Oladiti Lateef Ayeni BSc. Accounting, NIM, Coordinator Acada Hub



  1. Economic growth and development
  2. Economic development planning
  3. International economic organization
  4. Current economic plans; MDGs, NEEDS, VISION 2020
  5. Economic development challenges
  6. Economic reform programs
  7. Mock and WAEC exams


















Economic growth is the process by which national income or output is increased.

An economy is said to be growing if there is a sustained increased in the actual output of goods and services per head. The rate of economic growth therefore measures increases in real national income, during a given period of time usually a year.

For example; the national income in 1980 N50 million and N60 million in 1981. Assuming the price level increased by 15%, the growth rate is 20%, then the growth rate in real terms is 20%-15%=5%

Economic development is not the same as economic growth. It means more than mere growth of the economy. Economic development is the process of increasing real per capita income and engineering substantial positive transformations in various sectors of the economy. The changes are talking about increased welfare of the standard of living of the masses.

Distinction between economic growth and development

i.                     gds and servs  in a country national income Maturity in quantity and quality
ii.                   It is major step to economic development Consistent economic growth

Alternative explanation of economic development

  1. Climatic development theory

This school of thought was first developed by Ibn Khaldun. According to this theory, there are certain types of climate which do not encourage the growth of civilization and development. According to Ibn Khaldun ‘North Europe was too cold for civilization’, and so it lagged behind Western Europe in development. Others argue that the very hot climate experienced in the tropic did not encourage development. Critics argue that such a theory must not be taken seriously. It lacks adequate scientific explanation.

  1. Sociological theories

One variant of the sociological school of thought argues that economic growth and development largely depend on certain characteristics of the people. It argues that negative qualities of a people such as lack of inventiveness, lack of dynamism, irrationality, low achievement motivation, high rate of absenteeism, laziness, negative attitude to work, leads to underdevelopment.

Under development

Under developed or developing nations are those countries that lack the human and materials resources used in improving the quality of human lives which lead to low levels of living.

Features of an underdeveloped economy

  1. There is low income per capita
  2. There is low level of technology
  • There is high level of illiteracy
  1. There is a low level of productivity of labor
  2. There is high degree of unemployment and under-employment

Solutions to rapid economic development

  1. Political stability
  2. Able leadership
  • Diversification of the economy
  1. Mechanization of Agriculture
  2. Population control


Economic planning may be defined as government’s conscious formulation of economic policies for the equitable allocation of resources to all sectors of the economy in order to achieve rapid economic development.

Types of economic planning

  1. Comprehensive economic planning: it integrates the planning efforts of all levels of government
  2. Partial economic planning: it takes only a part of the economy
  • Democratic economic planning: the planning is left in the hands of experts, it is practiced in Nigeria
  1. Financial economic planning: it is where allocation of resources to all sectors is done
  2. Authoritarian economic planning: planning is centrally planned; it is done in a socialist economy.

Objectives of economic planning

  1. To achieve growth
  2. Equitable allocation of resources
  • Diversification of the economy
  1. Increase in GNP
  2. To reduce foreign control of the economy

Ways of financing economic development in Nigeria

  1. Through government saving and reserve
  2. Internal borrowing
  • Borrowing from developed countries
  1. Debt conversion
  2. Privatization and commercialization

Problems associated with economic planning in West Africa

  1. Political instability
  2. Inadequate capital
  3. Wrong planning
  4. Insufficient statistical data
  5. Rapid population growth

Assignment: Nigerian Planning Experience from posPage 3

post-independence development to fourth national development. Why is standard of living low in West Africa?


International Monetary Fund

It was created as a result of an agreement reached by forty-four nations at Bretton Woods, USA inn 1944. It began full operations in 1947. Its headquarters is at Washington DC., USA. Most of its members belong to the United Nations Organization.


  1. To maintain stability of foreign exchange rate
  2. Provisions of loans
  • Promotes free trade by encouraging the international trade
  1. Promotion of vital for planning
  2. Provision of technical and financial advice

Advantages of IMF to West Africa

  1. Some West African countries have obtained loans to solve their balance of payment problem
  2. Technical and financial advice have been given to West African countries in difficulty to overcome their economic problems
  • It helped in obtaining vital statistics

Problems of IMF

  1. The operation of IMF pose difficulty especially to developing countries
  2. Domination of fund by a few countries
  • Inadequacy of international reserves

International bank for reconstruction and development (IBRD)

This institution is popularly as World Bank. It was created in 1944 at the same time with IMF at Bretton Woods. Its headquarter is in Washington, USA. It was set up to help in the reconstruction and development of war-ravaged economies. Member countries contribute capital to the fund of the bank according to their national income or level of development. The USA and a few other developed nations contribute the bulk of the capital.

Function of IBRD

  1. Provisions of long term loans for development
  2. Provisions of assistance for reconstruction
  • Promotion of foreign private investment
  1. Technical assistance

Assignment: who are the specialized agencies of the World Bank? Give three importance of World Bank to West Africa

African Development Bank

The institution was set up in `1964 with its headquarters at Abidjan, cote D’iviore. It is a bank owned by African countries which belong to the African Union. It was set up following an agreement reached in a meeting of finance ministers of some African countries. By 1970, membership had risen to 31.

Function of the ADB

  1. It aids in economic and social development
  2. It helps to provide technical assistance
  • It helps to promote both private and public investment in projects which contribute to the economic and social development
  1. It fosters economic integration

Assignment: Read OPEC, ECA, UNCTAD, EAC, EEC, EU, West African Clearing House, Niger Basin Authority



The United Nations held a millennium summit which was attended by over one hundred and ninety two members and at least twenty three international organizations. It was greed to establish eight international development goals referred to as Millennium Development Goals, which they agreed to achieve by the year 2018. Each goal has specific targets and dates for achieving it. The G8 finance ministers agreed to provide fund to the relevant institutions (World Bank and IMF) to cancel about fifty billion dollar in debt owed by member nations so as to accelerate progress. The millennium goals are stated below:

  1. Eradicate extreme poverty and hunger
  2. Achieve universal primary education
  • Promote gender equality and empower women
  1. Reduce child mortality rate
  2. Improve maternal health
  3. Combat HIV/AIDS, malaria and other diseases
  • Ensure environmental sustainability
  • Develop a global partnership for development


In 2003, the Federal Government approved a poverty development program called National Economic Empowerment and Development Strategy. It was based partly on Millennium Development Goals. It is a way of letting the international community knows where Nigerians stand. The primary aim is to create new Nigerian citizens who value hard work and to make poverty a thing of the past. It focuses on Nigeria people, their welfare, health, employment, education, political power, physical security and empowerments.

Objectives of NEEDS

  1. Reduction of poverty
  2. Re-orienting values
  • Creating wealth
  1. Generating employment

Ways of reducing poverty by NEEDS

  1. Empowering people
  2. Promoting private enterprises
  3. Effective service delivery by the government
  4. Offering farmers improved services
  5. Improving infrastructure


The federal government set up a committee in 1996 comprising of 248 members, including 25 foreign stakeholders resident in Nigeria. They were given the mandate to prepare a blue print that will transform the country and place her on the part of development.

Areas of concern and solutions

  1. Value system; instill discipline, moral value in people
  2. Political situation; democracy should reign and peaceful transition of government
  3. Economy; the economy should employ diversification and mono dependent on crude oil
  4. Education; there will be increased Primary School enrollment
  5. Health; preventive health care services and funding of primary and secondary health
  6. Agriculture; turnaround in Agriculture to ensure food security
  7. Manufacturing; support on adequate infrastructure
  8. Petroleum; communities will be encouraged to participate in oil sector
  9. Solid minerals; making this as important as a source of generating revenue
  10. Poverty alleviation; investment in housing, health, education and micro-credit
  11. Corruption; the country should be free of corruption by fighting against corruption
  12. Women; literacy level should be increased among women


This is a long term development goal designed to propel the country to the league of the top 20 economies of the world by 2020. This will ensure a high standard of living of Nigeria. It was developed by Nigerians as a rallying point regardless of religion, ethnicity etc.

Features of vision 2020

  1. Polity: the country will experience stable and peaceful economy
  2. Social: building peaceful, equitable and just society
  • Macro-economy: developing a globally competitive economy
  1. Infrastructure: adequate infrastructure service that supports full mobilization of sectors
  2. Education: to provide Nigerians the opportunity to explore potentials

Objectives of vision2020

  1. Restructuring the economy
  2. Increasing national per capita income
  • Improving standard of living
  1. Reduction of poverty in the country
  2. Raising the level of GDP

Importance of vision 2020

  1. Need for Nigeria to plan on a long term basis
  2. Need to reduce the country’s overdependence on crude oil
  • Need to effectively transform the lives of Nigerians
  1. Need for the country to take rightful positions among nations of the world

Assignment: List three conditions for the attainment of vision 2020




This is a situation whereby the income of an individual is so low to allow the purchase of goods and services that will satisfy his basic needs and improve his standard of living.

Types of poverty

  1. Absolute poverty: this is extreme type of poverty which is characterized by the inability of an individual to satisfy his most basic and elementary things in life. There is severe deprivation of basic necessities of life like food, health, housing and clean water.
  2. Relative poverty: this is comparative state of deprivation among individuals in a society. Here people access to basic amenities of life but are considered poor compared to other members of the society who have better social amenities and services

Causes of poverty

  1. High level of corruption
  2. Unemployment
  • Low level of technology
  1. Bad governance
  2. High and rapid population growth

Solution to poverty

  1. Employment generation
  2. Provision of quality education
  3. Good governance
  4. Improving agriculture
  5. Empowering people


This is the apex agency for the fight against poverty. It was established in 2001 with the major aim of reducing the level of poverty. It acts as a central co-ordination point for all anti-poverty efforts from the local to the federal level. It aim was to touch the lives of rural and urban dwellers.

Functions of NAPEP

  1. To co-ordinate all poverty eradication effort in the federation
  2. To monitor all poverty eradication activities
  • To maintain a comprehensive and detailed databank of all activities aimed at eradicating poverty


A committee was set up in 1985 to look into high level of unemployment in Nigeria. The committees found out that over 80% of workers are found in agriculture and other self employed ventures. This led to the establishment of NDE in 1986 as an employment agency and statutorily charged with the responsibility of reducing unemployment in Nigeria.

Assignment: go online and make a research; Google and write out the brief history and function of the following; NDE, EFCC, ICPC (Chapter Six- Economic Reform Program)


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