GST 112: Nigerian Peoples and Culture
Understanding Underdevelopment
Underdevelopment is a multifaceted and deeply rooted socioeconomic phenomenon that manifests
in various dimensions of a society. It refers to a state of economic backwardness marked by several
critical indicators. Key among these is low per capita income, which reflects the average income per
person in a region and signifies limited financial resources for the majority of the population. This
economic insufficiency often translates into widespread poverty, where large segments of the
population struggle to meet basic needs such as food, shelter, and healthcare.
Inequality is another hallmark of underdevelopment, where wealth and resources are unevenly
distributed, leading to significant disparities in living standards, opportunities, and quality of life
among different social groups. This inequality often perpetuates social stratification, limiting social
mobility and reinforcing the cycle of poverty.
Moreover, underdevelopment is characterized by limited access to essential services such as
education, healthcare, clean water, and sanitation. These deficiencies hinder human capital
development, reducing the overall productivity and potential of the population. Educational
shortcomings restrict the acquisition of skills and knowledge necessary for economic advancement,
while inadequate healthcare services contribute to poor health outcomes and reduced life expectancy.
Underdevelopment, a complex socioeconomic phenomenon, refers to a state of economic
backwardness characterized by low per capita income, poverty, inequality, and limited access to
essential services.
Definition and Characteristics
According to Dudley Seers (1970), underdevelopment is not merely an economic phenomenon but
also a social and political one. It involves increasing poverty, unemployment, and inequality. It is a
state characterized by low levels of industrialization, dependence on primary commodities, and a
weak technological base.
Factors Contributing to Underdevelopment in Nigeria
Several interconnected factors have contributed to Nigeria's persistent underdevelopment, shaping
its economic and social landscape over decades. Understanding these factors provides insight into
the challenges Nigeria faces and the complexities of its development trajectory.
Colonial Legacy
The impact of colonialism on Nigeria's development cannot be overstated. Walter Rodney (1972)
argued that colonialism disrupted traditional economies and created dependencies on the
colonizers. In Nigeria, the colonial experience led to the systematic neglect of agriculture, an
overreliance on primary commodity exports, and the establishment of institutions designed to serve
colonial rather than local interests. The colonial administration prioritized resource extraction and
export-oriented policies, leaving a legacy of economic structures ill-suited for independent
development and diversification.
Resource Curse
Nigeria's abundance of natural resources, especially oil, has paradoxically hindered its
development—a phenomenon known as the "resource curse." The oil sector's dominance has led to
significant issues such as corruption, where revenues are siphoned off by elites, exacerbating
inequality and undermining public trust. Additionally, the country's focus on oil has resulted in the
"Dutch disease," where the booming oil sector crowds out other vital economic activities like
agriculture and manufacturing, creating an unbalanced and vulnerable economy.
Governance and Corruption
Weak governance, rampant corruption, and the mismanagement of public resources have been
chronic issues in Nigeria. These factors have diverted funds from essential public services, such as
education, healthcare, and infrastructure, discouraging both domestic and foreign investment.
Corruption has also fueled social inequality and political instability, further hindering economic
progress and development.
Structural Economic Problems
Nigeria's economy is heavily dependent on the oil sector, making it extremely susceptible to global
oil price fluctuations. This reliance has led to the neglect of other critical sectors such as agriculture,
manufacturing, and services, resulting in structural imbalances within the economy. The lack of
diversification means that economic shocks, like a drop in oil prices, have disproportionate and far-
reaching effects, stalling growth and development efforts.
Demographic Challenges
Nigeria's rapid population growth has placed immense pressure on its resources and social services.
With a young and predominantly dependent population, the country faces significant challenges in
providing adequate education, healthcare, and employment opportunities. High unemployment
rates among the youth contribute to social unrest and economic stagnation. Managing this
demographic shift is crucial for achieving sustainable development and economic stability.
Understanding these factors highlights the complexity of Nigeria's development issues and
underscores the need for multifaceted and systemic approaches to address them. Addressing these
challenges requires not only policy reforms and investments in various sectors but also a
commitment to improving governance, reducing corruption, and fostering inclusive growth that
benefits all segments of society.
Strategies for Economic Development
Five Strategies for Economic Development in Nigeria
Nigeria, with its vast resources and large population, possesses immense potential for economic
growth. However, realizing this potential requires a strategic approach. Here are five key strategies:
1. Diversification of the Economy
Nigeria's over-reliance on the oil sector has made it vulnerable to price fluctuations. Diversifying the
economy is crucial for sustainable growth. This involves:
▪ Promoting agriculture: Nigeria has vast arable land suitable for various crops. Investing in
agriculture can boost food security, create jobs, and generate export revenue.
▪ Developing manufacturing: Supporting local industries can create employment opportunities
and reduce reliance on imports. Government policies should encourage manufacturing
through incentives, infrastructure development, and skills training.
▪ Fostering the service sector: The service sector, including ICT, finance, and tourism, has the
potential to drive economic growth and job creation.
2. Investment in Human Capital
▪ A skilled and educated workforce is essential for economic development. Investing in human
capital involves:
▪ Improving education: Providing quality education at all levels, from primary to tertiary, is
crucial for developing a skilled workforce.
▪ Enhancing healthcare: A healthy population is more productive. Investing in healthcare
improves the overall well-being of citizens.
▪ Skills development: Technical and vocational training should be prioritized to equip the
workforce with the skills needed for the modern economy.
3. Infrastructure Development
Adequate infrastructure is essential for economic growth and development. Key areas of investment
include:
▪ Power generation and distribution: Reliable and affordable electricity is crucial for
industrialization and improved living standards.
▪ Transportation: Investing in roads, railways, and ports facilitates the movement of goods and
people, reducing costs and improving efficiency.
▪ Telecommunications: A robust telecommunications infrastructure is essential for businesses
and individuals to connect and compete globally.
4. Good Governance and Corruption Reduction
Good governance and transparency are fundamental for economic development. Key steps include:
▪ Strengthening institutions: Building strong and independent institutions, such as the judiciary
and anti-corruption agencies, is essential for creating a level playing field.
▪ Combating corruption: Implementing effective anti-corruption measures, such as
transparency and accountability mechanisms, can help to reduce corruption and improve
public trust.
▪ Improving regulatory environment: Streamlining bureaucratic processes and reducing red
tape can encourage investment and entrepreneurship.
5. Fostering Entrepreneurship and Innovation
Entrepreneurship and innovation are drivers of economic growth. To create a conducive
environment, the government should:
▪ Supporting SMEs: Providing access to finance, training, and markets for small and medium-
sized enterprises (SMEs) can stimulate job creation and economic growth.
▪ Encouraging innovation: Investing in research and development, and creating incentives for
innovation can foster a culture of creativity and problem-solving.
▪ Technology adoption: Promoting the adoption of technology can improve productivity and
competitiveness.
Conclusion
Overcoming underdevelopment is a complex and long-term process. Nigeria, with its rich resources
and potential, has the capacity to achieve economic transformation. However, it requires concerted
efforts from the government, private sector, and civil society to address the underlying challenges
and implement effective development strategies.
References
Rodney, W. (1972). How Europe Underdeveloped Africa. Bogle-L'Ouverture Publications.
Seers, D. (1970). The meaning of development.
