The role of internal and external capital in the economic development of Nigeria

Abstract

The purpose of this study is to consider the sources and methods of financing economic growth available to a low income country as exemplified by the experience of Nigeria in the period since the second World War. During this period, virtually every country in the world has been preoccupied with the problems of economic growth, either in order to facilitate post war reconstruction or as a means of raising living standards in wretchedly poor territories. In the last decade, international attention has been attracted more and more to the attempts of the so-called underdeveloped countries to attain some measure of sustained economic growth. Similarly, academic debate on the problems of growth has centred mainly around the problems of creating an economic revolution in the economically backward areas of the world. It is of interest, therefore, to examine the problems of growth facing a particular low income territory and to consider the methods which may be adopted in order to solve those problems. This study will concentrate on the problems of capital supply and formation in Nigeria, although of necessity other factors will have to be examined so that the problem of financing economic development may be seen in its proper context. The work for this thesis was made possible by the grant of a Goldsmiths' Company scholarship for one year's residential study (during the academic year 1958 - 59) at University College, Ibadan. I am deeply grateful to the Company for the opportunity to do research at Ibadan and also take part in student life there. Since June 1959, I have been employed as an administrative officer in Eastern Nigeria.