An Economic History of Nigeria r86o-r96o ~NIGERIA 'i---_"'-r-....__,....._:_;10.00 Miles 1600 Km l Geographical location An Economic History of Nigeria I860-1960 R. Olujemi Ekundare Methuen & Co Ltd I I New Fetter Lane London EC4 I~ Fir$~ published_l973 by Methuen & Co Ltd, 11 New Fetter Lane, Londo11 EC4P 4EE © 1973 R. 0. Ekt111dare Printed in Great Britain by Richard Clay (The Chaucer Press) Ltd Bungay, Suffolk SBN hardbound 416 75150 4 SBN paperback 416 75160 1 This title is available in both hardbound and paperback editio11s. The paperback edition is sold subject to the condition that it shall not, by way of trade or otherwise, be lent, resold, hired out or otherwise circulated without the publisher's prior consent in any form of binding or cover other than that ir1 which it is published and without a similar condition including this condition being imposed 011 the subsequent purchaser. To my wife, Stella Adeola Contents List of tables page xi List off igures XV Foreword by Professor Peter i\1athias xvii Preface XXI PART I: INTRODUCTION I An introduction to Nigeria Population, 5; Historical background, 8; Political changes, 12; The national economy, 15 2 An outline of pre-I86o foreign contacts and their effects 2I The trans-Saharan trade, 21; Regular Europea11 maritime contacts, 24; The slave trade, 28 Social and economic conditions by I86o 37 The indigenous social and political stmctHre, 3 7; The fiscal system, 38; Agriwltural production, 39; Local i11dustries and crafts, 41; The problems of excha11ge, 46; Transport and corn rrmnicatioll, 46; Commodity-currencies, 48; Local trade, 49; Foreign trade, 50 PART 2: THE FIRST BRITISH FOOTHOLD I 860-I900 4 General survey 57 Political der,elopments, 6o; Tire church missions and educatiorr, 64; The fiscal system, 65 The foundation of modern commerce 70 Transport and cornrrumicatiorr, 70; Agriculture arrd minirrg, 79; Money, currency arrd barrking, 84; Foreigrr trade, 88 viii Contents PART 3: THE COLONIAL PERIOD TO 1945 6 General survey Political developments, 104; Fiscal policy, 106; Economic conditions and policy, 1 1 7 7 Transport and communications Inla11d waterways, 128; Government marine services, 130; Railways, 134; Roads a11d road transport, 142; Rail-road competition, 147; Air transport, 149; Ocean shipping, 151; Communicatiotls, 154 Agricultural developments Palm products, 1 62; Cocoa, 167; Cotton, 169; Other products, 171; Livestock, 173 9 Modem industrial production The extractive industries, 176; The non-extractive industries, 185 IO Money, currency and banking Money and wrreucy, 187; Banking, 192 I I Foreign trade The export trade, 197; The import trade, 209; Competition in foreign trade, 217 PART 4: THE MODERN ECONOMIC REVOLUTION I946-6o I2 General survey Political changes, 226; Economic planning, 229; The fiscal system, 233; Development institutions, 244 13 Transport and communications Inla11d waterways, 253; Railways, 257; Roads, 264; Air tra11sport, 269; Ocea11 shipping, 272; Post and telegraphs, 274 14 Agricultural production and the marketing boards Oil palm products, 281; Cocoa, 282; Cotto11, 283; Ground mlts, 284; Rubber, 284; Agricultural research, 285; The marketing boards, 286 15 Industrial development Business incentives, 295; Industrial establishments, 299; Industrial production and the Nigerian economy, 31 o Contents ix 16 Money, currency and banking 3 I3 Money and wrrency, 313; Commercial banking, 316; The central bank, 324; The Stock Exchange and the Nigerian money market, 326 17 Foreign trade 328 The export trade, 330; The import trade, 335; Trade balance and the terms of trade, 341; Trade competition, 343 PART 5: LIFE, LABOUR AND SOCIETY IB The impact of development on the society 349 Health and population, 349; Education, 356; Labour, 360; The co-operative movement, 376 19 Epilogue: the post-independence years to 1972 383 Philosophy on economic growth, 383; The political economy of sectoral participation, 385 ; The national development plans, 388; Economic indicators, 397 Statistical appendix 403 Bibliography 417 Index 441 Tables I. I Nigeria: area, population and density 7 !.2 Population of Nigeria by ethnic group, 1963 8 !.3 Gross domestic product at 1962 factor cost, 1958-67 IS !.4 Second National Development Plan: major items of expenditure 20 3·I Export of palm oil to Britain from West Africa, I 83 I- so 5I 3·2 Imports from Britain to West Africa, r83I-50 52 4·I Revenue and expenditure ofLagos: selected years, 1862- 99 66 5·I Vessels entering the port of Lagos, I 863-1900 76 5·2 Post Office Savings Bank deposits, Lagos I889-99 77 5·3 Palm oil production estimates, and palm oil and palm kernel exports, Lagos I865-89 8o 5-4 Exports of cocoa, Lagos I886-99 8I 5·5 Values of total imports and exports, Lagos 1865--99 93 5.6 Total volume of exports and average prices for palm oil and palm kernels, Lagos I88I-90 94 5·7 Values of cotton goods imported into Lagos: selected years, I 862-99 95 5.8 Percentage of total imports and exports of Lagos with principal countries: selected years, I865--99 96 6.1 Nigerian government revenue and e":penditure, 1929- 45 112 6.2 Index numbers of import, export and domestic prices, 1926-40 119 6.3 Colonial Development Fund for Nigeria, 1932 I2I 7·1 Marine services, Nigeria 1925-35 IJ2 7·2 Nigerian railway: total cost of construction, 1914-38 137 xii Tables 7·3 Nigerian railway: goods traffic, 1916-38 138 Nigerian raihvay: mileage, passenger and goods traffic, 7·4 139 1924-39 Nigerian railway: detailed statement of receipts, 1903- 7·5 140 38 . 7·6 Roads maintained by the Nigerian government outstde townships, 1924-38 144 7-7 Commercial vehicles registered in Nigeria, 1929-39 146 7·8 Aircraft arriving from cmmtries outside Nigeria, 1941-5 ISO 7-9 Cargo vessels entering Nigerian ports, 1914-38 152 7.10 Letters, parcels and telegrams handled by the Nigerian Post Office, 1914-38 155 8.1 Number of oil presses in use, 1932-7 165 8.2 Oil palm plantations, 1928-36 165 8.3 Palm oil production estimates, and palm oil and palm kernel exports, Nigeria, 190o-44 166 8.4 Exports of cocoa, 190o-44 168 8.5 Exports of cotton, 190o-44 170 8.6 Exports of groundnuts, 190o-44 172 9·1 Exports of tin: selected years, 1907-45 179 9.2 Number of tin-mining concerns, capital of companies and their relative size 180 9-3 Total output of gold, 1914-45 181 9-4 Production and employment in the coal mines, 1924-36 183 10.1 Money in circulation: selected years, 1922-45 194 10.2a Liabilities of principal banks, 1943-5 195 10.2b Assets of principal banks, 1943-5 195 11.1 Mean minimum distance of farms from metalled roads, navigable waterways and railways 198 11.2 Exports of principal products, 1928-34 205 11.3 Imports of cotton piece goods: selected years, 190o-38 210 1!.4 Imports of certain goods: selected years, 190o-45 213 11.5 Percentage of total imports and exports with principal countries: selected years, 1900-38 215 12.1 Nigerian government revenue, 1946-60 233 12.2 Nigerian government expenditure, 1946-60 234 12.3 Company tax by taxable profit, 1955--60 239 12.4 Allocation of funds under the Colonial Development and Welfare Acts, 1945-55 240