REGULATORY AGENCY

A regulatory agency is also known as regulatory authority is a

governmental agency responsible for exercising autonomous authority over
some area of human activity in a supervisory capacity.
These are also agencies set up by government to regulate the activities of
financial markets such as money market, capital market and the stock
exchange market.

AIMS AND OBJECTIVES

1. Market Confidence: To maintain confidence in the financial system

2. Financial Stability: They contribute to the protection and
enhancement of stability of the financial system.
3. Consumer Protection: Securing the appropriate degree of protection
for consumer.
4. Reduction of Financial Crime: That is, they protect a regulated
business used for a purpose connected with financial crime.
5. Supervision of Stock Exchange: exchange acts ensure that trading on
the exchange is conducted in a proper manner.
6. Supervision in Investment Management: Asset management
supervision acts ensure the friction less operation of these vehicles.

FUNCTION AND SIGNIFICANCE

1. To evaluate the performance of the capital market in relation to the

economics growth in Nigeria.
2. To examine the rate at which new stocks are issued on the capital
market.
3. To examine the operations of the Nigerian capital market.
4. To recommend how the operation of the market could be improved
to boost economic growth and development of Nigeria.
5. To ensure there is transparency of information and decision making.

The major regulatory agencies are:

1. Central bank of Nigeria (C.B.N.)

2. Nigerian Deposit Insurance Corporation (N.D.I.C.)
3. Security and Exchange Commission (S.E.C)
4. National for Food and Drug Administration and Control (N.A.F.DA.C)
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 5. Nigeria National Petroleum Corporation (N.N.P.C)

CENTRAL BANK

This is the highest financial institution in a country which carriers out the
monetary policy of the government
It is the sole authority in the banking industry which acts as banker to the
government and the commercial bank.
Central bank controls and regulates the supply of money. It was establish
in 1959.

CHARACTERISTICS
1. It is owned by the government
2. It is not profit oriented
3. It is the highest financial institution
4. It is established by the acts of parliament
5. There is no transaction with private individual

FUNCTION

1. Banker to the government: central bank is an agent and banker to

the government. It controls public account, received revenue on
behalf of the government.
2. Issuance and control of currency: the central bank has the right to
the printing of the currency and issuance of it. It counts the
circulation of currency, exchange of bad note.
3. Banker's bank: the central bank acts a banker to the banks by
ensuring that the banks open account with it in order to facilitate
clearing of cheques.
4. Lender of last resort: the central bank has a duty to assist the
banking system with the banks are in the financial difficulties so that
they can withstand the strain of excessive demand.
5. Management of national debt: C.B.N is responsible for the
management of management of national debt of the country.
6. Foreign Exchange Transaction: it holds the foreign reserve of a
country and this helps in enforcing foreign exchange control.
7. Maintenance of external reserves: it is also responsible for the
maintenance of the external reserve of the country.
8. Formulation of rules and regulation guiding the banking industry.

NDIC
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 The Nigerian Deposit Insurance Corporation was established on 15 June,
1988 to strengthen the safety net of the newly liberalized banking sector.
The objectives of the Deposit insurance system are to protect
depositors and guaranteeing payment of insured institutions. The
corporation provides incentives for sound risk management in the Nigerian
banking system and promotes as well as contributes to the stability of the
financial institution/ system.

FUNCTION
1. Insuring all deposit liabilities of licensed banks other financial
institutions (referred to as insured institution) operating in confidence
in Nigerian banking system.
2. Giving assistance to insured institutions in the interest of depositors,
in case of imminent or actual financial difficulties of bank particularly
where suspension of payment is threatened and avoiding damage to
public confidence in the banking system.
3. Guaranteeing payments to depositors in case of imminent or actual
suspension of payments by insured institutions up to the maximum.
4. Assisting Monetary Authorities in the formulation and implementation
of policies so as to ensure sound banking practice and fair
competition among insured institution in the country.
5. Purge any other measures necessary to achieve the functions of the
corporation provided such measures and action are not repugnant (In
Consistent) to the object of the corporation.

SEC
The security and exchange commission (SEC) is the regulatory apex
organization of the Nigerian Capital market. It was established in 1979.
The security and exchange commission is the principal regulatory agency
that regulates and makes compliance issues for the securities Industry. The
primary aim of SEC is to protect investors and maintain the integrity of the
secondary market.
SEC also over sees the key participants in the securities market including
stock exchange, broker-dealer, investment advisor, mutual funds and asset
management companies.

FUNCTIONS
1. To control the stock exchange or any other security market business.
2. Registration of securities and market intermediaries to ensure that
only fit and proper institutions or persons are allowed to operate in
the market.
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 3. To develop monitor and control security market's all authorized and
self-control body/ organization.
4. To develop investment related knowledge and to arrange for training
facilities for person involved with security market.
5. Investigation of alleged breaches of laws and regulations the capital
market and enforcement of sections where appropriate.
6. Enforcement actions are taken against market operators who are
found wanting after investigation is carried out.
7. Rulemaking by the commission as development occurs. This is to
ensure that the commission meets up with international best
practices.

NNPC
The Nigerian National Petroleum Corporation (NNPC) is a body changed
with the development and management of Nigerian Petroleum resources. It
was established in 1979 and assigned with the responsibility of exploration,
production and refining of petroleum as well as distribution and foreign
marketing of crude oil and petroleum product.

FUNCTIONS
1. Regulatory function: it was set up to regulate the activities of the oil
companies in Nigerian, that is, issuance of licenses for oil exploration,
oil prospecting and operation of filling stations.
2. Petroleum product: it is responsible for the sinking and controlling of
its own oil well with the purpose of producing crude oil.
3. Exploration oil: it is charged with the responsibility of oil exploration
in the country that is, searching for the presence of oil.
4. Employment: NNPC was set up to generate employment for various
categories of Nigerian.
5. Manpower Development: the corporation is also responsible of
training Nigerians in various aspects of petroleum activities.
6. Marketing Petroleum Product: the corporation is responsible for the
distribution and marketing of petroleum products e.g. kerosene,
diesel, petrol and cooking.

NAFDAC
NAFDAC means National Agency for Foods Drugs Administration and
Control. NAFDAC is a Nigerian government Agency under the Federal
Ministry of Health. NAFDAC is responsible for regulation and controlling the
manufacture, importation, exportation, advertisement, distribution, sale

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and use of foods, drugs, cosmetics, medical devices, chemicals and
package water.

FUNCTIONS OF NAFDAC
1. NAFDAC regulate, control the importation, exportation,
manufactures, advertisement, distribution, sale and use of drugs,
cosmetics, medical devices, bottle water and chemicals.
2. NAFDAC conduct appropriate tests and ensures compliance with
standard specification designates and approved by the council for the
effective control of quality of foods, drugs, cosmetics and chemical.
3. NAFDAC undertakes inspection of items.
4. NAFDAC compiles standard specifications of items.
5. NAFDAC undertake the registration of the items
6. NAFDAC establishes and maintains relevant laboratories or other
institution in strategic areas.

INTERNATIONAL TRADE

International trade is the same as foreign or external trade. It is a trade

between two or more countries. The principle underlying the buying and
selling between one country and another is specialization. International
Trade is therefore defined as the exchange of good and services among
different nations.

TYPES
1. Bilateral international trade: this is a trade agreement in which two
countries exchange goods and services. This occurs when each
country trues to balance it payments and receipts separately with
each other.
2. Multilateral international Trade: is a type of international trade in
which a country trade with many other country e.g. Nigerian trade
with U.S.A, Japan, England, France, Germany, China etc.

INTERNAL TRADE
Internal Trade is the same as Domestic or Home trade.
This is defined as a trade which involves the exchange of goods and
services among the people within a particular country.
The items of internal trade include those goods and services which are
produced and sold internally or locally. E.g. coffee, Maize, Yam, guinea
corn, Rice, cassava e.t.c.
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SIMILARITIES BETWEEN INTERNAL AND INTERNATIONAL TRADE
1. Both trades involves the use of money as a medium exchange
2. They both involve degree of specialization between the trading
partners, since specialization cause exchange.
3. Both form of trade involves the activities of middlemen.
4. Both trade involves the buying and selling of goods and services
5. Both trades arise due to inequitable distribution of natural resources.
DIFFERENCES BETWEEN INTERNAL AND INTERNATIONAL TRADE
1. International trade takes place across national boundaries; internal
trade takes place within a country.
2. Internal trade is settle in the local or national currency while
international trade involves the use of foreign currency.
3. In internal trade, the factors of production are usually freely mobile,
that is, surplus is as to the difficult area. Whereas, international
trade, factors of production are not freely mobile.
4. Foreign trades require knowledge of new languages and
interpretation while in domestic trade, a common language is used.
5. There is restriction in terms of tariff, import duties, export duties,
embargoes when goods are exchange across national boundaries
while in internal trade, it does not have restriction.
6. There are also differences in legal system and culture under
international trade but the legal systems are the same in domestic
trade.

REASONS FOR INTERNATIONAL TRADE

1. Uneven distribution of natural resources: resources are evenly
distributed, is, some countries are naturally blessed while others have
little or no natural resources.
2. Differences in climatic condition: the climatic condition of the earth
from one region to another, this variation raises to growth of
different crops, hence the need for exchange.
3. Differences in technology: the level of technology differs from one
nation of the world to another. Some advance countries with advance
technology can produce some industrial product and sell to the less
develop countries.
4. Expansion of market for product: Foreign trades come into existence
because of the need to widen the market for goods produced by a
country.

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 5. Desire to improve the standard of living: countries engage in
international trade in order to improve the standard of living of their
people.
6. Differences in skills: the inhabitants of a region may developed
special skills in the production of a commodity such that requires
special reputation for its skill.

DIVISIONS OF INTERNATIONAL TRADE

International is divided into (3) that is import, export and intreport trade.
1. Import Trade: 'This is the acts of buying goods and services from
other countries. Sometime it is restricted to control a country's
balance of payment.
Import Trade is divided into visible and invisible trade.
a. Visible (Trade) import: these consist of goods that can be seen
and touch that is countries e.g. automobile, electronics and plants
and machinery.
b. Invisible import: it consists of services render by other countries
that cannot be seen or touched example are banking, balance of
payment.
2. Export Trade: This is the act of selling goods and services to other
countries that is selling of a country's products abroad export is
divided into visible and invisible.
a. Visible export: these consist of goods which are sold in
oversea/abroad/outside countries markets. In Nigerian visible
export are cotton groundout, palm oil, crude oil, and textiles.
b. Invisible exports: these consist of services render to other
countries such as transport, banking, insurance and other
consulting services.
3. Entreport Trade: This is a form of foreign trade in which goods
shipped to one port are subsequently re-exported to another port.
That is, entreport is the re-exporting of goods imported from other
countries

THE PRINCIPLE OF COMPARATIVE COST ADVANTAGE

The theory or principle of comparative advantage was attributed to an
English political economist David and his book principles of political
economy and taxation inn 1817. Comparative cost advantages is defined as
economic law referring to ability of any given economic actor to produce
goods and services at a lower opportunity cost than other economics
actors. In words, it refers to the ability to produce goods and services at a
greet volume. The principles states that countries derived mutual benefit
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from trade when they specialized in the production of those commodities in
which they have greatest comparative cost advantage over others and
exchange them for other commodities in which they have comparative cost
disadvantage. That is a country should produce for exporting those
commodities it can produce more cheaply and Import those it can only
produce at highest cost. A country has a comparative advantage over
others in the production of a commodity in which it has the lowest
opportunity cost than other.

ASSUMPTIONS
1. There are only two countries
2. Only two items are produced with the available resources
3. There is free flow and liability of faction of production.
4. There is no transportation
5. Technology is constant
6. Labour is the only factor of production.

In the above assumption, Nigerian and Rice and wheat.

Country's Rice Wheat

Nigeria 80 bags 30 bags

USA 30 bags 80 bags
Total 110 bags 110 bags
By the law of comparative cost advantages Nigeria should specialized in the
production of Rice while U.S.A. should specialize in the production of
wheat.

LIMITATIONS
1. There are more than two commodities in the world which make
the principle impracticable.
2. There are also more than two countries in the world.
3. There is no free transport between the countries in the world.
4. There are other factors of production other than labor e.g. capital,
land and entrepreneur
5. All countries of the world can never have equal availability of labor
6. The cost of production in the world can never be constant.
7. Trade imbalance between countries of the world makes the
principles unworkable.

GLOBALIZATION

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It refers to the economics of the global market or it is refers to the
increasing levels of trade and other forms of trade across the national
boundaries.
In other words, globalization is to explain the recent integration of
domestic economics, industries, cultures and governmental policies around
the world.

FEATURES OF GLOBALIZATION
1. There is free access to the market in the world without any
physical (quota) or fiscal (tariff) or any other government
restriction.
2. It ensures that products are marketed all over the world.
3. It requires resources like raw materials finance and technology.
4. There is free mobility of managerial, personnel's and entrepreneur
across the globe.
5. There is free flow of capital across borders.
6. It also ensures international exchange of goods and services.

CHALLENGES OF GLOBALIZATION
1. There is circle of poverty: this is due to law productivity as a result
of capital market.
2. Globalization ruined local economics where smaller competition
from bigger companies
3. It increases the gap between the poor and the rich, income
inequalities and poverty trap etc.
4. It demand more skilled workers and cause redundancy or down
sized of unskilled workers.
5. Globalization increase monopoly by countries which are equipped
with technical known how and power, that is new technology.
6. It increases unemployment: the Multi-national Corporation employ
machines to reduce the rate of employee.
7. Exploitation of underdeveloped countries: the multi-national
corporations based in developed countries purchase raw materials
at lower rate and process them in their own countries and sell
them with big profit to backward countries.

BENEFITS OR OPPORTUNITY OF GLOBALIZATION

1. It increases opportunities for social economics development
among states or nation.
2. It paves way for internal trade and investment thereby
establishing trade and bilateral related between countries.
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 3. Technological diffusion and the spread of economic development
from rich to poor countries.
4. It gives companies access to under market and consumer access
to a greater variety of goods and services.
5. Trades and investment increase within a country due to foreign
currency into a country economy.
6. Resources of different country are used for producing goods and
services.
7. It helps in cost reduction by elimination of cross boarder duties
and fee e.g. tariff and quotas
8. It helps in bringing the whole word as one village where consumer
has free and foreign reach to the product of foreigner countries.
9. People buy goods and services at a cheaper rate or price.

BALANCE OF PAYMENT
Definition: This is defined as a record showing the relationship between
country total payments to other countries and its total receipt from them in
a year.
Balance of payment can be divided into three groups (components) Namely
1. Current Account: It is made up of the total receipts and payment
of visible and invisible goods and services. Examples of invisible
services are: insurance, banking, transportation, tourism etc. and
crude oil.
2. Capital Account: this is an account which is made up of movement
of capital or money from one country to another such as
investment international grants and loans. A country balance of
payment is favorable when money received is more than the
amount she pays out and it is unfavorable when the money
received is lower than the money she pays out.
3. Monetary Movement Account: This account shows how the
balance of payment both current and capital accounts is settles. It
shows how surplus or deficit on both accounts is settled.

TERMS OF TRADE
This is defined as the rate at which a country export is exchange for its
imports. It is also a relationship between the prices a country received
from its export and the prices it pay for its import
Terms of trade is measured as.
Terms of trade = Index of export price x 100
Index of import price

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A country's term of trade are improve when the ratio increase and it
worsen when the ratio decrease.
The terms of trade are favorable if the average price of exports. This to
arise in the real national income. Since the would-be more than 100.
The terms of trade are unfavorable if the average import price is highest
than the average export price which result in more expensive import than
export and this situation worsen terms of trade. This reduces the real
national income since the index would be less than 100, defined as a
situation which occurs when total

BALANCE OF PAYMENT DISEQUILIBRIUM

This can be receipts of a country on the combined current and capital
accounts are not equal to the payment.
In others words, balance of payment dis-equilibrium occurs when total
receipt are not equal to total payment of a country.
Balance of payment Equilibrium occurs when the total receipt front other
countries equals total payment to other countries.

BALANCE OF TRADE
This may be defined as the total value of goods sold and bought by a
country during a given period usually a year. It shows a relationship
between a country’s visible export and its visible import in monetary terms.
When visible exports is equal to visible import in monetary terms, we have
balance of trade. A positive balance of trade means that a country is
exporting more in monetary terms than it is importing. Whereas a negative
or unfavorable balance of trade means that a country is importing more in
monetary terms than it is exporting.

FAVOURABLE BALANCE OF PAYMENT

This occurs when the receipt from invisible and visible export trade become
greater than payments to other countries on Invisible and visible import.

UNFAVORABLE BALANCE OF PAYMENT

This means that payment on visible and invisible import is greater than
receipt on visible and invisible exports.

BALANCE OF PAYMENT SURPLUS

There is balance of payment surplus on the total receipt from all other
countries on the combined current and capital accounts exceeding the total
payment to other countries during the given trading period.

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EFFECTS OF BALANCE OF PAYMENT SURPLUS
There will be increase in economics activities since surplus enable the
citizens of a county to have more funds at their disposal.
There will be a greater net income earning from abroad.
Inflationary tendency: the surplus must be well managed by the
government so that it will not result into inflation.
Debit retirement: Balance of payment surplus situation can help a country
to pay off previous accumulated debt.

BALANCE OF PAYMENT DEFICIT

There is a balance of payment deficit if the total payments of a country to
other countries on the combined current and capital accounts exceed her
receipts from other countries within a trading period usually a year. In
other words, balance of payment deficit occurs when a country's
expenditure flows are more than the country's income flows.

CAUSES OF BALANCE OF PAYMENT DEFICIT

1. Low level of agricultural production which make Nigerian depend
on food importation and imported input for her agro- allied
industries.
2. Low level of the technology development which makes a country a
Advance greater importer of advantage technology.
3. Excessive government expenditure, that is, it makes the country to
engage into debt.
4. Political instability: it discourages export drive and encourages
massive importation of goods and services.
5. Poor social and economic infrastructure: This contributes greatly
to low capacity utilization in the industrial sector, e.g. bad road,
insufficient supply of electricity, poor telecommunication and poor
supply of water.

EFFECTS OF BALANCE PAYMENT DEFICIT

1. It leads to reduction in economic activities due to insufficient
funds.
2. It leads to less net income due to outflow of earning to abroad.
3. It leads to deflation, that is, reduction in the value of a country's
current in relation to the currencies of other countries.
4. It increases debt rates.

ECONOMIC GROWTH

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Meaning: This may be defined as the process by which the productive
capacity of an economy increases over a given period, leading to a rise in
the income. An economy is said to be growing if there is a sustained
increase in the actual output of goods and services per head.

ECONOMIC DEVELOPMENT
Meaning: This is defined as the process where the level of national income
or per capital income increases over a period of time. In other words, it is
the process of increasing real per capital income and engineering
substantial possibility transformation in the various sectors of the economy.
The main purpose of economic development is to improve the general
well-being of the people and ensure a sustained rise in the standard of
living of the masses with the economic development, there are structural
transformations in the different sectors of the economic activity and in
different areas of the country, leading to increase in economic welfare of
the citizen.

DIFFENCES BETWEEN ECONOMIC GROWTH AND DEVELOPMENT

1. Economic growth has greater emphasis on the increase in output
and less emphasis on economic welfare. While, Economic
development lay emphasis on improvements in the general
welfare due to more equitable distribution of the increase output
of goods and services between individuals.
2. Economic growth is mainly concerned with the growth of income,
while economic development reveals all aspect of economic
activities and emphasizes in a more even distribution of facilities
between various areas.
3. There must be a meaningful increase in real income before
economic growth can take place while in economic development
measures can be achieved by a fairer distribution of existing
goods, services and amenities, even if there is no substantial
increase in output.
4. Economic growth can take place under condition of mass
unemployment (ie. when there is decrease or fall in the quantity
of goods demanded) whereas, economic development implies
education in the level of unemployment.

PROBLEMS OF ECONOMIC DEVELOPMENT

1. Inadequate Capital bases: there is inadequate capital to
execute the various developments protect which would lead to
structure transformations within the economy.
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 2. Inadequate infrastructural facilities: infrastructural facilities
such as road, rail, network, electricity, water supply and means of
communication are poorly developed.
3. Shortage of skilled and technologically trained manpower:
The manpower of development in developing countries is usually
very low.
4. Low level of saving: The level of saving in developing
economics is very low.
5. Low level of investment: low level of saving leads to low level
of investment.
6. Lack of industrialization: Lack of industrialization leads to how
economic development of any nation.
7. Political instability: frequent changes in government and
communal crises can lead to low economic development.
8. Dependence on imports: majority of agricultural and mineral
product However, high level of import discourages economic
development.

SOLUTION TO ECONOMIC DEVELOPMENT

1. Encouragement of saving
2. Encouragement of investors
3. Provision of capital
4. Promotion of industrialization
5. Technological Development
6. Political stability

ECONOMIC DEVELOPMENT PLANNING

Economic planning refers to deliberate or conscious allocation of resources
by the government to the various sectors of the economy so as to lead to
smooth and rapid economic growth.
Development planning involves the mapping of strategies by government
to achieved quick overall economic growth and development.

AIMS AND OBJECTIVES OR REASONS FOR ECONOMIC PLANNING

1. To increase the level of employment: A good economic plan will
ensure the increase in the level of employment in the economy.
2. To develop efficient technology: a good economic plan can
promote a better and efficient technology.
3. To increase the real income of citizen: the real income of the
citizen can easily be increase through a good economic planning.
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 4. Equitable allocation of resources: Development plan is aimed at
equal allocation of that country's resources to all sectors of the
economy.
5. Diversification of the economy: Through good development
planning, Nigeria economy will be diversified to many sectors e.g.
Agricultural, mining, tourism, power etc.
6. To bridge the gap between the rich and the poor - A good
economic planning ensures distribution of income more evenly
among individuals and the social - economic groups.
7. To reduce foreign control of the economy: A good development
planning will assist to reduce foreign control of the national
economy.

TYPES OF ECONOMIC PLANNING

1. Financial Economic Planning: This is the type of economic
planning which involves distribution of national income to various
sectors of the economy.
2. Strategic Planning: This type of Economic planning is directed
to meet certain objective in the economy (e-Adhoc staff, human
resource management)
3. Comprehensive Economic Planning: This type of planning
aimed at setting some targets to cover all major aspect of the
national economic.
4. Partial Economic Planning: It is the types of planning targeted
on specific segment of the national economy e.g. plan to boast
agricultural production, industry and education.
5. Controlled Economic Planning: It is also known as
Authoritarian planning common with social economic system in
which government formulates and executes plan for the economy.

ELEMENTS OF DEVELOPMENT PLANNING

Element of development planning is a rational and systematic allocation
of resources by the government aimed at increasing the rate of economic
development in all sectors of the economy. The essences of economic
planning are centered on govemmental influence, direction and control. A
comprehensive development plan is one which set its target cover all major
sectors in the national economy. Nigeria has had four such comprehensive
plans.
A particular covers only some sectors of the national economy such as
Agriculture, mining, Education, industry, Health and public sector or foreign
sector.
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Nigerian planning experience
Systematic development plan started immediately after independent and all
aimed at total Investment. Thus, the first national development plan
started 1962-1968 launched in 1962 to interfere both federal and states
programme and contain target for various sectors.
2nd National development planning 1970-1974
3rd National development planning 1975-1980
4th National development planning 1981-1985 and the
National Economic Empowerment and development strategy (NEEDS) 2003
-2009

PROBLEM OF ECONOMIC PLANNING

1. Political instability: Frequent changes in government often lead to
change in plans
2. Inadequate capital: This makes economic planning difficult to
achieve.
3. Inadequate skilled personnel: inadequate skilled labor and exports
make planning implementation difficult.
4. Rapid population growth: the emergence of rapid population
growth destabilized planning.
5. Insufficient statistical data and information: this implies that most
planning are done in wrong projection. 6. Poor implementation
plans: Unexpected or sudden Increase in the cost of projects
compared to original estimated affects planning.

ECONOMIC ORGANIZATION
Meaning: this may be defined as the coming together of different countries
with a common economic interest, goals and with the aim of promoting
economic co-operation and development among member's states.
To also protect and promote the economic and business interest of
members and to stimulate the socio-economic and cultural development
among their members.

ECOWAS: Economic Community Of West African States

ECOWAS was founded on 28 May, 1975 in Lagos with 16 independent
nations of West Africa. Abuja serve as administrative head quarter of the
community and home, (capital of Togo) the founded head quarter, the two
head of state were general Yakubu Gowon (Nigerian) president Eyadema
(Togo), who initiated the sub regional economic grouping, that is Nigeria,
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Ghana, Gambia, Sierra Leone and Liberia the English speaking nations
(Anglophone), while Senegal, Guinea, Togo, Mali, Benin republic, Burkina
Faso, cote de voire, Mauritania and Niger Republic are French speaking
(Francophone countries). And Portuguese- speaking (Busophone countries)
include Cape Verde and Guinea Bissau.

AIMS AND OBJECTIVES

1. Co-operation and development: It aim to promote co-operation
and development in all field of economic activity e.g. transport,
energy, agriculture, and telecommunication among member states
2. Trade liberalization: ECOWAS treaty was the establishment of a
common market with the aim of liberalization trade within the
region.
3. To abolish trade barrier and restrictions ECOWAS ensure that
trade barriers among member states who abolish.
4. To increase production: ECOWAS was formed to ensure faster
regional industrial development to promote increased production
of goods
5. Development of African continent: It also aims at ensuring the
process and development of African continent.
6. To reduce poverty: it aims on ensuring reducing poverty in West
African by working towards having variable economies.
7. To ensure economic stability: they are also to increase and
maintain economic within the community.
8. To raise standard of living people through co-operation within the
sub-region.

ACHIEVEMENT OF ECOWAS
1. The removal of customs duties
2. Elimination of obstacles
3. Elimination of Administration restriction
4. Growth and expansion of market.

IMF (INTERNATIONAL MONETARY FUND)

Formation: The IMF was set up after the Second World War in order to
encourage the development of foreign trade.
IMF began operation in 1947 with Head quarter in U.S.A (United States of
America), IMF has about 188 member countries.
IMF was established to encourage the balance of payment Stabilizer
equilibrium and to stabilize exchange rate among member countries.

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OBJECTIVE AND FUNCTIONS
1. To establish and stabilized exchange rate among member nations
2. To make fund available to members to finance balance of payment
deficit
3. To make recommendation to members concerning economic
policies to be adopted.
4. To encourage the development of international trade
5. To promote co-operation among member countries on financial
matters
6. To facilitate settlement of debts in foreign transitions.

INTERNATIONAL BANK FOR RECONSTRUCTION AND

DEVELOPMENT (IBRD)
The international bank for reconstruction and development (IBRD) also
known as World Bank was established in 1944 with headquarter in
Washington, United States of America.
The World Bank started with 45 members at the beginning and presently
membership has risen to 189 nations.

OBJECTIVES AND FUNCTIONS

1. Granting long term loans for infrastructural development
2. Giving expects advice on development problems
3. Provision of experts to solve development problems
4. Undertaking feasibility studies relating to economic development in
it.
5. making available the experience of other countries
6. To develop the resources of member nations.

African development bank. ADB

Formation: This bank was established in 1964 with headquarter in Abidjan,
Cote D'Ivoire. The bank is owned by African countries which belong to
Organization of African Unity, (O.A.U) now known as Africa Union (A.U).
It started full operation in 1966 with membership of 23 but in 1970
membership has risen to 31 countries. And currently it has 54 regional
members and 28 Non-Regional members

OBJECTIVES AND FUNCTIONS OF AFRICAN DEVELOPMENT BANK

(ADB)
1. Provision of loans to aid social and economic development of
member nations.

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 2. Provision of technical assistance for development project and
programmes embarked upon by member nations.
3. Promotion of both private and public investment in project which
contribute to the economic and social development of members
nations.
4. It fasters economic integration among development of member
nations.
5. Provision of fund for the agriculture development of member
nations.
6. Provision of fund for the supply and development of infrastructural
facilities e.g. electricity, water, transportation and communication.

ECONOMIC COMMISSION FOR AFRICA (ECA)

Formation: The Economic Commission for West Africa (ECA) also known as
the United National Economic commission for Africa was established in
1958 with its headquarter in Addis Ababa, Ethiopia. It major aim is to
promote the social and Economic development of African.

OBJECTIVE AND FUNCTIONS OF ECA

1. To ensure the regional economic development of Africa continent.
2. To promote regional economic co-operation
3. To create uniformity where possible and fashion out economic
policies for Africa continent
4. To accelerate economic growth and integration in Africa
5. To ensure on manpower training and development for the entire
African continent
6. To conduct research in areas of production and technology

EUROPEAN ECONOMIC COMMISSION (EEC)

Formation: the European Economic Community was established by Treaty
of Rome, Italy in 1957 by six European countries which include: French,
West Germany, Italy, Belgium, Netherlands and Luxembourg. It started
operation in 1st January, 1955 after the national parliaments of the 6
countries ratified the Rome Treaty and Later Denmark, Britain, Ireland
Joined in 1973 which increase its membership to nine.

OBJECTIVES AND FUNCTIONS

1. To adopt a common tariff policy
2. To eliminate barriers of the free mobility of labor and capital
between members states.
3. To adopt a common transport policy among member nations
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 4. To eliminate trade restrictions, thereby ensuring free trade
between members’ nations
5. Removing existing obstacles to guarantee a steady expansion

OPEC: ORGANIZATION OF EXPORTING COUNTRIES

Formation: OPEC was formed in 1960 in Baghdad (Iraq) by five main oil
exporting countries which includes: Iran, Iraq, Kuwait, Saudi Arabia and
Venezuela.
This was essentially a reaction to the exploitation tendencies of multi-
national companies involved in oil exploration. As a result of this success in
the organization by maintaining oil price stability and uniformity of policies,
this attracted 8 other countries to join the body which now the organization
to have (13) thirteen in total and the states on nations are fellows: Qatar
(1961), Indonesia (1973), Libya (1962), United Arab Emirate (1973),
Algeria (1969), Nigeria (1971), Gabon (1973) and Ecuador (1973). The
secretariat of the organization is in Vienna, Austria.

AIMS & OBJECTIVES OF OPEC

1. Stabilization of oil price in the world market OPEC was formed to
ensure or maintain the stability of oil price in the world market.
2. Co-ordination of petroleum policies: OPEC was set up to ensure
the co-ordination and harmonization of oil policies of its member
countries are to improve the bargaining power.
3. To ensure steady supply of oil and regular supply to the world
market or consummations.
4. To fixed and allocates production quota to member nations
5. OPEC examines and ensures participation of foreign multi-national
companies.
6. To encouraged exploration and development of petroleum
resources to members- nations

PROBLEMS OF OPEC
Rivalry in Leadership: The rivalry for the leadership of the organization
between Saudi Arabia and Iran is big problems face OPEC.
Entry of non-OPEC members into oil industry: The emergence of another
international oil market in 1980 has reduced OPEC'S Influence.
Decline of loyalty of member's nations: There is constant disagreement
among members of OPEC in the fixing of prices and production quota.
Stockpiling of oil by advanced nations: The activities of advanced nation in
stockpiling oil which contributes to the fall of oil price.

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Fall in price of oil: The world economic depression brings about fall in oil
price.
Political disagreement: There has been some political disagreements
between members countries e.g. Iran, Iraq, Kuwait.
Research for oil substitution by advanced countries: There is increasing
research by the advanced countries to find substitute for oil.

SOLUTIONS/REMEDIES OF OPEC
1. Imposition of penalties: penalties or fines have been imposed on
member's nations that go against the rules and regulation of the
body.
2. Joint Research: Members of the organization have embarked on
joint research to counteract that of the western and advance
nation to find a substitute for oil.
3. Strengthening of unity among its members: The organization is
making efforts to create unity among its members.
4. Fixing of production quota: The organization has enforced its rules
to make sure that members nation adhere to their production
quotas.
5. Rotation of leadership the p position: There should be rotation of
key position in the organization among the member nations.
6. Maintenance of a reasonable oil price OPEC has tried to maintain a
reasonable oil price in order to avoid price fluctuation.

GENERAL AGREEMENT ON TRADE AND TARIFFS (GATT)

Formation: it was formed soon after world II ended in 1947 in Geneva
(Switzerland)
The GATT was a trade treaty implemented to boost economic recovery
and to regulate trade and Investment.
The primary purpose of GATT was to increase International trade through
eliminating or reducing various tariffs, quotas and subsidies while
maintaining meaningful regulations.
GATT becomes law on January, 1948 singed by 23 countries which
eventually led to 123 countries creating the world trade organization
(WTO) IN January, 1995.
The GATT was the first World Wide multilateral free trade agreement.
It took effect from June 30, 1948, until 1January, 1995 when it was
absorbed by the world trade organization.

OBJECTIVE OF GATT
1. Expansion of international trade
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 2. Increase of word production by ensuring full employment in the
participating nation
3. Development and full utilization of world resources.
4. Raising the standard of living of the world community as a whole.
5. To reduce or remove trade barriers between members countries.
6. To promote international confidence in tariffs policies.

UNITED NATIONS CONFERENCE ON TRADE AND DEVELOPMENT

(UNCTAD)
Formation: The UNCTAD was established in 1964 with tis headquarters in
Geneva, Switzerland. It was created as an organ of the United Nations by a
resolution passed by the United Nations Organization (UNO).
The UNO convene meeting for the purpose of discussing their growing
international trade problems and their poor level of development and the
wide gap between development and under-developing countries in terms
of their standard of living.
The first conference was held in Geneva, Switzerland in 1968 and the
second in New Delhi, India in 1978.

Objectives and functions

1. To assist in solving the international trade problems of the
undeveloped countries.
2. To helps in solving balance of payment difficulties of developing
countries.
3. To promote trade between developed and developing countries
with a view to accelerate economic development
4. To formulate principles and principles on international trade and
related problems of economic development
5. To accelerate the rate of economic growth of the developing world
6. To make proposal for putting its principle and policies into effect.

CURRENT ECONOMICS PLANS

MDGs (Millennium Development Goals)
Meaning: The Millennium Development Goals have eight international
development goals that were officially established following the millennium
summit of the United Nations In 2000 After the United Nations adopted
and make declaration of millennium goals all the 193 United Nations
members states, 23 international organizations agreed to achieve these
goals by the year 2015.

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The goals are as follows:
1. Eradicating Extreme poverty and hunger
2. Achieving universal primary education
3. Promoting Gender equality and empowering women.
4. Reducing Child mortality rates 5. Improving maternal health
6. Competing HIV/AIDS, malaria and other diseases.
7. Ensuring environmental sustainability
8. Development a Global partnership for development.

OBJECTIVE OF MDGs
1. Eradicate extreme poverty and hunger
a. "Halve," between 1990 and 2015, the proportion of people whose
income is less than one dollar day.
b. "Halve," between 1990 and 2015, the proportion of people who suffer
from hunger.
2. Achieved universal primary education
Ensure that, by 2015, children everywhere boys and girls are like,
will be able to complete a full course of primary schooling.
3. Promote gender equality and empower women. Eliminate gender
disparity in primary and secondary education by 2005 and to all
level of education not later than 2015.
4. Reduce child mortality rate: Reduce by two third between 1990
2015 the under-five mortality rate.
5. Improve maternal health: Reduce by three quarter between 1990
and 2015, the maternal mortality rate. 6. Combat HIV/AIDS,
malaria and other diseases
Have halted by 2015 and begun to reverse the spread of
HIV/AIDS
Have halted by 2015 and begun to reverse the incidence of
malaria and other major diseases.
6. Ensure environmental sustainability. Integrate the principles of
sustainable development into country policies and programme and
reverse the loss environmental resources.
Halve by 2015 the proportional of people without sustainable
access to safe drinking water.
By 2020 to have achieved a significant improvement in the lives of
at least 100 million slum beveller.
7. Develop a Global partnership for development. Deal
comprehensively with the debt problems of developing countries
through national and international measures murder to make debt
sustainable in the long term.
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 In with the private sector, make available the benefits of new
technologies especially information and communication.

NATIONAL ECONOMIC EMPOWERMENT AND DEVELOPMENT

STRATEGIES (NEEDS)
The National Economic Empowerment Development Strategy is derived
from the urgent requirement of value orientation the vision of NEEDS to
Nigeria is to set value and principles which will facilitate the achievements
of national goals of wealth creation employment generation and poverty
reduction.
The achievement of National goals depends on a sound macroeconomic
framework, agenda with emphasis on strengthening the growth,
macroeconomic environment and agent within the system.
The specific reform programmes in NEEDS includes Government
and institutional reform which include:
1. Public sector reforms
2. Privatization and liberation
3. Government
4. Transparency and anticorruption
5. Services delivering by government agencies
NEEDS also specific private sector reforms which will address private
issues such as security and rule of law, infrastructure finance, sectorial
strategies, privatization and liberalization and trade and regional
integration.
It also entails attain and development Agenda or Social character which
focus on health, education, integrated rule development, housing,
development and youth development, safety net, as well as geological
balance.
NEEDS has become a platform for both the federal and states
government will co-ordinate a planning frame work with agreed common
priorities in agriculture, public finance and public sector reforms, with
emphasis on the social sector.
OBJECTIVES OF NEEDS
1. Poverty Reduction
2. Empowerment Generation
3. Wealth Creation

VISION 2020
Vision2020 as it is stated in vision 20 of 2020 economic Transformation
Blue print (2019) that by the year 2020Nigeria will have a large, strong,
diversified sustainable and competitive economy.
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 This will effectively harness the talents and energies of its harnesses the
talents and energies of people and responsibly exploits its natural
endowments to guarantee a high standard of living and quality of life to its
citizens
To achieve the above, Gross Domestic Product (GDP) of not less than 900
billion is required.
This means that the there is need for national per capital income not to be
less than 4000 annually by the year2020, that is, Nigeria economy must
grow at an average of 13.8 percent in year 2020, and that Nigeria is
expected to generate 60,000 megawatt of electricity in year 2020.

OBJECTIVES OF VISSION 2020

The visions 20 of 2020 have social economy, institutional and
environmental dimensions
1. The social dimension: That, there should be equal society that
can sustain a life expectancy of at least 70 years.
2. The economic Demission: this envisages a vibrant economy
whose manufacturing sector can contribute at least 25 percent
to Gross Domestic Product (GDP).
3. The institutional Dimension: this expects a stable democracy.
4. The environmental Dimension: This envisions effective
management of our natural environments. It is pretty clear.

ECONOMICS DEVELOPMENT CHALLENGES

Economic Development Challenges refers to the problems or challenges
which the economy is experiencing that tend to draw back the growth and
development of the country.
Some of these challenges are as follows poverty, debt burden and debt
relief, HIV/AIDS eradication power and energy supply, Resources control
and corruption.

MEANING AND EFFECT OF POVERTY

Poverty is an abstract word which can be associated with many things.
Therefore, poverty is used in conjunction with materials possessions
belonging to people.
So the word poverty means a lack of material possessions belong to a
person.
Poverty in material terms is typically measured by monetary value.
In today standard, poverty has been determined by World Bank as
having an income of less than 2 per day.

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 Poverty can also be measured in terms of materials goods, that is,
poverty often equate to a lack of some of the most basic important
materials good such as shelter, clothing, gender equality, health facilities,
education, jobs and increase in diseases and sickness.

EFFECTS OF POVERTY
Poverty can lead a person experience the following:
1. Hunger
2. Malnutrition
3. Malaria
4. Lack of sanitation and water
5. Gender inequality
6. HIV/AIDS
7. Poor healthcare
8. Low education
9. Unemployment
10. Poor materials and childcare
11. Low wages
12. Street children
13. Domestic violence
14. Large family size
15. Local exclusion
16. Low life expecting

Methods of Poverty Alleviation and Eradication

The solution for poverty is to find where the poor can work their own way
out of poverty, some of the few interventions which have fairly diverse in
eradicating poverty.
1. Applying appropriate combinations of mineral fertilizers, using
green manures to improve soil fertility, planting trees, imposed
measured of soil erosion, using nitrogen faxing seeds can
improve soil health. This lead to more employment, more
income per-capital and more to invest in farming.
2. Improved water, sanitation, Feeder and main roads, Alternative
energy sources (e.g. kerosene, Gas for Cooking),, rural
electrification all empower women by allowing them to spend
less time doing basic things. Improve gender equality which
increases access to reproductive health care that is material
and child health, better birth spacing and more per-capital
income through population control.

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 3. Nutrition's school meals, farming improvements, clean water
sanitation, hygiene education and s means nutrition education
can all leads to improved nutrition leads to improve in health in
general worldwide. People who are healthier are able to work
for longer hours, this means less unemployment and more
ability to provide nutritious schools, clean water and sanitation.

AGENCIES FOR POVERTY ALLEVIATION

NAPEP: National Poverty Eradication Programme is a Programme
introduce by Nigeria government in 2001 aim at reducing Absolute poverty.
NAPEP: was introduced to oversee various institutions, ministries and
develop plans and guidelines to fellows in other eradicate or reduce
poverty.

GOALS OF NAPEP
The goal of NAPEP includes:
a. Training youths in vocational trades
b. To support internship in various ministries
c. To support micro-credit for small and medium scale business
d. Creation of employment in the automobile industry.
In year 2008 analysis, NAPEP Programme has been able to train 130, 000
youths and engaged 216,000 persons.
In a bit to overcome poverty in Nigeria has differences and structure
Programme between 1977 till date which includes:
1. Directorate of Food, Roads, and Rural infrastructure (DFFRI)
2. Better life Programme (BLP)
3. National Directorate of employment (NDE) d. People Bank of
Nigeria (PBN)
4. Community Bank (CB).
5. Family Support Programme (FSP)
6. Family Economic Advancement Programme (FEAP)
7. Poverty Eradication Programme (PEP)
8. National Poverty Eradication Programme (NPEP)
9. National Economic Empowerment Development Strategy
(NEEDS)
Their aims are to reduce the suffering of the people by providing them
with employment opportunities and access to credit facilities to enable
them establishes their own business.

SOME ECONOMICS DEVELOPMENT CHALLENGES IN NIGERIA

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1. Debt burden and Debt Relief: This refers to the massive
accumulation of huge dells b the country, that is, when local,
state and a federal government borrows money and refuse to
pay back. As a result of this debt burden, the economies of a
country do not grow. Debt burden can only be removed by
developed countries through debt relief.
2. HIV/AIDS and the Economy: These diseases have become a
major threat to economy in which it has cause a lot of problem
to the economy. That the disease is not curable is more
worrisome because is more common with the youths who form
the large percentage of the working population. This situation
will affect economy negative thereby lead to low productivity
and slow down the growth and development of the nation.
3. Power and energy supply: The power and energy supply
particularly electricity is a big problem to the economic growth
of a nation. Inadequate supply of power has slowdown the
economic activities in terms of productivity.
4. Resources control: This refers to the control and management
of resources by local, state government. The staff or local
government management resources under the guidelines of
federal government and then remit taxes to the federal Centre.

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