Project – The impact of Good Government on Economics Growth and National Development in Nigeria

CHAPTER ONE

INTRODUCTION

• Background to the Study

The impact of good governance on economic growth and national development in Nigeria has been a subject of intense debate among scholars and policymakers. A study by Okeke and Eme (2015) posits that good governance, characterized by transparency, accountability, rule of law, and effective public administration, significantly influences economic growth. They argue that these elements of good governance create an enabling environment for businesses to thrive, thereby stimulating economic growth.

In a similar vein, a study by Akinwale (2018) found a positive correlation between good governance and national development in Nigeria. The study revealed that good governance, particularly in the form of effective public administration and the rule of law, promotes national development by fostering social cohesion, reducing inequality, and enhancing the delivery of public goods and services. This, in turn, improves the living standards of the citizens, which is a key indicator of national development.

However, the relationship between good governance and economic growth in Nigeria is not without its challenges. According to a study by Okafor and Eiya (2013), corruption, which is a major governance issue in Nigeria, has a negative impact on economic growth. They argue that corruption undermines the effectiveness of public administration, discourages investment, and hampers the delivery of public goods and services, thereby stifling economic growth.

Furthermore, a study by Oyedele (2017) suggests that the impact of good governance on national development in Nigeria is weakened by the country’s high level of ethnic diversity and regional disparities. The study argues that these factors create social divisions and conflicts, which undermine the effectiveness of governance and impede national development.

Despite these challenges, there is a consensus among scholars that good governance is crucial for economic growth and national development in Nigeria. A study by Adebayo and Ogege (2019) asserts that improving governance, particularly in terms of reducing corruption and promoting the rule of law, is key to achieving sustainable economic growth and national development in Nigeria.

Good governance plays a significant role in promoting economic growth and national development in Nigeria. However, there are challenges, such as corruption and ethnic diversity, that need to be addressed to maximize the impact of good governance on economic growth and national development.

• Statement of the Problem

The problem of the impact of good governance on economic growth and national development in Nigeria is a multifaceted issue that has been the subject of numerous studies and debates. Despite the country’s abundant natural resources and potential for economic growth, Nigeria has struggled with issues of poor governance, corruption, and mismanagement, which have significantly hindered its economic development and growth.

The first aspect of the problem lies in the lack of transparency and accountability in the government. This has led to widespread corruption, which has drained the country’s resources and stifled economic growth. According to Transparency International’s Corruption Perceptions Index, Nigeria ranked 149 out of 180 countries in 2020, indicating a high level of corruption.

Secondly, the problem of inadequate infrastructure, which is a direct result of poor governance, has also had a significant impact on Nigeria’s economic growth. The lack of reliable power supply, good roads, and other basic infrastructure has hindered the growth of businesses and deterred foreign investment.

Thirdly, the issue of insecurity, largely due to poor governance, has also affected economic growth and development in Nigeria. The rise of insurgent groups and the high rate of crime have created an unstable environment that is not conducive for economic activities.

Furthermore, the problem of poor policy implementation is another aspect of the issue. Despite the formulation of policies aimed at promoting economic growth and development, the lack of effective implementation has rendered these policies ineffective.

Lastly, the problem of income inequality and poverty, which are consequences of poor governance, have also impacted economic growth and national development. Despite being Africa’s largest economy, Nigeria has one of the highest poverty rates in the world, with about 40% of the population living below the poverty line.

The problem of the impact of good governance on economic growth and national development in Nigeria is a complex issue that requires urgent attention. The issues of corruption, inadequate infrastructure, insecurity, poor policy implementation, and income inequality are all facets of this problem that need to be addressed.

• Aim and Objectives of the Study

The study examines the impact of Good Government on Economics Growth and National Development in Nigeria. The specific objectives are:

1. To examine the relationship between good governance and economic growth in Nigeria.
2. To assess the role of good governance in national development in Nigeria.
3. To identify the key indicators of good governance and how they influence economic growth.
4. To evaluate the policies implemented by the Nigerian government to promote good governance.

1.4 Research Questions

The research questions are buttressed below:

1. What is the relationship between good governance and economic growth in Nigeria?
2. How does good governance contribute to national development in Nigeria?
3. What are the key indicators of good governance and how do they influence economic growth in Nigeria?
4. How effective are the policies implemented by the Nigerian government in promoting good governance? 

• Research Hypothesis

The hypothetical statement of the study is buttressed below:

Ho: Good governance has no significant impact on the economic growth of Nigeria.

H1: Good governance has significant impact on the economic growth of Nigeria.

1.6. Significance of the Study

The significance of studying the impact of good governance on economic growth and national development in Nigeria cannot be overstated. Nigeria, as one of the largest economies in Africa, has a crucial role to play in the continent’s overall development. Understanding the role of good governance in this context is therefore of paramount importance. This study aims to shed light on the intricate relationship between governance and economic growth, providing valuable insights for policymakers, researchers, and the general public.

Good governance, characterized by transparency, accountability, and efficiency, is a critical factor in promoting economic growth. It fosters an environment conducive to investment and innovation, which are key drivers of economic development. By examining the impact of good governance on Nigeria’s economic growth, this study could provide empirical evidence to support the implementation of good governance practices. This could potentially lead to improved economic performance, benefiting not only Nigeria but also setting a positive example for other developing economies.

Furthermore, the study’s focus on national development underscores the broader implications of good governance beyond economic growth. Good governance can contribute to national development by promoting social equity, ensuring the rule of law, and enhancing public service delivery. By assessing the role of good governance in national development, this study could highlight areas where governance reforms could have the most significant impact.

The identification of key indicators of good governance is another significant aspect of this study. By identifying these indicators and understanding how they influence economic growth, the study could provide a roadmap for improving governance practices. This could be particularly useful for policymakers seeking to implement reforms that will have the most significant positive impact on the economy.

The evaluation of policies implemented by the Nigerian government to promote good governance is also a crucial part of this study. This could provide a critical assessment of the effectiveness of these policies, highlighting areas of success and identifying areas where improvements could be made. This could inform future policy development, ensuring that efforts to promote good governance are as effective as possible.

The significance of this study lies in its potential to contribute to our understanding of the relationship between good governance and economic growth and national development in Nigeria. The findings could inform policy decisions, promote good governance practices, and ultimately contribute to Nigeria’s economic and social development. This study could therefore have far-reaching implications, not only for Nigeria but also for other developing economies seeking to promote good governance and economic growth.

1.7. Scope of the Study

The study examines the impact of Good Government on Economics Growth and National Development in Nigeria.

1.8. Operational Definition of Terms

1. Impact: This term generally refers to the effect or influence that an event, situation, or person has on someone or something. In different contexts, it can have slightly different meanings. For example, in physics, impact refers to the collision of two objects.
2. Good Government: This term refers to a government that effectively fulfills its responsibilities towards its citizens and operates with efficiency, transparency, accountability, and without corruption. It respects and upholds the rule of law, protects human rights, and promotes social justice and economic development.
3. Economic Growth: This is a measure of the increase in a country’s economic activity. It’s usually measured as the percentage increase in gross domestic product (GDP) or gross national product (GNP) during one year. Economic growth can be influenced by factors like technological innovation, population growth, capital accumulation, and government policies.

4. National Development: This refers to the process of improving the economic, political, and social well-being of a nation. It involves policies and programs designed to improve education, healthcare, infrastructure, and economic growth, among other things.
5. Nigeria: This is a country located in West Africa. It’s the most populous country in Africa and the seventh most populous country in the world. Nigeria has a mixed economy and is considered an emerging market. It has a diverse culture with over 250 ethnic groups, with the largest being the Hausa, Yoruba, Igbo and Fulani. The official language is English.

Project – The impact of Good Government on Economics Growth and National Development in Nigeria