AN OVERVIEW OF THE NIGERIAN ECONOMY HIGHLIGHTING

MAJOR SOCIO-POLITICAL FACTORS AND THEIR EFFECTS ON

PUBLIC RELATION CAMPAIGN IN NIGERIA
By Aderonke S. Ogunsakin
ronky4success@gmail.com
Pan Atlantic University
Lagos, Nigeria
November, 2013
April, 2014

Table of Contents
BRIEFS ON NIGERIA GDP AND INTEREST RATES ........................................................................................... 2
SOCIO- POLITICAL FACTORS IN NIGERIA ....................................................................................................... 4
Corruption ................................................................................................................................................. 4
Insecurity................................................................................................................................................... 4
Poverty ...................................................................................................................................................... 5
Infrastructural inadequacies ..................................................................................................................... 6
IMPLICATIONS TO PR CAMPAIGN ................................................................................................................. 6
WAY FORWARD............................................................................................................................................. 8
REFERENCES .................................................................................................................................................. 8

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The Nigerian economy can be classified into three major sectors namely: Agriculture, Industry
and Service. The industrial sector relies on revenues from the extraction and refining of crude
oil, absorbs an approximate of 10% of the labour force and contributes 34% of the GDP. The
service sector engages 20% of the population and contributes 32.5% of the GDP. Until the early
1990s, the Agricultural sector was one of the major sources of foreign exchange and it was at the
center of the Nigerias economy. This sector was estimated as at 2009, to have employed 70% of
the working population, but contributes 33.4% to the GDP.
Nigeria is blessed with a large population of over 150 million people and with a land mass of
923,768 sq.km (Source: http://www.nigeriaembassyusa.org/), 37.33% of which are arable as at
2009 (Source: http://www.tradingeconomics.com/nigeria/arable-land-percent-of-land-area-wbdata.html). Nigeria is the most populous country in Africa and she constitutes 47% of the whole
of West Africas population. Nigeria is the biggest oil exporter in Africa and has the largest
natural gas reserves in the continent.

BRIEFS ON NIGERIA GDP AND INTEREST RATES

Gross Domestic Product measures the total national income for products made in a country,
which include national and private sectors; it is equal to the total expenditures for all final goods
and services produced within the country in a stipulated period of time. In Nigeria, GDP has
always been based on the organized private sector and public sector income, not taking account
of the informal sector of the market women and numerous self-employed individuals who are not
known and therefore not under the radar of the government, unregulated and untaxed. The
Gross Domestic Product (GDP) in Nigeria was worth 262.61 billion US dollars in 2012, and just
this week, the 2013 GDP was rebased to $510bn (Source: www.saharareporters.com), making
Nigeria the 26th largest economy in the world. The GDP value of Nigeria represents 0.42 percent
of the world economy. From 1961 until 2012, Nigeria GDP averaged 54.2 USD Billion reaching
an all-time high of 262.6 USD Billion in December of 2012 and a record low of 4.4 USD Billion
in December of 1961 (Source: http://www.tradingeconomics.com/nigeria/gdp, an arm of World
Bank). Although, according to the 2013 GDP figure just released by the Ministry of Finance, the
all-time high GDP in Nigerias that of 2013 at $510bn. The chart below shows Nigerias GDP
trend over the last nine years.

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This figure represents all the goods made in Nigeria by indigenous companies and
multinationals. There is a need to further drill down to how much is retained in the Nigerias
economy from this figure and how much is repatriated by these multinationals. This should also
be an input into the policy thrust of the Nigerian government, as these GDP will mean nothing to
the economy if most of this income does not stay within the economy; these policy may range
from encouraging local content participation in all aspect of the economy, boosting small and
medium scale enterprises especially in terms of capacity building, loan guaranty and a single
digit interest rate availability, limit on amount that can be repatriated by multinational and
reduction of tax to small and medium scale enterprises. It may also include local content in the
materials used by multinationals and indigenous companies in order to encourage Nigerias
industrial sector.
At an average of 22-25% (Source: http://businessnews.com.ng/2013/09/29/manufacturers-decryhigh-interest-rates/) or 22-35% (Source: http://www.vanguardngr.com/2014/04/high-interestrates-killing-economy-ops/), interest rates in Nigeria are among the highest in the world, and is
killing the Nigerian economy, frustrating the effort of manufacturers and Small and mediumscale enterprises (SMEs) to create wealth and reduce unemployment in the country. According to
chief Kola Jamodu (President of the Manufacturers Association of Nigeria-MAN), the Central
Bank of Nigerias tight monetary policy is not healthy and friendly to manufacturers. The CBN
is said to have maintained status quo in the last one year as regards the Monetary Policy Rate
(MPR) and Cash Reserve Requirement (CRR) at 12% and Liquidity Ratio at 30% respectively, a
very conservative risk averse stance that keep driving interest rate up (Source:
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http://businessnews.com.ng/2013/09/29/manufacturers-decry-high-interest-rates/). While there

has been an average decline in interest rate worldwide since the 1980s according to the World
Economic Outlook report for April which set the agenda for the 2014 Spring Meetings of the
Bretton Woods institution (Source: http://www.vanguardngr.com/2014/04/high-interest-rateskilling-economy-ops/#sthash.CCv5ee5Z.dpuf).

SOCIO- POLITICAL FACTORS IN NIGERIA

Corruption
According Transparency International, corruption is the abuse of entrusted power for private
gain. Corrupt Practices and Other Related Offences Act 2000, says corruption includes bribery,
fraud and other related offences.
Corruption in Nigeria can be likened to a canker worm that has eaten deep into the economy of
Nigeria. Even though it is almost everywhere in the world, Nigeria seems to have suffered a lot
because of the reckless spending of her political leaders. Corruption now seems to be a normal
thing evident from the way in which her citizenry appears to believe that a culture of corruption
thrives in the country and have even believe there is marginalization in corruption. The Global
Corruption Watchdog Transparency International ranked Nigeria as the 35th most corrupt nation
in the world (Source: http://www.punchng.com/news/nigeria-is-35th-most-corrupt-nation-ti/), a
rank indicating a 139th position out of 176 countries surveyed for the report in 2013. Nigerians
are perceived (mostly by the Western nations) as being fraudulent and a set of dangerous people.
Nigeria has the potential to flourish exceedingly. She has over the years earned huge sum of
money from crude oil which has gone down the drain of corruption. Nigeria is blessed with so
many natural resources, intelligent and industrious human resources, very large young
population; these factors show the great potential of a flourishing future for Nigeria, but for
corruption! According to the San Francisco Chronicle of March 11, 2007, Nigeria was descried
as a rich nation floating on oil wealth, but almost none of it flows to the people.

Insecurity
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Insecurity is also an impediment to economic growth in Nigeria. Divisions among ethnic,

religious, political and other interest groups have given rise to conflicts and even escalated into
destructive violence, leading to loss of lives and valuable properties. Several dysfunctional
conflicts have led the nation into state of uncertainties and fragmentation, leading to creation of
sub- groups that have contributed to insecurity in Nigeria, including the Movement for the
Emancipation of Niger Delta (MEND), the Movement for the Survival of Ogoni People
(MOSOP), Odua Peoples Congress (OPC), the Movement for the Actualization of the Sovereign
State of Biafra (MASSOB), Boko Haram etc.
Other prominent contributory groups to insecurity in Nigeria are: armed robbers, kidnappers,
secret cultists, ritual killers, and even some ill- nurtured, irresponsible security officers. The
incessant bombings, kidnappings, killings and destruction of properties and lives are putting off
foreigners and investors. Several companies have relocated out of the country to places like
South Africa, Ghana and other countries perceived to be more favourable to their existence, and
serve the Nigerian market from there, accruing the revenue from taxes to such countries. The
insecure state of the nation has however negatively affected the foreign direct investment drive,
which has negatively compounded the unemployment problem in the country. It explains why
the Nigerian Immigration job interview meant for 3,000 Nigerians attracted almost a million
applicants causing stampede and eventually the death of about twenty one (21) applicants due to
the unpreparedness of the parastatal and Ministry of Interior, despite the extortion of these
applicants by making them pay a fee of NGN1,000 (One thousand naira).
The image of Nigeria among International comity of nations is at stake, and this has led to unfair
treatments of her citizens outside the country.

Poverty
Poverty can be defined as the inability to attain a minimum standard of living (Source: World
Development Report, 1990, https://openknowledge.worldbank.org/handle/10986/5973). Poverty
is relative and explained based on several factors which vary from one perspective to the other.
For example, a socio- psychological view might explain poverty as a state of deprivation, lack of
access to basic education, shelter, basic health facilities and other basic essentials of life. Poverty
can lead to corruption, as well as corruption leading to poverty. This is true for the Nigerian state
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today: most of politicians seeking elective post see the situation as an opportunity to embezzle as
much as possible to cater for their private needs; the act of perpetual corruption as well can also
lead to poverty as public resources that are meant to reduce the poverty among the populace are
diverted for private personal gain.
United Nations report of 1999 stated that the Nigerias Human Poverty Index (HPI) was 41.6%,
an indication that the country belongs to the 25 poorest countries in the world. According to
Nigerias National Bureau of Statistics, there was an increase in the percentage of poverty level
from 54.7% in 2004 to 60.9% in 2010. Despite the projected growth of the economy, poverty is
on the rise with almost 100 million people living on less than a dollar per day. There is a
dangerously wide gap between the rich and the poor, individuals are getting more powerful than
the state.

Infrastructural inadequacies
The state of infrastructures in Nigeria is not worth the while. Roads are bad, leading to frequent
occurrence of accidents and loss of lives. Electricity supply is extremely epileptic and
exploitative; despite holding the worlds largest gas reserves which could be used to generate
electricity; it is disheartening that more than half of the populace lives without electricity, while
the rest rely on generators for power supply (A 2012 Reuters report). This is a direct
consequence of corruption, as value for money in government project is far lower than what
obtains in other countries.

IMPLICATIONS TO PR CAMPAIGN
All the above issues among many others have negative effects on the image of the country. The
level of corruption has dampened the image of the nation. Given the fact that corruption has
made Nigeria one of the poorest countries in the world, the major underdevelopment indices
such as high unemployment rates, poor infrastructural amenities, insecurity status of the nation
has made Nigerians to become suspects in other countries of the world as well as discouraged
investments and tourism, all these combined to damage the image of the country thereby making
the practice of public relation challenging and difficult for practitioner who want to launder the
image of the country to the international community.
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Efforts have been made to rebrand the nation, such as the Good nation, good people theme, but
has been largely unsuccessful mostly because of systemic failure and the culture of corruption
still very much ingrained in most Nigerians.
The rate of unemployment which is quite alarming is a challenge to PR campaign. Giving the
image of the nation a lift will be quite difficult because the unemployed and under employed
populace are not productive, unhappy and unable to contribute to the development of the nation.
Thereby, their undesirable state will hinder them from contributing their quota towards
rebranding campaign for the nation.
The manifestation of corruption which is glaring to all and sundries within and outside the
country poses a threat to PR campaign. Public Relation is not deception, but about painting the
picture of what it is, to be. Therefore efforts to launder the image of the country can only be
frustrating amidst the unrepentant corrupt practices prevalent in the country from top to bottom.
The poverty level in the country inhibits National PR campaign. To an average Nigerian,
rebranding Nigeria can only means getting food on his table. Programs such as NAPEP (National
Poverty Eradication Program) have obviously failed to accomplish it aims. No matter how
beautiful a PR campaign for Nigeria image lift, it will fail because the faces of the people that
have turned ugly because of hunger, malnutrition and frustration will keep on appearing in the
media, both locally and internationally.
Moreover, the state of inadequate infrastructure in the country is also an impediment to PR
campaign. The power and energy sector which is very important for economic development is
not at its best. The available educational facilities are not sufficient to equip the nation for all
round development. There is therefore no better rebranding efforts than proper funding of the
educational sector and adequate human resource empowerment.
PR planning in the private sector and even in the public sector therefore will have to take a cue
from all the social issues identified; all campaigns should tend to highlight good corporate
governance and responsible citizenship, showing what they are doing in corporate social
responsibility, in education, health infrastructure etc. This is why companies such as MTN has
established a separate Foundation through which they channel all their corporate social activities;
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the MTN Foundation give out at least two thousand scholarship to students of tertiary
institutions, engage in shelter project, water and library project in different geopolitical zones of
the country.
The social issues described above has also endeared most Nigerians to the Social media where
they voice their anger and discuss social issues, which is evident in the number of Nigerians who
are actively engaged in discussions on social media, blogs and forums. These platforms are target
good platforms to engage in public relations and should speak to the agitation of these Nigerians
in such a way as to put the company in good light before this important audience.

WAY FORWARD
Change of attitude: everyone is involved in giving Nigeria a face lift. Both leaders and followers
should learn to embrace integrity and the culture of doing things the ethical way. Leaders should
lead by examples for followers to emulate. Everyone with the interest of Nigeria at heart have a
stake in positive portrayal of the nation, we must all pay our dues.

Conducive environment should be enabled to allow for socio economic development in

the country. All that need to be in place to make the nation friendly for development
should be point of priority for both the leaders and the leads.

Leaders at all levels should be more interested in truthfulness as against propaganda.

They should learn to do more and say less, following a public relation principle of 95%
action and 5% talking.

Above all, all efforts to lift the face of the country should be delebrate, planned , and
sustained so as to get the desired outcome of creating and maintaining mutual
understanding between the nation and her publics.

REFERENCES
Arable land (% of land area) in Nigeria. http://www.tradingeconomics.com/nigeria/arable-landpercent-of-land-area-wb-data.html [Retrieved on 7th April, 2014]

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High interest rates killing economy OPS. http://www.vanguardngr.com/2014/04/high-interestrates-killing-economy-ops/ [Retrieved on 7th April, 2014]
High interest rates killing economy OPS. http://www.vanguardngr.com/2014/04/high-interestrates-killing-economy-ops/#sthash.CCv5ee5Z.dpuf [Retrieved on 7th April, 2014]
Manufacturers decry high interest rates. http://businessnews.com.ng/2013/09/29/manufacturersdecry-high-interest-rates/ [Retrieved on 7th April, 2014]
Nigeria Economic Structure. http://www.economywatch.com/world_economy/nigeria/structureof-economy.html [Retrieved on 7th April, 2014]
Nigeria GDP. http://www.tradingeconomics.com/nigeria/gdp [Retrieved on 7th April, 2014]
Nigeria GDP Rebased To $510Billion A Reflection And Need To Redistribute Wealth.
http://saharareporters.com/article/nigeria-gdp-rebased-510billion-%E2%80%93reflection-and-need-redistribute-wealth [Retrieved on 7th April, 2014]
The Problems Facing The Economy of Nigeria vis-a-vis The Quagmire of Governance: Is
Jonathan the Messiah? PART I. http://eaglereporters.com/2013/09/25/the-problemsfacing-the-economy-of-nigeria-vis-a-vis-the-quagmire-of-governance-is-jonathan-themessiah-part-i/ [Retrieved on 7th April, 2014]
Nigeria is 35th most corrupt nation TI. http://www.punchng.com/news/nigeria-is-35th-mostcorrupt-nation-ti/ [Retrieved on 7th April, 2014]
World Development Report 1990: Poverty.
https://openknowledge.worldbank.org/handle/10986/5973 [Retrieved on 7th April, 2014]

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