Original Research Article

Finance, development and growth in Nigeria: Obstacles, steps adopted and DOHA recommendation

Dr. Satope Bola Funmilayo

Faculty of Business and Social Sciences, Adeleke University, Ede; Osun State, Nigeria

E-mail: satopetito@yahoo.com; Tel: 08035789408

Accepted October 06, 2014

Abstract

The definitions of both economic growth and economic development are related and show that a nation cannot achieve economic development without having achieved economic growth. A close relationship is said to exist between the three variables: economic growth, economic development and financial development (Kehinde and Adejuwon, 2011). There are many factors determining growth which were divided into demand and supply sides in economics. Nigeria as one of the developing countries in Africa, despite the fact that the country is one of the richest and most populous countries in the continent has relatively low life expectancy at 50 years, and even negative relationships between economic growth and growth variables from empirical studies. These are seen as indication of low level of development in the country despite its rich resources. This paper therefore used analytical technique and descriptive statistics to examine some of the reasons for low economic growth/development in Nigeria using secondary data from World Bank, and Central Bank (CBN). A deepening poverty; corruption, unemployment, poor infrastructures, inadequate capacity for socio-economic management; poor leadership, a low per capita income and others were found existing as obstacles to growth. The steps already taken by the country for development were identified as banking reform, poverty alleviation programmes and others. However, recommendations were made for better economic growth of the economy based on the causes of low growth of the country like corruption, fluctuating real GDP, poverty, poor governance and others and the recommendations of DOHA International Conference for development.

Keywords: Development, Economic growth, Financial reform, GDP, Nigeria