ONYEKA, CHINYERE VIVIAN
REG. NO: PG/M.Sc/13/65611
PRIVATE ENTERPRISES AND RURAL
DEVELOPMENT IN ANAMBRA STATE
DEPARTMENT OF PUBLIC
ADMINISTRATION AND LOCAL
GOVERNMENT
FACULTY OF SOCIAL SCIENCE
Digitally Signed by: Content manager’s Name
Ebere omeje
DN : CN = Webmaster’s name
O= University of Nigeria, Nsukka
OU = Innovation Centre
2
PRIVATE ENTERPRISES AND RURAL DEVELOPMENT IN ANAMBRA
STATE
BY
ONYEKA, CHINYERE VIVIAN
REG. NO: PG/M.Sc/13/65611
DEPARTMENT OF PUBLIC ADMINISTRATION AND LOCAL
GOVERNMENT
UNIVERSITY OF NIGERIA, NSUKKA
SUPERVISOR: PROF. CHIKELUE OFUEBE
NOVEMBER, 2014
i
TITLE PAGE
PRIVATE ENTERPRISES AND RURAL DEVELOPMENT IN ANAMBRA STATE
BY
ONYEKA, CHINYERE VIVIAN
REG. NO: PG/M.Sc/13/65611
A PROJECT PRESENTED TO THE DEPARTMENT OF PUBLIC ADMINISTRATION
AND LOCAL GOVERNMENT UNIVERSITY OF NIGERIA, NSUKKA, IN PARTIAL
FULFILLMENT OF THE REQUIREMENTS FOR THE AWARD OF MASTER OF
SCIENCE (M.Sc.) DEGREE IN PUBLIC ADMINISTRATION
SUPERVISOR: PROF. CHIKELUE OFUEBE
NOVEMBER, 2014
ii
APPROVAL PAGE
This work has been approved for the Department of Public Administration and Local
Government, Faculty of the Social Sciences, University of Nigeria, Nsukka.
By
PROF. CHIKELUE OFUEBE.
(SUPERVISOR)
………………..
Sign
……………….
Date
DR. (MRS) S.U AGU
(HOD)
………………
Sign
………………
Date
PROF. I . A. MADU
(Dean, Faculty of the Soc. Sc.)
………………
Sign
……………..
Date
………………………….
(EXTERNAL EXAMINER)
……………….
Sign
……………
Date.
iii
DEDICATION
This work is dedicated to my beloved family.
iv
ACKNOWLEDGEMENTS
My profound gratitude goes to God Almighty to whom I am greatly indebted, for his
mercies, provision, love and grace towards me and my family. Also I wish to express my
unalloyed gratitude and appreciate to my dedicated lecture and project supervisor Prof Chikelue
Ofuebe, for his patience and very useful suggestion in the course of writing this project.
I remain grateful to my able lecturers who in their own ways contributed to my success;
Prof. Fab. Onah, Prof. (Mrs). R. C. Onah, Prof. (Mrs). Oguonu, Dr. Ikeanyibe, Dr. C. U.
Agalamanyi, Dr. (Mrs). M.A.O. Obi, Dr. B.A. Amujiri
and Dr. Sam Ugwu for their moral
support.
My immense gratitude goes to my beloved Parents, Mr & Mrs Augustine Onyeka for
their understanding and encouragement and financial support during this period and also to my
siblings especially Dora Onyeka.
I also wish to say a big thank you to all my friends who encouraged and helped me in
one way or the other Olise Charles, Njoku Nnanna, Mrs. Awa Oluchi, Nwokoye Anthony and
Ori Gabriel.
Onyeka, Chinyere Vivian.
Department of Public Administration and
Local Government
v
ABSTRACT
This work centered on private enterprises and rural development in Anambra state. The
objectives include: to ascertain the extent to which private enterprises have contributed to rural
development in Anambra state; to find out the challenges facing private enterprises in rural
development in Anambra state; to examine the measures to enhance participation of private
enterprises in rural development in Anambra state.It is a survey type of research since it
investigated what happened in the researcher’s absence. It is also explanatory in nature; having
tried to explain the role played by private enterprises in Anambra state. In sampling, stratified
random sampling technique was applied where the researcher created strata to represent different
interests within the population. Also, purposive sampling was applied in the selection of the
respondents, since only those who possessed relevant information could respond well to the
researcher’s interview. In the same vein, data was gathered using primary and secondary
instruments such as interview, books and journals. Content analysis was used to analyze the data
gathered. Thus, the findings are that: private enterprises in Anambra state have not contributed to
rural development through the provision of social infrastructure, though their presence in the
rural areas of Anambra state has helped in solving the problem of rural-urban migration. They
have provided employment as in the case of Innoson Nigeria Limited; poor planning, lack of
managerial skill and lack of fund are among the challenges facing private enterprises in rural
development in Anambra state; the formation of unions and associations by private enterprises,
fair government regulations and cordial relationship between the private enterprises and the rural
community are some of the measures that enhance participation of private enterprises in rural
development in Anambra state. Finally, we recommend that: private enterprises should as a form
of corporate social responsibilities, provide social amenities that will improve the living
standards of the local people; there is need for sustained collaboration between government and
the operators of private sector organizations by providing adequate incentive and the needed
enabling environment to stimulate and foster the growth of the private sector organizations in
Nigeria; rural populace should increase their efforts in patronizing the products and services of
private enterprises in the rural area in order to encourage them to serve the rural people better
and expand their ventures and bring development to the rural people.
vi
TABLE OF CONTENTS
Title Page
Approval PageDedication
Acknowledgement
Table of Contents
i
ii
iii
iv
v
CHAPTER ONE: INTRODUCTION
1.1 Background to the Study
2.2 Statement of the Problem
1.3 Objectives of the Study
1.4 Significance of the Study
1.5 Scope and Limitations of the Study
1
6
7
8
9
CHAPTER TWO: LITERATURE REVIEW
2.1
Literature Review
2.1.1 Private Enterprises
2.1.1.1 Private Sector Organisations Performance in Nigeria
2.1.1.2 Characteristics of Private Enterprises
2.1.1.3 Problems of Private Enterprises
2.1.1.4 Prospects of Private Sector
2.1.2 Rural Development in Nigeria
2.1.2.1 Characteristics of a Rural Area
2.1.2.2 Principles of Rural Development
2.1.2.3 Problems Affecting Rural Development in Nigeria
2.1.2.4 Approaches to Rural Development
2.1.3 Gap in Literature
2.2
Theoretical Framework
2.3
Hypotheses
2.4
Operationalization of key concepts
10
10
12
13
15
18
19
20
22
23
29
32
33
36
36
CHAPTER THREE: BACKGROUND INFORMATION ON THE STUDY AREA
3.1 Research Procedure
3.1.1 Research Design
3.1.2 Population of the Study
3.1.3 Sample and Sampling Technique
3.1.4 Methods of Data Connection
38
38
38
38
39
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3.1.5
3.1.6
3.2
Test of Validity and Reliability of Instrument
Method of Data Analysis
The Study Area
39
40
40
CHAPTER FOUR: DATA PRESENTATION AND ANALYSIS
4.1
Data Presentation and Analysis
52
4.2
Findings
65
4.3.1
Discussion
67
CHAPTER FIVE: SUMMARY, RECOMMENDATIONS AND CONCLUSION
5.1
Summary
70
5.2
Recommendations
71
5.3
Conclusion
72
Bibliography
viii
LIST OF TABLES
Table 4.1: Response to type of social amenities that private enterprises provided for
your area.
53
Table 4.2: Response to if it was provided as part of community development service or under
compulsion by either the government or the community?
54
Table 4.3: How often or regular do private enterprises engage in community development
projects in your area?
55
Table 4.4: To what extent will you say that private enterprises have curbed
rural - urban drift?
56
Table 4.5: How often does a private enterprise employ people from this/your area?
56
Table 4.6: How does insufficient fund affect the role of private enterprises in rural
development?
58
Table 4.7: How do you agree that sole proprietors of private enterprises possess the managerial
and technical abilities to manage their enterprises?
58
Table 4.8: How does low patronage from the rural dwellers affect the role of private enterprises
in rural development?
59
Table 4.9: How does the government provide an enabling environment for private enterprises to
thrive in Anambra State?
60
Table 4.10: Does poor planning of the private enterprises affect the role of private enterprises in
rural development?
60
Table 4.11: Can government regulations enhance the role of private sector in rural development
in Anambra State?
62
Table 4.12: How can the formation of unions and associations improve the roles of private
enterprises in rural development in Anambra state?
63
Table 4.13: How does a cordial relationship between the rural community and private enterprises
improve the role of private enterprises in rural development?
64
Table 4.14: How will annual report on Corporate Social Responsibility improve the company’s
commitment for sustainable rural development?
64
Table 4.15: To what extent do you think that rural banks have enhanced the growth and
development of private enterprises in rural areas?
65
1
CHAPTER ONE
INTRODUCTION
1.1
Background to the Study
In mixed economies like Nigeria, there exist two sectors in the economy. These sectors in
spite of the difference in their nomenclature, goals, mission and vision, do work hand in hand to
maintain a healthy economy. These sectors include public and private sectors. The public sector
includes all those agencies, organizations, institutions, etc. that are under government
management and control. On the other hand, the private sector includes establishments,
businesses, agencies, etc that are in the hands of individuals or groups.
In other words, Henry (2012:55) opines that the public sector is composed of
governments, government agencies and government corporations. Implicit here is the fact that
the public sector is directly under the management and control of government. The author goes
further to maintain that the private sector includes profit-seeking companies. This underlines the
fact that the private sector is profit-oriented; everything they do, they do in a bid to make profits
on invested income.
Similarly, in the words of Marchetti (2007:6), the rural private sector includes a whole
continuum of economic agents, ranging from subsistence or small holder farmers, rural wageearners, livestock herders, small-scale traders and micro entrepreneurs; to medium-sized, local
private operators such as input suppliers, microfinance institutions, transporters, agroprocessors,
commodity brokers and traders; to other, bigger market players that may or may not reside in
rural areas, including local or international commodity buyers and sellers, multinational seed or
fertilizer companies, commercial banks, agribusiness firms and supermarkets. The author goes
2
further to state that associations of farmers, herders, water users or traders also constitute an
important part of the private sector.
Notably, a vast majority of Nigeria’s poorest people lives in villages and these villages
are in a state of neglect and underdevelopment with impoverished people. The problems of
hunger, ignorance, ill health, high mortality and illiteracy are most acute in rural areas. This is
not only because of shortage of material resources but also because of defects in our planning
process and investment pattern. Nigeria has the potential to meet these challenges in rural areas.
However, the efforts of Governments may not be adequate to provide basic services to its
citizens. It is being increasingly recognized that progress and welfare of a society is not only the
responsibility of the Government alone, but many more stakeholders need to be involved to
attain the development goal (Save the Children Sweden, 2007).
Nevertheless, the private sector has a pivotal role to play in ensuring that private
investment flows to those rural areas that have been left out of the development process so far
and also to work for sustainable development of rural areas in general. Over the past few years,
as a consequence of rising globalization and pressing ecological issues, the perception of the role
of private sectors in the broader social context within which it operates, has been altered. The
private sector considers itself an integral part of society and accordingly acts in a socially
responsible way that goes beyond economic performance Pradhan and Ranjan, (2010:139). As a
result of this shift from purely profit to profit with social responsibility, the author goes further to
posit that many private sectors are endorsing the term ‘Corporate Social Responsibility (CSR)’.
It is essentially a concept whereby companies decide voluntarily to contribute to the society to
make it better and environmentally cleaner. Generally, CSR is understood as “the commitment of
business to contribute to sustainable economic development by working with employers, their
3
families, the local community and society at large to improve their quality of life, in ways that
are both good for business and good for development. Thus, through social responsibility, or
corporate social responsibility as some others call it, private sector organizations and enterprises
contribute immensely and meaningfully to the development of, not only their host communities,
but the rural areas at large.
Characteristically, rural areas are usually sparsely populated because many people leave
rural areas to settle in urban areas for more facilities resulting in what scholars refer to as ruralurban migration. Rural society has homogeneity in its profession i.e. their only source of earning
is agriculture and this is transmitted from generation to generation. They have low means of
communication, slow rate of change because of lack of education and modern facilities and also
simple culture transmitted from generation to generation (Farooq, 2012).
Bale as cited by Barrios (2007:8), defines rural development as including "the provision
of social and physical infrastructure, the provision of financial services in non-urban areas,
small-medium enterprises activities in rural communities and market towns that are more closely
linked to the rural economy than they are to the economies of the larger urban cities, as well as
the development of traditional rural sectors, such as agriculture and natural resource
management." The key elements that will facilitate the realization of rural development include
social infrastructure, physical infrastructure, and financial services. The dynamics of these three
elements will pave the way to uplift the living conditions of rural households. Observing events
and issues related to such dynamics can facilitate the measurement of the constructs of rural
development. It is also characteristic of rural areas that people enjoy strong relationships and
interactions which act as a strong tie that bonds them together.
4
As noted by the Asian Development Bank Institute (2014), rural areas are characterized
by isolation, lack or inadequate provision of basic amenities, inadequate health and social
services. Isolation needs to be resolved to enable the other issues to be resolved. Therefore, rural
development is a multi-dimensional process by which the productivity, income and welfare, in
terms of health, nutrition, education and other features of satisfactory life of rural people can be
improved upon or transformed (Obetta and Okide, 2012).
Rural development has scope that is broad and elastic, and it depends on the interaction
of many forces such as the objectives of the programme, the availability of resources for
planning and implementation, etc. In developing countries, such as Nigeria, rural development
projects will include agricultural set-up projects, rural water supply projects, rural electrification
projects, rural feeder-road and maintenance projects, rural health and disease control projects,
rural education and Adult education campaign, rural telecommunication system, and rural
industrialization. Based on the scope of rural development (as the improvement of the total
welfare of the rural low-income people), the following objectives of rural development evolved:
a. To have greater commitment of the resources to the rural areas in terms of budgeting
allocation and actual expenditure.
b. To ensure popular participation of the rural people in the identification of priorities,
planning of programmes as well as their implementation.
c. To lay greater emphasis on the use of total resources and promotion of local skills.
d. To expand and improve on rural infrastructure such as roads, markets stalls, electricity,
water and storage facilities.
e. To maintain political and social stability.
5
f. To create rural employment opportunities.
g. To increase commodity out-put and production and subsequently increase food and food
supply as well as rural farm incomes (Obetta and Okide, 2012).
Generally, development is seen as process by which man increases or maximizes his
control and use of the material resources with which nature has endowed him and his
environment. Notably, private enterprises are agents of development in rural areas as well. These
enterprises contribute in no small way to the development of these rural areas which are not
densely populated. The private sectors in rural areas include various types of companies with
various levels of formality, revenues, size and outreach. It has occurred to the knowledge of the
researcher that in as much as government is not helping the private enterprises in the rural
development, they have contributed much in the development of the rural areas.
According to Marchetti (2014:7), private sector has become the engine of growth in rural
economies. With the growing trend since the late 1980s towards public sector retrenchment and
greater reliance on market forces for most productive activities, it is now a well-established fact
that the private sector has become the engine of growth in developing economies.
However, Anambra state as one of the notable commercial cities in Nigeria is occupied
with different forms of economic activities. The latest trend is the emergence of private sector
ownership or entrepreneurial activities. These emerged private sectors strive to bring more
quality commodity, effective and efficient services deliveries which were all criticisms labeled
against public sectors in Anambra state. The integrative strategy of the private sector stimulates
them to put into consideration the taste and price of product that suits the desire of people in the
state especially people at rural category. This enhances the rural development which had been
6
neglected by the epileptic service delivery by the public sector. Private sectors in Anambra state
seem to have taken the burden of providing job opportunities to jobless youths in the state. Based
on this premise, this study intends to explore and critically evaluate the private sector in
Anambra State and its impacts on rural development.
1.2
Statement of the Problem
Rural Development was formerly a burden borne by the government and sometimes,
though rarely, by communities via self-help. However, owing to the teeming nature of
development needs of the rural populace and the ever-growing scope of government
responsibilities, private enterprises now engage in rural development via corporate social
responsibility. Therefore, the extent of such contributions in Anambra state needs to be identified
and properly documented while suggesting strategies for improvement.
Over the years, Nigeria, like other developing countries, has adopted a private sector-led
growth with emphasis on policies that will promote investment and industrial development
Osemeke (2011: 178). Recognizing the leading role of the private sector organizations in
economic growth does not necessarily mean that the nature of its role in fully understood. With
so much focus on the role of the private sector throughout the world, there seems to be some
obtainable issues that prevails or exist in private sector in rural development such as issue of
Poor management practices and low entrepreneurial skills, Limited access to funds, Inadequate
and deteriorating infrastructures support for example, electricity, water, road, etc. the key
question to ask is how can the issues of private sector organizations be harnessed and managed to
bring about economic growth and a sufficient quality of life to the people in rural areas.
Providing answers to this question amongst others is the sole objective of this paper, and doing
7
this is more important to developing countries like Nigeria who are always at the receiving end
of different development paradigms using Anambra as the study Area.
The following are the research questions which this work hopes to provide answers to at
the end of this work:
1. What is the extent to which private enterprises have contributed to rural development in
Anambra state?
2. What are the challenges facing private enterprises in rural development in Anambra
state?
3. What are the measures to enhance the participation of private enterprises in rural
development in Anambra state?
1.3 Objectives of the Study
This work centers on establishing and unraveling the interconnectivity between private
enterprises and rural development in Anambra State. Generally, development is seen as process
by which man increases or maximizes his control and use of the material resources with which
nature has endowed him and his environment. Rural development is a very necessary aspect of
development which should be pursued the whole process of development.
Notably, private enterprises are agents of development not just in urban but in rural areas
as well. These enterprises contribute in no small way to the development of the rural areas which
are not densely populated. It is also characteristic of rural areas that people enjoy strong
relationships and interactions which act as a strong tie that bonds them together.
8
However, it has the following as its objectives:
1. To ascertain the extent to which private enterprises have contributed to rural development
in Anambra State.
2. To find out the challenges facing Private Enterprises in Rural Development in Anambra
State.
3. To examine the measures to enhance participations of private enterprises in Rural
Development in Anambra State.
1.4. Significance of the Study
The essence of research is for other people to benefit from it. In view of this, Olisakwe
(2009:17) opines that a research carried out for its own sake is of no practical use to humanity
hence, we try to tailor our research to meet certain basic requirements of both practical and
intellectual needs as justification for the resources expended on the venture.
Therefore, this research has theoretical and empirical significance. Empirically, this study
will assist in identifying more pragmatic ways of achieving rural development through the
activities of private enterprises. This is because the efforts of private enterprises at achieving
rural development shall be expounded on while at the same time enumerating the problems
facing rural development in the country.
Theoretically, this study will serve as a source of information to scholars and students
who may wish to carry out research on private enterprises and rural development generally and
in Anambra state particularly.
Finally, the recommendations made at the end of this research will help the private
enterprises to know the steps to follow in setting a good plan and as well help the government to
9
know the importance of providing an enabling environment for private enterprises so that they
will thrive.
1.5
Scope and Limitations of the Study
The scope of this work revolves around Anambra State. It looked into the
interconnectivity between private enterprises and rural development in the area.
However, certain limitations were encountered in the course of this work. These include
the following:
Firstly, the researcher was unable to cover all the local governments in Anambra State
because of the large population of the state, which severely limited the representativeness of the
sample.
Secondly, research requires eliciting information from respondents. At such point,
researchers are expected to use a suitable medium to do so. The medium used by the researcher
was interview. Here, the researcher was limited by the reluctance of some respondents to give a
reliable information and it took the researcher some days before she could be able to meet the
administrators that she interviewed. This limited the number of respondents involved in the study
despite the researcher’s efforts and warm approaches.
Thirdly, one of the greatest challenges the researcher encountered relates to access to and
collection of hard data due to extreme data gaps and paucity. There are numerous literatures on
Private Enterprises and Rural Development, but none establishes interconnectivity between
them. There was no literature that expounded on the contributions of private enterprises to rural
development in Nigeria, let alone Anambra State. Most of the rural private sectors don’t keep
accurate data, the information given to the researcher are based on their own speculations. This
made it difficult ascertaining how far private enterprises have contributed in the development of
rural areas.
10
CHAPTER TWO
LITERATURE REVIEW
2.1
Literature Review
This chapter centres on reviewing what other scholars have said or done on this subject to
lay a theoretical foundation for the study. In other words, one of the easiest ways of economizing
efforts in an inquiry is to review and build upon the works already done by other people. The
types of works to be reviewed here include books, journals, newspapers, articles and official
documents relevant to the subject matter in question.
However, this work is a thematic study and as such, this literature review is done in two
themes which have sub-themes. The themes are:
1. Private Enterprises: (a) Characteristics of Private Enterprises; (b) Reasons for Private
Enterprises in Nigeria; and (c) Problems of Private Enterprises in Nigeria. (d) Prospects
of private Sector.
2. Rural Development in Nigeria: (a) Characteristics of a Rural Area; (b) Principles of Rural
Development; and (c) Problems Affecting Rural Development in Nigeria. (d) Approaches
to Rural Development.
2.1.1
Private Enterprises:
There is no consensus in the literature on what constitute the private sector. Nevertheless,
the Development Assistance Committee of the OECD as cited by Osemeke (2011: 179) defines
private sector as “a basic organizing principle for economic activity where private ownership is
an important factor, where markets and competition drive production and where private initiative
and risk-taking set activities in motion”.
11
In the words of Imaga in Osemeke (2011: 180), he posits that the private sector also
refers to all economic institutions, business firms, foundations, and cooperatives etc. that are not
owned by the government, the private sector enterprises are often described by other names such
as capitalism, free enterprises system, the voluntary exchange economy, the market system, and
the profit system.
In Nigeria, the private sector is said to include any self-employed person or any
employer of labour who does not belong to the government or public sector, anyone who is an
employer or self-employed and who does not belong to the government or public sector is
believed to be operating in the private sector.
The part of the economy that is not state controlled, and is run by individuals and
companies for profit. The private sector encompasses all for-profit businesses that are not owned
or operated by the government. Private enterprises are those ventures that operate in the private
sector of the economy. They are usually owned and managed by private individuals, groups, etc.
for the sole aim of making profits.
The Organization for Economic Co-operation and Development (OECD) as cited by
Genteuil (2011:2) gave a very broad definition of the private sector, they said that private sectors
includes private corporations, households and non-profit institutions serving households, while
others strictly limit it to the corporate and business world. The meaning given to the term in
practice is nonetheless clear: it relates to private investors, i.e. for-profit enterprises - and,
secondarily, private foundations.
IFAD (2007:6) gave a clear understanding of what constitutes the private sector in rural
areas. The rural private sector includes a whole continuum of economic agents, ranging from
12
subsistence or smallholder farmers, rural wage-earners, livestock herders, small-scale traders and
micro entrepreneurs; to medium-sized, local private operators such as input suppliers,
microfinance institutions, transporters, agro- processors, commodity brokers and traders; to
other, bigger market players that may or may not reside in rural areas, including local or
international commodity buyers and sellers, multinational seed or fertilizer companies,
commercial banks, agribusiness firms and supermarkets. He went further to say that Associations
of farmers, herders, water users or traders also constitute an important part of the private sector.
Private sector comprises all ventures or aspects of a nation's economy controlled by
individuals rather than government. Obanya in Asiegbu & Ezeugbor (2013:443) presents four
categories of the Nigerian private sector as:
1) Micro-business, which ranges from petty trading, petty contracting, to a variety of one-person
enterprises
2) Small and medium sized enterprises, for which there is also a wide variety.
3) Established businesses and corporations, in the organized private sector proper.
4)
Multinational enterprises.
2.1.1.1 Private Sector Organizations Performance in Nigeria
The private sector in Nigeria has been dogged by weaknesses inherent in its skewed
structure, indicated by a few multinational companies that are heavily import-dependent. They
mostly operate as enclaves and a large segment of essentially, informal sector, small and medium
scale enterprises (SMEs) with very little, if any linkage to the huge multinationals and a rent
seeking and unproductive culture of over-dependence on government patronage and contracts.
13
Nigeria, though embarked on a periodic development planning exercise as early as the
1960s, failed to realize the importance of private sector and market oriented policy in the process
of overall development of the nation till the late 1980s and this resulted to several economic
distortions. However, a distinct departure took place in the overall development policy and
strategies in the country, particularly after the adoption of the Structural Adjustment Program
(SAP) in the mid-80s and the subsequent deregulation and liberalization of the economy.
Consequently under the new policy paradigm, a liberal policy anticipating greater role of private
initiatives in the economy has been in place replacing the controlled economic policies practiced
under the Mixed Economic Approach (MEA).
The private sector did not live up to expectations, despite the then favourable
environment. During structural adjustment, the private sector was supposed to serve as an engine
of growth. Rather sadly, after years of structural adjustment measures the private sector was not
able to respond adequately to the desire for increased production, employment and stable prices.
The share of manufacturing industries in Gross Domestic Product (GDP) was still low, while
capacity utilization was a little above 30 percent (Iwara, 2007).
Essentially, the performance of the Nigerian private sector vitiated the major assumption that
underlines an International Monetary Fund (IMF) adjustment program the effect that the private
sector has the capacity to respond to supply-side incentives (Ekpo, et al, 2008)
2.1.1.2 Characteristics of Private Enterprises
Private sectors are owned, controlled and financed by private businessman. There is no
government participation in them. The main motive of private sector is to earn profits. An
14
effective private sector organization displays the following major characteristics, which is the
modification of Imaga in Osemeke (2011:180). These characteristics include:
(a) Private ownership of business: In private enterprise system, business or private enterprises
are owned by individuals or groups rather than by the government or society as a whole. The
owners of a business has certain rights which include: the right to operate the business with
minimum of outside interference, the right to retain control over a large part of the profit
generated by the business, the right to compete freely with other businesses for raw materials,
personnel, customers, new products, new production techniques etc and the right to enter
business freely, either personally or by investment of capital.
(b) Freedom of choice: the managers and workers are free to choose their occupations, to
change job, and to negotiate salaries, wages and other benefits. Consumers are free to select the
goods they buy with a minimum of government or social pressure.
(c) Private Property: This refers to the right of individuals or group to own and control
physical resources as well as personal possessions. The right to private property has been
justified on ethical and pragmatic grounds.
(d) Limited Role of Government: In a market economy, government is limited in its economic
role but is not entirely inactive. Government functions such as administering justice, protecting
individual freedom and providing for adequate national defense is to establish the economic rules
of the game.
(e) Profit Motive: The efficiency allocation of resources in a market system is also affected by
profit. Profit represents the difference between what a businessman receive for the products he
sells and what he must pay to produce and market them.
15
However, Syngh (2010) supported the above characteristics of private sector given by
Imaga when he gave his own characteristics as:
(a) Private Ownership and Control: A private sector is fully owned and controlled by the
private entrepreneurs. It may be owned by one individual or by a group of individuals
jointly. When owned by one person, it is called Sole Proprietorship. A group of persons
may jointly own the firm in the form of joint Hindu family business, partnership, Joint
Stock Company or cooperative society.
(b) Profit Motive: The main objective of private sector is earning profits. Profits provide the
reward for the risk assumed and the required return on capital.
(c) No State Participation: There is no participation by the Central or State Governments in
the ownership and control of the private sector.
(d) Private Finance: The capital of a private sector is arranged by its owners. The sole trader
contributes the capital of a sole proprietorship. In case of partnership, capital is invested
by the partners. A joint stock company raises capital by the issue of shares and
debentures. A private sector undertaking can also raise loans to meet its long-term and
short-term needs for funds
(e) Independent Management: A private sector is managed by its owners. In case of sole
proprietorship and partnership, the owners directly manage the firm. The management of
a joint stock company lies in the hands of directors who are the elected representatives of
the shareholders.
2.1.1.3 Problems of Private Enterprises in Nigeria
There are many challenges to be addressed to make private sector vibrant and conducive
for propelling the economic growth. By and large ensuring an investment friendly environment
16
and implementing adequate compensation policies for its employees are the key challenge before
the nation. According to Osemeke (2011:184), Private sector organizations, over the years, have
been adversely affected by the following constraints:
(a) Limited access to funds in money and capital markets.
(b) Unpredictable and weak policy framework.
(c) Inadequate and deteriorating infrastructures support for example, electricity, water, road,
etc.
(d) Low consumer purchasing power.
(e) Poor/low quality products.
(f) High cost of equipment and working capital.
(g) Multiple Levies and taxes. Although the tax system has witnessed some improvements in
recent years, it is still uneven, with an irregular pattern of exemptions to consumption taxes and
import tariffs.
(h) Inefficiencies in customs and port administration.
(i) Dumping of cheap products on the Nigerian market.
(j) Complexities in the legal framework. For example, there is a lack of adequate legal
procedures for enforcement of contracts. This lacuna introduces additional (and unnecessary)
uncertainties into normal business relationships in the system. (k) High import dependency of
the nation’s economy.
17
(l) Poor management practices and low entrepreneurial skills.
In addition to the above constraints, the other major issues challenging the development
of the private sector for optimal performance according to Afolabi in Osemeke (2011:184) are:
•
Diversification of export trade in terms of both destination and products.
•
Establishment of inter-linkages between trade and industry.
•
Equity in the distribution of benefits of liberalized trade policy between small and cottage
industries, and large industries.
•
Maintaining balance between labour interest and private sector development.
•
Mobilization of public resources for infrastructure development.
•
Strengthening institutional effectiveness to provide support for private sector
development.
•
Stability and predictability of the policy environment.
•
Inadequacy in entrepreneurship and professional maturity in the private sector.
Establishment of inter-industrial linkages.
•
Establishment of standard accounting practices and transparency in business transaction.
•
Transparency in the regulatory mechanism of the government.
•
Consistency and confidence in the government economic policies.
•
Comprehensive tax reform to widen tax income revenue and objectivity in
administration.
•
Developing good corporate governance.
18
2.1.1.4 Prospects of Private Sector in Nigeria
Despite the numerous challenges and difficulties faced by the private sector, a more
vigorous pursuit of the economic reform process in Nigeria in the last few years has yielded
some dividends and has laid the foundation for long-term private sector-led growth. The reform
program is aimed at promoting greater private sector participation in economic activity. Some of
key elements of the reforms are: maintenance of sound macro-economic policies, deregulation,
with emphasis on power, telecommunications, and downstream petroleum sectors, financial
sector reforms and privatization.
These policy reforms combined with investments in human resources and physical
infrastructure as well as the establishment of macro-economic stability and good governance, are
essential to achieve a high rate of self-sustaining, long-term economic growth (Amah, 2007).
Thus the on-going streaming and strengthening of key institutions, the provision of long-term
strategic programmes for key sectors of the economy to guide investors, the pursuit of foreign
investment by opening up the economy and providing the legal framework for protecting
investments into the country, the refocusing of the role of government in the economy and the
encouragement of private initiatives through various government policies have created a new
order in Nigeria.
The overwhelming consensus in 1999 was in support of bold economic reforms
especially private sector empowerment that would fundamentally change the structure and
performance of the economy. Events in the country have shown that the challenges to reform are
enormous and require a determined administration committed to reform to make progress. The
progress made so far demonstrates the potentials for success in the long run and the possibilities
that could be taken advantage of in the short run. The proper role of government is central to
19
success. Its prescribed role in the present economy is that of setting the guidelines, and creating
and maintaining conducive environment for rapid socio-economic growth. After decades of
public sector control of the economy, change has been slow and difficult. Public sector control of
the enormous oil wealth still makes for excessive political influence over economic decisions. A
viable and sustainable mechanism for channeling oil resources into investment outlets is still not
properly established.
in this direction form part of the on-going reforms. Reforms have,
however, reduced the presence of government in the economy Jones et al, in Osemeke (2011:
184).
In that regard, attention had in recent times, been focused on infrastructure, social
services, policy inconsistency and stability, policy implementation, security, law and order, good
international image, and good governance. Short-term outcome has been mixed but prospect for
the long term seems good. Finally, the recently concluded policy of Central Bank of Nigeria
(CBN) consolidation of Financial Services Sector (Banking, Insurance and other financial
institutions) is a sound policy, which will strengthen the private sector and the economy in the
long run. It is expected that emerging mega banks from the consolidation exercise would be able
to finance small, medium, big and mega projects in the real sector and at the same compete
internationally.
2.1.2
Rural Development in Nigeria
Rural development is a concept that is slippery because of its ambiguity and lack of
unanimity of scholars in its definition. In other words, it means different things to different
people, and its definition is either externally-rooted or internally rooted. Rural development is
the improvement in overall rural community conditions, including economic and other quality of
life considerations such as the environment, health, infrastructure, and housing.
20
Obinne in Ogidefa (2010) perceived rural development to involve creating and widening
opportunities for (rural) individuals to realize full potential through education and share in
decision and action which affect their lives. He also viewed it as efforts to increase rural output
and create employment opportunities and root out fundamental (or extreme) cases of poverty,
diseases and ignorance.
Okoli in Peter (2013: 2) expatiates and describes the scenario as a package by both the
national and international elites to penetrate and exploit the rural resources under the most
conducive atmosphere provided by the government. In the resultant inter- and intra-elite conflicts
consequent upon the differences in the mode and content of operations, rural development
becomes another battle ground for national and international predators.
Ijere in Okide and Obetta (2012) regarded rural development, as the process of increasing
the per capita income and the quality of life of the rural dweller to enable him become prime
mover of his own destiny.
Therefore, combining all the essential elements of development, Rural Development can
be described as the integrated approach to food production as well as physical, social and
institutional infrastructural provisions with an ultimate goal of bringing about both quantitative
and qualitative changes which result in improved living standard of the rural population, Okide
and Obetta (2012)
2.1.2.1 Characteristics of a Rural Area
The word “rural” connotes a place with agricultural orientation; the houses are farm
houses, barns, sheds and other structures of similar purposes.
21
In the opinion of Olisa et al as cited by Egbe (2014) population is the main characteristic
that differentiates rural from urban areas, especially in the developing countries. In this regard, in
Nigeria an area with a population of 20,000 people and below is classified as a rural area.
However, this is not adequate to explain a rural area. Therefore the author went further to say
that: The main features of rural areas are depression, degradation and deprivation. Many rural
villages are immersed in poverty so palpable that the people are the embodiment of it. In most
rural area in Nigeria, basic infrastructure where they exist at all, are too inadequate for
meaningful development.
Farooq (2012) also gave ten characteristics of rural areas which are as follows:
(1)Rural area is sparsely populated because many people leave rural areas to settles in the urban
areas for more facilities.
(2)Rural society has homogeneity in its profession that is their only source of earning is
agriculture and that is transmitted from generation to generation.
(3)Rural areas have got slow means of communication.
(4)Rural areas have very slow rate of change because of lack of education and modern
technology.
(5)In rural areas there is less rate of pollution because there are no factories and mills and the
number of automobiles is less.
(6)There is homogeneity in dress, language and customs. It means all this remain same because
their culture is same, they belong to the same area.
22
(7)In rural areas people shows great hospitality to their guests and treat them as a member of a
family.
(8)Rural areas have got strong relationships and interactions of the people, it means that they
help each other in distress and shares the happiness.
(9)Rural areas have got informal social life that is they spent their life in a simple way.
(10)Rural areas have got simple culture transmitted from generation to generation.
In other words, the rural areas lack virtually all the good things of life like roads, medical
and health facilities, portable water, electricity etc. As pointed out above, these characteristics
are not limited to rural areas alone but are also found in urban areas in Nigeria and other
developing countries. The people engage in subsistence agriculture, their standard of living is
very low, earning only a few thousands of naira annually, they are poorly served by almost all
public amenities and they generally show considerable resistance to change in any form.
2.1.2.2 Principles of Rural Development
Ijere as cited by Okide and Obetta (2012) postulated that the underlying principles of
rural development are as follows:
i. The leaders and policy-makers should be committed to the philosophy of rural development for
the improvement of the rural sector.
ii. There should be total community involvement in rural development. To ensure this, rural
development organizers should delegate powers to local leaders at all levels of the population
23
who should account for the exercise of that power. Also, a more suitable community
participation approach using the people's institutions and leaders is imperative.
iii. Incentives and motivation should be built into the rural development system. These could be
in form of citations, honourable mentions, honorary titles and prizes, competition between
villages, towns and local government areas, organizing rural development day to select the best
farmers, cleanest communities, accident-free communities, etc.
iv. All aspects of the peoples life should be affected by the rural development schemes to allow
for even development.
v. A core of local leadership should be built-up to sustain the rural development effort. There
should be a standing development planning committee in every community from which such
persons can be mobilized.
vi. There should be development of appropriate skills (human capital development) as well as
implementation capacity to sustain new technologies and improvement of social welfare.
vii. Rural development programmes should utilize the cultural values and practices of the people.
It makes the scheme understandable and meaningful. Indigenous institutions such as age grades;
youth organizations, clubs and town unions should be used in reaching the people and in
mobilizing latent energies.
2.1.2.3 Problems Affecting Rural Development in Nigeria
Efforts at making the rural sector to develop are faced with many problems.
Though attention has been given to rural development in Nigeria through the provision
24
of social, physical and institutional infrastructures however, lack or insufficiency of these
infrastructures in the rural areas has continued to directly hinder rural development. This is
because they determine the level of living and quality of life of the rural dwellers. The
knowledge of these challenges of rural development by change agents will prepare them to
design an effective road map to achieving rural development in the rural area they may find
themselves.
According Ijere as cited by Okide and Obetta (2012) rural development will continue to
be a basic problem to developing countries including Nigeria, because of the following reasons:
1. Lack of National Philosophical Base. The Nigerian rural development strategy lacked a
philosophical, ideological and holistic foundation. It had a body (policy-makers and government
functionaries) but had no soul to give it life and sense of direction. The usual practice has been to
be in office propounding slogans and manifestations for the people below. That was instrumental
to the failure of some rural development projects such as Farm Settlement Scheme, Operation
Feed the Nation, Green Revolution, etc. A philosophical base is typified by an internal
motivating and compelling force or commitment stemming from faith and love of the sapiens in
the rural sector and determination to work for their upliftment. Without philosophical super
structure, rural development remains an echo of good intentions from government and urban
dwellers.
2. Lack of Integrated Pilot Demonstration.
Before 1976, there was no national rural
development programme in Nigeria. What was in vogue was segmented or unco-ordinated rural
development where it is assumed that new programmes in one community will have ripple
effects on other communities and institutions.The first Department of Rural Development at
25
federal level was established in 1976 to mobilize people, initiate local projects with local
leadership, promote agriculture, rural development and community projects. By 1978, the
government was not so sure of what to do with rural development. As such, the term "rural
development" was added to the Federal Ministry of Agriculture, and later replaced with Water
Resources. All these occur because it is not certain about the place of rural development in the
overall development strategy.
3. Lack of Cohesive Identity. Failures have occurred in rural development as people regard the
social and cultural aspects of development as subordinate to the economic development. Any
innovation that does not guarantee the cohesiveness of the group and respect for their history and
beliefs have little hope of survival.
4. Defective Local Economies. People tend to treat rural development projects as charity or
welfare packages. Few people are interested in the costing, evaluating and ensuring that targets
are met. As such, production is emphasized in rural development policy while marketing and
marketing outlets are neglected. For example, Kano State Government in 1983 poured in a huge
amount of money (about N 895 million) into Kano River Basin Agricultural Project with little or
nothing to show for them on the ground.
5. Lack of Core Project Leadership. The failure of project leadership to come from within to
sustain the development projects has led to the falling apart of things in rural development. The
tendency has been to rely on official leadership for carrying out rural projects. These official
leaders are not prepared to motivate and sustain the enthusiasm of the people in the face of
conflicts, depressions and unfulfilled expectations.
26
6. Inadequate Community Participation. The top-bottom approach to rural development
employed by government functionaries whip up enthusiasm among the people, as there is
absence
of total community participation. Due to the approach adopted, people evoke
unwilling response as they are regarded as being incapable of standing on their feet.
7. Lack of Grassroots Planning. There is little or no attempt to allow the rural communities to
identify the problems and goals, analyse their own needs, and commit themselves to the
achievement of targets. Local experts, Chiefs and community leaders, were taken for granted in
deciding what projects to embark upon, and where and how to execute them. The planners do
not consult even the interest groups, the co-operatives, and professional organizations.
8. Inability to Optimize Local Resources. Due to Nigeria's penchant for foreign-made goods,
local resources are neglected for the imported goods. Local talents and manpower as well as
other resources are also ignored, thereby losing the opportunity of evolving appropriate
technology.
9. Neglect of Community Structural Approach. The pattern in Rural Development
Programmes in Nigeria centres on the imposition of imported schemes whether or not they are
related to the cultural and sociological life of the people. Examples of these areas of neglect
include: appointing new leaders where such leaders already exist, not making use of youth
organizations, age grades and women's groups in the initiation and implementation of
programmes.
27
Rural development is faced with challenges which have made the effect of government’s
efforts at different levels, NGOs, private initiatives and international involvement not felt by
the intended beneficiaries (Umebali and Akubuilo in Ogidefa, 2010). Some of them include:
• vicious cycle of poverty
• poor infrastructure
• high level of illiteracy
• low social interaction and local politics, and
• rural-urban migration.
A major challenge is that the hypothetical rural dweller who is the barometer
through which one determines the impact of rural development in the words of
Chinsman as cited by Ladele(2012) continues to give negative readings as he is seen to be
ravaged by an excruciating poverty, ignorance and disease. A lot of rigours, bottlenecks
and unnecessary bureaucracy as observed by Ogidefa (2010) are often attached to rural
development process. This is evident in the history of most of the rural development programs
are often saddled with disappointments.
Another challenge is the issue of proliferation of development programmes. Some
are so superficially implemented that the average targeted population (rural dwellers) doubt
the sincerity of the initiators. Such proliferation can easily be noticed from the many numbers of
such that failed with successive government that initiated them. The problem of implementation
is another glaring challenge. Obot in Ladele (2012) justified this claim when he writes that the
development policies geared towards the improvement of the rural dwellers remained
28
almost a house-hold word without corresponding success especially at the implementation
states. To this end, some of them are haphazardly implemented as a result of poor
supervision. Perhaps, this is why water taps abound in so many rural communities but without
water since their installation. Also, most of the low cost housing estates built by some
state government during the second republic are yet to be completed and handed over to
the intended beneficiaries 25 years after. This may also be the reason why the
Community and People’s Banks system failed.
The issue of funding is also a big challenge.
Some of the
rural
development
programmes are so vague without a clearly defined source of funding. The cases of the
Housing for All and Universal Basic Education (UBE) are clear examples. They are
often initiated before sourcing for funds from philanthropists and international donors
which
may never come. Other challenges include armed conflicts ranging from
ethnic,
religious and communal issues which do not provide enabling environment for the
implementation
of sustainable development
programmes in such areas. For instance, a
situation where foreigners and government workers in some coastal rural areas are target of
kidnappers demanding ransom is obviously not favourable or conducive for developmental
work.
Corruption poses a very big threat to rural development. There is lack of integrity,
accountability and transparency on the part of people who are
developmental projects in the rural areas.
supposed to implement
29
2.1.2.4 Approaches to Rural Development
The overall aim of rural development efforts is geared towards the improvement of the
lives of the rural population. However, several approaches aimed at arresting the ugly underdevelopment situation in rural areas have been put forward. According to Ijere in Okide and
Obetta (2012), they include the following:
1. Growth Pole Centre Model: This model is also known as "Growth Point Model". The model
involves the development of a few strategic towns, communities and industries likely to activate
other sectors. The model focuses attention on the development of few towns leading to the
neglect of the rural areas.
2. The "Big Push" Policy: This approach is similar to the growth pole centre model except that
it is more concentrated. It takes a few sub-sectors and expends most of the resources on them in
the hope that in the long run, their multiplier effect will salvage the whole economy. The flaw in
this model is that "in the long run" is not a specific period.
3. The Selective Approach: This model/approach involves the selection of certain sectors for
development based on economic, political, social or religious grounds, which may not
necessarily be related or inter-connected.
4. The Protectionist Approach: In this approach, the government carries out the development
process on behalf of the people believing that it knows everything and that the people are not yet
ripe to participate, in the management of their own affairs.
30
5. The Top-down Approach: It is also called the Top-bottom approach. It is a strategy based on
passing down to the poor certain policies and directives from the governing bureaucracy. This
type of rural development approach requires force to maintain and sustain it.
6. The Decentralized Territorial Approach: This approach centres on the dispersal of benefits
to the rural area. It has minimum linkage with the city but with settlements of various sizes to act
as service and market centres. The defect in this approach is the undue fear of towns being
exploitative and parasitic, and the consideration that size alone could determine the performance
of a settlement.
7. The "Laissez-faire" Policy: In this model, the authorities use the role of thumb, past
experience, hind-sight and the free market mechanism to manage the economy, with the hope
that the invisible hand of God would ensure optimum happiness for everybody.
8. The Key Settlement Strategy: This model is closely related to growth pole centre model
except that its focus is on settlement. It assumes a focal point for a given rural area, and the
concentration of all rural development resources in such a settlement. This in turn will serve
other regions through its network of roads and communication. This model requires a long time
to mature, and therefore it is more expensive.
9. The Adaptive Approach: It is a combination of selective approach and Laissez-faire policy
and any other approach. It gives the people the opportunity to decide on their own lives,
sometimes, under the guidance of the government.
10. The "Bottom-Up" Approach: It is also called Bottom-top approach or Rurism strategy.
This approach implies that development starts with the people. It is a new political development
31
strategy. Rurism is a coherent national and social-value system in which human and material
resources are mobilized and allocated from the lower echelon of the economic and social strata
to the top. It is free from any foreign ideology and infection. It promotes self-reliance, selfconsciousness into balanced development of human and material resources. It is the ideal
approach. However, it is costly and rather slow.
Nevertheless, Ijere as cited by Ladele (2012:108) gave some useful techniques which can
work for rural development. They include the following:
Start from the extension to the social context: People’s nature, belief and expectations form
the basis on which they can be helped. They form the life situation that the extension
agent is called upon to improve. To facilitate this, the extension worker should get to
know the community where he is going to work. This he can do personally by visiting
them ahead of time. He should within a short time know the leaders of the community
and their names and should be able to conduct himself round at the least possible time.
Involve people in actions that promote their welfare: People should not be made to
be observers but participants in a programme. They should participate in planning and
implementation of the programme.
Gain the confidence of the community: The community sees the agent as a person
that has answers to their problems. And since this cannot be true, one has to combine theory
and practical experience to proffer solutions to challenges that will convince the
community that one is not indulging in guesswork.
32
Be firm but accessible: The extension worker is the person who is very accessible to
members of the community he is serving irrespective of whether it is during his work
hours or not. He should not live isolated from the community or be condenscending in
his relationship with the villagers and the community. He should make time to visit
them in their own homes, familiarise and be friendly.
Use local leaders: Another approach that can be useful in extension work is the use of
local leaders. A local leader is a person selected by his community to represent their
interests when dealing with other communities or issues that border on rural development.
Be aware and make use of the adoption process: The extension worker should also put
into practice the extension adoption process. He should realise that the decision to adopt
usually takes time. People normally do not adopt a new practice or idea as soon as they hear of it.
They may wait several years before trying the new idea for the first time, and longer still
before permanently adopting it.
2.1.3
Gap in Literature
The general objective of this work is to investigate the role of private sectors in rural
development in Anambra State. However, copious literature abound about public enterprises in
Nigeria, but when it comes to Private Enterprises, the literature is few. This could be as a result
of the fact that people are still thinking that Public Enterprises contribute more in the Economy
more than the Private Enterprises.
Most of the studies carried by different scholars are all based on public enterprises
performances and rural development. But there is gap on these studies and literatures as regards
to private sector performance and rural development in Anambra state. Based on the above
33
observation, the researcher intends to fill this lacuna by examining the role of private sector on
rural development in Anambra state.
2.2
Theoretical Framework
Political and social scientists have developed many models, theories, approaches,
constructs and paradigms for the analysis of policy-making and institutional evaluation. The
theoretical framework adopted for this study is neoliberalism. According to Peet and Harwick
(2009:78), Neo- liberalism originated in political and economic theories formed in the late 19th
and 20th centuries, especially in scholarly debates between German and Austrian economists. But
Luding Von Mises, a second-generation Austrian economist is the major exponent of neoliberalism. It was later propagated by Von Hayek and Milton Friedman whose works provided
the theoretical basis for attacks on state planning and state direction of development.
The
term neoliberalism is used to describe a political economic philosophy that had major
implications on government policies beginning in the 1970s and increasingly became prominent
since 1980 that deemphasized positive government intervention in the economy. It seeks to
promote free market enterprise and dismantling of all regulations and barriers to commerce, and
the privatization of enterprises. Succinctly put, it advocates the transfer of the economy from the
state to the private sector to bring more efficient management and to improve economic
indicators of the nation.
In accordance with its tenets, the neo-liberal theory blames the public sector for the
country’s economic problems. The theory is premised on the fact that government lacks the
capacity to manage large industrial and commercial enterprises, and should limit its activities to
the core functions of the maintenance of law and order. Neo-liberalism stresses the need for the
private sector to replace public sector in economic engagement and confines government to
34
playing only supportive roles by creating the enabling environment for private enterprises to
thrive.
Tenets of the theory
According to Nwogbo (2012:200), fundamentally neo-liberal theory is characterized by
following tenets:
The rule of the market: The neoliberal theory places emphasis on the dominance of the
market as the best way to increase economic growth. The proponents of the theory claim that
“higher economic freedom” correlates with “higher living standards”.
Cutting public expenditure for social services: Neoliberalism advocates drastic
reduction of expenditure on social services like education, health care infrastructure and safety
net for the poor. This is based on the philosophy of limited government intervention in the
economy and the confinement of its responsibility to the maintenance of law, order and
administration.
Privatization and Deregulation: Whereas deregulation entails limited government
regulation in order not to impede the prospects for capital accumulation by private investors,
privatization refers to the sale of state owned enterprises, goods and services to private investor
so sensibly to promote efficiency in the management of public enterprises.
Elimination of the concept of “public good” and its replacement with individual
responsibility: Under this concept, the state abdicates its social and economic responsibility to
the citizens, and subjugates the governed to the dictates of deregulation, privatization and
commercialization. The citizens are invariably reduced to pawns in the chessboard of neoliberal
orthodoxy, because of the removal of subsidy on social services like education, health, water,
35
etc; downsizing and rightsizing; and retrenchment as well as cut in wages all in the name of
implementing economic reforms which ultimately results in the impoverishment of the citizens.
Neo-liberalism basically arose as paradigm shift to state dominance of the public sector
in the development scheme. This shift is hinged on the claim that the hitherto existing paradigm
of government ownership and intervention in business has failed. It is within this context of state
failure in business that neo-liberalism is seen as;
A market-driven approach to economic and social policy based on
neoclassical theories of economics that maximize the role of the
private business sector in determining of the state. (Stegar and Roy
2010).
Application of the theory
In recent times, government at all levels through public sector has been involved in one
form of rural development or the other; all in effort to alleviate the plight of the communities and
improve the standard of their living. However, the outcome of such development intervention
seems not to have justified the enormous amount of financial, human and material resources
input made, especially over a prolonged period of time. This apparent gap in the input-output
ratio calls for an intervention of another strategy which emerged form private sector enterprises.
In line with this, Kemp et al (2008) posits that governments and development agencies are
sometimes inclined more towards improved service provision than on rural development with a
view to building the capacity of large organizations which are external to the community in order
to increase the resources and services available to the community. These services, intended to
offer a platform for communities to accomplish community based goals, raise issues on how to
transform government and development agencies’ service provision into sustainable rural
36
development and how to build a strong community support to further develop intervention
initiatives when the organizational capacity is withdrawn.
Neo-liberal approach to development is summarized in the sense of lack of state control
and reliance on markets, competition and price mechanism which are key attributes of private
sector enterprise are inevitable to the efficiency and effectiveness market products and service
delivery especially in the rural area. Therefore, the researcher applied neo-liberalism as the
theoretical framework to explain the impacts of private sector enterprise on rural development in
Anambra state.
2.3 Hypotheses
Following the discussion already made in the statement of problems and objectives, and
also to act as a guide for data collection, the following assumptions were adopted as hypotheses
for this research work:
1
Private enterprises have not contributed to rural development in Anambra state.
2
There are no challenges facing private Enterprises in Rural Development in Anambra
state.
3
There are no measures to enhance participation of private enterprises in Rural
Development in Anambra state.
2.4
Operationalization of Key Concepts
In this work, there are few concepts which are central to the work and analysis of the
issue raised. It is therefore been thought to be necessary that these concepts are clarified
particularly how they are to be understood in the study. These concepts are as follows:
37
Enterprise: This is a large business entity either own by public or private sectors.
Private Enterprises: Private enterprises are those enterprises owned either by non-governmental
organizations or by a relatively small number of shareholders or company members which does
not offer or trade its company stock (shares) to the general public on the stock market exchanges,
but rather the company's stock is offered, owned and traded or exchanged privately.
Development:
Development is the reduction or elimination of poverty, illiteracy, disease,
malnutrition, joblessness, etc. It is a programme which has the objective and strategy aimed at
transforming the citizens in the rural areas from being the victims of poverty, ignorance and
disease into a contented human begins, able to earn an income capable of sustaining a reasonable
standard of living for themselves and their families. It also means the ability to provide the basic
necessities of life such as food, jobs, affordable and accessible health care, good roads, water,
electricity and education, among many other things for the people.
Rural Development: Rural Development is the process of improving the quality of life and
economic well-being of people living in relatively isolated and sparsely populated areas.
38
CHAPTER THREE
RESEARCH PROCEDURE AND THE STUDY AREA
3.1
Research Procedure
In the words of Igbo and Anugwom (2007:147), research as the name suggests, means to
examine or more appropriately, to thoroughly investigate a phenomenon systematically. The
authors further posit that it is termed scientific because it is not a haphazard venture but planned,
precise and orderly enterprise directed at discovering the nature of phenomenon. Therefore, the
various steps taken in this research are discussed in the subtopics hereunder.
3.1.1
Research Design
The researcher adopted a survey research for this study. This is because it is one of the
reactive methods of collecting data (Obi, 2005:62). The author goes further to state that it is a
method of obtaining information on events or phenomena that occurred during the researcher’s
absence.
Moreover, this research is an explanatory study because it explains the interconnectivity
between the activities of private enterprises and rural development in Anambra State.
3.1.2 Population of the Study
For clarity and to ensure proper presentation of a research work, there is a need to
establish population of the study. However, the population of the study is 318,500 which is the
population of the private enterprises in Anambra state.
3.1.3
Sample and Sampling Technique
Stratified sampling technique was used to carry out the data gathering of this study. Three
private enterprises were selected from three local governments of three senatorial zones of
39
Anambra state. These private enterprises are ABC Transportation Company from Awka North,
Innoson Nigeria limited from Nnewi North and Intafact Beverages limited from Onitsha south.
However, owing to the nature of the topic, a type of non-probability sampling technique
called purposive sampling will be applied. Interviews will be administered to fifteen (15)
administrative officers who possessed relevant knowledge of the private enterprises and fifteen
(15) members of rural areas that will express their views on the role of private enterprises in the
rural area.
3.1.4
Methods of Data Collection
This research involves the collection of already existing literatures on the subject matter
written by different scholars in the form of published and unpublished materials on private sector
and rural development. These documents were collected, collated and subjected to rapt analysis.
This was to help the researcher on his comparative study of the data from the reviewed literature
and responses from respondents.
The method of data collection adopted in this study by the researcher was interview
instrument.
3.1.5
Tests of Validity and Reliability of Research Instruments
Validity involves the degree to which you are measuring what you are supposed to, more
simply, the accuracy of your measurement. On the other hand, Reliability estimates the
consistency of your measurement, or more simply the degree to which an instrument measures
the same way each time it is used in under the same conditions with the same subjects.
However, in order to validate the instrument, the researcher employed a pilot test which
is defined by Association for Qualitative Research (2013:1) as small study conducted in
40
advance of a planned project, specifically to test aspect of research design and to allow
necessary adjustment before commitment to the design.
On the other hand, in testing the reliability of the instrument, the researcher adopted
test/retest technique which Lavrakas (2008:1) defines as a statistical technique used to estimate
components of measurement error by repeating the measurement process on the same subject,
under conditions as similar as possible, and comparing the observations.
3.1.6
Method of Data Analysis
The method for analyzing data for the purpose of this research work will be descriptive.
This method as the name implies involves describing data collected by using the content
analytical method.
The responses gotten from the respondents were analyzed using content analysis. By so
doing, it was precise and comprehensive to see the opinion of respondents at a glance and
conclusions will be easily drawn.
In testing of the hypotheses formulated for the purpose of this research, interview will be
granted to respondents .The number of respondents who responded to a particular option will be
used to draw a conclusion on that point.
Finally, the data analysis will be done in such a way that it will be clear to see the opinion
of the respondents on the different questions raised using tables.
3.2
The Study Area
3.2.1
Brief Historical Background
Anambra possesses a history that stretches back to the 9th century AD, as revealed by
archaeological excavations at Igbo-Ukwu and Ezira; Great works of art in iron, bronze, copper,
41
and pottery works belonging to the ancient Kingdom of Nri, revealed a sophisticated divine
Kingship administrative system which held sway in the area of Anambra from c. 948 AD to
1911. During the Nigerian/Biafran war, a relief airstrip was constructed by Biafran engineers in
the town of Uli/Amorka (code named "Annabelle"). Extremely dangerous relief flights took off
from Sao Tome and other sites loaded with tons of food and medicine for the distressed Biafran
population. Uli/Amorka airstrip was the site where brave American pilots like Alex Nicoll, and
scores of others, made the supreme sacrifice in the service of humanity, delivering tons of relief
supplies to the Biafran population. Disgusted by the suffering and mounting death toll in Biafra
from starvation as well as the continuous harassment of the relief planes by the Nigerian
Airforce, Carl Gustaf von Rosen resigned as a Red Cross relief pilot and helped Biafra to form
an Airforce of five Minicoin planes Malmö MFI-9 stationed at the Uga airstrip. He named his
tiny but effective airforce "Babies of Biafra" in honour of the babies who died via starvation
inside Biafra. Old Anambra State was created in 1976 from part of East Central State, and its
capital was Enugu. A further re-organization in 1991 divided Anambra into two states, Anambra
and Enugu. The capital of Anambra is Awka.
Anambra State is a state in south-eastern Nigeria. Its name is an Anglicized version of the
original 'Oma Mbala', the native name of the Anambra River. The Capital and the Seat of
Government is Awka. Onitsha and Nnewi are the biggest commercial and industrial cities,
respectively. The state's theme is "Light of the Nation". Boundaries are formed by Delta State to
the west, Imo State and Rivers State to the south, Enugu State to the east and Kogi State to the
north. The origin of the name is derived from the Anambra River (Omambala) which is a
tributary of the famous River Niger. The indigenous ethnic groups in Anambra state are the Igbo
(98% of population) and a small population of Igala (2% of the population) who live mainly in
42
the north-western part of the state. Anambra is the eighth most populated state in the Federal
Republic of Nigeria and the second most densely populated state in Nigeria after Lagos State.
The stretch of more than 45 km between Oba and Amorka contains a cluster of numerous thickly
populated villages and small towns giving the area an estimated average density of 1,500–2,000
persons per square kilometre.
3.2.2 Culture and Tourism
Agulu Crocodile Lake is located along Awka road in Agulu, Aniocha Local Government
Area of the state. A potential tourist site, it is home to an estimated three hundred crocodiles and
water turtles. Fishing is not allowed on the lake and the crocodiles, being sacred animals to the
people, cannot be killed. Legend says that these crocodiles were instrumental in delivering the
town from enemy soldiers during the Nigerian civil war. It is believed that these sacred
crocodiles and turtles transformed themselves into beautiful ladies and lured the soldiers
unawares into the lake where they disappeared without trace. At noon the crocodiles and the
turtles appear at the banks of the lake to take in sunlight.
Ogbunike Caves, listed by UNESCO ]as a world Heritage Site is one of the most visited
tourist sites in Anambra State. It is classified as a Sandstone cave (Lateritic sandstones of
Campanian-Miocene age] It has very scenic vegetation with attractive waterfall. It is situated in
the Ogba hills Ogbunike, across the Ugwu-Aga Escarpment Umunya by the Enugu/Onitsha
Expressway and lies in the coordinates of N06 11 11 and E06 54 21.
Ornamental staff head in form of a coiled snake, 9th century bronze, Igbo-Ukwu,
Anambra State Igbo Ukwu Museum is an ancient town known for astonishing metal crafts and
has remained an attraction to tourists because of its bronze artifacts. The bronzes which were
43
first noticed in 1938 and later excavated by Thurstan Shaw (an English archaeologist) date back
to about the 9th century, are of high value and historic relevance.
Uzu-Oka: Awka is historically known for the great metal foundry, Uzu Craftmanship.
Imo-Awka is an annual festival celebrated by the natives.
Other Anambra tourism potentials and cultural festivals include:
•
Ijele Masquerade- listed in UNESCO Archives as Intangible cultural element Ijele dance
festival is home to the 'Olus' of the Omambala area: Anaku, Omor, Nsugbe, Aguleri,
Umuleri, Awkuzu, Nteje, Ogbunike, Nkwelle-Ezunaka, Umunya, etc.
•
Achukwu Masqurade of Ekwulobia.
•
Ekwulobia New Yam Festival.
•
Omaba Yearly New-Yam Festival.
•
Aguluzigbo New-Yam Festival
•
Nnobi Afia oru festival
•
Ozubulu New-yam festival
•
Ozoebunu masquerade of Ozubulu
•
Okija New-Yam Festival
•
Mmanwu Okija Masquerade Dance
•
Ihiala New -Yam Festival
•
Mmanwu Ihiala Masquerade Dance
•
Ajana-Ukwu and Igu aro festivals at Aguleri.
•
Akwuneche enyi masquerade of Omambala area: Anaku, Igbakwu, Aguleri, Umuleri,
Awkuzu, Umunya, etc.
44
•
Izaga masquerade of Omambala area: Anaku, Igbakwu, Aguleri, Umuleri, Awkuzu,
Umunya, etc.
•
Abele masquerade of Omambala area: Anaku, Igbakwu, Aguleri, Umuleri, Awkuzu,
Umunya, etc.
•
Agbanagbo Ezu-na-Omambala (Confluence of Ezu and Omabala rivers) at Aguleri
•
Obu Gad at Enugwu Aguleri.
•
Ini ERI (Eri Grave) at Aguleri
•
Ini Iguedo (Iguedo Grave) at Nando.
•
Odinani Museum at Nri.
•
Afia olu Festival in Nnewi.
•
Amanwulu and ozo Festivals at Aguleri.
•
Olili Obibia Eri (Eri Festival) in Enugwu Aguleri attracts thousands of visitors home and
abroad annually.
•
The River Niger at Onitsha and Asaba with the famous Niger Bridge is the eastern
gateway linking the South East with Niger Delta and Western Nigeria.
•
Uzoiyi Festival Umuoji attracts thousands of visitors annually.
•
Agwuve Trinity Tree at Enugwu Aguleri
•
Ofala (Ovala) Festival is the commemorative of Kingship celebrated by various towns. It
was popularised by Onitsha town.
•
Igu-Aro is the major kingship festival among the Umueri, Anaku and Aguleri.
•
Nkpokiti Dance, Umunze is known for fantastic acrobatic performances.
•
Rogeny Tourist Village at Oba (a stadium that is equipped with recreational activities
including a swimming pool, zoo, shrine, soccer stadium, etc./
45
•
Obo Ofor Festival in Uga, Aguata
•
Nkwor Festival in Uga Aguata
3.2.3 Cities and Administrative Divisions
With an annual population growth rate of 2.21 percent per annum, Anambra State has
over 60% of its people living in urban areas making it one of the most urbanized places in
Nigeria. The major urban centres of Anambra state are Onitsha including Okpoko, Nnewi, and
Awka. Awka and Onitsha developed as pre-colonial urban centres with Awka as the craft
industrial centre of the Nri hegemony; and Onitsha the city state on the Niger and a river port and
commercial centre.
Onitsha is a fast-growing commercial city, and has developed to become a huge
conurbation extending to Idemili, Oyi and Anambra East LGAs with one of the largest markets
in West Africa. Nnewi (the Taiwan of Nigeria) is a rapidly developing industrial and commercial
centre; and Awka, by becoming the state capital is, as it were, regaining its precolonial
administrative eminence. Other main towns of Anambra state are: Abagana, Abba, Abacha,
Abatete, Achalla, Achina, Adazi Ani, Adazi-Enu, Adazi-Nnukwu, Agukwu, Aguleri, Agulu,
Aguluezechukwu, Aguluzigbo, Ajalli, Akpo, Akpu, Akwaeze, Akwaukwu, Alor, Amaetiti,
Amansea, Amanuke, Amaokpala, Amawbia, Amesi, Amichi, Amorka, Anaku, Anaku, Atani,
Awa, Awba-Ofemili, Awgbu, Awka-Etiti, Awkuzu, Azia, Azigbo, Ebenator, Ebenebe,
Ekwulobia, Ekwulumili, Enugwu-Agidi, Enugwu Aguleri, Enugwu Ukwu, Ezinifite, Ezinihite,
Eziowelle, Ezira, Ichi, Ichida, Ideani, Ifitedunu, Ifite-Ogwari, Igbakwu, Igbariam, Igbo-Ukwu,
Ihembosi, Ihiala, Ikenga, Iseke, Isuaniocha, Isulo, Isuofia, Lilu, Mbosi, Mgbakwu, Mmiata
Anam, Nando, Nanka, Nawfia, Nawfija, Nawgu, Ndikelionwu, Ndi-okpaleke, Ndiukwuenu,
46
Nibo, Nimo, Nise, Nkpologwu, Nkpor, Nkwelle-Ezunaka, Nneni, Nnobi, Nnokwa, Nnokwa,
Nsugbe, Nteje, Oba, Obeledu, Obosi, Ogbunike, Ogbunka, Ogidi, Ojoto, Okija, Oko, Okpeze,
Omasi, Omogho, Omor, Ora-Eri, Oraifite, Oraukwu, Orsumoghu, Osumenyi, Owellezukala,
Ozubulu, Ubuluisiuzor, Ufuma, Uga, Ugbenne, Ugbenu, Uke, Ukpo, Ukpor, Uli, Umuanaga,
Umuawulu, Umuchu, Umudioka, Umueje, Umuerum, Umueze Anam, Umuleri, Umumbo,
Umunachi, Umunya, Umunze, Umuoji, Umuomaku, Unubi, Utuh and so on.
There are 21 local government areas in the state. Table 1 below shows the different local
government areas, their headquarters and population (as of the 2006 population census). Further
down, fig 1.1 shows the map of Anambra State with the 21 local government areas.
S/N
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
LGA
Aguata
Anambra East
Anambra West
Anaocha
Awka North
Awka South
Ayamelum
Dunukofia
Ekwusigo
Idemili North
Idemili South
Ihiala
Njikoka
Nnewi North
Nnewi South
Ogbaru
Onitsha North
Onitsha South
Orumba North
Orumba South
Oyi
HQTRS
Aguata
Otuocha
Nzam
Neni
Achalla
Awka
Anaku
Ukpo
Ozubulu
Ogidi
Ojoto
Ihiala
Abagana
Nnewi
Ukpor
Atani
Onitsha
Fegge
Ajalli
Umunze
Nteje
Table 1. Source: http://www.citypopulation.de/php/nigeria-admin.php
POPULATION
369,972
152,149
167,303
284,215
112,192
189,654
158,152
96,517
158,429
431,005
206,816
302,277
148,394
155.443
233,362
223,317
125,918
137,191
172,773
184,548
168,201
47
Fig 1.1 Map of Anambra State showing its 21 Local Government Areas.
[Source: INEC Info Kit for Anambra Governorship Election (November 16, 2013) from
www.inecnigeria.org]
48
3.2.4
Politics in Anambra State
Anambra’s political history can be described as awesome, weird and unique depending
on the aspect one turns to. It is a state with a long list of “firsts” in Nigeria history that dubbed
the sobriquet “The Light of The Nation”. On May 29, 1999, Chinwoke Mbadinuju was sworn in
as civilian governor of Anambra state, after many years of military rule. His administration was
marred by heavy problems. The most notable is the teachers' salary which was withheld for a
long time. This led to a ten-month strike in all the government secondary schools in the state.
Also, before his rule, secondary education had been free of charge. But his administration
prescribed a tuition fee of 3000 Naira per term for all secondary schools, which led to an
unprecedented massive demonstration by the secondary school students from all over the state.
Many people attribute Mbadinuju's failure to political godfathers a debacle that also trailed his
successor. On May 26, 2003, Chris Ngige was sworn in as the new governor of the state, but he
was removed in March 2006 when Peter Obi of APGA dragged him to court on charges of
electoral malpractice. The Court of Appeal in Enugu asserted that his election victory in 2003
was fraudulent and ordered him to leave the seat. Peter Obi was in turn ousted by a faction of the
Anambra State House of Assembly on November 2, 2006 and replaced by Virginia Etiaba, his
deputy. On February 9, 2007 Mrs. Etiaba handed power back to Obi after the Court of Appeal
had nullified Obi's removal.
On April 14, 2007, Andy Uba of PDP was "elected" the new governor of the state and, on
May 29, was sworn in as the new governor. The election was reported to be massively rigged
and was disapproved all over the country. On June 14, 2007 the Supreme Court of Nigeria
removed Andy Uba from office and replaced him with his predecessor Peter Obi, on the ground
that Peter Obi's tenure had not ended, therefore there was no vacancy in the governorship.
49
On Saturday, 6 February 2010, Peter Obi was re-elected governor for a second term of
four years, after a hot contest with Chris Ngige, a former governor of the state; Prof. Charles
Soludo, a former governor of the Central Bank of Nigeria and Andy Uba who was a strong voice
in the state's politics. Other contenders included Mrs Uche Ekwunife, Prince Nicholas
Ukachukwu and many others. Altogether, there were twenty-five contestants for the office. Peter
Obi was named the winner of the election, with more than 30% votes above the immediate
runner-up. Presently, Chief Willie Maduabuchukwu Obiano was sworn in on the 17th of March,
2014 as the new governor after the expiration of the Peter Obi second term, having won the
November 16th, 2013 election.
3.2.5 Urbanization and structural planning in Anambra State
Over the last two decades the rural/urban exodus has caused a shift making Anambra a
highly urbanized state with 62% of its population living in urban areas.
Faced with decades of neglect and bad governance, the shift in human migration has
posed problems to available infrastructural provision, environmental sanitation, erosion control
and other social services. As a result, major cities have become characterized by inadequate and
deteriorated road networks, walkways, unregulated building patterns, sanitation, uncontrolled
street trading, mountains of garbage, and chaotic transport systems, creating congestion, noise
pollution and overcrowding.
To address this situation, the government of Peter Obi with the assistance of the UNHABITAT produced 20-year structural plans (2009–2028) for three major cities in the State,
Onitsha, Nnewi and Awka Capital Territory to restore urban planning and guide their growth
into the future. The plans contain policies and proposals for land use, city beautification, road
50
infrastructure, industrial development, housing, waste disposal, water supply and health and
educational facilities to turn the cities into Anambra into successful urban areas to generate
employment, wealth and provide high living standards for its residents.
Anambra became the first state in Nigeria to adopt Structural Plans for its cities and with
effective implementation should systematically grow as a major economic center in Nigeria and
West Africa. The process of urbanization is fairly contributed by population growth,
immigration, migration, and infrastructure initiatives like good road, water, power, and gardens,
resulting in the growth of villages into towns, town into cities and cities into metros. However, in
such a phenomenon for ecological feasible development, planning requires an understanding of
the growth dynamics, if not people will continue moving from our villages in search of greener
pasture living only the aged men and women to farm, this is noticeable in Amesi, Akpo, and
Achina towns in Aguata local government area. They major in the production of yam, Cocoyam
and cassava through consistent agriculture. These agricultural activities have in recent time
suffered a setback due to massive out-migration of their youths to the urban centres, thereby
resulting in food scarcity and over population in urban environment.
3.2.6 Natural Resources in Anambra state
Anambra is rich in natural gas, crude oil, bauxite and ceramic and has an almost 100
percent arable soil. In the year 2006, foundation laying ceremony for the first Nigerian private
refinery Orient Petroleum Refinery (OPR) was made at Aguleri area. The Orient Petroleum
Resource Ltd, (OPRL) owners of OPR, was licensed in June 2002, by the Federal Government to
construct a private refinery with a capacity of 55,000 barrels per day (~7,500 t/d).
51
Furthermore, Anambra state is a state that has many other resources in terms of agrobased activities like fishery and farming, as well as land cultivated for pasturing and animal
husbandry. Currently, Anambra State has the lowest poverty rate in Nigeria.
52
CHAPTER FOUR
DATA PRESENTATION AND ANALYSIS
4.1
DATA PRESENTATION AND ANALYSIS
This is where the data collected by the researcher will be presented and analyzed.
Interview was conducted on the various categories of people which includes employees of
Innoson Nigeria Limited, Nnewi, employees of Intafact Breweries Company, Onitsha,
employees of ABC Transport Company, Awka and rural dwellers of the study area. This helped
the researcher’s findings to be reliable. Consequently, the research recommendations were based
on the information generated from the field. However, analysis was made from the responses
from our respondents and from the literature reviewed in this research. Twelve (12) persons were
interviewed.
Tables will be used to present the data generated from our respondents in the field.
Hypothesis 1
H0: Private enterprises have not contributed to rural development in Anambra state.
H1: Private enterprises have contributed to rural development in Anambra state.
The following supporting questions were also used to test the hypothesis:
i) What type of social amenities has private enterprises provided for your area?
ii) Was it provided as part of community development service or under compulsion by either
the government or the community?
iii) How often or regular do private enterprises engage in community development projects
in your area?
iv) In what ways will you say that private enterprises have curbed rural- urban drift?
53
v) How regular do private enterprises employ people from this/your area?
Table 4.1: Response to type of social amenities that private enterprises provided for your
area.
Social
provided
amenities Awka
Residents
North Onitsha
Residents
South Nnewi
Residents
Rural Electrification
Rarely
Sometimes
Rarely
Security Van
Sometimes
Rarely
Often
Construction of roads
Sometimes
Sometimes
Sometimes
Building of schools
Rarely
Rarely
Rarely
North
Source: extracted from the researcher’s interview, 2015.
From the above table, the responses of the rural dwellers stated clearly that private enterprise in
Awka north such as ABC Transport Company rarely provides electricity, sometimes provide
security van, sometimes partake in construction of roads and rarely build schools. The rural
dwellers of Onitsha South clearly stated that private enterprise like Intafact Breweries company
sometimes provides electricity, rarely provide security van, sometimes involve in construction of
roads and rarely build schools. Finally, the rural dwellers of Nnewi North shows that private
enterprises such as Innoson Nigeria Limited rarely provides electricity, provides security van,
sometimes involve in construction of roads and rarely build schools.
54
Table 4.2: Response to if it was provided as part of community development service or
under compulsion by either the government or the community?
Social
provided
amenities Awka
Residents
North Onitsha
Residents
South Nnewi
Residents
Rural Electrification
Voluntarily
Compulsorily
Compulsorily
Security Van
Compulsorily
Compulsorily
Voluntarily
Construction of roads
Compulsorily
Compulsorily
Compulsorily
Building of schools
Compulsorily
Voluntarily
Voluntarily
North
Source: extracted from researcher’s interview, 2015.
From the above table, almost all the social amenities provided was under compulsion by the
government just electricity and building of schools was provided voluntarily at Awka north and
Onitsha south by ABC transport company and Intafact breweries company respectively. Finally
Nnewi north residents stated that security van and building of schools was provided voluntarily
too by Innoson Nigeria limited.
55
Table 4.3: How often or regular do private enterprises engage in community development
projects in your area?
Social
provided
amenities Awka
Residents
North Onitsha
Residents
South Nnewi
Residents
Rural Electrification
Not often
Not often
Not often
Security Van
Not often
Not often
Very often
Construction of roads
Not often
Often
Often
Building of Schools
Not often
Not often
Not often
North
Source: extracted from the researcher’s interview, 2015.
From the table above, Awka North residents stated that private enterprises like ABC transport
does not often provide electricity, security van, construct roads and also does not involve in
building of schools. Onitsha south residents does not often provide electricity,security van, build
schools but often construct roads. Nnewi north residents from their own view stated that does not
often provides electricity and build schools but construct roads often and provides security van
very often.
56
Table 4.4: To what extent will you say that private enterprises have curbed rural - urban
drift?
Awka North Residents
Onitsha South Residents
Nnewi North Residents
Excellent
Excellent
Excellent
Source: extracted from the researcher’s interview, 2015.
From the above table, the entire respondents stated that the existence of private enterprises have
excellently curbed rural – urban drift.
Table 4.5: How often does a private enterprise employ people from this/your area?
Awka North Residents
Onitsha South Residents
Nnewi North Residents
Very often
Very often
Very often
Source: extracted from the researcher’s interview, 2015.
The above table indicates that both ABC transport company, Intafact breweries company and
Innoson Nigeria Limited of Awka North, Onitsha South and Nnewi North respectively employ
the rural populace very often.
After collation of data, it is evident from the various view of respondents on the
questions asked, that Private enterprises have not effectively contributed to rural development in
Anambra state. This is in consonance with the realities on ground while considering the number
of private enterprises found in rural areas in Anambra state. The poor contributions of private
57
enterprises to rural development in Anambra state seem to be one of the reasons why
government has not integrated them into developmental scheme.
Therefore, the null hypothesis which stated thus; Private enterprises have not contributed to rural
development in Anambra state is accepted.
Hypothesis 2
H0: There are no challenges facing private Enterprises in Rural Development in Anambra
state.
H1: There are challenges facing private Enterprises in Rural Development in Anambra
state.
The following supporting questions were also used to test the hypothesis:
i) How does insufficient fund affect the role of private enterprises in rural development?
ii) How do you agree that sole proprietors of private enterprises possess the managerial and
technical abilities to manage their enterprises?
iii) How does low patronage from the rural dwellers affect the role of private enterprises in
rural development?
iv) How does the government provide an enabling environment for private enterprises in
Anambra State?
v) Does poor planning of private enterprises affect the role of private enterprises to thrive in
rural development?
58
Table 4.6: How does insufficient fund affect the role of private enterprises in rural
development?
ABC Transport Company Intafact
Breweries Innoson Nigeria Limited
Awka
Company Onitsha
Nnewi
Affects very well
Affects hugely
Affects greatly
Source: extracted from the researcher’s interview,2015.
From the table above, ABC transport company Awka stated that insufficient fund affects the
role of private enterprises in rural development very well, Intafact breweries company
Onitsha also stated that insufficient fund hugely affects the role of private enterprises in rural
development. Innoson Nigeria Limited Nnewi concur with other companies when it stated
that insufficient fund affects the role of private enterprises in rural development to a great
extent.
Table 4.7: How do you agree that sole proprietors of private enterprises possess the
managerial and technical abilities to manage their enterprises?
ABC Transport Company Intafact Breweries Company Innoson
Awka
Onitsha
Nnewi
I disagree
I disagree
I disagree
Source: extracted from the researcher’s interview, 2015.
Nigeria
Limited
59
The above table stated that all the respondents that is ABC transport company Awka, Intafact
breweries company Onitsha and Innoson Nigeria Limited Nnewi strongly disagreed that sole
proprietors of private enterprises possess the managerial and technical abilities to manage their
enterprises.
Table 4.8: How does low patronage from the rural dwellers affect the role of private
enterprises in rural development?
ABC Transport Company Intafact Breweries Company Innoson
Nigeria
Awka
Onitsha
Nnewi
Affects Negatively
Affects Negatively
Affects Negatively
Limited
Source: extracted from the researcher’s interview,2015.
From the above table, the entire respondents that is ABC transport company Awka, Intafact
Breweries Limited Onitsha and Innoson Nigeria Limited Nnewi stated that low patronage from
the rural dwellers affects the private enterprise negatively, it affects their role in rural
development.
60
Table 4.9: How does the government provide an enabling environment for private
enterprises to thrive in Anambra State?
ABC Transport Company Intafact Breweries Company Innoson
Nigeria
Awka
Onitsha
Nnewi
It is very poor
Not so good
It is not fair
Limited
Source: extracted from the researcher’s interview, 2015.
From the above table, ABC transport company Awka stated that government’s contribution is
very poor, Intafact Breweries Company Onitsha also stated that government’s contribution is not
so good, Innoson Nigeria Limited finally said that government’s contribution is not fair.
Table 4.10: Does poor planning of the private enterprises affect the role of private
enterprises in rural development?
ABC Transport Company Intafact Breweries Company Innoson
Nigeria
Awka
Onitsha
Nnewi
Very well
it does
Of course it does
Source: extracted from the researcher’s interview, 2015.
Limited
61
From the table above, all the respondents that is ABC transport company, intafact breweries
company Onitsha and Innoson Nigeria Limited clearly stated that poor planning of the private
enterprises strongly affect the role of private enterprises in rural development.
From the above analysis in which five questions were used to test the hypothesis on the
challenges facing private enterprises in rural development in Anambra state, the responses of the
respondents indicated that there are challenges facing private enterprises in Anambra state which
hampers their effective participation in rural Development.
Therefore, the null hypothesis which stated thus; there are no challenges facing private
enterprises in rural Development in Anambra state was rejected.
Hypothesis 3
H0: There are no measures to enhance participation of private enterprises in Rural
Development in Anambra state.
H1: There are measures to enhance participation of private enterprises in Rural
Development in Anambra state.
The following supporting questions were also used to test the above stated hypotheses:
i) Can government regulations enhance the role of private sector in rural development in
Anambra State?
ii) How can the formation of unions and associations improve the roles of private enterprises
in rural development in Anambra state?
iii) How does a cordial relationship between the rural community and private enterprises
improve the role of private enterprises in rural development?
62
iv) How will annual report on Corporate Social Responsibility improve the company’s
commitment for sustainable rural development?
v) To what extent do you think that rural banks have enhanced the growth and development
of private enterprises in rural areas?
Table 4.11: Can government regulations enhance the role of private sector in rural
development in Anambra State?
ABC Transport Company Intafact Breweries Company Innoson
Awka
Availability
Onitsha
of
favourable Sure,
credit and loan facilities to the regulations
Nigeria
Limited
Nnewi
if
government Regulation like subsidization
should
favour of products and raw materials
private enterprises in the rural private enterprises, it will can
encourage
private
areas through commercial and enhace their role.
enterprises to participate in
rural banks will enhance their
rural development.
role.
Source: extracted from the researcher’s interview, 2015.
From the table above, ABC transport company Awka clearly stated that government regulations
like availability of favourable credit and loan facilities to the private enterprises in the rural areas
through commercial and rural banks will enhance their rural development, Intafact breweries
company Onitsha stated that if the regulation should be in the favour of private enterprises it will
motivate them to participate in rural development. Finally, Innoson Nigeria Limited finally stated
63
that regulation like subsidization of products and raw materials can encourage private enterprises
to participate in rural development.
Table 4.12: How can the formation of unions and associations improve the roles of private
enterprises in rural development in Anambra state?
ABC Transport Company Intafact Breweries Company Innoson
Awka
Onitsha
it will yield a positive result
It will improve to a great It will help
Nigeria
Limited
Nnewi
extent
Source: extracted from the researcher’s interview, 2015.
From the table above, ABC transport company Awka stated that formation of unions and
association will yield a positive result, that means it will improve the roles of the private
enterprises in rural development in Anambra state, Intafact breweries company Onitsha stated
that the formation of unions and associations will improve to a great extent, Innoson Nigeria
Limited Nnewi also stated clearly that it will help improve the role of private enterprises in rural
development.
64
Table 4.13: How does a cordial relationship between the rural community and private
enterprises improve the role of private enterprises in rural development?
ABC Transport Company Intafact Breweries Company Innoson
Awka
Onitsha
Nnewi
Positively
Enormously
Greatly
Nigeria
Limited
Source: extracted from the researcher’s interview, 2015.
From the table above, ABC transport company Awka stated that a cordial relationship between
the rural community and private enterprises improve the role of private enterprises in rural
development, likewise Intafact Breweries company Onitsha and Innoson Nigeria Limited.
Table 4.14: How will annual report on Corporate Social Responsibility improve the
company’s commitment for sustainable rural development?
ABC Transport Company Intafact Breweries Company Innoson
Awka
Onitsha
Nigeria
Limited
Nnewi
It will increase the company’s it will make the company to be it will improve it to a great
commitment
committed
extent
Source: extracted from researcher the researcher’s interview, 2015.
From the above table, the entire respondents that is ABC transport company Awka, Intafact
breweries company Onitsha and Innoson Nigeria Limited Nnewi stated that annual report on
corporate social responsibility improve the company’s commitment for sustainable rural
development.
65
Table 4.15: To what extent do you think that rural banks have enhanced the growth and
development of private enterprises in rural areas?
ABC Transport Company Intafact Breweries Company Innoson
Awka
Onitsha
Nnewi
Astronomically
Enormously
Nigeria
Limited
It has really done good to a
great extent
Source: extracted from the researcher’s interview, 2015.
From the table above, both ABC transport company Awka, Intafact Breweries Company Onitsha
and Innoson Nigeria Limited Nnewi think that rural banks have enhanced the growth and
development of private enterprises in rural areas.
From the above analysis in which five questions were used to test the hypotheses on whether
there are measures to enhance participation of private enterprises in rural development in
Anambra state, the responses of the respondents indicated that there are measures to enhance
participation of private enterprises in rural development in Anambra state.
Therefore, the null hypothesis which stated thus; there are no measures to enhance
participation of private enterprises in Rural Development in Anambra state was rejected.
4.2
FINDINGS
From the above presentation and interview analysis, the researcher made the following
findings that:
Private enterprises in Anambra state have not contributed to rural development through
the provision of social infrastructure, though their presence in the rural areas of Anambra
66
state has helped in solving the problem of rural-urban migration. They have provided
employment as in the case of Innoson Nigeria Limited.
There are challenges facing private enterprises in rural development in Anambra state.
There are measures to enhance the participation of private enterprises in rural
development in Anambra state.
Private enterprises in Anambra state do not willingly carry out their corporate social
responsibilities unless when they are compelled to do so just as the of ABC transportation
company in Awka north.
Quarterly or annually reports on the activities of private enterprise at the rural area and
their corporate social responsibilities helps to evaluate private enterprises and their
contributions to the rural development and corporate social responsibilities.
Private enterprises in Anambra state are stepping up commendable efforts to compliment
the efforts of government towards creating job opportunities especially for the people
within the location of their enterprises.
Presence of private enterprise in the rural areas of Anambra state has helped in solving
the problem of urban-rural drift in Anambra state.
Insufficient fund affects the growth and development of private enterprises at the rural
area as well the contributions to rural development in Anambra state.
Poor planning is one of the obstacles that militate against the contributions of private
enterprises to rural development in Anambra state.
Most sole proprietors of private enterprises do not possess the managerial and technical
abilities to manage their enterprises especially those at rural areas of Anambra state.
67
Low patronage from the rural populace affects the growth, development and participation
of private enterprises in rural development in Anambra state.
Government of Anambra state has not performed so wonderful in providing this enabling
environment especially at the rural area for private enterprises to thrive.
Rural people participation towards private enterprises in Anambra state manifests in two
forms: supportive and obstructive role.
The formation of unions and associations by private enterprises especially in the rural
areas will help to bring them into single solidarity forum which helps them to achieve
targets individually and collectively.
Government regulations enhance the growth and advancement role of private sector in
rural area as well as their contributions towards rural development in Anambra state.
Relationship between the private enterprises and the rural community should be cordial
and mutual in order to bring about the needed development in the area.
Poor entrepreneurial-like spirit contributes to the slow growth and development of private
enterprises in Anambra state.
4.4 DISCUSSION
Rural development is spatially sectional, it is a determined and conscious attempt focused
on the general upliftments of the living conditions of people in the rural areas. So, rural
development entails the process of making life more satisfying and fulfilling to the millions of
Nigerians who live in the rural areas. The betterment of the lives of Nigerians is one major
reason for which the public enterprises came into existence. Nowadays, private enterprises are
also expected to give in their own quota towards the development of the communities around
68
them, especially their host communities. Thus, the above findings of the study have some
implications which are discussed below.
One of the findings of the study is that poor planning is one of the obstacles that militate
against the contributions of private enterprises to rural development in Anambra state. Planning
according to Nwachukwu (2006) means a blueprint for action. Thus, it entails determination of
control, direction and methods of accomplishing the overall organizational objective. It is a
process that involves the establishment of objectives, strategies to achieve organizational
objectives. Planning involves specifying a set of quantitative and qualitative economic targets to
be reached within a given period of time. Attempts to raise the rationality of decision making,
carefully specifying objectives and systematically shifting alternative policy instruments, so as to
find optimal means of achieving objectives, all revolves around planning. Aibieyi (2008:180)
posits that proper planning permits an analysis of complex objectives, stimulates policy makers
to understand future implications, and correct the market failure advantages. This means that
poor planning by private enterprises leads to wastage of resources and non-realization of stated
goals and objectives.
Another finding of this study is that Private enterprises in Anambra state are stepping up
commendable efforts to compliment the efforts of government towards creating job opportunities
especially for the people within the location of their enterprises. This is evident in works of many
private enterprises in Anambra such as Innoson Nigerian limited, Intafact Breweries, ABC
Transportation Company and so many others who have greatly provided employment
opportunities to Anambrarians. Innoson Nigerian limited publication shows that the enterprise
has employed over seven thousand (7000) workers with barely 30 expatriates and other workers
69
are indigenous since its few years of inception. This is a welcomed development by the Nnewi
town, Anambra state and Nigeria in general.
Another important finding of this study is that government of Anambra state has not
performed so wonderful in providing this enabling environment especially at the rural area for
private enterprises to thrive. Establishment and management of enterprise require huge capital
outlay which might very difficult to be attained effectively and efficiently by solely individual
resources. However, government has an important role to play to support these already
established or emerging private enterprises especially in the rural area by creating enabling
environment such provision of electricity, accessible and good road network, effective
communication networks, operational and efficient security, etc. Government should take
necessary steps to improve the efficiency of key parastatal utilities, such as power sector, among
others. There is no doubt that expensive and unviable power continues to be a major concern to
all industries in the sector. Multiple and unpredictable power cuts-daily occurrences throughout
Nigeria-damage equipment in all sectors of the economy and make it difficult to produce goods
or provide services efficiently. Thus organizations have been forced to install their own electrical
generation and transmission equipment, adding to operating and capital costs. All these will
enhance the activities of private enterprises in the rural area mostly, and enable them to achieve
their goals and as well perform their corporate social responsibilities diligently.
70
CHAPTER FIVE
SUMMARY, RECOMMENDATIONS AND CONCLUSION
5.1 Summary
This study has critically examined the role of private enterprises on rural development in
Anambra state, using ABC Transportation Company in Awka North, Intafact Breweries in
Onitsha North and Innoson Nigeria Limited at Nnewi South state as the case study. Specifically,
the researcher endeavored through the analysis to provide answers to the stated research
questions; (1) what is the extent to which of private enterprises have contributed to rural
development in Anambra state? (2) What are the challenges facing private enterprises in rural
development in Anambra state? (3) What are the measures to enhance the participation of private
enterprises in rural development in Anambra state? The researcher employed neo-liberalism
theory espoused by Luding Von Mises (1970) which provided the background for the analytical
discussion. According to this theory, Neo-liberal approach to development is summarized in
sense of lack of state control and reliance on markets, competition and price mechanism which
are key attributes of private sector enterprise are inevitable to the efficiency and effectiveness
market products and service delivery especially in the rural area. The researcher made use of
two sources of data collection in this study, namely: primary and secondary methods of data
collection, interview instrument was used for data collection and content analytical tool was used
for data presentation and analysis respectively. The researcher also adopted purposive sampling
technique in selecting the sample size for the study.
71
The significance of the study cannot be underestimated and rather the findings will
provide a leeway for the effective and efficient participation of private enterprises in rural
development in Anambra State.
5.2 Recommendations
In order for rural areas to be developed, private enterprises have important roles to play in
order to achieve that and should be given proper attention. However, for the growth and
development of private enterprises and for their effective roles and contributions towards rural
development in Anambra state and the world at large, the researcher put forward the following
practical and proactive recommendations:
1. Having examined the generic policy management of private sector enterprises in
Anambra state, the pointer is that to achieve a desired sustainable private sector led
growth of the economy, it is imperative for government to continuously put in place
policies and programmes that will encourage private sector participation and contribution
to the development process.
2. There is need for sustained collaboration between government and the operators of
private sector organizations by providing adequate incentive and the needed enabling
environment to stimulate and foster the growth of the private sector organizations in
Nigeria
3. Rural populace should increase their efforts in patronizing the products and services of
private enterprises in the rural area in order to encourage them to serve the rural better
and expand their ventures and bring development to the rural people.
72
4. Government should make regulations that will enhance the growth and advancement role
of private sector in rural area as well as their contributions towards rural development. In
addition to government policies presently being implemented appropriate fiscal and
monetary policies within the context of economic reforms should be initiated, developed
and adopted. This will amongst others improve access to banking services and available
credit facilities to the sector.
5. Sole proprietor and entrepreneurs that are not academically equipped on the management
of enterprises should enroll themselves into different professional programs and courses
in order to acquire the managerial and technical knowledge and skills to manage their
enterprises.
6. Management of Private enterprises should endeavour to willingly and regularly carry out
their corporate social responsibilities without compulsion from government or the
community. This could be in form of creating job opportunities to rural people or proper
environmental management.
7. Government should integrate private enterprises in development programmes through
contract awarding and patronization of products. For instance, ex- governor of Anambra
state encourages Innoson Nigeria Limited by awarding the production of school buses
and refuse trucks to the enterprise.
5.3
Conclusion
Nigeria is predominantly a rural society as the vast majority of her population dwells in
the rural areas. Indeed about 70 percent of Nigerians dwell in the rural areas, Ele (2006). The
rural sector of Nigeria is, very vital in the socio-economic development equation of the nation. It
is, as observed by Nyagba (2009) that the most important sector of the Nigerian population is the
73
rural areas. For instance, the rural sector is the major source of capital formation for the country
and a principal market for domestic manufactures. As a matter of fact, the rural areas engage in
primary economic activities that form the foundation for the country’s economic development.
On the other hand, worldwide, state-controlled or centrally planned economies are being
substituted with market-oriented economies with the private sector as the main engine of growth.
In that regard, several developing countries have embarked on initiatives to boost the private
sector though in Nigeria, this has not gathered much momentum. Private sector is seen to be
synonymous with efficiency. The clamor for a business man’s government or the
commercialization and privatization of the whole machinery of government drives home the
point that in thinking of many people, the level of efficiency in private sector is superior to that
of public sector. However, this empirical study establish that in this modern time, private
enterprises have very vital role(s) to play from rural to national development such as provision of
efficient and quality products, introduction of market competitiveness and complementing
government efforts in providing employment opportunities. As regard to this, statistics shows
that private sector is over 80% employer in United States of America.
Finally, even though there are likely challenges that the private owners encounters in
running their enterprises as stated above especially in rural areas, the recommendations put
forward by the researcher will go a long way in stimulating the expansion of private enterprises
in the rural areas of Anambra state and also enhance their roles and contributions towards rural
development.
74
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QUESTIONS
INTERVIEW GUIDE
1. What type of social amenities has private enterprises provided for your area?
2. Was it provided as part of community development service or under compulsion by either
the government or the community?
3. How often or regular do private enterprises engage in community development projects
in your area?
4.
In what ways will you say that private enterprises have curbed rural- urban drift?
5. How regular do private enterprises employ people from this/your area?
6. vi How does insufficient fund affect the role of private enterprises in rural development?
7. How do you agree that sole proprietors of private enterprises possess the managerial and
technical abilities to manage their enterprises?
8. How does low patronage from the rural dwellers affect the role of private enterprises in
rural development?
9. How does the government provide an enabling environment for private enterprises in
Anambra State?
10. Does poor planning of private enterprises affect the role of private enterprises to thrive in
rural development?
11. Can government regulations enhance the role of private sector in rural development in
Anambra State?
12. How can the formation of unions and associations improve the roles of private enterprises
in rural development in Anambra state?
78
13. How does a cordial relationship between the rural community and private enterprises
improve the role of private enterprises in rural development?
14. How will annual report on Corporate Social Responsibility improve the company’s
commitment for sustainable rural development?
15. To what extent do you think that rural banks have enhanced the growth and development
of private enterprises in rural areas?