has over time been Akinrefon, Kumolu, Oritse and Ojeme characterized as weak due to its (2018) identify that the federal declaratory stance on issues with little government’s reactions to the or no action. Such has been the status- xenophobic attacks over the persistent quo with respect to the xenophobic killings of Nigerians has expressed attacks against her citiens in South hesitation Africa. Nigeria’s foreign policy as Moreover, Nigeria’s foreign policy as mundane due to the fact that countries it exists currently is too rigid to issues aided by her afrocentric foreign policy prevalent in the domain of hardly express their gratitude. international politics especially with This paper therefore takes the position matters relating to the xenophobic that Nigeria’s foreign policy of afro- attacks in South Africa. The Nigerian centrism should be reviewed towards government’s response has been a more declarative and affirmative conservative. The government’s stance on issues of importance in the response to the xenophobic attacks realm of international politics. have been more declaratory than Nigeria’s foreign policy as reviewed retaliatory with the condemnation of must gaurantee and protect her attacks giving the impression that She strategic interests in the international is asleep on her rights (Chibuzor, system.
Ajah, Onyedikachi, & Chukwuma, Compliance with Ethical Standards 2017, Eze, 2010). I. Funding: No funding was Conclusion and Recommendations received for this research While the xenophobic attacks in II. Conflict of Interest: Oluwaseyi South Africa have claimed the lives of Ogunnowo as the corresponding a number of Nigerians, leading to the author of this research work does deaths of 121 Nigerians. Several not have any conflict of interest. reasons have been giving for these Segun Joshua (PhD) as the xenophobic attakcs. One of the second author of this research reasons outlined by scholars is work does not have any conflict economic competition from of interest foreigners. Other contributing factors III. Ethical Approval: This article include: inimical immigration policies does not contain any studies with and the inaction of the government to human participants or animals
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Oluwaseyi Ogunnowo & Segun Joshua CUJPIA (2019) 7(1) 1-16
performed by any of the above named authors.
References africa-death-figure-rises-118/ on Adeniji, O. (2000). Essays on Nigerian the 18th of September 2018 Foreign Policy, Governance and Babalola, A. A. (2017). Xenophobia International Security. Ibadan: attacks of Nigerians in South Dokun publishers Africa. Vangaurd Newspaper. Adegunrin, O. (2009). Nigeria and the Retrieved from Struggle for the Liberation of https://www.vanguardngr.com/201 South Africa. In O. Adegunrin, 7/03/xenophobia-attacks- Africa in Global Politics in the nigerians-south-africa/ on the 30th Twenty-First Century. Palgrave of August 2018 Macmillan. Chengu, G. (2015). Xenophobia in Ade-Ibijola, A. O. (2013). Overveiw of South Africa: The Apartheid National Interests, Continuities Legacy of Racism and “White and Flaws in Nigeria Foreign Corporate Capitalism”. Retrieved Policy. . International Journal of from Academic Research in Business https://www.google.com.ng/amp/s/ and Social Sciences, 565-572. www.globalresearch.ca/xenophobi Ameh, J. (2018). Xenophobia: reps a-in-south-africa-the-apartheid- summon minister, Dabiri-Erewa legacy-of-racism-and-white- over killing of Nigerians. corporate-capitalism/5443965/amp Retireved from Chibuzor, O., Ajah, B. O., https://punchng.com/xenophobia- Onyedikachi, M., & Chukwuma, reps-summon-minister-dabiri- Q. (2017). Xenophobia And erewa-over-killing-of-nigerians/ on Nigeria – South Africa Relations. the 18th of February 2018. IOSR Journal Of Humanities And Apanpa, O. (2018). Another two Social Science (IOSR-JHSS), Nigerians killed in South Africa. 22(10), 61–69. Retrieved from https://doi.org/10.9790/0837- https://bionerdsng.com/2018/05/16 2210086169 /another-two-nigerians-killed-in- Cronje, F. (2008). Xenophobia: nine south-africa/ on the 29th of August causes of the current crisis. 2018. Retrieved from Afinotan, A. L. (2015). Continuity and http://www.politicsweb.co.za/news Change in Nigeria Foreign Policy. -and-analysis/xenophobia-nine- Ife Social Sciences Review, Vol. causes-of-the-current-crisis on the 24 No. 2, 24(2), 161–183. 19th of September 2018. Again 2 Nigerians killed in South Danfulani, J. (2014). The End of Africa, death figure rises to 118 Apartheid: A Redefinition of Retrieved from Nigeria Foreign Policy. IOSR https://www.vanguardngr.com/201 Journal Of Humanities And Social 8/05/2-nigerians-killed-south- Science (IOSR-JHSS), 19(11), 53–
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57. Retrieved from South Africa-Nigeria Relations. http://www.iosrjournals.org/iosr- Retrieved from jhss/papers/Vol19- http://eprints.covenantuniversity.e issue11/Version- du.ng/4666/1/Xenophobia and 3/I0191135357.pdf Nigeria-South Africa revised David, T. (2018). Nigerians killing version for submission 2015.pdf Nigerians in South Africa – FG. on the 28th of August 2018 Retrieved from Hågensen, L. (2014). Understanding the http://sunnewsonline.com/fellow- Causes and the Nature of nigerians-south-africa-killed/ on Xenophobia in South Africa : A the 19th of September 2018. Case Study of De Doorns. Masters De Vos, P. (2018). Xenophobia and thesis submitted to the Faculty of the remnants of Apartheid: The Arts and Social Sciences, terrible twosome. Retrieved from Stellenbosch University. https://www.google.com.ng/amp/s/ Harris, B. (2002). Xenophobia: A new www.dailymaverick.co.za/opinioni pathology for a new South Africa. sta/2015-01-28-xenophobia-and- In D. Hook & G. Eagle (Eds.), the-remnants-of-apartheid-the- Psychopathology and social terrible-twosome/amp/ prejudice (pp. 169–184). Cape Donnelly, J. (2000). The realist Town. Retrieved from tradition. Realism and http://cormsa.org.za/wp- International Relations. Cambridge content/uploads/Research/Xeno/xe University Press. nophobia.pdf https://doi.org/10.1017/CBO97805 Hickson, J. & Kreigler, S. (1991). 11612510 Childshock: The effects of Erbaş, İ. (2013). The Role of Foreign apartheid on the mental health of Policy and its Purpose in World South Africa's children. Politics. Academic Journal of International journal for the Interdisciplinary Studies, 2(11), advancement of counselling, 14(2), 40–47. 141-154. https://doi.org/10.5901/ajis.2013.v Iganga, O. I. (2013). Nigeria’s 2n11p40 afrocentric policy: an assessment Ezirim, G. E. (2011). Fifty Years of of the principle of africa as the Nigeria’s Foreign Policy: A centre-piece of nigerian foreign Critical Review’. Sacha policy. In 7th annual national International Academic Journal, conference of the school of arts (September), 1–16. Retrieved from and social science, college of https://www.academia.edu/345652 education, Oju. Benue State. /Fifty_Years_of_Nigeria_s_Foreig Ikemitang, S. (2018). When will the n_Policy_A_Critical_Review killings of Nigerians in South Fayomi, O., Chidozie, F., & Ayo, C. Africa stop? Retrieved from (2015). A Retrospective Study of https://punchng.com/when-will- the effects of Xenophobia on the-killings-of-nigerians-in-south-
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africa-stop/ on the 18th of Journal African Edition, 9(2), 191– February 2018. 216. Iyiola, A. (2016). Assessing Nigeria’s Morgenthau, H. J. (1952). Another afro-centric foreign policy. “Great Debate”: The National Retrieved from Interest of the United States. The thenationonlineng.net/assessing- American Political Science nigerias-afro-centric-foreign- Review, 46(4), 961–988. policy/ on the 12th News Agency of Nigeria (2018). 122 Jervis, R. (1994). Realism, and the Nigerians killed in South Africa in Scientific Study of International 30 months. Retrieved from Politics. Social Research, 61(4), https://www.today.ng/news/nigeria 853–876. /122-nigerians-killed-south-africa- Lawrence, B. (2016). How Nigeria 30-months-148579 on the 19th of broke the back of Apartheid. September 2018. Retrieved from News Agency of Nigeria (2018). https://www.vanguardngr.com/201 Fearful Nigerians chased away by 6/03/how-nigeria-broke-the-back- South Africans, properties of-apartheid/ on 12th of March destroyed. Retrieved from 2016. https://www.newsbreak.ng/2018/0 Lelyveld, N. (2003). A final report on 1/fearful-nigerians-chased-away- horrors of apartheid. Retrieved south-africans-properties- from destroyed/ on the 19th of http://articles.latimes.com/2003/m September 2018. ar/22/world/fg-safrica22 on the 5th Nigerians killed as S/African police of September 2018. grip Tochukwu’s nech, squeeze to Mearsheimer, J. J. (2006). Structural death (2nd January 2017). Realism. In International Relations Retrieved from Theories: Discipline and Diversity https://www.vanguardngr.com/201 (pp. 71–88). 7/01/20-nigerians-killed-as- https://doi.org/10.1177/004711780 safrican-police-grip-tochikwus- 9104638 on the 10th of September neck-squeezed-to-death/ on the 2018. 18th of February 2018 Mhlauli, M. B., Salani, E. & Mokoted, Njoku O. A, and Nwafor, I. P. (2005). R. (2015). Understanding Nigeria's External Relations. apartheid in south africa through Enugu: Redeemed print and the racial contract. International publishing. Journal of Asian Social Science, Nseyen, N. (2018). Another Nigerian 5(4), 203-219. Murdered in South Africa. Mkandawire, H. (2015). Media Retreived from Retaliation against the 2015 http://dailypost.ng/2018/07/28/anot Xenophobic Attacks in South her-nigerian-murdered-south- Africa: The Case of the QFM africa-2/ on the 18th of September Radio in Zambia. Global Media 2018.
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Odunsi, W. (2017). Xenophobia: https://www.theguardian.com/worl Nigerian killed in South Africa, d/2015/apr/17/xenophobia-south- others injured in fresh attack. africa-brothers-violence-foreigners Retrieved from on the 14th of September 2018. http://dailypost.ng/2017/04/07/xen Solomon, H., & Haigh, L. (2009). ophobia-nigerian-killed-south- Xenophobia in south africa: africa-others-injured-fresh-attack/ Origins, trajectory and on the 18th of September 2018. recommendations. Africa Review, Olarenwaju, F., Chidozie, F. & 1(2), 111–131. Olarenwaju, A. (2015). https://doi.org/10.1080/09744053. International politics of gay rights 2009.10597284 and Nigeria-US diplomatic Sule, A. M. (2013). Nigeria’s relations. European Scientific Participation in Peacekeeping Journal 11(4), 504-520. Operations. Peace Operations Onuche, J. (2013). Same Sex Marriage Training Instittute. in Nigeria: A Philosophical Tshabalala, V. (2001). How many Analysis. International Journal of blacks died under Apartheid Humanities and Social Science (RSA)? Retrieved from http://www.volkstaat.net/index.php?option=com_content&view=article&id=746:how-many-blacks-died-under-apartheid-rsa&catid=89:apartheid-eng&Itemid=147 on the 5th of September 2018 3(12), 91-98. Valji, N. (2003). Creating the Nation: Rolenc, J. M. (2013). Means , Goals , The Rise of Violent Xenophobia in and Sources of Foreign Policy : the New South Africa. Centre for The Case of Sweden. In ISA 2013 the study of violence and COnvention, 3-6 April, San reconciliation. Unpublished Francisco, USA (pp. 3–6). Masters Thesis Submitted to York Retrieved from University, July 2003. Retrieved http://files.isanet.org/ConferenceA from rchive/94e642011ab54363ba728a2 http://www.sahistory.org.za/sites/d 07c8df795.pdf efault/files/file uploads Slaughter, A. (1994). International /riseofviolent.pdf Relations , Principal Theories. Yakushko, O. (2009). Xenophobia: Retrieved from Understanding the Roots and https://www.princeton.edu/~slaugh Consequences of Negative tr/Articles/722_IntlRelPrincipalTh Attitudes Toward Immigrants. The eories_Slaughter_20110509zG.pdf Counseling Psychologist, 37(1), Smith, D. (2015). Xenophobia in South 36–66. Africa: 'they beat my husband with https://doi.org/10.1177/001100000 sticks and took everything'. 8316034 Retrieved from
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Covenant University Journal of Politics & Internationall Affair. Vol. 7 No. 1, June 2019
ISSN: p. 2354-3558 e. 2354-3493 DOI: 10.20370/yy25-2t27
An Open Access Journal Available Online
Girl-Child Education for National Development in Nigeria: A Critical Discourse
Edidiong E. Udofia1 & Daniel E. Gberevbie2
Department of Political Science and International Relations, Covenant university Ota, Ogun State, Nigeria [email protected]; [email protected]
Received: 24.02.2019 Accepted: 16.06.2019 Date of Publication: June, 2019
Abstract: Education is the fundamental basis for the development of any nation. Education not only promotes development but also ensures that development attained can be sustained. Sadly, in most countries in Africa and even across the world girl-child education is still far behind, Nigeria today in international ratings ranks very low with about fourteen million children out of school and sixty percent of these children are girls as a result of many societal factors such as cultural beliefs, social norms and parental factors amongst others. Education is of vital importance to growth and development, people’s minds through informed thinking pave ways for developmental achievements in every area of human endeavour. For nations to fully access the benefits, of development there is no better way than through quality education. It is on this basis that the paper examines the relationship between girl-child education and national development and further identifies the benefits of educating the girl child and concludes that girl-child education is of utmost relevance and at the very core of national development.
Keywords: Girl-child, Education, Development, Nigeria, Society
Introduction bridging of gender gaps in education; Over the years, there has been a rising the issue of the girl-child having debate across the world in respect to proper access to education is today the promotion of equality and still a rising and urgent global concern
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Edidiong E. Udofia & Daniel E. Gberevbie CUJPIA (2019) 7(1) 17-28 in many countries. Despite the various theoretical framework, methodology, global programmes and discussion of findings and implementation strategies as well as recommendations. the gross amount of partnership across Literature Review the world, many African and Asian Concept of Girl-Child Education continents suffer setbacks in the area Girls constitute a larger percentage of of equal education especially for the the 7.6 billion people across the girl-child. In accordance with the world, this shows the greater need to 1948 universal human rights focus more attention towards issues declaration, access to education is one affecting their education in relation to of the basic human rights, with article national development. Women and 26 clearly stating that every individual girls have strategic roles to play in the is entitled to the right to access free growth and development of their education at least in basic and nations and once they are not able to foundational stages (U.N, 1948). meet up their quota it causes a strain Since independence in 1960, the to maintaining and sustaining any Nigerian government has put in form of development be it health, efforts to increase its citizen’s access economic or political (Mulkah, 2015). to education with greater focus on the According to (Ugwu, 2015), the word girl-child in the 1980s (Dauda, 2007). education originally in the Latin word This was done by the establishment is “educare” which means to mould or and creation of various policy train. programmes and incentives such as Amaele (2011) also explains policy on education, national policy education to be the overall on gender in basic education, national enhancement of a child’s skills and gender policy and the universal basic capabilities to fit into the needs of the education act (Federal Ministry of society, making the child useful and Education, 2008). Despite all this productive to both himself and his policy programmes put in place, many nation leading to significant growth Nigerian girl-children still suffer and development. To further buttress various obstacles to access and attain on the above point Sutherland (2001) quality education. describes a girl-child as one who Education is an incentive that is likely needs proper guidance by individuals to contribute to the development of that she can pattern her life after any nation because it equip its citizens through imitation and proper to be actively part of its development leadership, this means that a girl child process (UNICEF, 2000). Therefore, is a functional member of her society, it can be said that education and but in order for her to function national development are interrelated, properly, she needs to be properly producing high level of productivity trained, developed and built up to and innovation likely to bring about actualize and effectively translate her national development (Boyi, 2014). aspirations, potentials and function in In addition this paper is structured the rightful place in her community into introduction, Literature review,
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Edidiong E. Udofia & Daniel E. Gberevbie CUJPIA (2019) 7(1) 17-28 and society, and this can only be maximization of skills and creativity realized through proper education. leading to innovations and ground
Okebukola (2014) further defines girl- braking achievements (Ugwu, 2015). child education as a major way of Bruntland Commission (1987) ensuring that women and girls are suggests that the major aim of strategically positioned properly to national development should be to contribute effectively and efficiently meet the needs of the present without towards national development. jeopardizing the ability of the Education is a vital tool to ensure the upcoming generation to meet their development of any country because own needs. Obasi (2010) sees national it brings out and develops hidden development as a social process by potentials making the girl-child a which a nation is able to make useful contributor to her community resources readily available for the sole and for the sustenance of national purpose of bettering and enhancing its development by developing her citizens standard of living by the attitude, skills and productivity level provision of good jobs, social achieved through the teaching and amenities such as quality education, learning process (Fafunwa, 1974). proper infrastructures, and access to In most societies, especially good medical care (Thom-otuya, developing ones have a particular Inko-tariah, 2016). perspective of whom and what a girl National development should create child should be, thereby, limiting the avenues to empower persons and extent to which this child discovers communities to be able to discover and maximizes her full potentials. and maximally put to use their skills Research shows that education is very and potentials to actualize their vital and efficient to the development dreams and aspiration (Munasinge, and investment any nation can attain, 2004). proper investment in education aids Age (2005) pointed out that national the accomplishment of various development should be able to meet national development goals and certain basic needs of its citizenry increase the possibility that its such as water, proper access to progress will be sustained (Adebayo, medical care, employment, 2000). infrastructure and access to quality
Concept of National Development education. For any country to National development can be experience national development of described as a multifaceted process, any kind there has to be a which involves the restructuring and transformation in its intellectual and repositioning of a whole system social outlook, for any form of which maybe in the areas of advancement to take place there must economic, political, education and be a revolution and liberation in our even social development. National minds because anything that translates development could be at various to a successful reality begins in the levels but at the individual level it mind which is preceded by proper encompasses self-capacity in the education that help remold, reorient
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Edidiong E. Udofia & Daniel E. Gberevbie CUJPIA (2019) 7(1) 17-28 and reorganize our lives and that of misconceptions (UNICEF, 2015). It is the society. It is to this effect that as a result of this that over the years Ugwu (2015) further emphasizes that there has been rigorous and a developing or developed nation continuous debate and research been should be able to prove its carried out based on the concerns of development process by the following girl-child education and many views identified factors: raised which is, educating a girl-child a Quality education can either be formal or informal b Poverty elimination (Okorie, 2007). Formal meaning a c Self-sufficiency of food structured school programme setting production which they obtain the best learning d Capacity to solve internal experience in different fields of study problems while informal involves education e Proper social justice given to out of school girls for f Equal distribution of social vocational training and skill services enhancement enabling them to stand g High level of employment economically (Abdulkarim, 2014). Causing overall restructuring and But most importantly according to transformation of its society (Ugwu, Iwalaiye (2016) what matters most is 2015). that the process of educating a girl- Girl-Child Education in Nigeria child is to be able to make here The girl-child accessibility to function effectively and thrive as a education in Nigeria especially in member of her society through the rural communities still remains very knowledge she acquires thereby low (UNICEF, 2007). Many Nigerian allowing her to discover who she girls no longer have access to really is and enable her use her education at a particular age due to potentials maximally. many factors (Lawal, 2017). The best The ability of any country to investment plan any country can make maximally use and enjoy the benefit towards its development is in the of its human resources largely educating and empowering of its girl- depends on education or the lack it, child population. In Nigeria today education directly impacts on the with almost seventy percent of its output a citizen is able to effectively population living below poverty line contribute to his/her nation as every many girl-children take to hawking on individual both male and female has a the streets, forced into early marriage quota to bring to the table and if there leading to teenage pregnancies is no balance from any side causes a thereby lots of this girls end up strain and hinders national dropping out of school even before development. they get to primary six (UNICEF, Relationship Between Girl-Child 2007). Other barriers hindering girl- Education and National children enrollment and attendance of Development school in Nigeria also includes social Education is an indispensible tool in and cultural vices as well as religious the accomplishment of national
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Edidiong E. Udofia & Daniel E. Gberevbie CUJPIA (2019) 7(1) 17-28 development, for any country to sustains the desired development. experience growth it must reorganize Education therefore is crucial in and properly address the standard and equipping the girl-child with proper quality of its educational system proficiency in discovering her (Ugwu, 2015). Investing in a girl- capabilities and skills thereby child brings about so much benefits boosting her level of self-confidence that not only enhances but sustains in other to see the challenges around national development for example low her and contribute meaningfully in mortality rate, educated girls know proffering solutions enabling her play how to access proper medical care, her part in the development process of better nutrition reducing the rate and her society. It can however be said spread of diseases etc. in simple terms that “the quality of our workforce is a when you educate a girl you educate a direct reflection of our educational whole nation. Every country today is system” (president Jonathan 2010) faced with various challenges but the (cited in Ugwu 2015:2). Therefore main essence of national development “Education is the heart of national is that these challenges should not development and the source of quality define us what should define us is the human capital development that will ability for us to proffer lasting propel Nigeria among top world workable solutions to deal with these economies” if proper maximized and challenges. The solutions can only utilized (President Jonathan, 2011) come from an educated and (cited in Ugwu, 2015:2). enlightened mind. This is the reason Theoretical Framework why the human capital development This paper adopts the human capital of a nation should be equipped and formation and manpower-planning used maximally only then can it model as its framework of analysis. translate into functional resources for This theory’s main crust states that national development (Mulkah, 2015), skills, education and experience are therefore producing useful citizens the major factors that establish total that will play effective roles in Scio- development for any nation (Jhingan, economic development and in other 2007). Using this, the human capital sectors that make up the society formation theory argues that a girl- (Ugwu, 2015). It is for this reason that child is a functional and vital member Umoh (2005:224) describes education of her society and has a role to play in and national development as “two its development process and should be sides of a coin” he also goes further to recognized as an eligible player. The explain that education and national theory further emphasizes on the need development are closely knitted, for the provision of the various and linked and interrelated. National necessary educational opportunities to development is largely focused on help develop her creativity and skills bringing forth and creating something equipping her with proper knowledge new to enhance the living standard of to make enlightened decisions its citizens while education is the (Deborah, 2016), boost her values and mechanism that ensures that it competencies to help her work for the
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Edidiong E. Udofia & Daniel E. Gberevbie CUJPIA (2019) 7(1) 17-28 betterment of herself and to the the importance of girl-child education advantage of her society (Mulkah, to national development in Nigeria.
2015), building and enhancing Factors Hindering Girl-Child national development (Deborah, Education in Nigeria 2016). It is to this end that Fagerlind Education is the bedrock on which (1997) posits that various resources a sustainable development can be country may posses cannot be achieved. Proper education enables compared to the output that will be citizens to be actively involved in the derived from its human resources if growth and development process of used maximally. Fagerlind further their nation contributing describes citizens of a nation as active meaningfully. Over the years there agents that build its social, economic has been collective efforts on both and political systems, which help national and international frontiers to carry and sustain national see the total eradication and development. elimination of gender gaps in Education in itself creates education. The benefits of girl-child opportunities for the growth and education to a nation cannot be development that is desired and if overemphasized and are inexhaustible government agencies makes educating but despite these various efforts its girl-child population a major through partnerships, policy priority by making viable policies and programmes and incentives, there are ensure its implementation, still factors that hinders adequate establishing programmes and accessibility to education for the incentives that motivates girls to Nigerian girl-child which are enroll and complete their education identified below: creates long term opportunity for 1. Early Marriages: while the issues sustained development of early child marriage can affect (Psacharopoulos, 1997). According to both boys and girls, in most Jhingan (2007) manpower planning places across the world it affects focuses on ensuring long-term the girl child the most (World developments using a country’s semi- bank, 2016). Girls who have no skilled and skilled manpower education ate three times likely economic conditions to broaden to get married by the age of 18 employment opportunities through compared to girls with secondary proper and adequate investment in or higher education (Girls not human resource development and brides, 2019). Over sixty percent education. of women between ages 20-24
Methodology with no education were married This paper adopts the historical before 18. method through the use of secondary Most girls in certain parts of data obtained relevant books, journals, Nigeria are given out in marriage Internet sources, seminar papers and once they hit puberty (British several published articles to analyze council, 2012). Most parents who don’t see the relevance of
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Edidiong E. Udofia & Daniel E. Gberevbie CUJPIA (2019) 7(1) 17-28
education often see marriage as beautifully penned downed the best option for them, while policies as regards girl-child parents who cant afford to bear education with many not the educational burden as a result translated to reality, most at of poverty see marriage as an times theses policies are half way economic value through the kick-started but never payment of bride price (British successfully implemented either council, 2012), making these because of change in governance girls drop out of school and most which leads to lack od continuity often returning is too difficult or lack of political will because because of the burden of their of little or no profiting for new responsibilities. politicians involved, corruption 2. Poverty: In Nigeria with about and syphoning of funds meant seventy percent of families living for these projects leading to no below Poverty lines most girl- progress whatsoever. children cannot afford the cost of 4. Socio- Cultural Barriers: It is been in school because most most common that cultural times after payment of fees other beliefs influence the decision- demands like textbooks, making of parents over their uniforms are unaffordable for children. In most communities them as a result of this most of boy children are preferred to be this girls are sent into the streets sent to school with the believe to hawk to support their family, that they will inherit and carry on or given out as domestic staffs in the family name while the girl other homes, or married off to child will be married off to relieve the family of the burden another family (Mahdi, 2011 to support them. An estimate of cited in British council 2012). 15 million children in Nigeria Most often educating a girl child work full time and majority of may be seen as a waste of time this figure are girls who have to and resources and these girls meet certain family need forcing would rather be prepared for them to drop out of school even marriage and taught house before primary six (UNICEF, chores. 2004). 5. Religious Barriers: Certain 3. Lack of Proper Policy Religious see western education Implementation: Policies no as a means and form of matter how well introducing the western way of Formulated and introduced life (Garba, 2012). Most parents without it been properly prefer sending their children to implemented it is of little or no quranic schools rather than importance the major aim of any formal schools (Ishaq and Ali, good policy is its ability to be 2014). successfully implemented. In Most religion believe that formal Nigeria we have a lot of education introduces strange
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western religion (Akubuilo and tend to find sustainable ways to solve Omeje, 2012), moving girls from national and global problems such as the respect and values instilled in health issues, economic, political etc. them. These religious barriers Educating a girl-child not only is a towards girl education can be basic human right but also is a big eradicated if religious leaders necessity in our world today because a stand strongly behind the girl- girl would become a woman and a child been educated (Lawan, procreator tomorrow shaping the lives 2017). and destinies of civilization. below are 6. Security Barriers: Due to the relevance of educating a girl-child traumatizing insecurity towards attaining sustainable national challenges in Nigeria especially development. in Northern states have hindered 1. Poverty Reduction: When a girl a number of girl children from or woman is educated either attending schools. Estimating the formally or skillfully it helps number of out of schools them become useful to children to 7million (UNESCO, themselves, families and the 2012). society by securing paying jobs Using the example of the or become producers of wealth kidnapped Chibok girls no exact rather than becoming liabilities. number of this girls has been This helps them becoming determined as many have been financially independent, forcefully married off, misplaced develop their abilities and boost or separated from their families their confidence and making by this insecurity challenge. them self reliant (Manisha, Security measures should be 2016). This leads to poverty taken seriously and given alleviation and improved outmost importance to ensure standards of living causing that these children are deprived national development or proper education (Lawan, 2015), country (Ofodile, 2009). coupled with the recent event of 2. Improved Health Rate: Women missing girls also in Dapchi this with proper education are able proves a big hindrance to school to protect both themselves and enrollment and attendance due to their families against various insecurity in these areas (Mark, health risks through proper 2018). knowledge on the importance
Benefits of Girl-Child Education to of immunization and proper National Development nutrition for their children. A girl’s education not just empowers Educating a girl-child brings families but communities and about improved health and economies. Educating a girl-child transformational benefits that helps nation building because once can also be passed to the you educate a girl you educate a upcoming generations. Most whole nation, through education we importantly educated women
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and girls are well informed with the responsibility of about the risks and dangers of instilling proper values to their Hiv/Aids and other sexually children and if this is done transmitted diseases drastically effectively they will be a reducing the rate of diseases broadened and better view having a positive impact on a towards societal development, country’s national 4. Eradication of Child Marriages development. and Early child Births: Around According to Shannon (2016), the world today there is an for each girl that is educated it estimate of 15million girl- reduces the rate of infant children who get married mortality by 5 percent, prevents before the age of 18, this early birth by 59 percent this is hinders them form having because educated girls would access to or completing their be well informed enough to be education because they begin to able to access proper medical carry out traditional roles such care high mortality rates are as as child bearing and taking care a result of lack of proper of a family. Most of these girls education. as a result of early births suffer 3. High level of Political various reproductive Participation: If young girls are complications such as IVF and given educational opportunities if not properly handled gets it develops their confidence complicated leading to deaths. level enough to want to Many families due to poverty participate and get involved in give out their girl-children in taking up leadership roles exchange for economy value in preparing them to become form of bride price while others individuals that will make are given out in marriage as inputs and contribute result of certain cultural and meaningfully to the society religious norms. thereby promoting national Research shows that if girls development. have access to basic education Girl-children are functional as well as secondary child members of any society. So marriage would drop by 64 therefore for a society to percent therefore promoting a function as a whole everyone high level of sustainable must play an active part, if national development. more women and girls are 5. Builds Tenacity and Self- educated there will be an Confidence: If a girl-child is increased rate in political educated it builds her involvement and participation confidence to explore and fully making them change agents in maximize her potentials despite their communities and society all odds education also rises the at large women are saddled level of ones self-esteem to
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actualize and fulfill their productivity, development of skills, dreams an educated girl will increased output, economic change have the confidence to and improved quality of life leading to contribute meaningfully in her long-lasting national development.
society becoming a change Recommendations agents in various spheres of Arising from the above, the following influence be it politics, recommendations are put forward: Academia, economy, 1 Effective implementation and entrepreneur and health. enforcement of government Proper access to education policies and laws regarding girl builds up a girl’s tenacity child education at federal, state pushing her to be determined and local levels policies such as and persistent attributes that Compulsory education laws, can make an individual be all education finance etc. they desire to be. 2 Eradication and Elimination of
Conclusion and Recommendations social and cultural forces that For great development and tend to shape the preference achievements to take place in a nation and attitude towards girls- the minds of its citizen must first be education should be enforced. reformed. We need a generation of 3 Legal Laws towards Child individuals whose minds are rights as regards child marriage transformed and informed and this is should be effectively enforced only achievable through quality with penalties attached for education, translating to national states still reluctant to enforce it development all round. Girl-children effectively should be are a part of a nations human resource implemented and should be seen as an asset and if 4 Proper reform plans towards properly educated can yield so many the sustainability of Girl-child benefits such as increased education policies.
References Age, E. (2005) “Objectives of Abdulkarim, M, and Mamman, A. Teaching Education in Nigeria” (2014) “Non-Formal Education London British Council. and the Girl-Child in Northern Amaele, S. (2011) “ History of Nigeria: Issues and Strategies” Education From Ancient to Journal of Education and Contemporary Era: The Global Practice Vol 5 (37) 2222-2888. and Nigerian Perspective” Port Akubuilo, F. and Omeje, M. (2012) Harcourt Hvey Publication pp “Women Education in Nigeria: 6-7. Predicaments and Hopes” Boyi, A.A (2014) “Education and International Journal on Sustainable National Advancements in Research and Development in Nigeria: Technology Vol. 1 (5)pp 2 Challenges and Way Forward”
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International Letters of Social Jhingan, M.L. (2007) “The and Humanities Science Vol. Economics of Development and 14 (2) pp 65-72. planning.” 39th Edition British Council (2012) Gender Jonathan, G. (2011): On the Marble, Equality in Nigeria Report, Abuja Clear Coast British Council Abuja. Communications Ltd. Bruntland Commission (1987) Lawal, H.B., Miachi, O.D., Development Report on Umezulike, C. and Kālu, U. Sustainable Development, New York. (2017) An Examination of Girl’s Education policies in Dauda, O.R. (2007) “Female Nigeria with Focus on the Education in Nigeria’s Northwest. Connected development strategies.” Development Journal of Gender Studies. Vol. Mulkah, A.A, Medinat, F.S, 14 (3).pp. 461-473. Oyeronke, O.O and Rahmat, Deborah, B.A. (2016) “Girl-Child B.A (2015) “Enhancing Education and Its Challenges in Women/ Girl-Child Education; Kagorko and Sabon Gari local A Panacea for National Governments areas of Kaduna Development” International state.” Ahmadu Bello Conference on Education and University Zaria, Nigeria. Social Sciences 2nd-4th Fafunwa, A.B. (1974) “History of February Istanbul, Turkey. Education in Nigeria” Ibadan, Munasinge, S. (2004) “Effective NPS Educational Publishers Instructions Through Dynamic Ltd. Discipline” Ohio Fagerlind, A. and Saha, L.J. (1997). National Population Commission Education and national Nigeria (2009) Nigeria developments. New Delhi, Demographic and Health Reed Educational and survey 2008 Abuja, Nigeria. Professional Publishers Ltd. Obasi, O. (2010) “ Qualitative and Federal Ministry of Education Nigeria Functional Education as a (2008) “National Policy on Social Imperative for Authentic Gender in Basic Education National Development: The Garba, D.Y (2012) “Re-engineering Nigerian situation” School of Women Education Through Business Management Religion” Knowledge Review Technology Conference Journal Vol. 26 (3) pp 135. Vol 1 (1) pp 5-14 Ishaq, A., and Ali, M. (2014) “Non- Ofodile, S. (2009) “Factors Affecting Formal Education and the Girl- Women’s Role in Food Child in Northern Nigeria; Security” Journal of Business Issues and Strategies” Journal and General Education Vol.3 of Education and Practice Vol. (1) pp 184-193 5 (37) pp 48 Okebukola, P.A.O. (2014) “ Enhancing the Contribution of
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Women and the Girl-child to Sustainable Economic National Development” Development in Nigeria” Abeokuta Institute of African Journal of Research in Culture and International Education and Society Vol 5 Understanding. (1) pp 224 Okorie, M. (2017) “ An Assessment UNICEF (2004) Update of the of Factors Militating Against Situation Assessment and Girl-Child Education in Analysis: Children and Nigeria” International Journal Women’s Right in Nigeria, of Advanced and UNICEF Abuja, Nigeria. Multidisciplinary Social UNICEF, (2007). Information Sheet Sciences Vol 3(2) pp 49-54. on Girls Education project. Shannon, H. (2017) Six Ways in Nigeria Country Office, Abuja Which Educating Girls Benefits UNICEF (2015) Children Education the Wider Community in Nigeria. Sutherland, M.B. (2001) Sex Bias in United Nations (1948) Universal Education. Oxford: Basil Declaration of Human Rights Blackwell. Article 26, 27 III A Paris, Ugwu, S.C. (2015) “Education and France National Development: World Bank (2016) Education Nigerian Experience” Statistics all Indicators; World Knowledge Review Vol 32 (1) Bank, Washington D.C Umoh, A. (2005) “Entrepreneurship Education as a Panacea for
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Covenant University Journal of Politics & Internationall Affair. Vol. 7 No. 1, June 2019
ISSN: p. 2354-3558 e. 2354-3493 DOI: 10.20370/wgan-rm87
An Open Access Journal Available Online
Exploring Nigeria’s Potential for Labour Exportation: Lessons from the Republic of Philippines
Maureen Fubara1 & Sheriff Folarin2
Department of Political Science and International Relations. Covenant University, Ota, Ogun State, Nigeria [email protected]; [email protected]
Received: 02.03.2019 Accepted: 11.06.2019 Date of Publication: June, 2019
Abstract:The paper examines Nigeria’s potential for labour exportation by assessing the performance of labour exportation in the Republic of Philippines. Imperatively, the trend of international labour migration presently influences the nature of international economic relations between developed and developing nations. Many developing nations have utilized their huge population base to accrue major financial and non-financial gains through labour exportation to developed climes. However, Nigerian is yet to borrow a leaf from nations like the Republic of Philippines that maximize remittances derived from exported labour to boost foreign exchange earnings. Utilizing the Historical research method and textual analysis of secondary data, the study explores the viability of Nigeria for labour exportation and examines the potential benefits of labour exportation for Nigeria by mirroring the performance of the same in the Republic of Philippines. The Pull-Push theory of international migration was adopted to explain the variables that inform decisions of developing countries to export citizens to developed nations. The study employs secondary data which was analyzed using textual analysis. The study concludes that the implementation of a labour migration policy in Nigeria increases Nigeria’s potential of joining the bandwagon of countries engaging in temporary labour exportation. Therefore, the study recommends among others that implementation of an effective labour migration policy and government protection of Nigerian migrant workers can eliminate the Nigeria’s impediments to engaging in labour exportation. Keywords: Exportation, Labour, Migration, Remittances, States
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Introduction from the migration of its human International migration is an essential capital. Nigeria’s losses from labour part of international economic migration is largely credited to the relations and a global phenomenon of absence of labour exportation policies the 21st century. Labour export has that are designed for the maximization become increasingly recognized as a and organization of international strategy for achieving significant labour migration. Comparatively, the financial and non-financial gains that Republic of Philippines, popularly is necessary for accelerating the pace renowned for the sophistication of its of development in developing nations labour export policies and agencies is (Noor, 2000). Distance poses no an ideal model for labour exportation. impediments to labour exportation The Philippines though ridden with and as such developing countries have the similar socio-economic struggles received tremendous benefits through like Nigeria, has made commendable foreign exchange remittances progress in utilizing labour repatriated by their exported labour. exportation for improving its (Baggio, 2014). More specifically, economy. In line with the foregoing, countries such as Vietnam, Indonesia, the study shall seek to ascertain the Republic of Philippines, Mexico, viability of Nigeria for engagement in Kenya to mention but a few, have labour exportation. Also, the study designed policies that are tailored to shall explore the potential benefits of derive the most benefits from labour labour exportation for Nigeria by migration. However, in Africa, there mirroring the performance of labour has been mixed reactions to the export policy in the Republic of implementation of labour exportation Philippines. polices. While some nations on the Method and Structure continent have intensified labour The study exclusively utilized export efforts thereby deriving huge secondary materials as its source of benefits from remittances, a data. Online journals, review papers considerable number of them notably, articles and publications on credible the Nigerian government has not websites were employed in the applied much exertion in the examination of the subject matter. The implementation of labour exportation secondary data was analyzed with the policies. Nigeria, a country reputed to Historical Research method, using be the most populous black nation in textual analysis. This method of the world, is blessed with an analysis is ideal for deducing correct abundance of a vibrant labour force inferences from secondary materials but plagued with an unemployment and making valid conclusions based problem. Every year, thousands of on the review of available literature. Nigerians from all skill categories exit The paper is structured into five the country to seek for employment sections. The first section consists of abroad either through regular or the statement of problem and research irregular channels. To this end, objectives all included in the Nigeria has continued to lose its introduction, the second section skilled, unskilled and semi-skilled clarifies important concepts to the labour without deriving major benefits study, reviews relevant literature on
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Maureen Fubara & Sheriff Folarin CUJPIA (2019) 7(1) 29-47 the subject matter and identifies the objectives which could include family gap in literature and examines the reunification. International migration theoretical framework. The third occurs between two states at a time, section explores the African countries these states are addressed as sending reaction to labour exportation, and and receiving countries; home and examines labour migration in Nigeria. host nations; state of origin and The fourth section torchlights on the country of destination; or developed viability of Nigeria for labour and developing countries. In the exportation, examines the Philippine course of this study, these various Model of Labour Exportation and descriptions shall be used highlights the lessons Nigeria can interchangeably. learn from Philippine model of labour Labour Migration exportation. The fifth section consists The UN Convention on the Rights of of recommendations and conclusion. Migrants defines a migrant worker as Conceptual Framework an individual who is seeking The Concept of International employment, is currently employed or Migration has been employed in a remunerated The concept of international migration activity in a country of destination is incredibly hard to ignore in an array (UNESCO, 2018). In support of the of other concepts in international UNESCO definition, some countries relations in comparison to other consider individuals born in a country demographic phenomena. It is one of that is not their native country as the reasons for social change and one migrants. The term labour migrants is of the three fundamental parts of used to describe individuals demographic change, the other two searching for jobs or employment in being birth and death. It is an intricate destination countries, or those who wonder influenced by numerous were employed but were relieved of variables and frequent endeavors have their jobs but have chosen to remain been made to understand the various domicile in the receiving countries factors influencing the process irrespective of their documentation (Skeldon, 2008). International requirements (Amirkhanian, migration is multifaceted and it is Kuznetsova, Kelly, Difranceisco, certifiably just not a basic Mustatov, Avsukevich, 2011). Within demonstration of crossing a border the context of the migration discourse, but rather it connotes a deep rooted education is often used synonymously process that influences all aspects of with “skills”, therefore, for ease of the lives of those involved. cross country data compilation and According to the International dissemination various studies describe Organization for Migration (2011) a high skill migrant as a person with migration is the transnational or tertiary education qualifications that internal movement of people. It lives and works in nation that is not involves the movement of people his or her nation of origin (Docquier across long or short geographical &Rapport 2012 cited in Zovanga & distances so as to achieve a variety of Ozden 2017).
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Theoretical Framework casual variables that are employed to The core of every theory is to provide elucidate on the etymology of the answers to the questions embedded in how’s and why flows of international every social phenomena. Theories aim migration. The Pull-Push theory to answer how and why questions. strongly emphasizes that economic Thus, they are essential for a deeper performance or underperformance in comprehension of a subject matter. both sending and receiving nations in This study adopted the Everett’s terms of wage and income Spurgeon Lee Pull-Push Theory of differentials is a key indices that International Migration. The theory determines the magnitude and tenacity was adopted because of its precision of migration. (Appleyard, 1989:486- in explaining the variables that 499). influence migration in sending and Furthermore, other studies in the receiving countries. push-pull migration discourse have Pull-Push theory of Migration torch lighted on the unemployment emerged from the published writings and underemployment issue in of Everett Spurgeon Lee titled “A developing nations. As Gregory (1991 Theory of Migration” and published cited in Estudious, 2000) contends, in the Demography Journal in 1966. high unemployment levels are linked This theory has been modified by to the rapid growth in the population scholars like Michael.J Piore, and a of developing nations. This is because host of others. rapid population growth is not The central argument of the push and accompanied by an increase in the pull theory is that the genesis of rate of employment. Therefore, international migration is credited to unemployment and underemployment the economic underdevelopment of becomes a triggering expelling factor source nations. In this regard, for emigration (Estudious, 2000). economic conditions are the major Michael J. Piore’s refinement of the push factors that triggers and propels Pull-Push theory digress from the both regular and irregular migration to propositions posited by Spurgeon Lee developed nations. Everett (1966) and examines on alternative defines push factors as expelling framework that focuses on the genesis variables in developing countries such of migration flows. The core of as low remunerations, high rate of Piore’s argument is that the major unemployment and strategic factor that initiates streams underemployment, sluggish economic of migration is labour recruitment. growth or stagnation and astronomical Labour recruitment is birthed in levels of poverty. Everett (1966) also response to an insufficiency of labour identifies the pull factors as attraction supply in receiving nations. Piore factors that are attainable in receiving disregards the income and wage countries, usually manifested in the diffentials between developed and form of high wages, high employment developing nations but rather explores rates and developed welfare systems. the process of labour recruitment in These factors as Everett’s states, are developing and developed nations.
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Recruitment of labour is responsible nations. As Anh (2008) continues, for the seeming higher rate of labour migration can be dually emigration flows in some developing beneficial to states and their citizens nations (Piore, 1979). Pore posits that on the condition that necessary in the absence of sufficient labour policies are implemented to supply, developed nations tend to effectively manage the process. exchange capital for labour with According to Pernia (2011), export of nations with abundant labour supply. labour is currently renowned as a Thus, both global recruitment firms lucrative method of global trading and national governments agencies especially because of the minimal have engaged in a fierce competition capital investment involved and little for the control over the supply of risks for source countries. In addition, labour (Estudious, 2000). labour export is most highly regarded Relating this theory to the study, for the provision of higher returns developing nations like the Republic which is usually in the form of of Philippines have through labour remittances. Pettinger (2015) exportation, utilized their huge maintains that source countries have population base for capital befitted from labour migration substitutions and mitigation of the especially with regards to remittance unemployment problem. The push inflow, increased international factors for labour exportation policies business relations, transfer of in developing nations are majorly investments, technological and critical overpopulation, high unemployment skills through re-migration and and underdevelopment rate while the international trade fostered by pull factors are the expectations of multinational corporations. higher remunerations and Correlating the submission of employment opportunities in Pettinger (2015), Iravani (2011) developed nations. Notwithstanding, affirms that countries that engage in attractive pull factors and the brain/labour export receive a anticipation of viable economic compensation for the temporary trade opportunities in a developed clime is of their labour force. These also a motivating force that informs compensations are usually defined as the decision of the government to remittances that are received for the export its labour to these regions. number of years that sending nations Thus, developing nations like the labour force continue to work in other Philippines view labour exportation as countries. Hence, in order to derive an avenue for remedying the the most benefits from labour economic deficiencies prevalent in the exportation, countries choose to focus nation. on the production of the type of skill
Literature Review that accords competitive advantage to Anh (2008) posits that international the exporting nation, thereby leading labour migration is a new to a win-win gain for all the trading phenomenon that is rapidly gaining stakeholders. Developing nations such recognition and acceptance in many as the Philippines, Indonesia,
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Vietnam, Barbados and Kenya that important aspect of migration that can battle with high levels of yield many gains in Nigeria if it is unemployment and underemployment thoroughly maximized. are unable to sufficiently absorb The African Scenario of Labour human capital. Thus, countries with Exportation the unemployment problem Pernia (2011) states that in 34 judiciously train citizens for the recognition of the numerous economic purposes of labour exportation. benefits embedded in labour Winters (2002) maintains that exportation, many developing nation developed countries such as USA, generally plagued by high and Canada, Japan and Australia are in underemployment levels, have dire need of unskilled labour. This is strategically situated themselves to because unskilled labour is deemed to amplify profits from labour export. To be useful in many aspects of the this end, policies that promote economy such as manufacturing, temporary migration and production, agriculture and a host of institutionalize labour export other services. The USA was recorded mechanisms have been enacted. Other to harbor about 2.7 million unskilled measures such as the establishment of migrations in 2002. Winters (2002) regulatory frameworks and the predicts that labour exportation will initiation of regional and bilateral increase the quotas of developed agreements to facilitate labour export nations in relation to immigration of and guarantee fair treatment of their both skilled and unskilled temporary exported labour have also been workers. Saxenaian (2005) opines that ratified. by working in advanced countries, According to Baah-Boateng (2015), migrants working overseas can access many African nations are faced with many skill enhancing opportunities large scale unemployment and which can be intelligently applied in underemployment rates. Balogun the development of source countries (2016) opines that over 50 million upon the return of such persons. African graduates are unemployed. In Africa, an avalanche of literature Yet as Bakunda and Mkpanga (2011) on international migration and brain argue, in many African countries, drain syndrome abound. Researchers temporary movement of workforce is of African migration have tended in still regarded as “brain drain” and their writings on labour migration to disastrous to the economy. Thus, not focus majorly on the negative effects many if any African nations have set of the brain drain syndrome. up specific offices that are tailored to However, the issue of labour advance and facilitate labour exportation has received minimal exportation and administrative attention in scholarly writing structures to that effect are virtually especially with regards to the non-existent. Bakinda and Mkpanga maximization of international labour clarify that not all forms of labour migration in Nigeria. Thus study migration is disadvantageous for the attempts to shed more light on an economy of nations, because
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Maureen Fubara & Sheriff Folarin CUJPIA (2019) 7(1) 29-47 controlled migration of unskilled and there is no formal supervision and semi-skilled populace poses no harm monitoring of re-migrated Nigerian on the socio-economic health of Diaspora to ensure that their skills are African nations. By and large, the effectively utilized for national search for temporary gainful development. It is instructive to note employment abroad is exclusively that labour migration can act as an borne by private individuals some of engine for economic development whom work in developed nations with (Federal Ministry of Labour and no protection and assistance by their Productivity, 2010). countries government (International In 2006, there were signs of proactive Organization for Migration, 2018). actions towards the formation of a Labour Migration in Nigeria national labour migration policy in Chigozie (2014) maintains that the Nigeria. In April 2007, progress was general feeling of dissatisfaction with made in this regard and a draft socio-economic and political issues is National policy on Migration was the key instigator for the emigration reviewed at a national conference. of Nigerians to other countries. Oni The draft Policy presented at the (2005) argues that the Nigerian state Conference featured issues such as has recorded a significant loss of its national security and irregular best brains to the new trend of labour migration, forced displacements, migration known as human capital migration and development, human flight or brain drain. International rights of migrants and a host of Organization for Migration (2017) others. Unfortunately, the failure of posits that, labour migration in the Federal government to endorse the Nigeria is induced by a host of factors policy dampened the earlier such as bad governance, lack of viable enthusiasm for the draft policy. employment opportunities, abuse of (Federal Ministry of Labour and human rights, ethnic wars and Productivity, 2010). However, in political intolerance. As a 2014 the Federal government in consequence of the brain drain conjunction with the International syndrome, the Federal government Organization for Migration approved continues to expend huge financial a national labour migration policy in resources in the recruitment and Abuja. The policy provision was employment of foreign expatriates to geared towards the protection of carry out developmental contracts Nigerian migrant workers and (Federal Ministry of Labour and optimization of the benefits of labour Productivity, 2010). The conditions migration while mitigating its adverse in which many Nigerian migrants are effects (IOM UN Migration, 2016). subjected to are risky, unsafe and Although, Nigeria has implemented a unpredictable. Many Nigerian labour migration policy and is a migrants upon their arrival are forced signatory to the International to take up demeaning jobs that are Convention on the Protection of the alien to their skill qualifications thus Rights of all Migrant Workers and leading to brain waste. In addition, Members of their Family and other
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Maureen Fubara & Sheriff Folarin CUJPIA (2019) 7(1) 29-47 international migration treaties, there of underdevelopment in Nigeria as is still more work to done with low literacy rate, high unemployment regards to the consolidation and rate, high absolute poverty levels, execution of the policy provisions in deplorable housing conditions, the labour migration policy. dwindling health facilities, bad roads,
The Viability of Nigeria for Labour epileptic power supply and a host of Exportation others. Bakunda & Mkanga (2014) maintains iii) The Unemployment Problem that countries with high levels of International Organization for unemployment, excess labour and Migration (2018) defines underdevelopment are the most unemployment as the state of being eligible nations for the without paid employment or self- implementation of labour exportation employment. Longe (2017) reveals policies. With these caveats in mind, that unemployment has been Nigeria aptly fits into the categories of identified as one of the most daunting developing nations with the challenges facing the Nigerian state. aforementioned problems. The major factors that propel i) The Population Problem unemployment are the absence of a According to World Population synergy between skills possessed by Review (2019) there over 200 million youths and the skills demanded in the persons living in Nigeria. The country labour market. Also, the abysmal is reputed to be the most populous number of government and private black nation and the 7th most sector jobs are relatively inadequate to populous state in the world. Nigerians absorb the large body of unemployed make up 2.3percent of the entire youths (International Organization for world population. Fasau cited in Migration, 2018). Imperatively, the Mudashir; Adaramola & Nurudden absence of an enabling environment, (2018) opine that a large population tailored to support self-employment size can be the strength of a nation, contributes to the limited number of but its burden is unraveled in the job opportunities available for semi- absence of resources to cater for the skilled and unskilled youths in citizens in nations. Fasau’s Nigeria (International Organization submission paints the picture of the for Migration, 2018). Nigeria and its over-population According to Trading Economics problem. (2018) unemployment rate in Nigeria ii) The Underdevelopment Problem increased from 22.70 percent to 23.10 Akinyetun (2006) opines that Nigeria by the end of 2018 (Trading regardless of its wealth of human and Economics, 2018). Additionally, the natural resources is stifled by nation’s underemployment rate underdevelopment vices such as high climaxed to its highest ebb yet at 21.2 levels of corruption and fraud, mono- percent. Pricewaterhouse Cooper economic system and internal (2018) reveals that the average rate conflict. Jebbin & Wilson (2011) for job employment was a significant further identifies the salient features
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1.6 percent weaker than the was enacted. Crucial offices and population growth of 3.9 percent. Boards in the labour exportation According to National Bureau of system, particularly Overseas Statistics (2016) an overwhelming 52 Employment Development Board million physically vibrant Nigerians (OEDB) and the Office of Emigrant are unemployed. Imperatively, the Affairs (now known as the bulk of the unemployed populace is Commission on Filipinos Overseas) made up of fresh Nigerian graduates. were established from the PD 1412. Longe (2017) maintains that the The OEDB and the CFO were prevalence of large scale responsible for overseeing the process unemployment in the nation has of promotion and regulation of magnified the deficiencies of the Filipino overseas employment. nations. Afolabi, Yusuf and Idowu Pertinently, in March 1982, the (2014) posits that high unemployment Filipino government through rate has cost the nation huge losses in Executive Order (EO) 797 created the form of human capital waste and loss Ministry of Labour and Employment, of capital investment expended in the which in turn established the university training of such graduates. Philippine Overseas Employment The Republic of Philippines Model Administration (POEA). The POEA of Labour Exportation handles the process of direct Labour exportation in the Philippines recruitment of Filipino labour to was the brain child of former foreign employers and government. In President Ferdinand Marcos. Marcos addition, there are two different identified an opportunity and created important components of labour a framework to derive national exportation in the Philippines, the dividends from the exportation of Public and Private component. Public Filipino unemployed youths that were channels are government created victims of a stagnant economy organizations on labour exportation (O’Neil, 2014). As Pernia (2011) matters while private channels are recounts, labour export policy was independent agencies legally licensed officially set in motion in the by the government to recruit Filipino Philippines with Presidential Decree labour for employers in the Middle (OD) 442, popularly known as Labour East and other destinations (O’Neil, Code of 1974. Persia (2018) explains 2014). that the labour policy was designed to According to recent estimates there enable the Filipino government are over 107 million Filipinos resident carefully scout for unemployed but in the Republic of Philippines eligible Filipinos for employment (worldometers, 2019). However, the abroad. The government was Republic of Philippines has many of concerned about the protection of the its citizens working in other states. Philippines image at the international The country greatly depends on level, thus the emphasis on efficiency labour migration for its economic in the labour recruitment process. In vitality. O’ Neil (2014) postulates that June 1978 another policy, PD 1412 more than 7.3 million Filipinos are
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Maureen Fubara & Sheriff Folarin CUJPIA (2019) 7(1) 29-47 resident in foreign states. Baggio temporary process (O’ Neil, 2014). (2014) posits that between the periods To this end, the government has of 1990 to 2001, the country accrued a developed a system for encouraging large part of its foreign earning the return and re-integration of exited earnings from the remittances of Filipinos. Filipino’s who opt for the Overseas Filipino Workers (OFW). legitimate process of securing Cai (2011) reveals that from 2009 to employment abroad are entitled to 2001 the Philippines received 414 special packages such as pre billion dollars in remittances from migration training on the expectation Overseas Filipino Workers (OFW’s). of living abroad, life and medical The rosy changes in the Filipino insurance, pension plans, subsidized economy is majorly credited to the tuition fees and a host of other surge in the rate of remittances. incentives. The Overseas Workers Metaphorically, the Philippines has Welfare Administration (OWWA) begun to yield the fruits of its labour. handles the registration and The aforementioned statistics greatly processing of selected migrants. (O’ understate the roles that migration has Neil, 2014). O’ Neil (2014) highlights played in the modification of Filipino the steps employed by the Filipino national culture and public policy. government to encourage remittance In over 25 years, the government has inflow and return of migrants utilized temporary labour migration as i) Issuance of OWWA a solution to its high unemployment identification card or visa card to rates. The benefits that the Philippines all migrant workers to enable has accrued from labour exportation them send remittances at a has had a ripple effect on the entire reduced rate of 3 dollars per country. This is evident in the impact transaction or less of remittances in the amelioration of ii) Creation of tax-free investment poverty at the household level. programmes for overseas Remittances have contributed in workers boosting the currency (peso), reducing iii) Promotion of continued ties to inflation and easing debt burden. The the Philippines through many advantages of the labour export psychological counselling and policy has spurred the government to Diaspora voting intensify its effort in labour iv) Encouragement of return of exportation (Pernia, 2011). migrants through the reward Temporary labour migration is a system. Returned migrants are major foreign policy objective of the rewarded with one year tax-free government, this is evidenced in the shopping, attractive rates on various regional and bilateral loans for business capital, duty arrangements it makes to protect free shopping and eligibility for Filipinos working all over the world. government subsidized It is instructive to note that the scholarship programmes. Filipino government have always According to O’Neil (2014), while the regarded labour exportation as a government explores diverse openings
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Maureen Fubara & Sheriff Folarin CUJPIA (2019) 7(1) 29-47 for Filipinos in global labour markets. that the absence of most migrants has It also strives to prevent its citizens denied Filipino offspring of parental from utilizing unregulated channels assistance and direction. for migration. To curtail irregular From a human and social rights point migration, a major requirement for of view, there are impediments to overseas employment is that, Filipinos adequately ascertaining the success of must be enlisted by either an labour exportation polices. However, authorized public or private agency in comparison to neighboring and must have their agreement countries that engage in labour endorsed by the POEA and official migration on an extensive scale, the benefits program. Also, the Philippines has created a satisfactory administration denies its citizens from and organized system of labour violating visa provisions in a host migration. Foreign employment has nation and reserves a record of tyrant significantly augmented the salaries of workers who have been blacklisted numerous Filipinos (O’Neil, 2014). from future abroad working contracts. Remittances, have undoubtedly edited The actions of the government the once bleak economic picture in the endeavors to showcase Filipinos Philippines. As O’ Neil (2014) argues, abroad, as an outstanding group of migration has unambiguously raised migrant workers. the salaries of a large number of Critics of labour migration argue that overseas Filipino workers and their the Filipino government is greatly families. Furthermore, labour lacking in its duties of adequately exportation has spurred interest in protecting migrants and that it has education and skill acquisition and as overlooked the maltreatment and such has increased the level of literacy abuse of illegal migrants. in the nation. From the foregoing, it is Furthermore, some social reporters clear that labour migration makes a charge that the Filipino government major difference not only in the dissident position on migration is yet economy of the Philippines but also in to stem sporadic and irregular the lives of many Filipino families. migration (O’Neil, 2014). Opponents The Heart of the Matter: Lessons of labour exportation also contend from the Philippines that remittances accrued by foreign The most profound lesson to be 37 work have not resulted in sustainable imbibed from the Philippines model economic changes in the nation but of labour exportation is the dynamic rather is accompanied by grave social nature of its policy. The policy has expenses (Shelzig, 2005). Cai (2011) evolved through the years and adapted mourns that the Philippines has over itself to the changes in the relied on labour exportation as its international market and the world at ladder to the top echelons in global large (O’Neil, 2015). Additionally, politics. Additionally, Cai (2011) there are other vital lessons that the pinpoints the brain drain of highly Nigerian government can emulate intellectual Filipino as a downside of from the Filipino model of Labour labour exportation. Asis (2008) argues exportation.
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i) Enlightenment and Protection temporarily suspended by the of Migrant Workers Filipino government over According to the Federal allegations of maltreatment of Ministry of Labour and Filipino workers. Productivity (2010) Nigerian ii) Subsidization of Remittances migrants are often times ignorant Transaction Fees or misinformed about the laws According to Tewade (2005) that govern immigration and cited in Enaglama (2007) there residency in destination are many benefits credited to countries. Many Nigerians international migration such as migrants are not always aware of brain circulation, skills transfer, the cultural expectations in diaspora network and receiving countries as well as investment. However, the most their rights and expected remarkable of all is the positive obligations in these countries. effect of remittances on the Against the backdrop of this economy of nations. Tewade glitch in information, many (2005) cited in Enaglama (2007) women and children who are defines remittances as financial most vulnerable become victims or non-financial items that of commercial sex trafficking Diaspora workers send back to and exploitative forced child support family members in the labour respectively (United country of origin. Wapmuk; Nations Refugee Agency, 2017). Akinkuotu & Ibonye, (2014) Contrastingly, O’Neil (2004) state that Official Development states that although the bulk of Assistance (ODA) have been the labour export responsibility overtaken by remittances on the falls on the private sector. The global level. Remittances are the Filipino government maintains a largest foreign exchange earnings supervisory position into the in the country second only to the affairs of private agencies so as exportation of crude oil. During to ensure the protection of the early 2000’s specifically in Filipino abroad workers from 2003 the rate of remittance abuse and demeaning treatment. inflow into the country was On an international level, the pegged at about US$2 billion, Filipino government has less than a decade later the figure relentlessly continued to demand tremendously increased. As a fair treatment and protection of result of the large Nigerian its citizens working in other Diaspora population the country 38 states. Time and again the recorded 22 billion naira in Filipino government has been remittances inflow in 2017 very vocal in its stance against (Adeagbo & Ayansola, 2017). the mistreatment of Filipino However, the high inflow of migrant workers. In 2003, labour remittances has had no exportation to Hong Kong was significant effect on the reduction
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of poverty and inequality in the fulfillment of outstanding debt nation. Adeagbo & Ayansola obligations as well as increasing (2017) argues that the the nation’s Gross Domestic underutilization of remittances is Product (GDP). due to the lack of a systematic iii) Establishment of Verified and organized remittance policy Agencies for International like the Philippines model and Migration recommends that Nigeria Unfortunately, the vice of illegal replicates the policy model of the migration and human trafficking Philippines so as to accrue major has continued to progress largely benefits from remittances. as a result of the ignorance and Corroborating the above view, vulnerability of many Nigerians Gerardo (2019) maintains that (Afolyan, 2009). The habit of the Philippines has developed a Nigerians to solicit the services well -structured system for the of unverified traveling agencies transmission of remittances that to plan and arrange their is worthy of emulation. O’ Neil travelling endeavours increases (2014) also states the Philippines the risk of scams and fraud. government has developed a Adams & Ahsan (2014) expatiate structure for tax reduction on that in the Philippines, there are remittances by issuing a visa card stringent conditions which to Diasporas to enable them send agencies must fulfill before they remittances at a subsidized price can be granted legal license to of 3 dollars or less. Remittances operate. Hence, only Filipino repatriated by Overseas Filipino nationals are entitled to own Workers (OFW) via recruitment agencies, all agencies international banks are tracked must fulfil capital and bonds by the Bangko Sentral ng requirements as demanded by Philipinas (BSP) so as rectify state and processing fees for balance of payment deficits potential migrants must not be (Gerardo, 2019). Overseas more than the two months’ salary Filipino Workers (OFW) they would earn in destination remittances have contributed to countries. Before the Filipino bolstering surpluses on current workers are sent for work accounts, augmenting household overseas, agencies must stipulate earnings, improving investment, and verify the terms of increasing wages at micro-level, agreement of each Filipino thus increasing the standard of workers as well as agree on living in the country. Baggio salary remunerations. To this (2014) reveals that at the macro end, all contracts are finally level cash remittances in the approved by the Philippines Philippines has greatly Consulate and in situations where contributed to reducing inflation, is a violation of contract by ease of money circulation, employers, Filipino migrants are
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liable to sue the recruitment policy in Nigeria contributes to the agencies upon their return to the viability of the nation for the country. implementation of labour exportation iv) Optimization of Unskilled policies. This is because labour and Semi-Skilled Labour migration policies precedes labour Exportation exportation policies. Thus, the Also, with regards to the effectiveness of the labour migration category of workers to export, policy in fulfilling its policy clauses the Philippines has been more will determine the success or failures inclined to send semi-skilled and of labour exportation in Nigeria if it is unskilled workers abroad for adopted. employment. In 2011, unskilled Pertinently, the potentials of labour or informal sector workers exportation has remained generally accounted for 77 percent of the obscure to Nigerian policy makers. Philippines temporary exported The erroneous views harboured by the labour while only 14 percent of governments of many African nations the exported labour were skilled including Nigeria regarding any form workers (Adams & Ahnsan, of labour migration as brain drain 2014). Pernia (2011) Philippine must be corrected. Unskilled and government is intensifying semi-skilled temporary labour efforts to train its unskilled migration are not inimical to the labour on the etiquette of nation’s economy and can indeed be international decorum so as to beneficial if it is effectively regulated enhance the reputation of and maximized. Filipino Diaspora labour force. Again, without the implementation of Unskilled labour exportation is labour exportation policies, the study less dangerous to the economy of reveals that Nigeria still accrues huge developing nations and is a sums of dollars in remittance inflow welcome development in most from its diaspora population. nations (Bakunda & Mkanga, However, there are no concrete 2011). Dokpeshi (2015) uncovers evidence to prove that remittances to that the rate of low skilled labour Nigeria have aided to advance in Nigeria is on the high side as national development. At most, 11 percent of the general remittances to Nigeria are mostly Nigerian population are merely beneficial at the household level.
OND holders. Thus, Nigeria can Recommendations borrow a leaf from the In view of the study findings, the Philippines and engage in the study puts forth the following exportation of low skilled and recommendations. semi-skilled labour to reduce The government should ensure that unemployment in the country. the national labour migration policy is
Discussion of Findings effectively executed and upheld by The study uncovered that the the appropriate national authorities. endorsement of a national migration To maintain a supervisory role over
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Maureen Fubara & Sheriff Folarin CUJPIA (2019) 7(1) 29-47 national migration parastatals, the Again, the government should focus Federal government should establish its attention on the potentials of its ad hoc oversight bodies that will human resources. Nigerian leaders monitor the activities of the migration and policy makers should endeavour authorities and report back to the to free the nation from the shackles of government on observed overdependence on natural resources. irregularities. Measures such as labour exportation Also, the Nigerian government should that centers on the maximization of learn from the shortcomings of the human resources should be Philippines regarding the lapses in the encouraged and promoted. protection of irregular migrants. The Also, the Nigerian government in government should enter into bi- conjunction with the Central Bank of lateral and regional treaty agreements Nigeria should devise an effective with other nations to ensure that measures such as subsidized Nigerian migrants anywhere in the transaction charges so as to encourage world are duly protected regardless of remittance flow through formal their mode of entry into other channels. countries. Illegal migrants should not Conclusion be subjected to inhumane treatment The non-monetization of labour but rather request that those persons migration has cost Nigeria huge are deported to Nigeria. financial losses. Although, Nigeria is The Nigerian government should blessed with an abundance of human implement protective laws that will and mineral resources, subsequent act as a deterrent to the activities of political leaders in the country have exploitative recruitment agencies who continued to exclusively focus on the prey on the ignorance of potential financial gains from its mineral Nigerian migrants by charging resource. In view of the progress ridiculous processing fees. Offenders made by other nations in labour to the law against recruitment fraud exportation, the time has come for must be duly tried and if found guilty Nigerian government to refocus its appropriate punishments as stated by attention on the many financial and the law should be meted out to them. non- financial opportunities that can Also, the trail process of this be derived from its huge population fraudsters should be publicized so as base. Unequivocally, Nigeria’s huge to echo the seriousness of the population base may continue to lie government in curbing this crime and fallow if proactive measures are not to warn intending fraudsters of the taken to adequately maximize human repercussions of such actions. resources.
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Challenges and Moving Out, Back and Up, Prospects”. Journal of International Migration and ` Sociology and Anthropology. Development Prospects in the Vol.4, No.3. pp.234. Philippines. Quezon City: Afolabi, F. Yusuf, M., & Idowu, E. SMC. (2014). “Ameliorating the Baah-Boateng, W. (2015). Problem of Unemployment “Unemployment in Africa: among Graduates through How Appropriate is the Global Relevant Functional and Definition ` and Sustainable University Measurement for Policy Education in Nigeria”. Purpose”. International Journal International Review of of Manpower. Vol.35. No.5 Social Sciences and pp.650-667. Humanities. Vol. 7, No.2. Baggio, F. (2014). “Labour Export as pp.188-196. Development Strategy: The Afoloyan, A. (2009). Migration in Case of the Philippines”. A Nigeria. A Country Profile. Conference Paper Presented at International Organization for the Intergovernmental Migration. Conference on the Global Amirkhanian, A. Kuznetsova, V. Impact for Migration.Rabat, Kelly, A. Difranceisco, J. Morocco. Musatov, B. Avsukevich, N. Bakunda, G. Mkpanga, W. (2011). (2011). “Male Labour Labor Export as Government Migrants in Russia: HIV Risk Policy: An Assessment of Behavior Levels, Contextual Uganda’s Potential for Export Factors, and Prevention of Labor in the Framework of Needs”. Immigration Minor Regional and Multilateral Health. Vol.13, No.5.pp.919– Agreements. Investment 28. Climate and Business Anh, D. (2008). “Labour Migration Environment Research Fund from Vietnam: Issues of Policy (ICBE-RF). and Practice. Asia Regional Balogun, K. (2016). “Unemployment Programme on Governance of in Africa”. Paper Presented at Labour Migration”. Working African Transformation Forum Paper. No.4. organized by African Centre for Appleyard, Reginald T. (1989). Economic Transformation “Migration and development: (ACET). Kigali, Rwanda. Myths and Reality”. Cai, (2011). Labour Export Policy: A International Migration Case Study of the Philippines. Review. No.23. E-International Asis, M. (2008). “Social Dimensions Relations.Retrieved from of International Migration in www.e- the Philippines” in Maruja internationalrelations.org on M.B. and Fabio Baggio (eds) 26th April 2019.
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Chigozie, A. (2014). “Understanding International Labour Organization. Brain Drain in Nigerian (2012). Youth Employment Universities”. Unpublished Interventions in Africa. A Masters Thesis. Department Mapping Report of the of Sociology. Lund University. Employment and Labour Sub- Dokpesi, A. (2015). How Productive Cluster of the Regional is the Nigerian Labour Force?. Coordination ` Mechanism Ventures Africa. Retrieved (RCM) for Africa. ILO. from www.venturesafrica.org Senegal. on 26th April, 2018. International Organization for Engalama, A. (2007) “The Impact of Migration (2011). Key Remittances on Economic Migration Terms. Retrieved Development”. Issues in from Financial Remittances, www.iom.int/cms/en/sites/iom/ Economic Integration, Bank home/about-migration/key- Consolidation and migration-terms on 15th Development Financing. Vo.13, November 2018. No.4.pp.50. International Organization for Estudious F. (2000). “Approaches to Migration. (2017). “Enabling a the Study of International Better Understanding of Migration: A Review”. Migration Flows and Estudios Fronterizos. Vol. 1, (its Root-Causes) from Nigeria Núm. 1. pp.142. towards Europe”. Desk Review Everett, L. (1966). “A Theory of Report. ` Displacement Migration”. Demography. Tracking Matrix. Vol.3, No.1. pp.47-57. International Organization for Federal Ministry of Labour and Migration. (2018). International Productivity (2010). Labour Organization for Migration Migration Policy for Nigeria. Youth Employment and Ministry of Labour: Abuja. Migration Strategy in West and Froschl-Smith, M. (2012). Political Central Africa. IOM UN Consciousness and Migration: Migration. Dakar Some Empirical Insight Among Regional Office for West and Philippine Returnees. Central Africa. Diplomarbeite. Universite Wein Iravani, M. (2011). “Brain Drain Wein. Problem: A Review”. Gerardo, S. (2019). Towards International Journal of Philippines Economic and Business and Social Social Progress. Commission Sciences. Vol.2, No.15. pp.150. on Filipinos Overseas. Jebbin, M. Wilson, G. (2011). “The Retrieved from Underdevelopment in Nigeria: www.cfo.gov.ph on 26th April Who is to Blame-Failure of 2019. Leadership or Her Political Economic System”. Journal of
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Contemporary Research. Vol. Pernia, M. (2011). “Is Labour Export 8. No.3. Good Development Policy?” Longe, O. (2017). “Graduate Philippine Review of Unemployment in Nigeria: Economics. Vol. 17. No.1 Causes, Consequences and pp.15-34. Remediable Approaches”. Pettinger, T. (2017). Brain Drain American International Journal Problem. ECONOMICS. of Contemporary Research. Retrieved from Vol.7, No.4. pp.45. www.economicshelp.org/blog/g Mudashir, I. Adaramola, Z. lossary/brain-drain-problem/ on Nurudden, M. (2018). Nigeria 7th February 2019. Worries over Population Piore, M. (1979). Birds of Passage: Explosion. Daily Trust. Migrant Labor and Industrial Retrieved from Societies. Cambridge www.dailytrust.com/ng/ on University Press: New 26th April, 2019. York. National Bureau Statistics (2016). Pricewaterhouse Coopers. (2018). Unemployment and Structural Transformation and Underemployed Watch in Joblessness Growth in Nigeria. Nigeria - (Quarter 4). National Retrieved from Bureau of Statistic Publication: www.pwc.com/ng on 25th Abuja. April, 2019. Noor, W. (2000). Labour Standards in Saxenian, L. (2005). “From Brain Exports and Developing Drain to Brain Circulation: Countries. United Nations ` Transnational Communities and University World Institute for Regional Upgrading in India Development and Economic and China”. Studies in Research. Working Paper 212. Comparative International O’ Neil, K. (2004). “Labour Export as Development. Vol.40, Government Policy. The Case No.2.pp.35-61. of the Philippines”. The `Online Schelzig, K. (2005). Poverty in the Journal of Migration Policy Philippines: Incomes, Assets, Structure. Retrieved from and Access. Hong Kong. Asian https://www.migrationpolicy.or Development Bank (ADB). g/article/labor-export- Skeldon, R. (2008). “International government-policy-case- Migration as a Tool in philippines on 24th Development Policy: A Passing April, 2019. Phase?” Population and Oni, B. (2005). “Capacity building Development Review. Vol. 34, Effort and Brain drain in No.1. pp.1-18. Nigerian Universities”. Trading Economics (2018). Nigeria’s European Journal of Unemployment Rate. Retrieved Social Research. Vol.36, from No.2.p.11. https://tradingeconomics.com/n
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igeria/unemployment-rate on 10.13185/KK2014.02318 on 24th April, 2019. 29th November 2018. United Nations International Winters .A. (2004). The Economic Organization for Migration. Implications of Liberalizing (2016). “Nigeria Launches Mode 4 Trade‖, Working Paper, Migration Policy”. Prepared for the Joint WTO- Retrieved from www.iom.int on World Bank Symposium on 28th April, 2019. Mode 4 under the GATS. United Nations Refugee Agency Centre for Economic Policy (2017). Nigeria: COI Research, London & Centre for Compilation on Human Economic Performance. Trafficking. Austrian Red Worldometers. (2019). Philippines Cross. Accord. Population Live. Retrieved United Nations Educational, Scientific from and Cultural Organization www.worldometers.info.com (2018). Migrant/Migration. on 28th April 2019. Retrieved from World Population Review (2019). www.unesco.org on 15th Nigerian Population. Retrieved November 2018. from Wapmuk, S. Akinkuotu, O. Ibonye, www.worldpopulationreview.c V. (2014). “The Nigerian om/Nigerian-population on Diaspora and National : 26th April, 2019. Contributions, Challenges, and Zovanga, K. Ozden, C. (2017). Brain Lessons from Other Countries”. Drain, Gain and Circulation. Kritika Kultura. Vol.23.pp. KNOMAD. Working Paper 292-342. Retrieved from 19.
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Abimbola Oyarinu CUJPIA (2019) 7(1) 48-75
Covenant University Journal of Politics & Internationall Affair. Vol. 7 No. 1, June 2019 ISSN: p. 2354-3558 e. 2354-3493 DOI: 10.20370/ddtf-z111
An Open Access Journal Available Online
Bleeding the Commonwealth: An Assessment of Odu’a Investment Company Limited, 1985-2008
Abimbola Oyarinu
Department of History and Strategic Studies, University of Lagos, Akoka Lagos, Nigeria
Received: 24.02.2019 Accepted: 25.05.2019 Date of Publication: June, 2019
Abstract: Corruption is a scourge destroying public enterprises in Nigeria but the idea that corruption is the major reason why public enterprises fail might be far from the truth. Enormous corruption occurred in Odu’a Investment Company Limited between 1992 to 2008, which led to the obliteration of the Yoruba patrimony. While associated companies, which are run by private hands are making profits and paying dividends, the subsidiary companies are being bleed white owing to massive corruption stemming from a dysfunctional structure. A historical method is adopted as data were collected from archives, interviews, private records, company journals, newspapers, books and internet materials. The study is both descriptive and analytical and data is analysed using content analysis. This work concludes that corruption is not the major reason why public enterprises fail but the structure like neorealism postulate. The structure of public enterprises is discovered to lack Agency.
Keywords: Corruption, OICL, Owner-States, Public Enterprises, Structure
Introduction made her balance of trade a mockery The idea that government has no to the eyes. Awolowo, an business in business is an argument accomplished Keynesian economist, advanced and popularized by neo- had realized as far back as the 1950s liberalists in the 1970s. While this that aggressive state investment is a might be beneficial to countries with necessary condition for rapid strong economies and wealthy private economic development, especially individuals, the same cannot be said where you have a weak indigenous of countries of the Global South. capital base (Awolowo, 2014). The Neoliberal ideas have further wanton corruption in state-owned impoverished African nations and enterprises has made the idea of a
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Abimbola Oyarinu CUJPIA (2019) 7(1) 48-75 government led economy unpopular, directive not to collectively own which seem the fastest path to assets, the new military administrators development. tinkered with a lot of options and in OICL’s long history thus began in the process consulted the erstwhile 1949 with the establishment of Premier of the Western Region, Chief Western Region Production Obafemi Awolowo. He warned Development Board (WRPDB) and vehemently against selling, and rather, the Western Nigeria Marketing Board advised that a holding company in 1954. These later transformed into should be established to hold the WNDC in 1959 and later Western assets of the company together (Daisi, States Industrial Investment and 2018). Therefore, a State Credit Corporation (WSIICC) in 1973 Implementation Committee (SIC) and eventually OICL in 1976. The comprising the three military companies that were established under governors and their secretaries to these corporations had governments government and Heads of Service was of the regions owning less than 49% established with Brigadier David equity in most cases, thus allowing Jemibewon as the Chairman. The first the expatriates to manage the meeting of the committee was held in companies. The government of the Ibadan on March 3, 1976. Between Western Region in some cases that date and April 1, 1976, when the subscribed only land as its own equity states effectively took off, the share, such land was capitalized committee deliberated on all matters (Fasuan, 2018). The corporations affecting the three states. Broadly thrived at independence up until 1966, speaking, the committee's duty was to when political issues were to decide ensure the smooth take-off of the their future. These were the coups that newly created states, the equitable soon metamorphosed into the distribution of shares and assets of the Nigerian Civil war in 1967. The war former Western State since the led to the decimation of the regional Federal Government directed that new structure, which gave way to the state states should not, as far as practicable, system as it is currently practised. maintain common services (OICL, When the Western Region in 1976 2009). was broken into three states, namely Theoretical Framework Oyo, Ondo, and Ogun, Brigadier This paper would receive two David Medaiyese Jemibewon was hypotheses in relations to the topic, appointed the Military Governor of which are Systems theory and Agency Oyo State, while Wing Commander hypothesis. System theory was David Ikpeme and Lt. Col. Ayodele propounded by Ludwig von Balogun were named military Bertalanffy however with the end goal governors of the newly created Ondo of this investigation Niiklas and Ogun states respectively (OICL, Luhmann's sociological clarification 2009). In order to ensure the smooth would get the job done. It underscores take-off of the new states and to the manner by which organized adhere to the Federal Governments systems (human and non-human)
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Abimbola Oyarinu CUJPIA (2019) 7(1) 48-75 react in a versatile method to adapt to the manager owns 100% of the firm critical changes in their outside versus when the manager is sharing an surroundings in order to keep up their equity share with others. In the former fundamental structures unblemished. structure, the owner/manager will act System theory explains how politics to maximize the firm's welfare and other external factors affect the because the full benefit of this structure of OICL and until external maximization will accrue to him. and internal factors can leave the However, when the owner/manager structure of OICL unblemished then shares, say, a 20% equity stake to an corruption would continue to be a outside shareholder, agency costs will problem (Johnson, 2005). arise from the divergence of interests Adam Smith as early as the eighteenth between the manager and the century had created a significant shareholders. Jensen and Meckling number of the key ideas of Agency conclude that these agency costs are theory. From the 1970s up until 2003, inevitable when there is a separation different researchers have added to of ownership and control, and that to the theory. Researchers like Jensen, call these costs "inefficiencies" is Mitnick, Murphy, Ross are known appropriate only if comparing to an figures who have added to the "ideal world" where principal and advancement of various shades of agent interests could be aligned at Agency theory. This work would, zero cost. The proposition of Agency therefore, concentrate on Jensen and theory as espoused by Jensen and Meckling's rendition of the theory. Meckling is vital in explaining the For the most part, Agency theory just subject matter of this thesis. It put; is one in which one or more discusses ownership pattern which is persons (the principal) engage another obtainable in OICL. It discusses the person (the agent) to perform some approach for management of wholly- services on their behalf, which owned companies and subsidiary involves delegating some decision- companies, which are prevalent in making authority to the agent. As part OICL (Jensen and Meckling, 1976) of a broader theory of the firm, Jensen Military Board and Meckling explore agency costs Odu'a made a total income of N85.8 and its sources. They identify million between 1985-1989. The monitoring the agent's actions as a subsidiary companies that gulped source of agency cost, but they also 84% of the investment funds identify at least two other sources: generated only N15.5 million (18%) bonding costs borne by the agent and of the total as opposed to N45 million the wealth loss borne by the principal (52%) generated by the Associated when the agent's actions do not Companies. Even Minor Holding over maximize his welfare (referred to as the same period generated N16.7 "residual loss"). To that end, Jensen million (19.5%). In the five-year and Meckling compared the period (1985-1989), out of a total management behaviours found in two income of N86 million earned, over different firm structures: one, where 70 per cent came from the 21
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Abimbola Oyarinu CUJPIA (2019) 7(1) 48-75 associated companies in which Odu'a assets of the Company. Equally the had no more than 50 per cent equity operational effectiveness of OICL's participation. The 24 companies major property holdings shows wholly owned by Odu'a or in which it complacency. There were accounts of has majority shares contributed only inadequate attention to the prompt 18 per cent of income. The remaining collection of rents, of broken down 7 per cent came from dividends generators, of frequently unusable provided by minor investments in elevators and of poorly maintained different companies. It is this water supply and sanitation facilities relatively unimpressive performance in OICL properties that are by all that provokes a continuing re- means gold mines because of their appraisal of the Company. This was a chosen locations. Mabogunje clear case of robbing Peter to pay attributes this misnomer to Paul. A casual observation will reveal indiscipline. that OICL did not establish any new When an individual with business, did not venture into any new tremendous and easily industry and created very few jobs. perceptible capabilities fail to OICL during the period was a risk realise his promise, one of the averter, staying in the safe and invest reasons usually adduced is his lack of discipline and in business areas where income application… Within an generation is trusted into hands of organization, such as a business others and crumbs of dividends travel establishment, discipline can be in regularly as a routine (OICL, 2009, examined at the level of the 26). Board, the Management and the During the period, Odu'a Investment generality of the staff. The Company Limited had an interest in bottom line for a disciplined some 60 companies. In 17 of these private sector organization is its companies, equity participation was performance in terms of relative above 75 per cent, in another 7 it was profitability and the quality of its services (Mabogunje, 1999). between 51 and 75 per cent; in 10 Following from the above, it is others, it was between 26 and 50 per important to point out that all the cent; while in the remaining 26, it was Chairmen of Board that supervised below 25 per cent. All companies in such indiscipline were mainly military which OICL has over 50 per cent men with little or no knowledge of equity are referred to as Subsidiary business ethos. Also, three of the five Companies, companies with between Board Chairmen were not Yoruba’s 49 and 11 per cent is referred to as managing, a Yoruba heritage. The list Associated Companies, while of Board Chairmen during the period investments below 10 per cent are are (OICL, 2009, 101): known as Minor Companies (OICL, 1. Navy Captain O. Akhigbe (Rtd) 2009). 1985-1987 The quality of service in the period 2. Navy Captain O. George (Rtd) under review, speaks of the many 1987-1988 failing maintenances of the physical
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3. Colonel S. A. Oresanya (Late) profitability and growth of the 1988-1990 conglomerate. The second task was to 4. Navy Captain S. A. Olukoya elevate the status of OICL by (Rtd) 1990-1991 spreading its benefits and services to 5. Colonel A. K. Adisa (Late) 1991- the owner states of Oyo, Ondo and 1992 Ogun. As a first step to achieving his Arising from the disappointing five- mandate, Chief Adewunmi and year review of the Company's income Management drew up a plan for the from 1985-1989, the Company's invigoration of the member Board decided to take action. The companies through a combination of Board at its meeting of 11 December some complementary strategies, most 1989 decided to appoint Chief principal of which was the injection of Olufemi Adewunmi as the Group funds into the companies and the re- Managing Director to succeed Mr engineering of their respective Iyowu (1984-1990). Mr Iyowu had management teams. Chief Adewunmi been the longest-serving GMD of the and his management team believed Company from 1976 and was due to that share dilution as a fund step down on 6 March 1990. Colonel generating strategy would help S. A. Oresanya who was the achieve his first mandate. For the Chairman of Board at the time signed share dilution exercise, the the letter of appointment for Chief Management began with Odu'a Olufemi Adewunmi. A part of the Textiles Industry Limited, Ado-Ekiti, letter read: because of it's dire financial and I have the great honour and technical needs, which were pleasure to inform you that the enormous. Relevant stockbrokers and Board of Directors of Odu'a advisers were appointed to handle the Investment Company Limited exercise (OICL, 2009). has decided that you be The second mandate, he believed appointed the Group Managing Director of this company with would be pursued through the effect from Tuesday, March 6, Community Investment Project 1990. The decision was arrived Scheme (CIPS), which would involve at, after careful consideration setting up small-scale companies in of all relevant information on different communities in each of the the succession plan within the local government areas in the three Group as well as the records of states, as they were then Oyo, Ogun your excellent performance and and Ondo. The CIPS was structured contributions at various lower basically to mobilise investable funds levels in which you had served in the hands of individuals in the (OICL, 2009). different local governments to make On his assumption of office, Chief up 60% of the equity of each Adewunmi had two mandates – the company, OICL was to make up the first was to make the members 40% balance. The major business (subsidiary and associated) companies concern of the small scale companies in the Group perform maximally to was to process agricultural produce contribute to the composite
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Abimbola Oyarinu CUJPIA (2019) 7(1) 48-75 common in the local community refurbished Cocoa House to the Board where the business is to be domiciled. by December 1991 but could not keep The development plans were that promise (Odu’a, 1991b, 8). The articulated and presented to the Board building as at mid-1991 had gulped a for approval. The Board gave its total of 23 million naira that was consent to the scheme but emphasized contributed by the three owner states that it must be approached on a step- and Wemabod Estate Limited (the by-step basis. For instance, the Afijio owner of the building). Cocoa House Local Government in Oyo State, which was one time the tallest where fruit and citrus processing was building in West Africa was gutted by conceived as the starting project for fire in 1985 and for seven years of Afijio Community Investment reconstruction, the building had Company was because the area is gulped a total of 44 million naira, reputed for the enormous citrus that is which was committed by the now four harvested there, most of which perish owner states and the Wemabod Estate because of lack of processing (OICL, Limited. After the refurbishment, the 2009, 72). Egbeola Ventures Plc was building had an additional escape established at Ikole Ekiti, this was a staircase at the east and west wings in hotelier and catering company addition to the internal staircases. The established between Odu’a and the fire protection system was built to locals in the area (Odu’a, 1991a, 7). meet a global standard and was This was the position of things before certified as such. It has a total let-able the Babaginda Regime replaced space of 10,500 square metres of military administrators with civilian office accommodation with a administrators in December 1991 and penthouse providing 2 units of in the case of OICL, the change of residential accommodation on the government sometimes means 25th floor. The building was first everything changes – from Company commissioned in 1965 by Chief philosophy to Company objective. Ladoke Akintola but the second Chief Segun Odegbami attributes commissioning in 1992 attracted the these to “government’s overbearing four governors of the owner states, influence on business”. traditional rulers and important SOEs should be allowed to run persons from all over the southwest independently of government (Odu’a 1992a, 1). After the interference, as businesses completion of renovation works and cannot thrive in an with all the money expended, it was environment where policies only 20 per cent of the 24 storey and management do not feel secure (Odegbami, 2018). building that was occupied. The The problems of Chief Adewunmi headquarters of OICL did not also began with the change of government move back to the building but based on challenges that were self- maintained its office at the Cocoa imposed. In some other quarters, House Extension (Odu’a, 2013, 14). those issues seem like excuses to hang In 1991/1992, the equity of Wema him. The GMD was to deliver the Bank was diluted with OICL's
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Abimbola Oyarinu CUJPIA (2019) 7(1) 48-75 shareholding coming down to 40%. In From Reformation to Deformation the same period, Cocoa Industries In 1992, a reformation exercise was Limited's (CIL's) equity dilution was carried out to fix some of the bad problematic following a series of business decision and perceived litigation hanging on the Company corruption that took place between (Odu’a, 2013, 14). During the equity 1989 and 1992. The Adewunmi led dilution exercise of CIL, 70% of the management team had started certain Company’s shares were sold to reforms even before the 1992 reforms Emerald Limited, owned by one were conceived. They sought to Alhaji Garba. However, Vegetable Oil evolve a more result oriented and Nigeria Limited, Caxton Press (W.A.) accountable management, strengthen Limited, National Bank of Nigeria financial and accountability controls and Odu’a Textile Industries Limited at each company levels, ensure the had their equity diluted in the first financial solvency of each business half of the 1990s. Between 1995 and unit through effective cost control and 1997 OICL’s subsidiaries had reduced prudent financial management to 13 from initial 20, as most wound (Odu’a, 1992b). up following massive corruption and The Executive Governors of the four inefficiency. owner States of OICL who assumed Odu’a Textile, like others, turned out power following the shake-up after to be a bad investment option at the the Henry Orka coup, met in Ibadan time, as the proceeds following the on Tuesday 14 January 1992 to huge investment in the company were discuss the future of the Company. discouraging. The Board still went The Governors expressed their beliefs ahead to replicate the same model in in the presidential directive of 27 other subsidiary companies under August 1991 that states involved in OICL. Enough capital was injected common commercial services should into ailing companies either financed set up a board of trustees to run such through equity or loans and also undertakings or, in the alternative, backing such investments with they should be capitalized and run as managerial resources from the Head public quoted companies to which Office. In a number of cases, the governments and individuals can deployment involved moving staff subscribe (Odu’a, 1992b). from the Group Headquarters to the The Governors, therefore, resolved to subsidiaries, from subsidiary implement the Federal Government companies to subsidiary companies directive as it affected OICL. and from subsidiary companies to However, in view of the fact that the Group Headquarters. This strategy as Executive Governors were not a party stated by Chief Adewunmi ensured, in to the decisions taken by the last most cases, substantial improvement Military Administrators, it was in the performance of the companies resolved that the Omolayole in terms of productivity and Committee report and other relevant profitability. papers should be re-examined by the
four states to arrive at a just
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Abimbola Oyarinu CUJPIA (2019) 7(1) 48-75 conclusion. The Governors resolved decision on the privatization that: exercise; i. The constituted Board of c. to look into the possibility of Trustees that was set-up after decentralizing Wemabod for the Head of States effective revenue collection, pronouncement should be finally; suspended. d. to examine all other issues ii. The final decision on a new relating to Odu’a and its structural set up of the subsidiaries and advise the Company was to be reviewed governments of the now four and this led to constituting the owner states as appropriate Idowu Technical Committee (OICL, 2009, 96). (Odu’a, 1992b). The Chief N O Idowu Committee By April 1992, the Governors equally submitted its report in October 1992. directed that the two schemes i.e. The totality of the Committee’s share dilution and CIPS should be recommendations was the whittling suspended pending the report the down of the size, scope of authority Chief N O Idowu led Technical and responsibilities of the Group Committee which was set up in May Headquarters as summarized in the 1992 with the following people as following conclusion among others: members: A. The current staff of Odua are 1. Chief N O Idowu – Oyo State too many and should be pruned (Chairman) down. Though the management 2. Chief E V O Koleoso – Ogun staff are highly qualified, the State (Director-General) post they occupy is superfluous. 3. Mr M O Oyedeji – Oyo State The Committee was convinced (Director-General) that the flamboyant 4. Dr Mrs G T Fatunla – Ondo management of Odu'a should State (Director-General) be streamlined and the staff 5. Mrs F O Okediji – Oyo State reduced considerably. It was (Secretary) (OICL, 2009, 96). recommended that with the new The terms of reference of the roles conferred on Odu'a with Committee were; consequent reduction of its a. to look into the structure of functions as a result of the Odu’a Investment Company proposed privatization of Limited and advise the owner- almost all its subsidiaries. The states on how its management OICL should be headed by a could be reduced; Managing Director with the b. to undertake a technical following four (4) main appraisal of each of the Odu’a departments – 1) Investments subsidiary companies and 2) Finance and Administration submit recommendations that 3) Estates and lastly 4) Internal would facilitate governments’ Audit.
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B. It is also recommended that Board accepted his proposal and he under the new dispensation, the went on a goodbye tour of the new role of Odu'a should be member companies between 25 limited to monitoring February and 12 March 1993. On the investments, receiving same day, Chief Adewunmi formally dividends and paying the same handed over the duties of the CEO of to owner states. Under this the Conglomerate to Alhaji Rafiu S. arrangement, OICL would no Aruna (OICL, 2009, 98). longer supervise companies like Arising from the pattern and sequence West African Portland Cement, of event, it is evident that Chief Wema Bank, Nigerite and Adewunmi was a victim of political Wemabod Estates. victimization as can be deduced in C. The privatized companies one of his statement at a meeting of would be managed by their the owner States where he alluded that respective boards and “for the Company to make management, but Odu'a should meaningful progress, The owner have the responsibility of States, Board and Management have bringing to the attention of the to work together” (OICL, 2009, 96). It four owner states, cases of bad is clear that all was not well with him management or any other and the new state Administrators that important matters affecting the just took over power. It is not clear privatized companies in which whether it is based on performance the four owner states would still issues because the facts on paper do have at least 40% shares not warrant massive shake-up. As (OICL, 2009, 96-98). events later unfolded, it became clear The governors accepted the that whoever wanted Chief recommendations of the committee Adewunmi out, did it to have and asked the Technical Committee to unrestricted access to loot and transform into the new Board of the plunder. The inherent mistake of the Company, so as to be able to then political class, however, was that implement the recommendations they threw away the baby with the submitted in the report. At this point, bath water. The ideas of Chief it became clear to Chief Adewunmi Adewunmi was beginning to bear that his services to the Company fruit especially the CIPS, which would be severely impaired following would have galvanized the economy the reforms. Hence, by November of the southwest and probably had 1992, he had made up his mind to such far-reaching impact as the retire. He reportedly began a 45-day WNDC had in its time. vacation on 14 December 1992 and Independence of the Board came back 29 January 1993. And on Since the short stint in power ended 25 February 1993, Chief Adewunmi for the Civilian Governors who took gave notice of his retirement from power during Babaginda's experiment OICL, he proceeded on his 111-days with the military/civilian government terminal leave on 15 March 1993. The in 1992 and following Abacha's ouster
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Abimbola Oyarinu CUJPIA (2019) 7(1) 48-75 of Ernest Shonekan, the men in 1992 to N153 million in 1995 uniform took over the reins of the (Odu’a, 1996, 5). Odua owner States. This time, Board room experts have consistently however, the Military Administrators rebuffed the idea of government did not interfere in the day-to-day interference in the Board of SOEs. In running of the company and equally the case of OICL as it would be did not sit on the Board of OICL. revealed subsequently in the chapter, Chief N O Idowu enjoyed board that immediately, the owner states independence in which Alhaji Aruna allowed the Board to run (Managing Director of OICL at the independently, the Board went time) alluded to; "such conducive AWOL. Massive corruption and environment devoid of political mismanagement became the order of interventions was most suitable for the day and the Company was almost economic growth and standard bled white owing to unbridled boardroom practices". During this feasting on the Company's resources. period the Company was presumed to One can then argue that it is be on clean health status and to prove impossible to marry the interest of the this, it paid dividends of 100 million Board with that of the Owners naira to the four owner states in 1994 considering that it is a government- ((Odu’a, 1995, 1) and by 1995 it paid owned company and what is 60 million as dividends (Odu’a, 1996, considered to belong to everybody, 5). belongs to nobody. A close study of The Company profit, which was the theory of Agency shows that the N52.5 Million in 1992 has risen to marriage of the interest of the Board N153 million as of 31 December and that of the Owner States is 1995, when Alhaji Aruna was feasible, so long as Agency Cost can Managing Director. The then be factored. Equally, the tenure of Managing Director used these Board Chairmen also must be reviewed. numbers to justify progress made under his watch. Massive Corruption and Eventual The projection for the current Shake-up 1996 is N170 million, this was Towards the beginning of 1997, there proof of efficiency after emerged symptoms of illnesses that reorganization. It is evident that could terminate the life of the Odu'a has been turned into a company. The Military more efficient organization and Administrators of the now five states has achieved a higher profit per net asset on per share or per – Colonel Ahmed Usman (Oyo State), capital employed during the Navy Captain Anthony tenure of the current Board. Total Onyearugbulem (Ondo State) now investment rose from N237 late, Colonel Anthony Obi (Osun million in 1992 when the present State) and Lieutenant-Colonel Board was constituted, to N428 Muhammed Bawa (Ekiti State) – thus million as at the end of 1995, decided to halt the impending danger while profit after tax also and save the group from collapse. On increased from N52.5 million in
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Monday 3rd of February 1997, the which was summarily rejected by the Military Administrators of the five Military Administrators. In place of owner States met in Ibadan to salvage the Panel’s report, the Interim Board the situation as they discovered that made recommendations that formed the company had been grossly the basis of the approach adopted to mismanaged. They dissolved the cleaning the Augean stable at OICL. Board headed by Chief N. O. Idowu, The suspended staff of OICL were who had spent two terms as Chairman however dismissed/retired after an – the first ever Chairman to do so at investigation revealed their culpability the time. They also sent the in insider trading, corruption, company’s Group Managing Director mismanagement and gross – Alhaji Aruna and the two Executive incompetence within the Company. Directors (Finance & Operations) on The summary of the acts committed suspension. An interim board was by the dismissed/retired officers is as constituted under the leadership of follows: Otunba M A Jobi-Fele, an 1. Alhaji R S Aruna, dismissed experienced and astute industrialist Group Managing Director of (Odu’a, 1997a). Members of the Odu’a Interim Board of Directors were: a) Acquired a property of Rev. (Ms) Modupe Soremekun (Ogun Odu’a at no. 25 Oba Akran State representative) Chief Kola Road, Ikeja, surreptitiously Omonije (Ondo State representative) through Engineer M. O. Mr Femi Ekundayo (Ekiti State Okeyale, former Managing representative) Alhaji Rasheed Director, Wemabod Estates Adesokan (Oyo State representative) Limited, a subsidiary of and Mr Akin Akinola (Osun State OICL; representative) (Alabi, 2011, 31). b) Influenced the award of a At the same meeting of the owner- contract for the painting of states, a panel was set up to Lagos Airport Hotel for investigate the activities of the Board N3.5 million to his wife; and Management of both Odu'a and c) Incurred a personal its subsidiaries. On the panel were: telephone bill of N1.9 Chief Adetunji Fadayiro (SAN) million within a period of Chairman (Ogun), Alhaji Lawore one year; Adeleke Olayanju (Osun), Mr Amos d) His wife incurred a medical Olalere Bamidele Ogunlowo (Oyo), bill of about N340,000.00 at Engr Olawunmi Sunday Osakuade a time; (Ekiti), Engr Ropo Alabi (Ondo), e) Authorized the lease of No. Chief (Mrs) Anike Yusuf (Secretary), 11, Bathurst Road, Apapa, and two consultants were hired – Mr at a rent of N120,000.00 per Emmanuel Adeyemo Ogunlowo and annum, while the same Mr Timothy Ademola Oke (Odu’a, property was sub-let for 1997b, 5). The Panel was given two N600,000.00 per annum months to come up with its report, and;
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f) He led a team of companies traded with Management staff that Lagos Airport Hotel and incurred an expense of N90 carried out most of the million as over for one year. construction jobs of the 2. Mr K. Oshisami, former hotel; Executive Director of Finance b) Awarded a contract for the and Planning (Odu’a) who was construction of Oranmiyan retired with full benefits. Hall billed for N18 million a) As Executive Director in to his company and further charge of finance, he did not escalated the cost of the display adequate contract to N52 million; professional diligence in the c) His company constructed payment of an unsolicited the Hitel’s kitchen, which N10 million to Associated was to have been done for Electrical Company Limited N10 million for N16 as a deposit for shares; million; b) He was on the Board of d) He connived with Alhaji Great Insurance Company, a R. S. Aruna, former Group subsidiary of Odu'a when Managing Director of the Company deposited N65 OICL to award a contract million in failing Financial to Titilayo and Partners, a Houses; and company owned by Alhaji c) Although no case of Aruna’s wife, to paint the financial impropriety was Hotel for N3.5 million. established against him, the The job was shoddily done former Executive Director and should not have cost of Finance and Planning was more than N1.5 million; found to be weak and e) He took a cheque complacent. exchange of N125,300.00, 3. Mr A O Martins, dismissed which was returned unpaid Head of Estate Department of by the Bank; OICL f) He authorized an a) He initiated the granting of expenditure of N1.9 the lease of 11 Bathurst million for Road, Apapa, to his personal advertisement/promotion friend at a price below the of the Hotel, above his market value. authorized limit of 4. Mr K Ojerinde, dismissed N500,000.00; and Managing Director of Lagos g) He awarded a contract of Airport Hotel, Ikeja N31,495,942.00 to Dee & a) He floated two companies Cee Co. Ltd, his private Dee & Cee Construction company. Company and Sapphire Nigeria Limited. These
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5. Engineer M O Okeyale, Finance, Wemabod Estates dismissed Managing Director, Limited. Wemabod Estates Messrs M. A. Liadi, dismissed a) He occupied three (3) Executive Director of Finance houses of Wemabod while and Administration, Lagos still drawing his housing Airport Hotel, Ikeja. allowance of N11,250.00 Mr J A Moronkeji, dismissed monthly from Wemabod; Finance Manager, OICL b) Through proxies, he These three former officers clandestinely took over (Nos 7, 8, 9 above) never raised two (2) properties of OICL a whimper against the financial – No. 78, Akinola Cole atrocities and improprieties Cresent Ikeja and 16, committed by their former Ojora Avenue, Ikeja; Chief Executives. c) Overpaid N1 million to 8. Mrs A A Abiola, Managing Messrs Oyeleke Afolabi Director, Western Hotels and Company in relation Limited retired with full to transactions between benefits Wemabod Estates Limited a) She was guilty of and Guinness Nigeria Plc; managerial ineptitude; and d) The sewage system b) During her tenure as initiated by him was a Managing Director, no white elephant project, as positive cash balances were it never worked for a day recorded at Lafia and since it was commission; Premier Hotels, a trend and which was reversed e) A loss of N3.3 million immediately after she was arose from the under- removed. letting of a property to 9. Dr R. O. Oduola, Senior Messrs Oyeleke Afolabi & Economist (OICL) retired with Co. full benefits for dwindling 6. Miss O. F. Adeyanju productivity and old age. (dismissed), former Company 10. Messrs Y. A. Aderibigbe, Secretary/Legal Adviser of dismissed Managing Director Wemabod Estates Limited: of Wrought Iron Nigeria a) She had a proprietary limited interest in Modupe Ore- Messrs S. A. Lawal dismissed Oluwa Chamber, a firm of Managing Director of Fisheries Solicitor to which she Services Limited admitted as having These two former officers awarded legal briefs of indulged in ordering materials N1.8 million. without recourse to standard 7. Messrs Olu Orisaleye, procedure and without dismissed Executive Director of authority. Such goods, when
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supplied, were never taken to Industries Limited, a the store or recorded before subsidiary of Odu'a. use, thus giving room for 12. Engineer M. O. Oduola, abuses. dismissed Controller of Furthermore, Messrs Y. A. Engineering Service, Lagos Aderibigbe without reference to Airport Hotel, Ikeja. the Board of the Company a) He connived during his invested N150,000.00 in Open tenure at Lagos Airport Gate Finance Co. Ltd, a Hotel, actively with the company, which has since former Managing Director, failed, thus trapping the Mr Ojerinde, in the Company's assets. perpetration of atrocities. He fraudulently collected a 13. Messrs A. O. Okesola, course allowance of dismissed Senior Manager (Legal) N10,000.00 for which there OICL. was no evidence of a) He has the acting Company participation. His tenure at Secretary of Epe Plywood Wrought Iron (Nig.) Ltd was a Industries Limited and was a disaster. party to an obnoxious deal In the case of Mr S A Lawal, he between DHL and Epe committed Fisheries Services Plywood Industries Limited, Limited to repair his private car thereby making the to the tune of N80,350.00. He Company lose N10 million. used the Company's money to 14. Messrs A. M. Lamina, pay personal Accident dismissed Assistant Manager Insurance Premium of (Administration) OICL N11,675.00 and made frivolous a) As the acting General kilometre allowance claims to Manager of Western the tune of N340,000.00 for Livestock Company, he using is his private car for ruined the Company with official duties. Sometimes, he his excesses to the extent gives out Company money in a that he gave a live cow to good Samaritan style. He also his friends as a gift; could not give an accurate b) As Manager in-charge of account of Rent Advance of Odu’a Group Headquarters N100,000.00 disbursed. Vehicles, he did not know 11. Messrs T. K. Oyenuga, the number of vehicles in dismissed Senior Manager the fleet; and (Operations) OICL. c) He indulged in excessive a) He was the "dramatis vehicle repair bills. personae" in the signing of 15. Engineer F K Akintola, the obnoxious agreement dismissed Executive Director of that precipitated the Operations, OICL. problems of Epe Plywood
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a) He received an honorarium ridiculous amount of N2.5 of N200,000.00 from the million and in respect of which former Managing Director, the lessee attempted to sublet Lagos Airport Hotel, Mr for N15 million was revoked. Ojerinde; 3. Nos 21-29, Oba Akran Avenue, b) He was culpable in the Ikeja. The five properties on demise of Union this parcel of land were Beverages and Western irregularly leased and the leases Livestock Company, were deficient in terms of rent thereby causing OICL a and tenure. Through a loss of over N35 million; concerted effort, two of the c) He lost two cars to armed properties were surrendered, robbers in quick whilst two others had their succession under lease revoked and the last suspicious circumstances. property was negotiated for a When pressed, however, shorter lease and higher one of the cars was economic rent (Odu’a, 1997, 4). recovered; and As of 1997, all the above properties d) He served on the Board of were recovered while efforts were Wemabod Estates Limited made to recover others in the and left traces of financial subsequent years. Certain shares that indiscipline culminating in were sold or about to be sold were the mismanagement of recovered while companies that were N39 million received as almost liquidated to private insurance compensation individuals were recovered. Such (Odu’a, 1997c, 1-3). included Cocoa Industries Ltd. and Following the damning revelations of Epe Plywood Industries Ltd (Alabi, the monumental corruption that took 2011, 25). In order to retrieve all the place within the Odu’a Group, efforts ill-gotten wealth from the indicted were made to recover properties that persons, they were made to face the had been fleeced by kleptomaniac public assets and funds recovery officers of OICL. The properties tribunal. include: In July 1997, the Interim Board was 1. No. 11 Bathurst Road, Apapa, dissolved and a substantive Board of Lagos. This property was Directors headed by Otunba Jobi-Fele purportedly leased as a shanty was inaugurated by the owner-states. for a period of twenty (20) Other members of the new Board years. The terms of the lease were: Rev. (Ms) Modupe Soremekun have been found to be (Ogun State representative), Chief controvertible. The lease was Kola Omonije (Ondo State therefore revoked. representative), Mr Akin Akinola 2. No. 4, Ofin Road, Apongbon, (Osun State representative), Chief Lagos. The lease of the Deji Fasuan (Ekiti State property which was made for a representative) and Senator Yemi
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Brimo Yusuf (Oyo State1. 1. Drastic curtailment of Group representative) (Alabi, 2011, 25). Headquarters expenses: The
Achievements after Reforms curtailment, which started with the Following the shakeup at Odu'a, the former interim Board was Company moved back to profitability improved upon. Expenses on across its subsidiaries. The details of motor vehicle repairs, medical the achievements of the Company expenses, hotel bills, frivolous under Otunba Jobi Fele are staff allowances and outlandish highlighted below: terminal benefits were greatly reduced.
Quarter Ended Quarter Ended Savings Quarter Ended Quarter Ended Savings % September 1996 September 1997 % December 1996 December 1997 N N N N 25,173,490 12,766.780 49 33,273,074 14,420,118 56
the past where staff were owed • The above table shows that 49% for months before being paid. Mr and 56% reduction occurred in Victor Ayetoro, the current the years under review Manager of Corporate Affairs respectively, in spite of the (OICL) attested to this inflation rate in the larger development. Nigerian economy, which stood 4. Improved Financial Checks: The at 50%, and also considering the Group Headquarters through the increment in staff salary within introduction of additional the period. accounting and administrative 2. Fixed Deposit Account and re- control measures ensured that: negotiation of interest rate: The a. Management of subsidiaries Company accumulated is limited to an expenditure N31,627,926 in its fixed deposit ceiling of between N25,000 accounts as at the end of to N100,000.00. Any February 1998. Also, the Board expenditure proposal above successfully re-negotiated this ceiling will have to be upwards the interest rate on referred to the Chairman of deposits with Banks from 8% to OICL for approval. 13% and reviewed downward b. Key personnel of the Group interest on overdraft facilities Headquarters and the from 22% to 15%, thus, reducing subsidiaries were the hitherto heavy interest consistently routinely burden. redeployed for better service 3. The motivation of Staff: delivery. Following the increment of 5. Following the restructuring and salaries, which was also reforms, a number of offices promptly paid unlike the became vacant. The Board situation, which was the norm in appointed a consortium of
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reputable consultants who balance rose from 2 million to conducted the exercise to get about 12 million. Also, an capable hands to fill the vacant increase in occupancy rate seats. occasioned by the intervention of 6. Lagos Airport Hotel, Ikeja the Chairman and the Board in a) Increased generation of patronage sourcing for the Hotel. income and tight control on Wema Bank PLC, First Bank expenditure improved the Plc, AfriBank Plc, UAC, Coca- profitability and cash flow Cola, UNICEF and a host of position of the Hotel. By others patronized the hotel as a December 1998, the Hotel's result. Lafia Hotel, Apata, bank balance was Ibadan, on the other hand, N120,000.00. Increase in experienced good fortunes as the occupancy rate, which hotel began recording 100% engendered an increase in occupancy rate brought about by the bank balance in the General refurbishing of facilities, accounts of the Hotel. These improved attitude to work by feats were made by: workers b) The refurbishment of the 8. Wemabod Estates Limited Monarchical Suite to a very a) The Company's revenue high standard and re- increased substantially from carpeting of floors. The N1million to N14.5 million Monarchical Suite Lodge in the first year of reform, as rate was increased from a result of the introduction N15,000.00 to N40,000.00 of commercial rates by the per night and this enjoyed Board in the letting of good patronage. Also, a properties. Rent payable on lively and courteous all properties were reviewed treatment of customers by upwards in line with the the staff of the Hotel created going rates in the respective a warm customer service, neighbourhoods. This had a which is central to success salutary effect on the in the hospitality industry. Company's financial 7. Western Hotels Limited: The two position. The bank balance hotels owned by Western Hotels as at the end of February Limited – Premier Hotel, Mokola 1998 was N45 million. and Lafia Hotel, Apata. In line Inventory of properties was with Group patronage initiated taken while the Chairman by the Board, Askar Paint a and the Board had various subsidiary of OICL was meetings with tenants on the contracted to paint the Hotels and issue of improved rent leaking roofs were fixed at the payments. Also, three Premier Hotel, thereby leading to houses at Oba-Akran increased patronage as the bank Avenue were reclaimed for
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Odu’a, which had hitherto a) This is the first indigenous been lost. insurance company 9. Fisheries Services Company established in Nigeria. It Limited, Ijora, Lagos was moribund for some a) The Company recorded a years and the Company substantial increase in under the Chairmanship of turnover owing to the Jobi-Fele revived it through refurbishment of all cold a recapitalization exercise. rooms and basic facilities to Some capable hands and the effective operations of insurance experts were also the company. Ice-block transferred to the Company. making machines were also Chief Rufus Orimoloye, refurbished, which was former Managing Director central to the operations of of Great Nigeria Insurance the company. The premises Company Limited was of the company was also transferred to NGI to floored with concrete for salvage the Company. convenience. 13. Re-acquisition of a majority 10. Odu’a Printing Company interest in Cocoa Industries Limited Limited, Ikeja: OICL regained a) The Chairman and the control of CIL after an amicable Board of Directors settlement with Emerald facilitated a Petroleum Trust Packaging Limited. Odu'a Fund printing contract to the regained 70% equity of CIL as tune of N60 million for the against the former 40% while the company, which was largely other party, Emerald Packaging idle at the time. Limited owned 30% instead of 11. Caxton Press (WA) Limited, the former 60%. N65 million was Ibadan also paid to NDIC with respect to a) The Company began to the repossession. record modest success 14. Epe Plywood Industries Limited: occasioned by the The contentious matter of the refurbishment of the 2- purported equitable interest of Colour printing machine – Dannet Holdings Limited and Sord Z machine. The Epe Plywood Industries Limited company also broke into a was settled by the Jobi-Fele new product line in the Board. Odu'a fully paid the stationery market. This indebtedness of N9 million owed improved the Company's by Epe Plywood to Dannet income from N20,000.00 a Holdings Ltd. After the month to N250,000.00 a settlement, the company began month from July-December skeletal operations, therefore had 1997. the ability to pay salaries. By 12. Nigeria General Insurance Plc February 1998, the Company had
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a bank balance of N1.2 million as members of staff commenced against the indebtedness of over sitting in December 1997. The N20 million in January 1997. panel recovered a number of 15. Phoenix Motors Limited, Ikeja: assets for the Company The Group Patronage policy was a. The Board through the panel used as a strategy to launch the recovered the sum of 7.477 hitherto moribund company back million naira from one Mr to profitable operations. It was Odubogun, the receiver made mandatory for all Manager to Vegetable Oils subsidiaries based in Lagos to (Nig.) Plc, who had repair their vehicles in Phoenix tenaciously held on to the and patronize other services money for the past two offered by the Company. years. 16. Vegetable Oil Nig. Ltd, Ojota: b. The Panel gave decisions in With respect to the lease of the favour of Odu’a and against plant and machinery of VON to three employees of the Senator Rasheed Ladoja by the Company – Messrs M O erstwhile Manager of VON, the Okeyale, Y A Aderibigbe Board took the following steps: and S A Lawal. They a. Half of the land leased to refunded a total of him was repossessed by N1,143,000.00 (One OICL. million, one hundred and b. The leasehold on the portion forty-three thousand naira occupied by him was only) to Odu’a. reviewed and rent of N6 c. Similarly, the panel directed million was charged per Alhaja F Aruna and Engr annum Oduola should refund c. The lease period was also N1.135 million and reduced to five years from N486,854 respectively being the initial lease of 20 years the difference between the granted to him. actual value of the shoddy 17. Repayment of debt owed to painting job done at Lagos Wema Bank Plc: The huge Airport Hotel Limited and indebtedness of N140 million the amount collected from owed by OICl to Wema Bank Plc the Company. was fully repaid. In doing that, d. In addition, Prince Araoye, a the Board was able to recover former Nominee Director of from Wema Bank Plc a N7 the Nigerian General billion investment in WAPCO Insurance Company used as collateral for the loan. Limited, and Mr Oyeleke 18. Recovery of embezzled money Afolabi, an Estate Agent through the assets recovery have been ordered by the panel: The Assets Recovery Panel to refund N65,000.00 Panel set up to try erring (sixty-five thousand Naira
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only) and N175,000.00 (One from the property, the total hundred and seventy-five revenue was raised to N4.6 thousand naira only) million. respectively to OICL. 21. Improved supervision of 19. Although National Bank was associated companies: Improved eventually reacquired in 1999, supervision and information flow outside the scope of this chapter from associated companies were and Jobi-Fele Board, efforts to put in place by the Jobi-Fele reacquire the Bank was made Board of OICL. Odu'a Nominee possible by the Jobi-Fele Board. Directors on the Board of these In a preemptive move to stop the companies were briefed about the further sales of National Bank new direction that was drawn up Nigeria's Assets, OICL took the by the Group and the for utmost interim Board of NBN, the loyalty from them. Central Bank of Nigeria (CBN) a. Nigerite Limited Ikeja: and the Nigeria Deposit and The activities of the Insurance Corporation (NDIC) to Company was under court. OICL sought an intense watch by the interlocutory injunction to Board. The Managing restrain the respondents from Director of the Company selling the Bank's assets pending was invited by the the determination of the Chairman of OICL several substantive suit filed in the times to dialogue on the Federal High Court. The Oyo need for OICL to State and Lagos State High Court participate in the had respectively issued an Executive Management of interim restraining order for the the Company. The Board respondents to halt the further negotiated for at least the sale of NBN assets. position of the Executive 20. Payment of economic rent on Director of Finance to be property occupied by Guinness ceded to OICL. A lopsided Nigeria Plc.: Guinness Nigeria arrangement in favour of was made to pay an additional Etex Group – OICL N1.8 million to Wemabod partner in the venture in Estates Ltd. This is in respect to the allocation of board the sub-lease granted to Guinness seats was also addressed on 31, Aromire Street and 16, by the Jobi-Fele Board. In Ashogbon and Alli Balogun line with the Boards Street all at Ikeja. The rent on the determination to keep sub-lease had earlier been fixed proper checks on all at N2.8 million which was paid investments and assets of by Guinness Nigeria Plc. With OICL, the Board the additional payment of N1.8 instructed OICL’s million total revenue derived solicitors to write Nigerite
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to void decisions taken at The remaining one of Nigerite’s Board shareholders were left with meetings. The conflict 26% arose when the expatriate 22. The declaration of N150 million Managing Director, a dividend to the owner states for nominee of Etex Group, the year 1997. This was rejected OICL’s request to unprecedented in the history of 64 allow one of its Nominee dividends payment of the Directors to act as company as each owner state got Chairman for the meeting N30 million each. in the absence of OICL 23. Assistance to tertiary institutions: nominated Chairman. The Assistance was extended to five Managing Director refused tertiary institutions in the owner and insisted on being the states as follows: Chairman for the meeting a. N5 million to The in total disregard for the Polythenic Ibadan for the Company’s Memorandum construction of Odu’a and Articles of Lecture Theatre. Association. b. N5 million to Osun State b. NIPOL Limited – Poly, Esa-Oke, Osun State participation by Vitafoam for the construction of Plc.: In order to boost the Odu’a Mass dwindling fortunes of Communication Theatre. NIPOL Limited, Apata- c. Ogun State University, Ganga, Ibadan, an now Olabisi Onabanjo associated company of University, Ago Iwoye, Odu'a, an arrangement was got N4.5 million for the set in motion for Vitafoam construction of Odu’a Limited to participate in Lecture Theatre. the equity and d. Ondo State University, management of the Ado Ekiti got N4 million company. It was conceived for the construction of that Vitafoam will bring Odu'a Lecture Theatre. into NIPOL, the much- 24. The retrieval of the shoe factory needed fund and at Oshogbo (Odu’a, 1998a). international expertise, The Military Administrators of which will impact the owner States commended the positively on the financial Board at a meeting held in performance of the Ibadan on 19 March 1998, seeing company. When the the turnaround that had occurred arrangement was in most of the subsidiaries and concluded, OICL had 23% how they had started seeing of NIPOL's equity, while improvements in the profit Vitafoam possessed 51%. margin of OICL. The Military
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Administrator of Ondo State, stakeholders in such banks, so as to Navy Commander Anthony Ibe ensure effective management. It was Onyearugbulem gave the also during the period that Wema commendation on behalf of his Bank acquired National Bank of colleagues in Oyo, Ogun, Osun Nigeria following a recapitalization and Ekiti states while reading the exercise. Wema Bank Plc was granted communique jointly signed by a Universal Banking License in the five Military Administrators February 2001. Wema Bank is a large (Odu’a 1998b, 1). Also, the financial services provider that has Executive Director (Operations) been in the banking business of the African Newspapers of continuously for the past 65 years. It Nigeria Plc, publishers of The is the oldest indigenous commercial Tribune – Mr Fola Olamiti, bank in Nigeria. Ownership of the described the turn-around of bank are as follows: SW8 Investment OICL at the time as "stupendous" Limited 31.3%; OICL 9.47%; and (Odu’a 1998c, 8). Private Investors 59% (Wema, 2018).
Wema Bank Wema Bank is perhaps the only leg The corruption in OICL subsidiaries standing of all those banks inspired by is most visible in Wema Bank and the nationalist fervour of its era during the bank would be a pointer to what the colonial period. All the others have experiences in other subsidiaries of either failed or acquired by other OICL must be like. Wema Bank banks. Ironically, during the 2005 automatically became a part of the banking sector consolidation, it Western State Government’s acquired National Bank which investment under the WSIICC and hitherto was the only surviving one subsequently a wholly owned that pre-dated it. Wema Bank was one subsidiary of OICL in 1976. Wema of the banks that responded early Bank was incorporated in May 1945 enough to the Central Bank's call for as a private limited liability company recapitalisation in the banking and commenced business operations industry. During the 2004/2005 as a commercial bank in the same financial year, it offered some 5 year. Wema Bank was converted to a billion ordinary shares to the public public limited liability company in for subscription at a price of N3.50 1987. In 1990, the bank was listed on per share. The offer received the Nigeria Stock Exchange. Hence, substantial support such that about Wema Bank moved from being a 4.75 billion shares were subscribed subsidiary of OICL to being an and paid for. This boosted associated company, with OICL shareholders fund to N24.26 billion owning 40 per cent equity. The Bank by March 31, 2005, from N8.04 eventually became a minor asset to billion prior to the exercise. This has OICL in 2005 following Central Bank further increased to N26.23 billion as of Nigeria's directive for government- at the end of the 2006 financial year owned banks to divest, resulting in (Wema, 2011). owner states becoming minor
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Widely reputed as the longest cent by selling its shares to high net surviving and most resilient worth Yoruba individuals who came indigenous Nigerian bank, Wema together under a group called the SW8 Bank Plc has over the years, diligently to take majority equity in the bank offered a fully-fledged range of value- (Wema, 2011). The bank is ranked adding banking and financial advisory lowest amongst the newly services to the Nigerian public. In recapitalized banks in Nigeria due to 2006, the then Group Managing sharp practices affecting its Director of the Odu’a Investment, Mr accounting procedures. Sahara Adebayo Jimoh, announced that Reporters investigated the bank in Wema Bank Plc realised a profit 2007, the investigative journalism before tax of N6 billion between outfit found out that the 2005 March and December 2006 that recapitalization of the Bank was made towers ahead of what the whole of the possible because it is the major banker subsidiary of OICL made in that year. to President Obasanjo's multi-billion- Following the impressive profit dollar company (Obasanjo Holdings recorded in 2006, the bank was Limited), which was based in enmeshed in a series of corruption- Abeokuta, Ogun State. The then related cases the following year. minister of the Federal Capital Adebisi Omoyeni, the Group Territory (FCT) Mallam Nasir El- Managing Director of Wema Bank, in Rufai, publicly claimed that President July 2007 was suspended from office Obasanjo borrowed N2 billion to by the Central Bank of Nigeria, for revive his ailing Otta Farm (Sahara alleged financial irregularities Reporters, 2007). involving him. He was suspended in The online news platform fingered Mr January 2008, having been accused of Tunde Lemo as the major culprit approving N450 million housing loan responsible for the crisis that the bank for himself and increasing his housing faced in the first decade of the twenty- loan by 100 per cent. Such actions first century, as it was discovered that were considered inimical to a Mr Lemo gave out credit facilities of company that was said to be neck over 16 billion naira (Sahara deep in debt. But Omoyeni denied Reporters, 2007). The figure seems doing any wrong and claimed that he bloated as it doubles the figure was a victim of power play, contained in Mr Adebisi Omoyeni’s masterminded by Mr Tunde Lemo, petition to the then CBN Governor, who was CBN Deputy Governor at Lamido Sanusi; “as at the time Lemo the time and who once served as was leading the Bank into debt of N8, Wema Bank's Chief Executive 125,011,003 non-performing credit Officer. He accused the former Wema (CBN, 2009). Sahara Reporters' Bank's helmsman of incurring over investigations also revealed that these N12 billion debt as at December 2007 credits were granted in breach of the (Ayankola, 2008, 27). bank's internal rules as the majority of OICL divested its equity of about 47 the loans might have been granted per cent from Wema bank to 10 per without collaterals, therefore making
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Abimbola Oyarinu CUJPIA (2019) 7(1) 48-75 their recovery impossible. The loans to buy over the bank was also were approved and disbursed three received on Friday, January 5, 2007 – months before Mr Lemo left for his a difference of 30 minutes which new position at the CBN in 2004 and betrays a conniving coincidence before they were presented to the (Sahara Reporters, 2007). Board of Directors of the bank for Sahara Reporters (SR) also learnt that approval. there were cases of financial The individual largely manipulations and falsification of responsible for the current scam records by Mr Lemo when he was the is none other than a current Managing Director of Wema Bank Deputy Director of the Central Plc. Sahara Reporters quoted a bank Bank of Nigeria, Tunde Lemo source: “He always purchased who used to be Wema Bank’s Managing Director before he was cheques and pays it into customer’s elevated by President Obasanjo account to deceive the CBN and as a reward for a N2 billion loan Nigeria Deposit Insurance said to have been arranged for Corporation (NDIC) that the President Obasanjo’s businesses payments were actually made by the without collateral security customers”. Interestingly, Sahara (Sahara Reporters, 2007). Reporters obtained copies of some Owing to the massive fraud that had cheques that Mr Lemo purchased with rocked Wema Bank, the bank could Wema Bank Plc’s money and are not hold its Annual General Meeting available at the E-Library of Sahara for 2 years (2004/2005) following Reporters. In a particular instance, CBN's non-approval of its account, Wema Bank under Tunde Lemo made owing to the huge debt in the books of N891million profit in 2002/2003 but the account of Wema Bank (Sahara through the manipulation of financial Reporters, 2007). records, the bank declared over Sahara Reporters (SR) accused Mr N3billion in profit (Sahara Reports, Lemo of wanting to buy Wema Bank, 2007). in connivance with Otunba Subomi While Mr Tunde Lemo was not tried Balogun (the owner of First City and convicted by a competent law Monument Bank). In a bid to achieve court, all the allegations remain an this SR claimed that Mr Tunde Lemo accusation until proven otherwise by a altered the examination report of the law court. However, one question bank and sent a copy to OICL's Board begs for an answer in all of these; why - the core investor in Wema bank. The and how did Mr Lemo become a examination report was doctored as Deputy Governor of the Central Bank was claimed to show Wema Bank as of Nigeria from 2004 up until 2014 underperforming, so as to sell the with all these illegalities recorded bank shares cheaper than it should be against him while he was the MD of sold. The examination report was Wema Bank? dispatched to OICL in Ibadan and was In 2010, a human right activist and received on Friday, 5 January 2007, Lead Counsel appointed by the Board while Otunba Subomi Balogun's letter and Management of Wema Bank Plc
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Abimbola Oyarinu CUJPIA (2019) 7(1) 48-75 in June 2006, Dr Paul Obianaso came disclosed to the Governors of the out publicly to accuse the SW8 of owner states because of the thievery fraud. He claimed that the SW8 did impression that the board have about not inject any new fund into Wema them (Orebe, 2007). Mr Femi Orebe, Bank Plc but rather bought OICL's a journalist, who was close to Prince shares in the bank with a Skye Bank Julius Adelusi-Adeluyi was equally Guarantee. He revealed that SW8 sceptical of the appointment of Prince Investment Limited used First Bank Adelusi-Adeluyi as Chairman of money kept in Skye Bank as a OICL Board in 2005 since the fraud guarantee to illegally acquire Wema perpetrated in Wema Bank was still Bank. He further claimed that the fresh. He claimed to have warned SW8 was incorporated with just a Prince Adelusi-Adeluyi that the share capital of N10m on August 28, "politicians would be quick to pick a 2008 (Sahara Reporters, 2010). fall guy to cover up their crimes", of A number of OICL owner state which Prince Adelusi-Adeluyi governors were accused of being co- responded, "I would be careful" conspirators in the ploy to usurp a (Orebe 2018). common patrimony. Otunba Gbenga Dr Obianaso also mentioned other Daniel, Olagunsoye Oyinlola and real owners of SW8 Investment Olusegun Agagu, former Governors Limited using Oloketuyi and cohorts of Ogun, Osun and Ondo States as fronts to include: Chief Samuel respectively, were accused of being Bolarinwa, the former Chairman of part owners of the SW8. Otunba Wema Bank, Chief Samuel Adegbite, Gbenga Daniel is a major shareholder former MD of Wema Bank and Mr in Skye Bank following the merger of Oba Otudeko, the current Chairman of his erstwhile Bond Bank with other First Bank Plc. Otudeko is also a banks, which formed Skye Bank. This major shareholder in Skye Bank links the Skye Bank Guarantee with following the merger of Cooperative the SW8. Also, the GMD that took Bank, which he owned with other over Wema Bank Plc after Mr banks to form Skye Bank. Others are Omoyeni was dismissed, was Mr Mr Tunde Lemo, former MD of Segun Oloketuyi, who was until then Wema Bank and former Deputy an Executive Director in Skye Bank Governor of CBN and Professor (Sahara Reporters, 2010). If you Charles Soludo (Sahara Reporters, would recall in Chapter Five of this 2010). thesis, the Board under Prince Julius Within the first decade of the twenty- Adelusi-Adeluyi failed to disclose first century, the bank tumbled from a company progress in order to shield bank that was one of the top the prying eyes of the Governors from performers in the industry and the success in the Conglomerate. The delight of shareholders, to an revitalization of companies like Askar endangered species following series Paints, Nigerian Wire and Cable and of board/management squabbles, the Odu’a Printing Co. Ltd, which had which severely impacted its since resumed operations but was not performance and public confidence.
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But from 2009, a new core investor Conclusion took over the bank and appointed new It is disturbing to process the events management with the mandate to that saw a once thriving public rescue the bank and return it to glory. enterprise that powered the economy Upon assumption of office on 10 June of the southwest for development to 2009, the new management rolled out crumble at the feet of corruption. a three-phase transformation plan While some have argued that designed to restore public confidence “corruption is a significant obstacle to and profitability. The first phase was business in Nigeria,” (GAN, 2011) it to stabilise the bank, the second phase is self-evident that the structure of was to prepare it for growth, while the public enterprises, lack of corporate third stage was to go for growth. The governance and absence of Agency bank opted for a regional banking that has made Nigeria's public status under the new banking regime, enterprises a haven for corruption. which implies that the bank will now The same people who performed operate within the South-West, South- excellently in private establishments South zones and the Federal Capital come into public enterprises and grow Territory (Komolafe, 2011, 21). fleecing fingers.
References Jensen, M. C. and Meckling, W. H. (D. Fasuan, personal communication, (1976). Theory of the firm: February 1, 2018). Managerial behaviour, agency (Femi Orebe, personal communication cost and ownership structure. July 18, 2018). Journal of Financial (Kola Daisi, personal communication, Economics, 3(4), 305-360. July 22, 2018). Johnson, P. M. System theory models (Segun Odegbami, personal of decision-making. Glossary communication, June 22, of Political Economy Terms. 2018). Retrieved April 12, 2019, from Alabi, L. (2011, April 4). Jobi Fele, a http://webhome.auburn.edu/~jo man with a plan. The Guardian. hnspm/gloss/systems_theory. Awolowo, Obafemi. Cited in Komolafe, B. (2011, February 14). Ayobolu, Segun. (2014, 11 Wema Bank leverages on January). Odu'a group, south- transformation gains for west and regional integration. efficient services. The Retrieved March 8, 2017, from Vanguard. http://thenationonlineng.net/odu Mabogunje, A. L. (1999). What is in a a-group-south-west-and- name: Odu'a's heritage and regional-integration/. managerial practice in the Ayankola, M. (2008, January 26). 1990s. 2nd Odu’a Wema Bank crisis: real reasons Distinguished Lecture held at why Omoyeni was removed. the Premier Hotel, Momola Nigerian Tribune. Hill, Ibadan on Thursday, 31 October.
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Odu’a News. (1991a). Odu’a straddles Odu’a News. (1997a). Address economic path. The House delivered by the Military Journal of Odu’a Inv. Co. Ltd, Administrator of Oyo State, July-September, 1-33. Colonel Ahmed Usman at the Odu’a News. (1992b). Policy inauguration of the Panel of guidelines to nominees. The Investigation on the Affairs of House Journal of Odu’a Inv. the Odu’a Investment Company Co. Ltd, October-December, 1- Limited on Tuesday, April 8, 32. 1997. The House Journal of Odu’a News. (1995). Odu’a Pays Odu’a Inv. Co. Ltd, April-June, N100m Dividend. The House 1-25. Journal of Odu’a Inv. Co. Ltd, Odu’a News. (1997b). “Members of July-September, 1-25. the investigative panel,” The Odu’a News. (1996). Payment of N60 House Journal of Odu’a Inv. million dividend to Owning- Co. Ltd, April-June, 1-39. States. The House Journal of Odu’a News. (1997c). Clean up Odu’a Investment Company exercise at Odu’a. The House Limited, October – December, Journal of Odu’a Investment 1-30. Company Limited, July – September, 1-41 Odu’a News. (1998a). Welcome Odu’a News. (2013). Shoprite opens address by the Chairman of the to customers. The House Board of Directors of Odu'a Journal of Odu’a Investment Investment Company Limited, Company Limited, January- Otunba Mohammed Aliu Jobi- September, 1-48. Fele at the meeting of the Odua News. (1991b). Cocoa House Military Administrators of the ready in December 1991 – Owning States of Odu'a, held at GMD. The House Journal of the Premier hotel, Mokola, Odu’a Inv. Co. Ltd, July- Ibadan, on Thursday, March 19, September. 1998. The House Journal of Odua News. (1992a). Cocoa house Odu’a Investment Company resurrects. The House Journal Limited, January – March, 1- of Odu’a Inv. Co. Ltd, July- 34. September, 1-28. Odu’a News. (1998b). Owners Okay OICL. (2009). Odu’a investment Odu’a” The House Journal of company limited at a glance. Odu’a Investment Company Ibadan: Odu’a Investment Limited, January – March, 1- Company Ltd. 28. Omoyeni B. (2009, July 22). A Odu’a News. (1998c). Odu’a turn- petition written by the former around stupendous. The House Managing Director of Wema Journal of Odu’a Investment Bank Plc to the Governor of Company Limited, January – Central Bank of Nigeria (CBN). March, 1-30.
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Orebe, F. (2007, December 9). Odu’a Guarantee. Sahara Reporters, Group of Companies. The Retrieved August 12, 2018, Nation. from Sahara Reporters. (2007, May 15). http://saharareporters.com/2010 How OBJ’s man at the Central /06/10/exposed-how-sw8- Bank defrauded Wema Bank,” limited-fraudulently-acquired- Sahara Reporters, accessed 12 wema-bank-skye-bank- August 2018, guarantee. http://saharareporters.com/2007 Wema Bank Company Profile. (n.d.). /05/15/how-obj-man-central- Retrieved July 23, 2018, from bank-defrauded-wema-bank. Wema Bank website, Sahara Reporters. (2010, June 10). www.wemabank.com Exposed: How SW8 Limited Wema Bank. (2011). 2011 Annual fraudulently acquired Wema Reports and Accounts. Bank with Skye Bank
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Covenant University Journal of Politics & Internationall Affair. Vol. 7 No. 1, June 2019 ISSN: p. 2354-3558 e. 2354-3493 DOI: 10.20370/7ah0-8692
An Open Access Journal Available Online
The Politics of Foreign Aid: A Study of China-Zambia Economic Relations
Praise A. Ayinla1 & Sheriff F. Folarin2
Department of Political Science and International Relations, Covenant University, Ota, Ogun State, Nigeria [email protected]; [email protected]@covenantuniversity.edu.ng
Received: 28.02.2019 Accepted: 05.05.2019 Date of Publication: June, 2019 Abstract: Sustainable Development Goals (SDGs) adopted globally in September 2015 are set to measure development and progress in countries until 2030. China, second to the United States in the global development agenda, by its relations with Africa and Zambia, particularly in the provision of foreign aid currently plays an important role in the development of Zambia’s economy. The large amount of foreign aid provided by China has led to assertions that Zambia is being put in a debt burden, especially as China holds 28 percent of Zambia’s external debt. Zambia’s debt burden stands at 60 percent of its Gross Domestic Product (GDP) from 21 percent in 2011 and its debt stock was USD9.37 billion in 2018. Zambia was one of the beneficiaries of debt forgiveness in 2005. The weight of its debt however led to the International Monetary Fund in August 2018, classifying Zambia as a high-risk low-income country having debt distress and inability to service its debt. This study in examining China-Zambia economic relations, explores the impact of Chinese aid on Zambia’s economic development. It investigates the role of this aid in the fulfillment of the SDGs and Zambia’s Vision 2030 of being “a prosperous middle-income nation”. The study adopts Dependency Theory of Raul Prebisch as the theoretical framework of analysis. This explains the economic relations of states and the development of the third world by the interactions between states with inequality being a key feature of these interactions. The paper concludes by providing policy options to salvage the Zambia’s economy and improve on the standard of living of its citizens. Keywords: Africa, China, Economic development, Foreign aid, Zambia
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1.0 Introduction visit was to show the importance of This paper interrogates the Africa in China’s foreign policy and peculiarities of Zambia-China promote south-south economic relations in light of the politics of aid cooperation. China in proving its present in their interactions. It argues commitment and seriousness in giving that the interactions would yield aid to Africa embarked on the one greater rewards for both partners if project the Western countries and mutual benefits are sought as against a several international organizations parasitic relationship. Mutual benefit have rejected- the Tanzania-Zambia in this case includes not only meeting Railroad (Copper, 2016a). China’s China’s needs but it is extends to the influence in Zambia began from this pursuit of Zambia’s vision 2063 with project as the railroad impacted the principles of this vision guiding politically as well as economically every action and reflecting in (Ubi, 2014; Copper, 2016a). agreements and engagements between The landmark engagement of the China and Zambia. China’s aid is Sino- Zambia relations is the 1976 located within the framework of its construction of the Tanzania- Zambia interactions with Zambia. It follows Railway Authority (TAZARA) correctly that in assessing the approximately 1860 kilometers. The relationship between China’s aid and TAZARA project was strategic to Zambia’s development, the evolution China’s relations with Africa and of China-Zambia relations is Zambia in particular as the RMB988 discussed. million free-interest loan for the The Evolution of Sino-Zambia project was symbolic in many Relations respects. It was China’s first aid to China’s activities in Zambia date as Zambia and second to Africa after the far back as it activities in Africa. CHF 20 million to Egypt in 1956 Zambia’s strategic position in China’s during the Suez Crisis (Copper, relations with Africa is notable from it 2016b). The effects of the aid, being one of the eleven (11) African positive and as well negative are listed countries visited by Chinese Premier in Table 1 below. Zhao Ziyang in 1982. The Premier’s
Positive Effects Negative Effects It relieved Zambia of transporting its It was the beginning of exploitation of exports through trade routes of apartheid Africa’s resources as the project involved South Africa and provided Zambia a safe, exploitation of Zambia’s copper mines. cheap and permanent access to the sea.
Chinese decision to finance the project It led to the flooding of Africa’s market influenced the World Bank to finance the with Chinese goods as a commodity credit Tanzania-Zambia highway which runs at agreement accompanied the loan, allowing some points parallel to the railway. for the sales of Chinese goods in Zambia and Tanzania. It boosted Tanzania and Zambia’s The railroad running below its estimated commercial environment. capacity of 1.3 million tons annually led to discussions in 1983 of the rescheduling of
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debt repayments.
Table 1: Sources (Mwase, 1983; Ubi, 2014; Copper 2016a and b)
China has had its focus on USD2.2 billion in 2013 as against its exploitation of resources, especially investment of USD144 million in oil in states like Nigeria and Angola; 2003. China is the main player and and minerals (copper, platinum, “leading global financier” among cobalt) in some states including emerging nations like Brazil, Iran, Zambia and Congo. It has also India and Saudi Arabia that have actively provided investments in the caused for over fifty (50) per cent of agricultural sectors in states like the economic growth recorded in Zambia and Senegal (Dijk, 2009; Ubi, Africa (Dreher, Fuchs, Parks, Strange 2014; Wind, 2018). China’s key and Tierney, 2017; Wind 2018). This drivers or determinants of its relations growth is the result of these emerging in Africa are infrastructure states’ investment in infrastructure development, natural resource sector and Zambia particularly has endowments, market opportunities recorded a yearly increase of its and manufacturing (Hanauer and economic growth by 6 to 7 per cent Morris 2014; Nowak, 2015; (Rakner, 2012; Wind, 2018). Abdoulkadre and Zhan 2016; Custer Sino-Zambia relations brought about and Tierney, 2019) and the drivers the establishment of the Zambia- have been most evident in its China Cooperation Zone. This zone is engagements with Zambia even as one of the economic zones announced Zambia is one of the top ten largest in 2006 to house small Chinese destinations for Chinese investment in factories in Zambia as a means of Africa (Ubi, 2014). China employs boosting the growth of Zambia’s aid, trade and investments as economy. The Zambia zone promotes instruments in its strategy towards productions in copper and copper- Africa and its provision of capital for related industries with its Lusaka sub- infrastructure and contribution to zone promoting production of food, economic growth in Zambia has garments, electronics and tobacco. awarded it “unprecedented influence” Other economic zones in Africa are in in Zambia (Dijk, 2009; Lubinda and Egypt, Nigeria, Mauritius and Jian, 2018). Tanzania (Ubi, 2014). Two sides to Lubinda and Jian (2018) in explaining this development exist; some people China’s influence in Zambia’s see it as simply a means for China to economic development between 2003 export its excess manufactured and 2010 mentioned that Sino-Zambia products and expand its market while trade totaled USD3.1 billion from optimists view it as an opportunity for USD10 million in 2003; and China’s Zambia’s growth (Chutel, 2018). foreign direct investment was about
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On aid, China has contributed largely the late 1950s. The theory has other to providing aid in Zambia through contributors like Gunder Frank and three basic channels- grants, loans and Dos Santo. The principles of the economic and technical cooperation theory are centered on the political (ETC) agreements. China’s aid is and economic relations of states in the issued via these channels across international system. The theory certain designated sectors; these sought to investigate the reason sectors are mining, communications, economic growth in industrialized manufacturing, agriculture, health and states was not leading to the growth in transport (Rakner, 2012; Shimomura less developed states and why the and Ohashi, 2013). China has been reverse was the case- economic instrumental in Zambia’s activities that made the rich countries development as Zambia is of the top richer made the poor countries poorer. five recipients of Chinese aid in Dependency is the state by which an Africa, even as about 45.7 percent of economy has its development China’s foreign aid is allocated to conditioned to the dictates of other Africa. China’s helping hand in states while the relations of that state Zambia’s time of need has enabled it translates to the expansion of and to own a quarter of Zambia’s external development of other states to the debt (Ubi, 2014; The Economist, detriment of its economy (Jack, 2018). Nkwocha and Boroh, 2016). Of the strategies of trade, investment Economic dependency is the state in and aid that China employs in its which a country’s productive relations with Zambia, aid is of processes are subjected to the particular importance as it not only directions and control of foreign plays a significant part in determining economies by rules, foreign and the present state of the nation’s international economic institutions or economy but also determines the regulations. development of the state and The theory was birthed as a critique of actualizations of Zambia’s vision of modernization theory which held that prosperity as a middle-income underdevelopment of the third world country. It is noteworthy that in the was inherent in their traditions, history of Zambia’s economy, and at cultures and primitive nature. its independence, Zambia was a Dependency theory highlights that middle-income country, relatively modernization theory is developed by wealthy and prosperous before the western powers with the aim of depreciating into underdevelopment driving their political and economic and now being classified as a high- interests (Furia, 2015). The thrust of risk, low-income country. the dependency theory is that the
2.0 Theoretical Framework: fusing of the economies of the third Dependency Theory world and further regulations of their Dependency theory was developed economies by the capitalist system is and propounded by Raul Prebisch in what makes them dependent on
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Praise A. Ayinla & Sheriff F. Folarin CUJPIA (2019) 7(1) 76-96 developed economies. This is because developing states encourage the the international capitalist system has inequality and widens the gap been conditioned to ensure developing between the levels of economic states are dominated and exploited by development. These relations, the developed states (Jack, Nkwocha dependency theory traces from the and Boroh, 2016). history of the states, from 500 years of Several viewpoints exist across the slavery to a hundred years of studies on dependency and there is no colonialism and then present day unified definition of the theory. The imperialism. Ferraro (1996) submits theory however has its core that “dependency is an ongoing propositions that are generally agreed process” and the capitalist system is upon by it theorists. The first of these the breeding ground for this inequality propositions is that the international to thrive (Secondi ed., 2008). system is divided into two sets of Dependency theory approached countries. Terms like center- development from economic, political periphery, dominant-dependent and and sociological way to explain that metropolitan-satellite are used to underdeveloped states were in describe the relationships and underdevelopment by their position in interactions between the powerful rich the international division of labor states which are the industrialized (Van Lieshout, Went, and Kremer nations of the Organization for 2010). The theory assumes that Economic Co-operation and power, particularly political and Development (OECD) and weak poor economic is centralized and states in Africa, Latin America, and concentrated in the developed nations Asia. and there are consequences to this The second agreed proposition is that imperialism and domination. These economic activities of the dependent consequences include restrained states are influenced solely by the activities in developed nation and external forces. This is due to the fact continued poverty. that developing states export primary On the use of resources by the and unprocessed materials and import dominant state to enrich themselves, finished goods that are more the theory holds that the developing expensive than their exported goods. states should reject the pattern given In addition is the fact that the by the dominant states and suggest activities of the developing states are other methods of utilizing their regulated by international commodity resources. An example of this markets, foreign assistance, Secondi, ed. (2008) highlighted to be international organizations and other using agricultural products to produce forms of vehicles by which developed food for consumption for locals in the nations channel their economic developing state as opposed to interests. exporting while there is malnutrition The third proposition is that the very in the home country. relations between the developed and
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Dependency theory believes states are development supports the point of the in pursuit of their national economic theory that inherent in the interests and these interests should be international system of capitalism is well defined in developing states. the cause of underdevelopment for National interest here is driven states even as third world countries towards improving the lives of the are playing from a disadvantaged citizenry as opposed to the needs of position. the government. Developing nations Zambia as the case study in this paper are therefore to create and implement had high foreign reserves, with policies that would favor their virtually none existent public external development. It proposes that foreign debt. The nation’s Gross National relations, economic or political should Income (GNI) per capita was higher benefit the state and not the developed than countries like Egypt and nation to the detriment of the Thailand. It fended for its economy by underdeveloped. the exporting of natural resources
Foreign Aid, Dependency Theory and until the early 1970s when Zambia’s Economy transportation and petroleum costs led Foreign aid began as a means to assist to the fall in prices of copper, the nations build their economies for a main source of its export as against short period until they are able to the rise of oil prices, leading to the stand on their own. Foreign aid and its sinking of government revenue, high policies- from the era of Western public spending and in the end, large foreign aid to the new era of aid by external borrowing (Wohlgemuth and emerging nations and Chinese model Saasa, 2008; Rakner, 2012). in particular- have however though Zambia by the 1980s gave in to recorded improvement in economic funding and aid by the international growth, not achieved the purpose of community on the condition of sustainable development. This is economic reforms and economic against the belief of the donor liberalization known as the structural countries that foreign aid can solely adjustment programmes (SAPs)- be that factor that brings about famous for its failure, not only in development to underdeveloped states reviving African economy but (Van Lieshout, Went and Kremer; worsening the state of the economy 2010). (Van Lieshout, Went and Kremer, One of the main tenets of dependency 2010). Adoption of the policies of the theory is “development of SAPs and pursuit of development underdevelopment” and this has been through opening up of markets, instrumental in understanding how development of industry and capital African states were having stable but accumulation as outlined by the slow growth during the early years of modernization theory made for the their independence but had reversed country to finance imbalances of its development after been introduced budget and balance of payment by into the world market. The reverse
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Praise A. Ayinla & Sheriff F. Folarin CUJPIA (2019) 7(1) 76-96 foreign and domestic borrowing Policy and Strategy to guide its (Republic of Zambia, 2006). engagements. The Aid policy, Zambia before the start of the 21st approved by the Zambian Cabinet in century was moved from being a 2007 is set on emphasizing Zambia’s middle-income country to being sovereignty and aligning aid to its classified as a least developed country priorities as set out by its with seventy (70) percent of its development planning, budgeting and population living in poverty and financial management system. The crippling debt burden. Rakner (2012) principles of the policy are country explained the situation of Zambia’s ownership; grants as the preferred debt as this: the falling copper prices form of foreign assistance; promotion led governments to borrow to “cover of justice, equity and strong financing gaps”. Foreign aid was cooperation with non-state actors; further provided to Zambia to pay for enhancement of true partnership, the already borrowed funds, the non- simplified processes and procedures; concessional loans was used in clarity of capacity building financing debts from private investors components in all foreign assistance and then grants were used in paying (Wohlgemuth and Saasa, 2008). for the non-concessional debts. Methodology The first two decades after its This paper adopts the exploratory independence in 1964 saw Zambia’s research method. It employs the use heavy reliance on its donor countries. of secondary data from journals, By 2004, Zambia’s external debt was articles, books, online resources and USD7.1 billion and it was reduced to published thesis to examine China’s USD4.0 billion by the debt foreign aid and its influence on forgiveness. Zambia’s compliance to Zambia’s economic development. the economic reforms proposed led to 3.0 The Politics of Foreign Aid more provisions of aid and in 2005, Foreign aid by Morgenthau (1962) are contributed to its grant on debt relief of different types but with one only at bilateral and multilateral levels. one common feature- the Zambia since its debt relief has been characteristics of transferring funds, less reliant on its donor state for the good and services from one state to growth of its Gross Domestic Product another. Van Lieshout, Went and (GDP). It has had traditional donors Kremer (2010) mention the primary like Netherlands, Norway, Germany focus of foreign aid in its early years and Denmark withdraw their aid as it to be helping countries to attain a moved to the era of having investors level in their economy whereby they and trade partners impact on its GDP- can survive on their own. partners like China, Brazil and India Foreign Aid also known as Official (Rakner, 2012). Development Assistance (ODA) is Zambia in a bid to reduce the impact defined as “government aid that of aid conditionalities and donor promotes and specifically targets country policies developed its Aid economic development and welfare of
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Praise A. Ayinla & Sheriff F. Folarin CUJPIA (2019) 7(1) 76-96 developing countries” (Shimomura against Taiwan in the United Nations and Ohashi 2013; Development Co- and by giving aid to African states, it operation Directorate, 2018). Two increased its numbers of supporters main features of foreign aid as from zero as at 1956, to 14 in 1960, to outlined by the Organization for 22 in 1970 having African states give Economic Co-operation and one third of the votes that secured it a Development- Development permanent seat in the United Nations Assistance Committee (OECD- DAC) Security Council. are that firstly aid is provided by The reasons donors give aid vary both official agencies of government and nationally and internationally. secondly it is concessional- (with a Eradicating poverty, illiteracy and grant element of at least 25 per cent underdevelopment globally are for loans) while issued with the sole primary motivators for international purpose of promoting development organizations like the United Nations. (Brautigam, 2010a; Copper 2016b). Donor states however have as China’s aid is mostly by this standard motivators for giving aid, the not official development assistance provision of relief to internally 83 because apart from the fact that it is displaced persons, resolution of the not a DAC member state, its aid is not problems in public health, always concessional, but mainly by biodiversity protection, the tendency other means which the OECD of receiving refugees, increased classifies as Other Official Flows- international organized crime, export credit, non-concessional loans, advantages of financial returns, military aid (Brautigam, 2010b). foreign policy implementation and For Morgenthau (1962) there are six strengthening of military alliances polices that are defined as foreign aid. (Dreher, Fuchs, Parks, Strange and These are humanitarian foreign aid, Tierney, 2017; Wind, 2018). Capital military foreign aid, subsistence flight, interest on loans, improved foreign aid, prestige foreign aid, positive image abroad and privileged foreign aid for economic development access to nation’s resources are other and bribery- the nature of bribery advantages of giving aid. Wind (2018) which he says is what much of the terms this profiting from giving of aid foreign aid issued have. Morgenthau as “boomerang aid” as the donor mentions all these types of aid to be states get richer by providing political except the humanitarian assistance to recipients. foreign aid which are not political in Critics of foreign aid hold that the nature but can be, if carried out in a circumstance surrounding the political context. An instance of provision of aid is a shortcoming of foreign aid used as a political tool is the aid regime. Dreher, Fuchs, Parks, cited by Nowak (2015) who Strange and Tierney (2017) submit highlights that China used aid as a that the reasons or motivating factors tool for gaining diplomatic for aid are more often than not recognition to increase its votes “orthogonal”, particularly unrelated or 78
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Praise A. Ayinla & Sheriff F. Folarin CUJPIA (2019) 7(1) 76-96 loosely related to the goal of driving between foreign aid and economic economic growth. Wright and Winters development. (2010) mention on this issue that one Two groups exist for scholars of of the reasons foreign aid is not development economics and yielding the expected returns of international relations on the subject economic growth is because the aid is of foreign aid. The first group (Pankaj given not on grounds of need for aid 2005; Easterly 2006; Easterly and but for “geopolitical reasons” even as Pfutze 2008; Dreher and Langlotz “need for aid” by recipient countries 2017) believe there is the negative is only but one factor among many effect of foreign aid on economic determinants laid out by the donor growth and aid is not absolutely states. necessary for development. They hold Wind (2018) supports the assertion on that there are hazards of aid which the need for aid not being a include the tendency of the recipient determining factor for provision by state to permanently depend on aid donor countries by stating that China and by extension depend on donor 84 gives aid to states relatively richer in states, especially African states. Gross Domestic Product (GDP) than Authors in this group make reference states in actual need of financial to large amounts of foreign aid, above support. Brautigam (2010b) cites USD2 trillion provided since the Mauritius, South Africa, Namibia and 1960s when African states gained Botswana as states China provided aid independence with no corresponding to on the bases of diplomatic ties and economic growth in these recipient not because these states needed aid. states. Aid, they submit is like a curse Other determinants of foreign aid that has encouraged bad government include population size and colonial regimes, corruption and diversion of heritage of recipient states. Africa in funds (Wright and Winters, 2010). this regard has the greatest influencers The other group (Sachs 2004; Bearce of its states as its former colonial and Tirone 2009; Clemens, Michael, masters (Wind, 2018). Radalet, Bhavnani and Bazzi 2012; Studies like “Assessing Aid report” Galiani, Sebastian, Knack, Xu and (1998) by the World Bank and Zou 2017) holds that foreign aid has a Burnside and Dollar (2000) hold that positive effect on the growth of an foreign aid is not all negative and its economy and impacts positively on positive impact on economic growth the lives of the citizens as it is the is dependent on certain factors. These “big push” or “take-off” developing factors Wright and Winters (2010) states need to lift them into mention are what make for good development (Van Lieshout, Went, economic policies- factors like high and Kremer, 2010; Wright and trade volume, low budget deficits and Winters, 2010). This group further has low inflation. These studies however two divisions- those who believe the opened the floor for other studies that economic growth by foreign aid is have divided views on the relationship dependent on allowing certain
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Praise A. Ayinla & Sheriff F. Folarin CUJPIA (2019) 7(1) 76-96 stringent conditions (like ensuring Washington consensus and the greater inclusiveness or economic Beijing consensus respectively. The policies reform) and those that believe Western model is the operational no condition is required for foreign model of the Development Assistance aid to lead to economic growth. Committee of the OECD - the “unique Scholars that believe aid has a international forum” for large aid positive relationship with growth hold donors. The Chinese model, relatively that the results of aid on states are not new is China’s strategy on aid to immediate but are revealed over time; developing countries (Wind, 2018). that is, years after aid has been The western model has been criticized administered, the impacts on for its failures by the structural economic growth begin to show forth adjustment programs presented as the (Wright and Winters, 2010). condition for granting aid to African Wright and Winters (2010) mention nations. The Chinese model has that one of the reasons aid does not however been embraced by African 85 yield the expected returns is because states as the alternative to western of the generalization by scholars that model and an opportunity for growth, aid is always directed at economic mutual relationship and beneficial growth. Aid, they assert brings its partnership between China as the returns according to the aid type and donor and African states as recipients the purpose for which it was (Warmerdam, 2012; Wind, 2018). administered. Aid type ranges The Chinese aid is issued through between short term aid like debt forgiveness, non-interest loans, infrastructure investment, budget credit lines, and subsidized export funding, industrial and agricultural credits. China’s aid model combines investment; disaster relief; and aid with trade negotiations and education support. Disaster relief aid commercial investments and has the is said to not cause for increased bulk of its aid not conforming to the growth as it is merely for addressing definition of aid by the OECD the tragedy. Short term aid as reported Development Assistance Committee by Wright and Winters (2010) has even though it is the single largest evidence of increasing growth in a source of foreign aid to Africa short while but in the long run has (Shimomura and Ohashi, 2013; diminishing returns. Education Nowak, 2015). support is a long term aid and is set to Asongu, Nwachukwu, and Aminkeng yield positive returns after a period of (2018) have their argument resonating years. with Wright and Winters’ (2010)
Western Aid Model and the Chinese submission and assert that the western Aid Model type of aid is long term in nature but The two aid models existing in the has been criticized for not yielding international system are the Western returns in a short time. Chinese type aid model and Chinese aid model. of aid is however short term according These models originate from the to Wright and Winters’ (2010)
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Praise A. Ayinla & Sheriff F. Folarin CUJPIA (2019) 7(1) 76-96 classification- even as Warmerdam Hanauer and Morris (2014) (2012) submits that 61 per cent of highlighted the difference between China’s loans is directed is directed Chinese and Western aid in the area towards economic infrastructure, 16.1 of implementation of funds and per cent is for investment in industry, rationing of the aid provided. The 4.3 percent for investment in authors state that Chinese aid has a agriculture and 3.2 percent for large proportion of ninety five (95) investment in public infrastructure. percent assigned to the purpose of the This makes Chinese aid optimal only aid, that is for aid projects or profit while it lasts and not profitable as it making enterprises with a lesser has diminishing returns, thereby not percentage set apart for the logistics translating to economic growth. of the expatriates working on these China’s aid policies and practices has project. Western aid on the other hand been criticized by the international has eighty (80) percent of the funds financial institutions as being irregular for aid spent on their own staff. These and opposed to the current aid regime. staff live “visibly extravagant Western aid having policies that lifestyles” in large houses with promote human development are household workers or lodge in tagged long term and positive expensive five-star hotels and drive (Asongu, Nwachukwu, and expensive imported vehicles in the Aminkeng, 2018). However, Chinese recipient countries (Hanauer and aid, tagged short term, promotes Morris, 2014). infrastructure development; and the China’s Export Import Bank (China lack of infrastructure is what hinders Exim Bank), the official institution economic growth (Hanauer and through which China issues aid to Morris 2014). Dreher, Fuchs, Parks, recipient states has been criticized for Strange and Tierney (2017) also not releasing data on its aid and mention that one of the key investment operations like the Export- impediments to economic growth is Import banks of other donor states lack of infrastructure. Therefore, that document their operations China giving out aid for investment in through OECD Creditor Reporting social and economic infrastructure System. The lack of official data has impacts on economic growths as made for difficulty in analyzing against the western donors. Chinese finance in Africa. The closest Chinese definition of foreign aid to information released by China on differs from Western definition of its activities is the White Paper on foreign aid. Hanauer and Morris foreign aid, first released in 2010- (2014) however opine that these aids “China-African Economic and Trade perform the same functions which are Cooperation”. Subsequently, China to provide support for rural has published other white papers on development, provide improved its foreign aid in 2011, 2013 and health care in under-served areas and 2014(Shimomura and Ohashi, 2013). give trainings to African students. These papers don’t state or detail the
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Praise A. Ayinla & Sheriff F. Folarin CUJPIA (2019) 7(1) 76-96 funding of projects specifically or confidence in China’s provision of aid according to countries but generalize against western provisions. African the activities. An instance is the 2011 states have expressed this comfort in white paper that mentions that China receiving alarming amounts of aid has by 2009 issued 256.29 billion from China through the Forum on Yuan as foreign aid stating only the China-Africa Cooperation (FOCAC). amounts issued in concessional loans, This has raised questions among grants, interest free loans without scholars on the possibility of Chinese mentioning any other information on aid being a debt trap for Africa and the projects, their locations or Africa falling again into the debt implementations (Shimomura and burden it was in 2005 relieved of by Ohashi, 2013; Wind, 2018). the Heavily Indebted Poor Countries China in its aid model has the (HIPC) scheme of the International resource-backed loan program Monetary Fund (IMF) (Warmerdam, whereby it ties development aid to 2012; The Economist, 2018). Zambia exploitation of natural resources. The is one of the thirty African states that policy of “resources for aid” has had their debt written-off under but helped support criticisms about the today carries a heavy debt burden China’s desire to have Africa (The Economist, 2018). dependent on China for a long term. Rakner (2012) in analyzing Zambia’s Warmerdam (2012) provides data on aid history mentioned that at the China’s resource-backed aid and beginning of the twenty-first century, submits that while the strategy is not Zambia had foreign aid averaging immune to China alone as other forty-three (43) percent of its total donors- traditional or emerging use national budget until 2007 when due this strategy, China’s use is not on a to debt relief and increase in copper large scale. Warmerdam (2012) prices, aid contributed to 28 per cent submits that just 8.9 per cent of of its national budget. Zambia China’s concessional loans are for received its aid from both multilateral energy and resource development. and bilateral donors; however aid for Wolf, Wang and Warner (2013) multilateral donors reduced by eleven however mention that natural resource (11) percent since 2005 while aid by projects accounted for one-third of bilateral donors simultaneously Chinese projects in Africa between doubled during this period. Of the 2001 and 2011 even as Africa in 2008 bilateral donors, China’s engagements had almost half of China’s funds have been most remarkable and have allocated to global development of also received attention of scholars of natural resources (Shimomura and development economies. One reason Ohashi, 2013; Wolf, Wang and for attention being drawn to China is Warner, 2013). not only the notable volume of aid African states since the introduction provided but because China is not a of the Chinese model have become traditional donor but an emerging one more at home and exercised (Shimomura and Ohashi, 2013).
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China’s Foreign Aid to Africa African states. These principles are Of the fifty-six (56) African states, mutual benefits, equality, mutual China has invested in forty-five (45) respect, keeping promise and win-win of them. Natural resource endowment cooperation (Warmerdam, 2012; as a main determinant for China’s Shimomura and Ohashi, 2013; Wind, investment destination is identified in 2018). these states as they possess abundant China by its principles and framework natural resources with oil, gas, coal of South-South Cooperation has about and cobalt being the main attraction 120 partner countries to which it has (Abdoulkadre and Zhan, 2016). provided foreign aid with the “public Chinese engagement has undergone facilities, industry and economic series of shifts in motivation and infrastructure” being the major sectors policies. Chinese aid in Africa is for aid; provided humanitarian traced to the 1950s when China began assistance and offered several “turn- 88 its ideological campaign of promoting key projects” among its eight forms of anti-colonialism and national development co-operation (OECD liberation movements, revolution and 2018). It is expedient to note that third-world solidarity with Africa every of the above listed principles being central to this campaign (Wolf, have been criticized and China has Wang and Warner, 2013; been challenged as the results of its Warmerdam, 2012; Nowak 2015). foreign aid agreements negate the Sino-African relations extended and principles formulated to guide its became more solidified with the visits foreign policy. These are resentments of China’s then Premier Zhou Enlai in about the mode of operation of 1963-1964 to ten African countries Chinese companies in Africa, the and the formulation of principles to weight of debt crisis on African states govern China-Africa relations. Of from the quantity of loans, neo- these principles is the “Eight colonialist tendencies, the Principles for Economic Aid and determinants for aid which includes Technical Assistance to Other the upholding of the One-China Countries” announced at a people’s policy featuring the absence of congress in Somalia 1964 which diplomatic relations with Taiwan, drives China’s policies on Aid and natural resources endowment in the China’s policies on foreign recipient states among others development co-operation (China (Warmerdam, 2012; Blanchard, 2014; Daily 2010; Hanauer and Morris Wind, 2018). 2014; OECD 2018). China tries to China though having economic capture the principles on aid relations with Zambia since its announced in 1964 in its government independence increased its provision report- 2014 White Paper on foreign of foreign aid to Zambia at a period aid, by stating that there are five when the IMF advised Zambia to prevailing and dominant principles on withdraw from borrowing. China at which aid is based, including aid to this period was renewing its
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Praise A. Ayinla & Sheriff F. Folarin CUJPIA (2019) 7(1) 76-96 commitment to the development of 4.0 The Impact of China’s Foreign African states through the FOCAC by Aid on Zambia’s Economic providing aid while Zambia’s Development economy was tilting towards debt The impact of foreign aid is best crisis barely a decade after debt relief. accessed through the lens of Zambia’s debt at this period was fifty sustainable development goals and nine (59) per cent of its GDP and the Zambia’s national development plan nation was advised to stop or in the as it helps to measure economic interim avoid “new borrowing” (The development and what areas Economist, 2018). specifically have been addressed on Zambia has been set as cautionary tale needs to be addressed. This resonates and an example for African states’ with Turner, Harrison and Patterson’s excessively borrowing and receiving (2018) statement that achievement of aid from China by the state of its development is not possible without 89 growing indebtedness. China’s measurement of targets or projects. resource backed loan and the fear of This section examines the impact of Zambia defaulting in loans had Chinese aid in Zambia using Zambia in 2018 negotiate a new loan sustainable development goals as its from China to support its budget framework. putting forward ZESCO its national Zambia’s Vision 2030 electricity supplier as the guarantee The vision with its process initiated in for its loans. Chutel (2018) sees the 2005 is the government’s response to uncontrolled borrowing and lending the call by its citizens to develop a culture present in Africa- China shared and commonly accepted relationship as intentional by China destiny for the state. The principles on and even further a characteristic of the which the vision was founded, seven Belt and Road Initiative (BRI) of in number are respect for human China. rights, gender conscious sustainable Hanauer and Morris (2014) hold that development, positive attitude to there are criticisms of Chinese aid work, democracy, good family values, because analyses of Chinese peaceful co-existence and public- cooperation are limited to what China private partnerships. The fulfillment has gained to Africa’s detriment. of this vision is set to rest on the These authors opine that instead of the national development plan which one-sided analysis that is mostly houses targets and objectives to be carried out on China-African achieved in both short and long terms. relations, there should be a two-way Zambia’s vision 2030 is the compass review, a more balanced approach that that guides efforts towards the would examine how both parties have development of the state. been impacted by this relationship and Development options for the state are what policy recommendations can be grouped into three: the baseline, the made to foster a stronger and more preferred and the optimistic. The beneficial relationship. preferred scenario has as its
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Praise A. Ayinla & Sheriff F. Folarin CUJPIA (2019) 7(1) 76-96 objectives: to attain and sustain Office, 2018). Other goals include annually between 2006 and 2010, real achieving gender equality and growth of 6 per cent, 8 percent equality in the socio-economic between 2011 and 2015, 9 percent for development process, and upholding 2016-2020 and 10 percent for 2021 to in its entirety good governance 2030. Relating this objective to principles. China’s aid, Rakner (2012) mentions Zambia’s vision 2030 discusses social that Zambia’s economic growth has development indicators by which improved by 6 to 7 percent every year poverty is measured. These indicators and African Development Bank are poverty head count, income submits this is due to China’s distribution, knowledge and literacy, investment in infrastructure (Rakner, gender discrimination, employment, 2012; Wind, 2018) The current health and nutrition, and vulnerability. percentage reached is not in line with The vision further mentions that the preferred scenario. poverty in Zambia is evident in not Another objective of the preferred only income distribution but in all scenario is achieving and retaining a none-income sectors as well. moderate inflation rate of 5 per cent. Unemployment rate stands at 12.6 per Comparing this to the current inflation cent with 38.6 per cent in the rural rate, Zambia is neither maintaining a area and 61.4 percent in the urban stable rate nor having 5 percent areas. Youth unemployment stands at inflation rate. Zambia’s Central 17.4 percent of its population (Central Statistical Office (CSO) recorded Statistical Office, 2018). annual average inflation rate to be 8.4 Assessing China’s Foreign Aid in percent, 9.0 percent, 14.4 percent, 7.5 Zambia’s Development percent, and 7.9 percent in 2014, Zenawi Melas, former prime minister 2015, 2016, 2017 and 2018 of Ethiopia in 2012 attributed Africa’s respectively (Central Statistical economic development in recent years Office, 2018). to the engagements of emerging The vision also aims to cut national nations in Africa, while mentioning poverty count to below 20 per cent of China as the main player in this the people and maintain a population development. These emerging nations that corresponds in size to sustainable as opposed to the traditional OECD- socio-economic development. The DAC members engage in constructing poverty trends in Zambia have the “hardware” of economic recorded improvement; from 60.5 per development which features cent in 2010, 70 percent in 2012 to construction of roads, bridges, dams, 54.4 per cent in 2015 though 76.6 per electricity grids, air and sea ports, and cent of the nation’s poor reside in railways (Nowak, 2015; Dreher, rural communities and 23.4 percent in Fuchs, Parks, Strange and Tierney, the urban cities. This is still far from 2017). Rakner (2012) however the 20 per cent target but it is an submits that though the economic improvement (Central Statistical growth in Zambia has been improved
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Praise A. Ayinla & Sheriff F. Folarin CUJPIA (2019) 7(1) 76-96 with 6-7 percent increase every year, is Zambia’s spokeswoman and by standards of measurement of communications minister Dora Siliya development, both the human saying building roads is for the development index and equity benefit of the people and for matters, Zambia still has its high providing opportunities even as the poverty levels. ability to watch television is made Zambia’s western creditors alongside available by Chinese aid. The the IMF believe the projects funded justification on the need for aid is by China’s aid, mostly in made regardless of how indebted the infrastructure are not only overpriced nation has become. Zambia’s 2017 and short term but they are without budget had just 23 percent of its impacts on economic growth. These domestic revenue after paying for projects they believe should be called debts and the salaries of public off to avoid roll-over of the loans. servants (Chutel, 2018). China however does not accept the Chutel (2018) in explaining Zambia’s cancellation of the projects as the debt situation mentioned that at 2011, banks financing the loans desire the external debt was 15 per cent of its restructuring of these loans (Wright GDP; by 2014 it was 35.6 per cent of and Winters, 2010; Asongu, its GDP and at 60 per cent of the GDP Nwachukwu, and Aminkeng, 2018; in 2018. The circumstances The Economist 2018). Chutel (2018) surrounding Zambia’s debt, with mentions one of these Chinese Chinese aid being tied to resources or projects to be the Kafue Gorge national infrastructures is far from hydropower plant which is to supply having a positive impact on economic ZESCO with additional 750 development. megawatts. This project in particular 5.0 Conclusion & Recommendation has raised criticisms because the As far back as the 1960s scholars terms of the contracts are ambiguous have sought to understand the as its funds were raised by private relationship between foreign aid and channels and not the traditional route economic development. Morgenthau of going through the treasury. (1962) submitted on this that foreign Zambian government has never aid in itself is not sufficient for defaulted on a loan. They however economic development; the past believe that loans are necessary for successes of foreign aid especially as development, even when these loans evidenced in Western economic are eating deep into its budget. July development by the first industrial 2018 had Zambian Ministry of revolution however leads us to believe Finance request for additional accumulation of capital and technical USD666 million for supplementary knowledge translates to economic budget to service debts and development. This has however been infrastructure projects. The far from the truth as exemplified in government tends to make excuses or the impacts of aid on economic try to explain their way. An instance growth in Africa and relatively recent,
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China’s aid to Zambia as the results service debts. This paper recommends have been both positive and negative the strengthening of institutions of with this state having reverse governance to implement loan economic and social development agreements and ensure complaints on characterized by a debt burden worse low quality products, highly over- its pre-2005 debt forgiveness priced infrastructure and human rights situation, Zambia’s poverty level at 70 violations are addressed. The goal per cent and rumors of national here is to have not just more funds but infrastructure being taken over by the better financing and measurement of Chinese. Zambian government these projects would achieve this goal. defends the state and mentions that no There should be more of investments national infrastructure is being put in joint ventures between the Chinese forward as a guarantee but the very and Zambian government to enhance rumor has elements of truth in it. technical knowledge for Zambian This paper therefore recommends that citizens. There should also be the national development plan be enforcement of the principle of redesigned to include a methodology employing local content to foreign for connecting and measuring foreign enterprises as it creates more jobs for aid to sustainable development. The the citizens and directly improves on indicators of development should be the living standard of Zambians. incorporated in the national Employment in this regard should be development plan and these indicators done not only for unskilled or low should be measured against aid skilled positions but high level or projects to ensure the purpose of managerial positions. every project is economic In conclusion, one of the criticisms of development. foreign aid in general and Chinese There should be a hold on foreign aid, foreign aid in particular is that the aid particularly new-borrowing and is set at favoring the rich and elite of investment in infrastructure until it is the society as against the mass poor. It confirmed and certain that the project is therefore important that aid projects is necessary and it aligns with national are driven towards sustainable development plans thereby leading to development goals and improving the long term sustainable development. lives of the masses and measures are The already agreed loan contracts taken to eliminate corruption, should be renegotiated with policies diversion of funds and unauthorized that prevent the take-over of spending in Zambia. infrastructure due to inability to
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Covenant University Journal of Politics & Internationall Affair. Vol. 7 No. 1, June 2019 ISSN: p. 2354-3558 e. 2354-3493 DOI: 10.20370/cxpe-4e82
An Open Access Journal Available Online
Resurgence of Militancy and the Challenges of Sustainable Peace and Development in the Niger Delta
Oyinlola Abodunrin
Department of Political Science and International Relations Covenant University, Ota, Ogun State, Nigeria [email protected]
Received: 03.12.2018 Accepted: 16.04.2019 Date of Publication: June, 2019
Abstract: The Niger Delta region has been a theatre of conflict especially after the discovery of oil in commercial quantities in the area. One of the reasons responsible for intermittent and simmering conflicts in the area is prolonged hardship experienced by the people in the region due to activities associated with oil exploration and neglect of the region as far as development is concerned. Various governments have proffered different solutions to the crisis but all ended up as temporary palliative measures as the crisis has resurfaced again. This study therefore, investigates resurgence of militancy and the challenges of sustainable peace and development in the Niger Delta, Nigeria. Anchored on frustration-aggression theory, with reliance on primary and secondary data gathering sources which were analysed, the study finds that one of the reasons that triggered resurgence of militancy in the region was an attempt by the President Buhari government to put an end to amnesty programme introduced by the former President now late, Musa Yar’Adua which was continued by the immediate past President Goodluck Jonathan. The study recommends among others that government should not discontinued the amnesty programme, government and oil companies prospecting for oil in the region should embark on some policies that will foster realistic development in the region, that is, such developmental efforts should go beyond cosmetic colouration and also government and multinational oil companies should shun ad-hoc approach to development of the region. Keywords: Development, Resurgence, Militancy, Niger Delta, Sustainable peace
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Introduction brought about the administration The relevance of Niger Delta in breaking down with the solid support, Nigeria is based on its possession of dynamic impact and intrigue of the strategic economic endowments: oil Multinational Oil Companies resource. Since the discovery of oil in (MNCs), which achieved a crescendo large quantity, the region remains the with additional legal hanging of Ken preferred destination for foreign direct Saro-Wiwa and eight other people in investment. By 1950, the production November 1995, by the scandalous capacity of Shell had shore up to legislature of the most extreme ruler- 5,100 barrels per day in the region General Sani Abacha (Oshionebo, (Oromareghake, Arisi and Igho, 2009). The resultant impact was the 2013). The rise of Texaco, Mobil, episode of outfitted clashes in the Chevron and other indigenous oil territory, snatching and seizing of oil companies in the 60s and 70s added to specialists, particularly the exiles the production capacity of oil (Olubiyi and Olubiyi, 2012). exploration in Niger Delta. In view of Extractions of natural resources have this, Nigeria relies on crude oil for her been known to dependably influence foreign exchange earnings. Crude oil and modify the geophysical condition constitutes about 3/4 of government of the area where they are performed. revenue, 90-95% of export revenue The ecological effect of oil misuse in and over 90% of foreign exchange the Niger Delta area of Nigeria has earnings.”(Ikeme cited in Anthony: contributed in no little measure to the 2009: 331-332). It is of no importance obliteration of the delicate biological saying oil extraction and production community, in this manner making in the Niger Delta area, the export of the area 'one of the world's most gas and oil resources by the petroleum seriously oil affected biological sector has drastically enhance the systems and one of the 5 most oil county’s economy over the years. contaminated conditions on the planet' The people of the region have (Niger Delta Natural Resource experienced prolonged hardship due Damage Assessment and Restoration to the oil exploration which has not Project, 2006:45). been attended to by the federal With the emergence of democratic government. The persistent neglect elected leader in Nigeria in 1999; and disregard brought about unrests pressure has developed over the Niger by the general population of the Delta locale over the administration of region, which in the end was out of oil misuse, responsibility and control. Long years of disregard and straightforwardness of oil directors strife have advanced, particularly and the conveyance of oil riches. among young people a depressing These strains ejected into savagery in future, and along these lines consider 2006 when aggressors dissenting the struggle to be a way to escape minimization of the locale shelled a hardship (Niger Delta Human few basic oil establishments and Development Report, 2006). This grabbed exile oil labourers. These
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Oyinlola Abodunrin CUJPIA (2019) 7(1) 97-104 assaults asserted a few lives and lingers in post-independence era. almost injured Nigeria's oil generation Resistance to government policies and fare limit (Onuoha, 2016). often take on a violent approach in the Resurgence of militancy in Niger demand for certain rights and Delta has brought about tragedies. privileges. Though, motives for such The most recent measurement in the resistance have often been viewed contention flow is the rise of ethnic within the framework of greed and volunteer armies, religion gatherings, grievances. The human right and accessibility and utilization of implications of such violent resistance little arms and light weapons which and state excesses to such resistance maybe, has made the Niger Delta the have also been widely discussed in most crushed by State, entomb and literatures. intra-collective and also civilian army Since the establishment of democratic clashes. The wonder of ethnic and institutions in 1999, the demand for private civilian army, accessibility accountability and transparency of and utilization of complex guns government most especially in the empowered activist adolescents management of oil exploration in the dispense extreme harm on oil Niger Delta region has met resistance foundation there by upsetting oil due to lack of accountability and creation. Often times, desires of transparency in managing the oil impending interruption of oil supply wealth of the nation. At a point, add to variance in oil costs. Strains on government was able to douse tension oil supply and inside hazards made by in the region with the introduction of volunteer army revolt incited national amnesty programmes during and universal security challenges over Yaradua’s regime. The violent groups the locale. remained silent during the tenure of Maintaining a sustainable harmony in Goodluck Jonathan not because the the area has been a very difficult issue duo hails from the Niger Delta region in Nigeria. Ahonsi (2011:32) reported but because he continued with the that: “both in scholarly and public amnesty programmes which his policy circles, a widely held view is predecessor introduced. that for any response to the Niger This government-people relationship Delta conflict to stand any chance of in Niger Delta through Amnesty and success, it has to be holistic, multi- the establishment of Niger Delta sectoral, long-ranging, and based on Development Commission were broad-based political consensus truncated between 2015 and 2016 among the key stakeholders within the with the emergence of Buhari as the conflict.” president of Nigeria. The duo, faced Statement of the Problem with a bankrupt economy decided to Over the years, the issue of civil pursue stringent economic policies to unrest has been a recurring decimal in conserve the nation’s wealth. This led Nigeria’s political, economic and to various tightened economic policies socio-cultural climate prior to the some of which were geared to the independence of the nation and still area, the oil endowment of the
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Oyinlola Abodunrin CUJPIA (2019) 7(1) 97-104 country. His decision to scrap Objective of the Paper amnesty programmes and consolidate The overall objective of this study is NDDC under the ministry of to investigate the resurgence of petroleum resources angered some militancy in the Niger Delta region of groups in the Niger Delta who have Nigeria and the challenges been enjoying amnesty programmes confronting the sustainable peace and since 2007. Many of them saw such development of the region. policies as the end to their survival. It Specifically, the paper examines the is important to note that most of the resurgence of militancy in the Niger aggrieved groups do not go to school Delta region of Nigeria, identifies the and refuses to learn trade, they believe challenges of militancy on the since oil exploration is carried out on sustainable peace of the Niger Delta their soil, it is the exclusive preserve region and suggests measures that can of government to provide for their be employed by the government and needs. multinational companies to have The consequential effect of sustainable peace in the Niger Delta government decision in conserving oil Theoretical Framework wealth in a region riddled with This study adopts Frustration– 93 poverty, poor infrastructure, aggression theory to explain the environmental degradation led to the resurgence of militancy in the region emergence of the Niger Delta of Niger Delta. Avengers that have since been a thorn Frustration–aggression speculation is in the flesh of Nigeria. Strategically, a hypothesis of hostility. This they launched attacks on major hypothesis was propounded by John pipelines with consequential effect on Dollard, Neal Miller, Doob, Mowrer, dwindling oil production capacity. As and Sears in year 1939, and then a consequence of pipeline vandalism, created by Miller etal. in 1941 and Nigeria experienced a drastic fall in Leonard Berkowitz in 1969. the production capacity from 2.2 Aggression is as a result of hindering million barrel to 1.4 million barrel per or preventing one’s attempt in day in 2016. achieving a goal (Whitley, Bernard, Since government decided to pursue Kite, Mary, 2010). tight economic policies that affect The frustration–aggression hypothesis their survival, they have since attempts to provide a description responded with the same measure of about the causes and reasons of frustrating the effort of government in brutality in an area. The theory was its sit tight economic policies of oil developed by John Dollard and his wealth conservation. This research team mate, stated that frustration leads work therefore takes a look into to aggression, but when the origin of resurgence of militancy and the frustration cannot be summon to challenges of sustainable peace and contest, the aggression gets detach development in the Niger Delta onto an irreproachable target and
thereby causing unrest in the community.
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There are many examples of this, If environment, coupled with (b) his workers are been under paid, or they pessimism about the realization of are not paid regularly, they may go goals and (c) the perception that the home and dissipate this anger and fate of these goals is in the hands of frustration, out on their family. For others.” instance, if government takes over the The fact that the people of the property of an individual without any Niger Delta have not benefited compensation or reward, this may from oil wealth is only part of lead to frustration and gradually the story. Widespread and aggravate to aggression. This theory is unchecked human rights violations related to the oil also used to explain riots and industry have pushed many revolutions. The theorist maintained people deeper into poverty and that both are caused by poorer and deprivation, fuelled conflict and more deprived sections of society who led to a pervasive sense of may express their bottle-up frustration powerlessness and frustration and anger through violence. It was (Amnesty International 2009).. clearly stated in the theory that Militancy attack in Niger Delta region “aggressive behaviour is not came up due to alienation through motivated by genuine hostility, but by unemployment by the multinational frustration (Malici, 2007).” oil companies, molestation, Yale Group was of the view that, victimisation and also economic frustration is the "condition which underdevelopment and lopsided exists when an objective reaction nature of Nigeria federalism, endures obstruction," while marginalization of the region led to aggression is seen as "a demonstration frustration which led to their whose objective reaction is harm to a aggression because of the unfair and life form (or living being surrogate)." unjust treatment being suffered from However, animosity is not generally the hands of the government and the the reaction to dissatisfaction. Or multi-national companies trading on maybe a substitute reaction is shown their own soil without due and when forceful reaction is not the most adequate compensation for their farm grounded on the pecking order. land and water being damaged.
Besides, this hypothesis brings up the Methodology issue if hostility is natural. Every one This research adopts the survey of the discourses on the hypothesis research design of the ex-post facto suggest that "there is no smoke type. The populations of this study without flame" and that "a furious are the people of Niger Delta region man is an eager man" (Aminu, 2013). of Nigeria including both indigene Frustration-aggression theory implies and non-indigenes who reside in the that “aggressive behaviour” is not region. This is because the issue under motivated by “genuine hostility”, but study is a regional issue that affects by “frustration” (Malici, 2007). the whole country which calls for the Frustration can be defined as “an attention of the nation and the individual’s perception of a hostile international community. The sample
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Oyinlola Abodunrin CUJPIA (2019) 7(1) 97-104 for the study comprises of five selected. It was used in order to select hundred (500) respondents. One state the target population that satisfies the from the Niger Delta was purposively criteria for participation in the study.
Data Analysis Socio-Demographic Distributions of Respondents
Table 4.1:Gender Distribution of Respondents Cumulative Frequency Percent Valid Percent Percent Valid male 330 66.0 66.0 66.0 female 170 34.0 34.0 100.0 Total 500 100.0 100.0
Source: Researchers Field Survey (2017)
Interpretation: Table 4.1 is the while 34% are female. This shows distribution of respondents according that majority of the sampled to their gender. The table shows that population are female. 66% of the respondents are male
Table 4.2. Distribution of Respondents by Marital Status Frequency Percent Valid Percent Cumulative Percent Valid single 220 44.0 44.0 44.0 married 218 43.6 43.6 87.6 divorced 55 11.0 11.0 98.6 others 7 1.4 1.4 100.0 Total 500 100.0 100.0
Source: Researchers Field Survey (2017) In the table presented above, the percentage of respondents who were percentage distribution of marital divorcees is 11. With this analysis, status of respondents reveals that 44% majority of the respondents are single. (i.e., 220 of the respondents) of the About 1.4% of the respondents did respondents were single while 43.6% not indicate their marital status. (i.e., 218) were married. The
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Table 4.3 Occupational Distribution of Respondent Frequency Percent Valid Cumulative Percent Percent
Valid Student 199 39.8 39.8 39.8 Civil servant 134 26.8 26.8 66.6 Trading 104 20.8 20.8 87.4 Farming 57 11.4 11.4 98.8 Others 6 1.2 1.2 100.0 Total 500 100.0 100.0 Source: Researchers Field Survey (2017) According table 4.3 above, students table of respondents on the various constitute the highest percentage reasons for resurgence of militancy in among the respondents. This category the Niger-Delta and Table 4.6.1 is the of the respondents constitutes 39.8% descriptive statistics showing the while Civil Servants represent 26.8 %. mean scores of each of the factorson a The percentage of respondents who scale of 1 (minimum, which is the engage in trading is 20.8% while that extreme of agreement) and 4 of farming is 11.4%. However, 1.2% (maximum, representing the extreme of the respondents did not indicate of disagreement). In order words, the their occupations. nearer the mean scores tilt towards 1
. Section B: Reasons for Resurgence the higher the level of respondents’ of Militancy in the Niger-Delta agreement with the factors raised and Reasons for the militancy resurgence conversely, the nearer the mean scores in the Niger-Delta were survey. This tilt towards 4, the higher the level of section reports the analysis of primary respondents’ disagreement with the data gathered from the field. Table 4.6 factor as a reason for the resurgence presents the frequency distribution of militancy in the Niger-Delta.
Table 4.6: Frequency Distribution of Respondents on Reasons for Militancy Resurgence in the Niger-Delta
Reasons for Militancy Resurgence Strongly Agree Disagree Strongly in the Niger-Delta agree disagree
F % F % F % F %
Youth unemployment is responsible 331 66 148 30 17 3 4 1 for militancy in the Niger Delta
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Resurgence of militancy in the region 208 42 254 51 32 6 6 1 exposed youth to the act of militants
Inadequate distribution of resources 239 48 224 45 34 7 3 1 bring about resurgence of militancy in the region
Attempt by the federal government to 240 48 226 45 31 6 3 1 stop amnesty results in resurgence of militancy in the region
Source: Field Survey (2017)
Table 4.6.1 Descriptive Statistics of the Factors responsible for resurgence of militancy in the Niger-Delta
Minimum Maximum Std. N (SA) (SD) Mean Deviation Youth unemployment is responsible 500 1.00 4.00 1.3880 .59512 for militancy in the Niger Delta Resurgence of militancy in the region 500 1.00 4.00 1.6720 .64904 exposed youth to the act of militants Inadequate distribution of resources bring about resurgence of militancy 500 1.00 4.00 1.6020 .64220 in the region Attempt by the federal government to stop amnesty results in resurgence of 500 1.00 4.00 1.5940 .63401 militancy in the region Valid N (list wise) 500 Source: Researcher’s Survey (2017)
The response from the sampled Niger-Delta. Another factor tested is population shows that youth whether or not resurgence of unemployment is a major factor militancy in the region exposed youth responsible for militancy in the Niger to the act of militancy. The response Delta. 66% of the respondents showed an overwhelming affirmation strongly agreed to that position and in to this. 42% of the respondents a similar dimension, 30% simply strongly agreed and 51% simply agreed on this factor. With a mean agreed while 6% disagreed and 1% score of 1.3880, this shows an strongly disagreed. The mean score of overwhelming 76% support on this 1.6720 shows a high support of this factor as against a total of 4% who factor by the respondents. Inadequate disagreed with this reason as a factor distribution of resources is one of the for resurgence of militancy in the reasons found in literature to be
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Oyinlola Abodunrin CUJPIA (2019) 7(1) 97-104 responsible for resurgence of This section reports the analysis of militancy in the area. This factor was primary data gathered from the field subjected to empirical test and the on the challenges of resurgence of mean score of 1.6020shows that militancy on the people of the region. inadequate resources bring about Table 4.7 presents the frequency resurgence of militancy in the Niger- distribution table of respondents on Delta. 48% and 45% strongly agreed the various effects of resurgence of and simply agreed respectively on this militancy on people in the Niger- factor. Only 8% of the sample Delta and Table 4.7.1 is the population disagreed with this reason descriptive statistics showing the as a factor responsible for resurgence mean scores of each of the factors. of militancy in the Niger-Delta region. The table shows a scale of 1 Another strong factor found to have (minimum, which is the extreme of strongly affected resurgence of agreement) and 4 (maximum, militancy in the region is the attempt representing the extreme of by the federal government to stop disagreement). The more the mean amnesty. 48% of the respondents scores tilt towards 1 the higher the strongly supported this view and 45% level of acceptance of the factors simply agreed to the factor. Only 7% raised and conversely, the more the of the respondents disagreed. With a mean scores tilt towards 4, the higher mean score of 1.5940, the result the level of respondents’ rejection of shows high acceptance of this factor the factor as a challenge of the as responsible for militancy in the resurgence of militancy on the people Niger-Delta. in the Niger-Delta. Section C: Challenges of Resurgence of Militancy on the People of the Region
Table 4.6: Frequency Distribution of Respondents on the Challenges of Resurgence of Militancy on the People of Niger-Delta Strongly Strongly agree Agree Disagree disagree F % F % F % F % The crisis in the Niger Delta is 258 52 225 45 14 3 3 1 affecting the economic status of the people of the region Resurgence of militancy in the 211 42 266 53 23 5 0 0 region posed a serious threat to security of lives and property Niger Delta crisis has causedjob 240 48 229 46 28 6 3 1 insecurity in the oil and gas industries. The Niger Delta crisis has 238 48 217 43 35 7 10 2 undermine the region’s development
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Source: Field Survey (2017).
Respondents were given some sets of properties in the region. Another challenges the resurgence of militancy effect of the resurgence is job have caused on the people of Niger insecurity in the oil and gas industries. Delta. The results show that 52% of 48% of the respondents strongly the respondents agreed that the crises agreed and 46% simply agreedto this. have affected the economic status of On the other hand, 6% of the the people and 45% simple agreed. respondents disagreed and 1% Only a total of 4% of the respondents strongly disagreed. The mean score did not agree. With the mean score of shows 1.5880 indicating a high level 1.5240, it is accepted that the crisis acceptance of job insecurity in the oil affect the economic status of the and gas industries and a challenge people of the region. In a similar caused by the resurgence of militancy dimension, 42% of the respondents in the Niger-Delta. The last challenge strongly agreed that resurgence of caused by the resurgence measured in militancy posed a serious threat to this study is whether or not it security of lives and properties in the undermines the region’s development. region. 53% simply agreed while 5% 48% of the respondents strongly did not agree that the resurgence of agreed, 43% merely agreed, 7% militancy in the Niger Delta posed a disagreed and 2% strongly disagreed. serious threat to security of lives and With a mean score of 1.6340, there is properties in the region. The result of a strong acceptance by the the statistical test shows a mean of respondents that the resurgence has 1.6240, thus, the acceptance that undermined development in the resurgence of militancy in the Niger Niger-Delta. Delta is a serious threat to lives and
Table 4.7.1 Descriptive Statistics of the Challenges of resurgence of militancy on the people in the Niger-Delta Std. N Minimum Maximum Mean Deviation The crisis in the Niger Delta is affecting the economic status of the people of the 500 1.00 4.00 1.5240 .58490 region Resurgence of militancy in the region posed a serious threat to security of lives 500 1.00 3.00 1.6240 .57208 and property Niger Delta crisis has caused job 500 1.00 4.00 1.5880 .62533 insecurity in the oil and gas industries. The Niger Delta crisis has undermine the 500 1.00 4.00 1.6340 .70216 region’s development Valid N (listwise) 500 Source: Researcher’s Survey (2017)
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Section D: Measures for sustainable The descriptive statistics table shows peace in the Niger Delta a scale of 1 (minimum, which is the The possible measures that can be extreme of agreement) and 4 adopted by the government and (maximum, representing the extreme multinational corporations to foster of disagreement). The more the mean sustainable peace in the Niger-Delta scores tilt towards 1 the higher the region were also surveyed. The result level of acceptance of the factors is reported in this section. Table 4.8 raised and conversely, the more the presents the frequency distribution mean scores tilt towards 4, the higher table of respondents on the possible the level of respondents’ rejection of measures and Table 4.7.1 is the the measure having the possibility of descriptive statistics showing the maintaining sustainable peace in the mean scores of each of the measures. Niger-Delta.
Table 4.8: Frequency Distribution of Respondents on Measures for sustainable peace in the Niger Delta
Strongly Strongly agree Agree Disagree disagree F % F % F % F % The Niger Delta Development Commission 250 50 148 30 92 18 10 2 (NDDC) and the Federal Ministry of Niger Delta Affairs are good steps towards reducing the Niger Delta crisis Scholarship award to student at all levels for 194 39 228 46 43 9 35 7 the indigene of the region will reduce militancy in the region. The youths should be involved fully in 239 48 207 41 43 9 11 2 policy making in resolving crises in the region Good and continuous Governmental policies 204 41 158 32 57 11 81 16 will prevent resurgence of militancy Source: Field Survey (2017)
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Minimu Maximu Std. N m m Mean Deviation The Niger Delta Development Commission (NDDC) and the Federal Ministry of Niger Delta 500 1.00 4.00 1.7240 .83018 Affairs are good steps towards reducing the Niger Delta crisis Scholarship award to student at all levels for the indigene of the region 500 1.00 4.00 1.8380 .85394 will reduce militancy in the region. The youths should be involved fully in policy making in resolving crises 500 1.00 4.00 1.6520 .72936 in the region Good and continuous Governmental policies will prevent resurgence of 500 1.00 4.00 2.0300 1.08233 militancy Valid N (listwise) 500 Table 4.8.1: Descriptive Statistics of the Measures for sustainable peace in the Niger Delta
Source: Research Survey (2017)
The response from the sampled 46% simply agreed while 9% population shows the response believe disagreed and 7% strongly disagreed. that the Niger Delta Development The mean score of 1.8380 shows a Commission (NDDC) and the Federal strong support for this measure by the Ministry of Niger Delta Affairs are respondents. Another measure given good steps towards reducing the Niger overwhelming support is the Delta crisis. 50% of the respondents involvement of youths in the policy strongly agreed to that position and in process. This measure has a mean a similar dimension, 30% simply score of 1.6520indicating that agreed on this viewas against a total involving the youths in decision of 20% who disagreed with it. With a making process will end the mean score of 1.7240, it shows an resurgence of militancy in the Niger- overwhelming acceptance Niger Delta Delta. 48% strongly agreed and 41% Development Commission (NDDC) simply agreed on this solution. Only and the Federal Ministry of Niger 11% of the sample population Delta Affairs are good steps towards disagreed with this position. Another reducing the Niger Delta crisis measure found to astrong possibility Another measure surveyed is whether of ending the resurgence of militancy or notawardof scholarship to students in the region is good and continuous at all levels for the indigene of the governmental policies. 41% of the region will reduce militancy in the respondents strongly supported this region. The response showed an view and 32% simply agreed to the overwhelming belief in this measure. factor. Only 11% of the respondents 39% of the respondents Table: 4.9. disagreed and 16% strongly Test Statisticsstrongly agreed and disagreed. With a mean score of
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2.0300, the result shows an The hypothetical statements for this acceptance of this measure having the study were tested with Chi-square possibility of ending resurgence of at0.05 level of significance militancy in the Niger-Delta. Hypothesis ONE: There is no
Section E: Hypotheses Testing significant influence of resurgence of militancy on the sustainable peace of the Niger Delta.
Table: 4.9. Test Statistics
Youth Inadequate Attempt by the federal Youth exposure to distribution of government to stop unemployment militancy resources amnesty
Chi-Square 5.542E2a 3.707E2a 3.677E2a 3.772E2a df 3 3 3 3
Asymp. Sig. .000 .000 .000 .000
0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 125.0.
Interpretation: Table 4.9 shows the 2006). Since the chi-square result result of the chi-square statistical test indicates a level of significance on the research hypothesis. The table (0.000) that is less than the indicates significant level of 0.000 for conventional significant level, this all the variables tested. This is less hypothesis is rejected. Thus, there is a than the conventional significant level significant influence of resurgence of of 0.05. According to the statistical militancy on the sustainable peace of rule of testing hypothesis, when the the Niger Delta. level of significance is less than 0.05 Hypothesis Two: Resurgence of the hypothesis is rejected. On the militancy in the Niger Delta poses no contrary however, when the level of significant challenge on the people in significance is higher than 0.05, the the area hypothesis is accepted (Spiegel & Stephens, 1999; Adamu & Johnson,
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Table: 4.10. Test Statistics
Threat to security Challenge on of lives and job insecurity in the undermines the the economy property oil and gas industries region’s development
Chi-Square 439.152a 194.836b 386.672a 340.464a df 3 2 3 3
Asymp. Sig. .000 .000 .000 .000 a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 125.0. b. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 166.7
Interpretation: The result of Stephens, 1999; Adamu & Johnson, hypothesis test 3 is shown in Table 2006). Since the chi-square result 4.10. The result indicates significant indicates a level of significance level of 0.000 for all the variables (0.000) that is less than the tested. This is less than the conventional significant level, this conventional significant level of 0.05. hypothesis is rejected. Thus, As stated earlier statistical rule 109 of resurgence of militancy in the Niger testing hypothesis states that when the Delta poses significant challenge on level of significance is less than 0.05 the people in the area. the hypothesis is rejected. On the Hypothesis 3: The measures contrary however, when the level of employed by the government and the significance is higher than 0.05, the multinational companies have had no hypothesis is accepted (Spiegel & significant impacts on sustaining peace in the Niger Delta.
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Table: 4.11. Test Statistics Scholarship award NDDC, Federal to student at all Youth’s Ministry of Niger levels for the involvement in Good and continuous Delta Affairs indigene decision making Governmental policies Chi-Square 243.744a 241.552a 315.520a 111.120a df 3 3 3 3 Asymp. Sig. .000 .000 .000 .000
a. 0 cells (.0%) have expected frequencies less than 5. The minimum expected cell frequency is 125.0.
Interpretation: Table 4.9 shows the people and delta region .The Ministry result of the chi-square statistical test of Niger Delta and NDDC should not on the research hypothesis. The table be politicized but encouraged to indicates significant level of 0.000 for accomplish the goals for which they all the variables tested. This is less are established. than the conventional significant level The oil companies need to be more of 0.05.Since the Chi-square result responsive to the plight of the people indicates a level of significance and contribute to their welfare, (0.000) that is less than the provide jobs for them, construct good conventional significant level, this roads, build decent low-cost housing hypothesis is rejected. Therefore, it is for them, increase academic upheld that measures employed by the scholarship awards to their children, government and the multinational build schools and hospitals, provide companies have had significant water and electricity to the impacts on sustaining peace in the communities.
Niger Delta. Conclusion Recommendation The study examined the resurgence of Based on the findings of this study, it militancy and challenges of is recommended that: sustainable peace in the Niger-Delta. There Niger Delta Development From the findings, it was revealed Commission (NDDC) should embark that, the peaceful, coexistence in the on some policies so that they can region is being threatened due to implement true and realistic militancy activities in the region and programmes of development in the from the findings, a lots of reasons region. This has become necessary was discovered to have been the because of the utter neglect of the oil- reason while the resurgence of bearing states in Nigeria by both the militancy become the order of the day Federal Government and the oil and this can be brought to an end companies. through various measures from the Special attention should be paid to the government and the Multinational oil investment in the development of corporation..
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