1.1 BACKGROUND OF THE STUDY
In 1982, the international financial marketers were already seized with the debt crises, following the public admission of Mexico and a number of debt Aor nations of their inability to continue to fulfill their external debt obligations (Presbisch 1963; 10). In Nigeria, the period between 1980 and early 1985 was characterized by drastic fall in oil revenues and therefore in foreign exchange portfolio, accompanied by an unprecedented increase in import bills and deteriorating balances of payments. By 1986, Nigerians outstanding external indebtedness, including short- term trade arrears, had hit the N57 billion marks, while the debtor agencies grow from bad to worse. The situation also earned Nigeria a considerable deterioration of her image vis-a-vis her principal foreign creditors and trading partners (Okon 2005; 447).
The distinguished Argentina economist, Paul presbisch alluded to this in the 1950’s, when he said. In the face of huge balance of payment deficits, Nigeria was badly in need of external loan to enable her regain equilibrium.
According to World Bank report (1994), Nigerians creditors were reluctant to reschedule her external debt, grant fresh loans or open new lines of credit for the importation of industrial raw materials and other imports, especially following the country’s rejection of the IMF Loan. Nigeria was thus faced with an embarrassing cross-conditionality to produce a certificate of guarantee (a clean bill of economic health). IMF itself could not enclose such a certificate- a pre conditional which was a demonstrable commitment on the part of Nigeria to embark upon structural adjustment measures, including the devaluation of her over-valued naira.
Factors accounting for Nigerians mounting external debt included foreign exchange leakages through wide-spread over invoicing of exports, borrowing the fiancé non-tradable project, poor debts management , whereby short –term debts were centered and used for log –term development purposes, thus leading to poor maturity, profile or the bunching of repayment, currently over valuation, low income rates and uncontrolled external borrowings by state governments and other public agencies, sometimes without federal government knowledge, approval guarantee and documentation. Between 1979 and 1983, state government in Nigeria were known to have indiscriminately contracted external loans for consumption of goods and materials for social infrastructural facilities without any consideration whatsoever for the means of repayments as when due. Such uncoordinated borrowing by state governments and other agencies were responsible for much of the problem of debt-bunching and subsequent researching.
- STATE OF THE PROBLEM
Most government policies/reforms in Nigeria have failed to achieve the desired objectives because of either lopsided implementation or total failure to give effect to the motive of the policy or reform. The Nigerian Public servants have expressed doubt as to the government’s sincerity in carrying out the implementation of the monetization policy to a logical conclusion. It is expected that the reform programme will minimize the massive waste, misuse, abuse and fraud that characterized the provision of fringe benefits to the public servants. The reform will encourage public servants to own personal houses; enable public servants to plan for more comfortable service life; reduce capital cost and reduce expenditure on rent as public servants who constitute majority of tenants in the urban centres would have developed their personal houses. The realization of these benefits would depend on the effectiveness of the implementation of the reform. The reform process places special strains on the civil service, which must undergo major adjustment that may increase uncertainty and lower moral in the transition period. The government has planned to down-size its workforce by 30,056 (The Guardian Sunday September 4, 2005 p.1), about 90 per cent will be the lower cadre of civil servants within the poverty bracket, especially those without basic entry qualifications for the positions they occupy. This will have adverse effect on those to be affected and will worsen the unemployment situation in the country. Thus, the exercise is elitist, both in conception and implementation. Those in the echelon of administration will enjoy higher percentage of monetized allowances. There is a very low prospect for junior workers to buy their quarters through the bidding process. Therefore, the intention of providing houses and reducing poverty of public servants will not be achieved, especially, when the junior workers constitute more than half of government workforce. The implementation of the monetization policy needed a large volume of funds for the wide-spread coverage of the policy. Due to the amount of money needed monthly for the implementation, the Nigerian government is facing difficulty in the procurement of funds for the reform. State governments are yet to implement the policy due, perhaps, to lack of funds to do so. Similarly, the monetization policy just like any other policy (where initiators of policies and programmes do not usually take total cognizance of how policy works) has the problem of continuity which depends so much on the political will or survival of the group undertaking the reform. No sooner the initiator leaves office, than the policies begin to collapse. Monetization seems to be heading the same way as up till now there is nothing serious to show that monetization is really working as expected. In spite of the policy, the costs of maintaining the public service continued to escalate while the avenue for corruption, through under appropriation of benefits, gained ascendancy. The research study is geared towards providing solutions to these challenges facing policy formulation and implementation in nigeria
- RESEARCH QUESTIONS
The following research questions were formulated for the purpose of the research study, so as to assist in generating data for the research study.
In the course of this research work, a lot of problems emerged. This work therefore sets out to address the following problems
- What were the impacts of structural adjustment programme on the economy?
- Was structural adjustment programme policy for economic recovery?
- Was structural adjustment programme a success or a failure?
- PURPOSE OF THE STUDY
The objectives of the study are as follows:-
- To examine the impacts of structural adjustment programme on the economy.
- To ascertain whether structural adjustment programme policy are for economic recovery.
- To know if the structural adjustment programme a success or a failure.
1.5 STATEMENT OF HYPOTHESIS
For the purpose of this work, the following hypothesis have been formulated
Ho: structural adjustment programme (SAP) reduces western dependency on the Nigerian economy.
Hi: Structural adjustment programme (SAP) does not reduce western dependency on the Nigerian economy
Ho; Structural adjustment programme (SAP) yielded the much needed economy recovery in Nigeria.
Hi: Structural adjustment programme (SAP) has not yielded the much needed economy recovery in Nigeria.
1.6 SIGNIFICANCEOF STUDY
This work is so essential because it will prove itself as a handwork to policy makers, statesmen, politicians and even bureaucrats alike which is also reliable and as a vent able guide for future policy formulation and implementation.
It will also provide the platform for more indebt research into the art and science of policy formulation and implementation in Nigeria especially within he period when administration of development is much harped on by different regimes for much cherished development and economic growth in Nigeria.
This work will expose the flaws inherent with structural adjustment programme as it concerned the objectives and goals of second tier foreign exchange market which created more problems than it was created to solve. The reason for failure of structural adjustment programme is vividly exposed.
Furthermore, the efficiency and effectiveness of the leadership are so enhanced with the skill and technique for policy formulation and implementation for effective result especially during the structural adjustment programme period, decision, it is expected that the study would expose the actuation factors that influences and shape the nations public making process.
- SCOPE OF THE STUDY
The limitation of this study is based on the constraints the researcher faced during carrying out this research and those constraints are;
- Lack of finance to carry out the research
- There was no enough time for the researcher to adequately carryout his research.
- The researcher also has this problem of traveling long distance to get information also with high cost of transportation.
1.8 Limitations of the Study
In the course of writing and carrying out this project work, the research encountered many difficulties; some errors in the results of the research and from external sources of data collection. These are factors standing as constraints thereby limiting the effect of the research result.
Among these are, time finance , scope and use of wrong statistics in data analysis, due to time limit, the research work is a time consuming one. A lot of time is taken to observe the subjects.
Most times the behaviour of the staff changes even when they are aware that they are being observed by the researcher, this is by taking their behavior. The researcher also observed that these senior staff some time give true and false information in order to cover their branches.
At sometime the research work lasted over two months due to large scope of area of the study.
1.9 DEFINITIONS OF TERMS
From the advanced oxford learner’s dictionary, problem is used to be something that is difficult to deal with or understand. So problems can also be called difficulties.
Structure is a component part that helps in making a whole and institution that help in executing the formation of the government.
iii. POLICY FORMULATION
Policy formulation is affirmative decision which entails the approval of a preferred policy alternative, some body or policy actors
- POLICY IMPLEMENTATION
Policy implementation is giving help and effect to policy so that objective of the policy can be achieved
THE POLICY OF SAP refers to a programme that is aimed at alleviating poverty form Nigeria and other third world country that faced serious economy postern and need recovery to increase the standard of living of the people
Adjustment is an organ or faculty that determine behavior in
Response to stimulus
A programme is a plan of things that will be done or included in the development of anything.
A politics is all human activities that are involved is getting and using power in public life and bring also a decision that influence others in any place.
- PUBLIC POLICY
A public policy in this connection refers to those definite actions of government that is towards the fulfillment of the obligation of the state.
1.10 Organization of the Study
This research work is organized in five chapters, for easy understanding, as follows. Chapter one is concern with the introduction, which consist of the (background of the study), statement of the problem, purpose of the study, research questions, research hypotheses, significance of the study, scope of the study etc. Chapter two being the review of the related literature presents the theoretical framework, conceptual framework and other areas concerning the subject matter. Chapter three is a research methodology covers deals on the research design and methods adopted in the study. Chapter four concentrate on the data collection and analysis and presentation of finding. Chapter five gives summary, conclusion, and recommendations made of the study
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