THE ROLE OF PURCHASING IN NATIONAL DEVELOPMENT

THE ROLE OF PURCHASING IN NATIONAL DEVELOPMENT

ABSTRACT

This project is on the, “Role of Purchasing in National Development”. They way purchasing societies use to train and educate their workers. The structure and achievements of purchasing in national development were studied and reported. The sources of funds to the purchasing were studied also. The way purchasing inspectors use to supervise and enlighten the management of purchasing and committees were also reported. And to carry out research functions and benefits of purchasing to the socio-economic growth of the society. It also studies about the problems, which make the purchasing societies not to do what the are supposed to do in a national development and also the way to solve their problems.

CHAPTER ONE

INTRODUCTION

1.1   BACKGROUND OF THE STUDY

Since the existence of Nigeria, various government both the colonial and post independence governments devised to different means of developing the national economy. The colonial government of Nigeria introduced the concept of purchasing aspect in Nigeria after studying its concept in Europe as a strategy for developing the country economy.

Purchasing aspect can be traced back to Britain into a second half of the 21st century. Purchasing aspect came into being as a result of capital owners introduction of new method of production in order to increase productivity and as well accumulate more wealth at the expense of labour. According to Onuoha (1986), ‘with the invention of the system engine, the process of mechanizing in the textile industry was completed and the stage was set for the classic capitalist exploration of labour moreover, Okonkwo (1989) went further to say that these capitalist, employed thousands of workers in their factories. But the factory owners were more interested in making profit. This exploration of workers by the capital owner led to agitation by workers for better conditions by their employers because of problem encountered in their labour areas they decided to from an organisation, which will help to ameliorate their economic conditions. According to Okonkwo (1989), the year 1844 marks the birth of purchasing aspect in the world’ he went further to say that “a group of 28 working class people, most of the weaves, launched the first ever successful purchasing society. These 28 working class the early fathers of the purchasing aspect are know in purchasing history as the Rochdale equitable pioneers with a capital of 128.

Following its enormous role in great Britain, some of the countries borrowed the idea of purchasing aspect in developing their economy. As a result of these positive development the government of Nigeria, under Britain colony appointed Mr C. F. Strickland in 1933 to study and report on the feasibility of forming purchasing societies in Nigeria, as a way of curbing her economics problems. Mr Strickland recommended the introduction of purchasing aspect in Nigeria in the report be submitted in 1934.

According to Okonkwo (1986), his (Mr. Strickland) report was accepted by government and so in 1933, the Nigeria purchasing society ordnance was enacted and in the following year, 1936, regulation was drawn up for the running of purchasing societies. The cocoa marketing society at Gbedum was the first registered purchasing aspect in Nigeria still in 1936, there was a regionalization to purchasing which were grouped into three namely purchasing in western Nigeria, purchasing in eastern Nigeria and northern. Purchasing aspect. In 1936, the regional concept was abolished and as such the central state emerged among others. Apex organisations were established such as the east central state purchasing Development Association (E.C.S.D.A) which came into existence in 1973 to monitor and lend funds to the primary societies.