DEMOCRACY AND ECONOMIC DEVELOPMENT IN NIGERIA, 1999 – 2007

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TABLE OF CONTENTS

Title Page        –           –           –           –           –           –           –           –           i

Approval Page            –           –           –           –           –           –           –           –           ii

Dedication      –           –           –           –           –           –           –           –           iii

Acknowledgements    –           –           –           –           –           –           –           iv

Table of Contents       –           –           –           –           –           –           –           v

List of Tables and Figure        –           –           –           –           –           –           vii

Abbreviations –           –           –           –           –           –           –           –           viii

Abstract          –           –           –           –           –           –           –           –           x

CHAPTER ONE: Introduction       –           –           –           –           –           1

  1. Background to the Study       –           –           –           –           –           1
    1. Statement of the Problem       –           –           –           –           –           5
    1. Objective of the Study           –           –           –           –           –           7
    1. Significance of the Study       –  –           –           –           7         

CHAPTER TWO: Literature Review        –           –           –           –           9

2.1       Literature Review       –           –           –           –           –           –           9

CHAPTER THREE: Methodology            –           –           –           –           39

3.1       Theoretical Framework           –           –           –           –           –           39

3.2       Hypotheses     –           –           –           –           –           –           –           44

3.3       Method of Data Collection     –           –           –           –           –           44

3.4       Method of Data Analysis       –           –           –           –           –           47

3.5       Logical Data Framework        –           –           –           –           –           48

CHAPTER FOUR: Democratic Governance and Economic

Development in Nigeria, 1999 – 2007          –           –           –           49

4.1       Absence of Electoral Legitimacy and Underdevelopment

Of Nigeria’s Productive Forces          –           –           –           –           50

4.2       Lack of Transparency and Accountability in Governance

And Pervasive Public Sector Corruption in Nigeria   –           –           62

CHAPTER FIVE: Insecurity and Economic Development

In Nigeria, 1999 and 2007    –           –           –           –           –           85

5.1       Governance and Security Deficit in Nigeria since 1999         –           86

5.2       Insecurity and the standard of living of Nigerians     –           –           114

CHAPTER SIX: Summary, Conclusion and Recommendations –          131

6.1       Summary and Conclusion       –           –           –           –           –           131

6.2       Recommendations      –           –           –           –           –           –           133

BIBLIOGRAPHY    –           –           –           –           –           –           –           134

LIST OF TABLES AND FIGURE

Table 3.1: Logical Data Framework (LDF) for the Study      –           –           48

Table 4.1: The Last Minute Award of Oil Block Bazaar During

Obasanjo’s Tenure (1999-2007)          –           –           –           –           73

Table 4.2: The Halliburton Scandal indicating the beneficiaries

And the amount          –           –           –           –           –           –           78

Table 4.3: Nigeria’s ranking in the CPI since 1996    –           –           –           79

Table 5.1 Democracy Index for Nigeria         –           –           –           –           99

Table 5.2: Summary of Reported Crime Cases in Nigeria 1994-2003 –         102

Fig 5.1: Graphic Representation of Reported Crime Cases in

Nigeria 1994-2003      –           –           –           –           –           –           103

Table 5.3: Level of Crime from 2000 to 2008            –           –           –           113

Table 5.4: Nigeria and other West African Countries on the

Global Peace Index Ranking –           –           –           –           –           114

Table 5.5: Relative Poverty Headcount, 1980-2010   –           –           –           119

Table 5.6: Relative Poverty: Non-poor, Moderate poor and

The Extremely poor, 1980 – 2010      –           –           –           –           120

Table 5.7: National Poverty Incidence 2003/2004 and 2009/2010    –           121

Table 5.8: National Unemployment Rates (2000 – 2009)      –           –           121

Table 5.9: Manufacturing Capacity Utilization (2000 – 2008)           –           122

Table 5.10: Growth Rate of the Economy (2000 – 2009)      –           –           123

Table 5.11: Inflation Rate (2000 – 2009)       –           –           –           –           124

Table 5.12: Federal Government Capital Expenditure as Percentage

Of GDP (2000 – 2009)           –           –           –           –           –           124

Table 5.13: A Chronological Presentation of Petroleum Product

Prices in Nigeria Since the 1970’s      –           –           –           –           127

Table 5.14: PMS Price per liter in OPEC countries (in Naira)            –           128

Table 5.15: Showing the Net Enrolment in Primary Schools

1990 – 2009    –           –           –           –           –           –           –           129

ABBREVIATIONS

CAST                         Center for American Studies

CBN               Central Bank of Nigeria

CHS                Commission on Human Security

CM                 Chikoko Movement

COG               Commonwealth Observer Group

COMA           Coalition for Militant Action

CPI                 Corruption Perception Index

DFID              Department for International Development

DPR                Department of Petroleum Resources

EBA                Egbesu Boys of Africa

ECOWAS      Economic Community of West African States

EFCC                         Economic and Financial Crimes Commission

EIU                 Economic Intelligence Unit

ERC               Electoral Reform Commission

EU-EOM        European Union – Election Observation Mission

FDI                 Foreign Direct Investment

FNDIC           Federated Niger Delta Ijaw Communities

FOI                 Freedom of Information

GCDD            Ghana Center for Democratic Development

GDP               Gross Domestic Product

GMD              Group Managing Director

GNI                Gross National Income 

GNP               Gross National Product

GPI                 Global Peace Index

HDR               Human Development Report

HIV/AIDS      Human Immunodeficiency Virus /Acquired Immune Deficiency Syndrome

HRW              Human Rights Watch

HSU                Human Security Unit

ICG                International Crisis Group

ICPC              Independent Corrupt Practices and Other related Offences Commission

IDPs                Internally Displaced Persons 

IGA                Itsekiri General Assembly

IMF                International Monetary Fund

INEC              Independent National Electoral Commission

IRI                  International Republican Institute

IYC                 Ijaw Youth Council

JRC                Joint Revolution Council

LDCs              Less Developed Countries

LNG               Liquefied Natural Gas

MB                  Martyrs Brigade

MD                 Managing Director

MEND            Movement for the Emancipation of the Niger Delta

MOSIEND     Movement for the Survival of the Ijaw Ethnic Nationality in the Niger Delta

MOSOP          Movement for the Survival of the Ogoni People

NBS                National Bureau of Statistics

NDDC            Niger Delta Development Commission

NDI                 National Democratic Institute

NDLA            Niger Delta Liberation Army

NDPVF          Niger Delta People Volunteer Force

NEEDS          National Economic Empowerment Development Strategy

NEITI             Nigerian Extractive Industries Transparency Initiative

NGOs                         Non-Governmental Organisations

NIPP               National Independent Power Project

NNPC             Nigerian National Petroleum Corporation

NPEB                         National Poverty Eradication Blueprint

NSPMC          Nigerian Security Printing and Minting Company

ODI                 Overseas Development Institute

OECD            Organisation for Economic Co-operation and Development

OMPADEC   Oil Mineral Producing Areas Development Commission

OPEC             Organization of Petroleum Exporting Countries

PDI                 People’s Democratic Institute

PDP                People’s Democratic Party

PLASIEC      Plateau State Independent Electoral Commission

PMS                Premium Motor Spirit

PPMC            Pipeline and Products Marketing Company

PPP                 Purchasing Power Parity 

RMAFC         Revenue Mobilisation Allocation and Fiscal Commission

SALW            Small Arms and Light Weapons

TAM               Turn-Around Maintenance

TI                    Transparency International

UN                  United Nations

UNDP             United Nations Development Programme

UNN               University of Nigeria, Nsukka

UU                  Urhobo Union

ABSTRACT

Democracy and development are both highly contested concepts. Similarly, the interface between both concepts is also a subject of contestation. On the one hand are neoliberal theorists who believe that liberal democracy is essential, in fact a desideratum for economic development and human security and therefore an ideal form to which all nations of the earth must aspire. On the other are what may be termed neo-Marxist theorists who interpret liberal democracy as an ideological fig wig for masking the mindless exploitation and atrocious inequality that characterizes the global capitalist system, particularly the peripheral states. In line with the former position which has been on the ascendancy since the end of the cold war, the restoration of democratic rule in Nigeria in 1999 elicited high expectations among the citizenry that it would usher in an era of economic prosperity and security of lives and property both of which had been eroded under prolonged military rule. This study empirically examines the impact of the first eight years of democratic experiment in Nigeria on economic development and human security. Specifically, it examines the impact of democratic governance on economic development and the implication of the high level of insecurity witnessed during the period on the standard of living of the citizens. The study made use of qualitative descriptive method of collecting secondary data and employed content analysis in the analysis of the data. The theory of the postcolonial state was adopted as its framework of analysis. The study found that the democratic rule as implemented in Nigeria between 1999 and 2007 did not translate to economic development or increased security of lives and property and that the high rate of insecurity as witnessed during the period adversely impacted on the standard of living of the citizens. The study therefore recommends among other things the bridging of the high level of inequality in Nigeria and the opening up of the democratic space to make for greater citizen participation and which would in turn ignite their creative energy for national development.

CHAPTER ONE

INTRODUCTION

1.1       Background of the Study

Democracy is a contested concept. In its liberal conception, democracy is the political form through which political power is said to reside in the people. This political power could be directly exercised by the people especially in modern times through their decisions on sensitive matters expressed in form of plebiscite or referendum; or indirectly through their representatives in government (Magstadt, 2009). The import of this notion therefore is that democra