Achieving Sustainable Economic Development in Nigeria: Relevance of the Nigerian Investment Promotion Commission Act and the Public Enterprises (Privatization and Commercialization) Act

Abstract

It is true that third world countries, of which Nigeria is one, have remained economically backward since gaining political independence often because, they continue to run mono-economies driven by primary productive activities.[1] There are many excuses often advanced for this anomaly including their colonial histories, lack of political will to institutionalize basic economic structures, political instability and legislative inconsistencies, poor technological base and expertise and debilitating and endemic corruption. This paper found among other things that the result of all these is underdevelopment concomitant with economic stagnation, social and economic inequities and inequality and a vicious cycle of poverty for a great majority of the population. The paper has exposed the crisis in which third world economies have found themselves and evaluated the economic development processes in Nigeria, its history, content and context, and inhibitions to growth and development. It has examined in the light of the above the impact and relevance of two major economic legislations in Nigeria namely the Nigerian Investment Promotion Commission Act and the Public Enterprises (Privatization and Commercialization) Act and has recommended practical actions that need to be taken if the country would locate itself within the league of advanced economies. These actions include, but not limited to, the diversification of the economy; creation of stable energy and power; creation of enabling legal regime that encourages among other things the infusion of foreign direct investment into the economy; improvement on security; and political stability.

Keywords: Sustainable development, investment, privatization, economic development, commercialization, nationalization.

[1] The economy of Botswana depends on the mining of diamonds; Burkina Faso on the export of cash crops such as cotton; Cameron on cash crops such as cocoa, coffee and timber; Chad on farming and cattle related agriculture; Cote d’Ivore on cocoa and coffee export; Egypt on oil and agriculture; Equatorial Guinea on oil and agriculture; Ethiopia on agriculture; Ghana on oil, minerals and timber; Ghana on agriculture; Congo on agriculture; Mali on the export of cotton and other cash crops; Mauritius on sugar export; Morocco on agriculture and mining; Mozambique on agriculture and mining; Namibia on exploitation of natural resources such as diamonds, agriculture and fishing; Nigeria on oil and agriculture. Senegal on agriculture mostly groundnuts and cattle; South Africa on agriculture and manufacturing; Tanzania on Agriculture, mining and tourism; Uganda on agriculture, industry and services; and Zimbabwe on agriculture, manufacturing, mining and tourism. See generally, African Economic Outlook, OECD Publication, 2010.