ECONOMICS FOR SSS 1 SECOND TERM TOPICS

Scheme Of Work

1. FIRMS AND INDUSTRY
2. POPULATION
3. LABOUR MARKET
4. THE NATURE OF THE NIGERIAN ECONOMY
5. AGRICULTURE

TOPIC: FIRMS AND INDUSTRIES

Definitions of Firm

A firm may be defined as an independently administered business unit which has the ability and capability of carrying out production, construction or distribution activities. A firm is a unit of industry. Firms may be small or large. Therefore firms are of different sizes, ranging from the one-man business with limited capital to the joint stock company with huge amounts of capital. Examples are the UAC Nigeria Ltd, Ecobank Nig. Ltd, Toyota, Punch Newspaper, Ekene Dili Chukwu Bus Services Ltd etc.

 

Definition of Industry

An industry may be defined as a group of firms producing broadly similar commodities or offering complementary services. Examples are the shoe industry, vehicle manufacturing industry, banking industry, transport industry, cement industry, entertainment industry etc.

Types and basic features of business enterprises

A business enterprise consists of producing goods or services in exchange for commercial and financial benefits.

A business provides goods and services to what we call customers. Goods refer to physical goods that usually go through a production process. This may involve bicycles, chocolate, or whatever item you pay to receive.

Other businesses provide services instead of physical goods; this involves intangible products, such as a private lesson from a math teacher or personal trainer.

A customer refers to anyone who purchases these products. Consumers use the product or service but do not necessarily buy them. For instance, if your parents pay for your Netflix subscription, you are the consumer and your parents are the customer. If they also watch Netflix with you, they become consumers and customers simultaneously.

Types of Business Enterprises

1. Sole Proprietorship

A sole proprietorship type of business enterprise has a well-defined business structure. This type of business enterprise is encouraged where business personal liability is not a major concern.

From a legal perspective, the owner of the business and the proprietorship are one and the same.

It’s Advantages

1. The sole proprietorship is the easiest business enterprise to set up. It doesn’t require any documentation.
2. Registration of the proprietorship isn’t required by the State.
3. The business owner takes total control of the business and finalized all the decisions.
4. Tax forms are easy, simple, and straightforward.
5. Liquidation of assets is easy upon the owner’s death.

It’s Disadvantages

1. The proprietor is exposed to inexhaustible legal liabilities.
2. A sole proprietorship cannot receive capital from an investor outside his business.
3. There’s usually a great difficulty in receiving loans from banks.
4. The business liquidated immediately after the owner passes away.
5. Partnerships

The partnership forms of business enterprises is another type of business enterprise that opens to an entrepreneur to form his business structure. A partnership is another sole proprietorship enterprise that gives room for the business to house two or more owners at a time.

It’s Advantages

1. A partnership deed is very easy to form.
2. It housed groups of entrepreneurs with different skills and talents to bear the onus of running the business.
3. If the deed so agrees, a partnership could keep thriving well, even if one of the partners passes away.

It’s Disadvantages

1. The partners are open to unlimited liabilities.
2. There’s usually a conflict of interest in the partnership deed. This could end up being management conflicts.
3. Although the partners share the profit realize yet some may feel they are not compensated enough for their hard work.
4. Limited Liability Companies

Another form of business enterprise if you are actually concerned about the unlimited liability that will be open to your business and can’t risk any of your assets in a lawsuit, then the better business enterprise to set up is a limited liability company.

It’s Advantages

1. The proprietors have limited liability. Their personal assets are shielded from the company debt and protected from judgments.
2. Owners can decide how the business enterprise settles it tax.
3. There is room for an unlimited number of shareholders.

It’s Disadvantages

1. The legal fee and accounting costs are costly compared to proprietorships.
2. A limited liability company requires documentation of articles of incorporation with the government.
3. 4. Corporations

Corporations type of business enterprise has the right to contract, buy, and transact property. It can sue and also be sued by other parties.

It’s Advantages

1. Corporations attract skillful and talented employees.
2. It continues to do well, even if separate from its stockholders.

It’s Disadvantages

1. It’s the most difficult business structure and needs the service of a lawyer, to begin with.
2. Its profit could result in multiple taxations.

 

GENERAL AND SPECIFIC PROBLEMS OF BUSINESS ENTERPRISES

1. Inadequate capital: Business enterprises, be it private or pi enterprises are usually faced inadequate capital which makes it difficult for them to expand their operations.
2. Inadequate infrastructural facility: Infrastructural facilities like good road, electricity, pipe borne water and telephones services are usually gross inadequate and this make business operation very tough and difficult.
3. Inadequate skilled personnel: Most of the skilled personnel required to op or manage business enterprises are also inadequate. This results in low output and poor quality of products.
4. Shortage of raw materials: Most of the raw materials needed by business enterprises to operate are in short supply. This has either forced some of enterprises to operate at low capacity utilization or even fold up completely
5. Low patronage: Goods and services provided by some business enterprises encounter low patronage partly bees of low standard of goods and services provided and partly because consumer’s preference for foreign goods
6. Political instability: Most business enterprises find it difficult to grow due to political instability such as coups, strikes, civil war and communal crisis
7. level of corruption: Business enterprises be it private or public, are characterized by high level of corruption. Directors embezzle company’s money and usually leads to the closure or liquidation of most companies,
8. Inefficient management: Most of the business enterprises are managed by unqualified and incompetent personnel this leads to the failure of many enterprises.
9. Government policies: Certain eminent policies that are in place do encourage the growth of business enterprises. Government policies like high ban on importation of essential raw materials and high import duties discourage the growth and survival of enterprises.

• High operating cost: In many developing I: entries like Nigeria, business enterprises acre to provide their raw material, water and generate their source of power.

Definition of Limited Liability Companies

There are two types of Limited Liability Companies – Private Limited Liability Company or ‘the closed company’ and the Public limited liability company or the Public joint stock company.

The Private Limited Liability Company (Unquoted Company)

A private limited liability company is defined as one which by its articles restricts the right to transfer its shares and limit the number of its shareholders from two to fifty. The name of the private company must end with “Limited” e.g. AGRO Nigeria Limited etc.

Features or Characteristics of Private Limited Liability companies

1. Ownership: It is owned by shareholders that may be between two and fifty persons in number.
2. Legal entity: The businesscan sue or be sued in its own name, without involving the owners.
3. Management: It is owned by those who contributed capital for its formation.
4. They are not allowed to use the abbreviation Plc, but “Ltd” or “UnLtd”.

The Public Limited Liability Company (Quoted Company)

A public liability company is defined as one which by its articles allows the public to subscribe to its shares, must have at least seven persons but no maximum number is prescribed. The shares can be transferred and the name of the public company must end with “PLC”, e.g. GTBank Plc., Vitafoam Nigeria Plc. etc. This is the type that is popularly referred to as Joint Stock Company.

In the activities of a joint stock company, two documents are dominant. These are;

1. The Articles of Association:The Articles of Association takes care of the internal relationships between the company and the members
2. The Memorandum of Association:The Memorandum of Association is meant for regulating the external relationship of the company.

Features or Characteristics of Public Limited Liability Companies

1. Ownership: The number of shareholders ranges from seven to infinity i.e. there is no maximum number.
2. Legal entity:It can sue and be sued in its own name.
3. Management:It is owned by the shareholders but controlled by the board of directors.
4. Public companies use the abbreviation Plc., meaning Public Liability Company.

Similarities between Private and Public Liability Companies

1. Management: Both companies appoint directors for the proper and efficient management of the business.
2. Limited Liability: Both companies have limited liability. This means that the shareholders can only lose the value attached to the shares they contributed in the event of liquidation.
3. Large capital outlay:Both companies have ability of pooling large capital together to set up a business.
4. Ploughed back of profits:Part of the profit can be ploughed back into the businessfor both companies while the remaining can be shared to the share holders, according to the amount of shares contributed.
5. Legal entity: Both companies are legal entities, meaning that they can sue and be sued in their own names due to the fact that both are registered companies.

Distinction between Private and Public Companies

1. A public company is a company that is listed on a well-known stock exchange and can be traded freely. Where a private limited company is not listed on a stock exchange and is held privately by the member of the company.
2. In a private company, it is not mandatory to call a statutory meeting of members, whereas it is mandatory to have a statutory meeting in the case of a public limited company.
3. There must be a minimum of seven members to form and start a public company, on the other side a private company has a limit of a minimum of two members to start business.
4. There is no capping for the maximum number of members in a public limited company. But a private company cannot have more than 200 members, subject to some conditions.
5. To start a public company there should be at least 3 directors and is a privately held company, the minimum number of directors should be 2.

What does Quoted and unquoted company mean?

A quoted company means a company who has its equity share capital officially listed on a particular stock exchange while an unquoted company is one that does not.

Shares, debentures and bonds

Bonds:

Bonds are debt financial instruments that both public and private sector companies use to raise funds for their operations. The government agencies, financial institutions as well as private enterprises issue these instruments to investors. Bonds are secured by their physical assets. The holder of these bonds is the lender, while the issuer of these bonds is the borrower. The borrower can issue these bonds to the lender, only by promising to pay back the loan at a specific maturity date with a fixed interest rate. This interest rate is generally lower than debentures because the physical assets of a company secure bonds whereas the debentures are unsecured instruments.

 

Debentures:

Debentures are also debt financial instruments like bonds. Organisations use these instruments to get funding for their daily needs. They are generally not secured by any physical assets of the issuers, which makes them riskier than bonds. They also carry a fixed or floating interest rate. The debenture holders get first preference over shareholders of a company when it comes to the payment of interests/dividends. The interest rate on debentures is generally higher than bonds because they are not secured by the physical assets of a company.

Shares:

A share is a percentage of ownership in a company or a financial asset. The capital of a company is divided into shares. Each share forms a unit of ownership of a company and is offered for sale so as to raise capital for the company.

Shares can be broadly divided into two categories – equity and preference shares.

Equity shares give their holders the power to share the earnings/profits in the company as well as a vote in the company. Such a shareholder has to share the profits and also bear the losses incurred by the company.

On the other hand, preference shares earn their holders only dividends, which are fixed, giving no voting rights. Equity shareholders are regarded as the real owners of the company. When the shares are offered for sale directly by the company for the first time, they are offered in the primary market, whereas the trading of shares takes place in the secondary market.

 

ASSIGNEMENT: List three sources of income for sole proprietorship and partnership type of business enterprise.

 

 

TOPIC: POPULATION

Meaning of Population

This is the total number of people (including children, the disabled, beggars and other persons) living within a geographical area or country at a particular time. The question of population gave rise to the need to conduct population census.

Determinants of Population Size and Growth

The following are the major factors determining the size and growth of population

1. Birth Rate
2. Death Rate
3. Migration
4. Religion
5. Modern Medicine
6. Birth Rate:

This refers to the number of children born within a year out of every 1000 people in the country. Generally, birth rate is higher in West African countries than in the Western countries. Can you provide the reason for this?

 

Determinants of Birth Rate

(i) Age and sex distribution of the population: Females are more fertile than male, if the population of female in a particular country is more than the population of male, it increases the birth rate.

(ii) Family planning: The practice of family planning in a country reduces the birth rate.

(iii) The quality of medical services available: Improved medical services increase the birth rate.

(iv) The time of marriage (early marriage or late marriage): Early marriage increases the birth rate while late marriage reduces the birth rate.

(v) Educational pursuit: Educational pursuit reduces the birth rate.

2. Death Rate:

This refers to the number of people who die in the year out of every 1000 people of the population.  Just as birth rate is higher in West African Countries than industrialized countries, death rate is also higher.

Determinants of Death Rate

The death rate of a country can be influenced by the following:

(i) Occurrence of Natural Disasters: Natural disaster and epidemics in a country increase the death rate in that country.

(ii) Occurrence of domestic and external wars: Domestic and external wars in a particular country increase death rate in that country.

(iii) Composition of the age distribution: If the proportion of aged people in a country is very high, death rate will increase.

(iv) Level of per capita income and standard of living: If the living standard of people in a country is high, there will be increase in death rate.

(v) Medical and Health facilities available: If there are improved medical facilities in a country, death rate increases and vice versa.

3. Migration:

This means the movement of people in and out of a country. Migration has two components:

1. Immigration: this is the movement of foreigners into a country.
2. Emigration: this is the movement of people out of a country.

Factors Influencing Migration

The factors influencing migration are as follows:

(i) The quest for better welfare

(ii) The search for suitable climatic conditions

(iii) Problems of natural disasters such as floods, earthquake

(iv) Political instability which can cause insecurity of lives

4. Religion:

Owing to its respect for human life, Christianity discourages artificial birth control and abortion while Islam on the other hand encourages polygamy. These actions by religious bodies have led to increase in population.

5. Modern Medicine:

The use of modern medical facilities and the establishment of bodies like World Health Organization (WHO) have helped to reduce mortality rate.

 

Population Growth Rate

This is the rate at which the population of a country multiplies itself. It can be positive or negative.  It is calculated thus:

                                           Growth Rate = Birth rate – Death rate + Net Migration

On the other hand, natural growth rate is just the difference between the birth and death rates of a given population, i.e

                                                 Natural Growth rate = Birth Rate – Death Rate

Net Migration

This is the difference in the flow of people into and out of a country. In other words, it is Immigration minus emigration.

Example:

The population of Nigeria in 1970 was 60m. From 1971-1975, the total number of birth was 25m and deaths stood at 3m.  8m immigrants and 4m emigrants were recorded.  You are required to

1. Determine the net migration
2. Calculate the population of the country in 1975

Solution:

1. Net Migration = Immigrants  – Emigrants

= 8 million – 4milllion

= 4 million

2. Growth Rate:

= Birth rate – death rate + net migration

= 25m – 3m + 4m

= 26million

Therefore, The population of Nigeria in 1975 = 60million + 26million

= 86million.

Implication of Population Size

The size of the population of a country has a number of implications. Some are political while others are economic.  We will examine them together

1. It determines the size of the labour force.
2. It determines the per capita income and the amount of resources available per person. In an ideal setting, the higher the population size, the lower the per capita income.
3. Population size determines the amount of recognition or respect given to a country at the international level.
4. The size of a population is an indicator of the strength of her market and her potential demand for goods.
5. It determines the amount of foreign aid and investment that flows into a country.
6. Population size also showcases the level of governmentexpenditure in the provision of social amenities.

Implication of Population Growth

The implications of population growth are as follows:

1. Population growth will lead to a general fall in per capita income and standard of living.
2. Population growth will lead to increase in effective demand for goods and services as consumption increases with growth.
3. The cost of living will increase due to increased demand which is not matched with a higher rate of productivity.
4. The size of labour force will increase.
5. It can result into a higher rate of unemployment if the increased labour force is not gainfully employed.
6. There will be heavy pressure on the available social services and amenities.

ASSIGNMENT:      The population of GHANA in 2001 was 40m. From 2002 – 2004, the total number of birth was 10m and deaths stood at 6m.  9m immigrants and 5m emigrants were recorded.

Calculate:

1. The Growth Rate
2. The natural Growth rate

 

 

Malthusian and Demographic Theories of Population

1. Malthusian Population Theory:

This is a theory formulated by Thomas Robert Malthus in a book titled An Essay on the Principle of Population as it Affects the Future Improvement of Society which was published in 1798 in Britain.

Features of Malthusian Population Theory

1. That Population may increase in geometrical progression i.e. 2, 4, 8, and 16
2. That food production (means of subsistence) can only increase in an arithmetic progression, i.e. 1,2,3,4 etc.
3. That there might be starvation in the world as population may outgrow food production.
4. To check these problems he proffered the following solutions:
   1. Obvious and positive checkssuch as wars, pestilences, famine and disease
   2. Preventive checkswhich include birth control and moral restraint. By moral restraints, he meant late marriages, restraints by married couple and celibacy.

An Appraisal of the Malthusian Theory

Malthus and his population theory were severely criticized, and later was tagged “the gloomy doctrine.”  However, we shall examine events that proved Malthusian theory wrong and events that proved his theory right.

Events that Proved Malthusian Theory Wrong

1. New techniques of farming also called the Agrarian revolution brought about increase in food production.
2. Many new lands such as America, New Zealand, Australia and Africa were opened. This increased the amount of food production.
3. There was an industrial revolution which brought about the establishment of many industries.
4. Also, much of the effects of Malthus’ positive checks were reduced due to advances in medical science and technology.

Relevance of Malthus’ Theory to West African Countries OR Events that Proved Malthusian Theory Right

1. There is high rate of population growth in West African countries.
2. Method of production is still primitive leading to low food production as against the rising population.
3. High rate of poverty and low standard of living are prevalent among the West African countries.
4. The rate of economic development is very slow because population has outgrown the resources available
5. In Nigeria and other West African countries, there have been calls to increase food production and practice some forms of birth control. The Nigeria examples are the Operation Feed the Nation and Green Revolution; Operation Feed Yourself in Ghana

 

2. The Demographic Transition Theory

This is the most recent of all the theories of population. It says that a country passes through three stages of population growth.

1. Stage One: Pre-Industrial or Pre-Transition Phase

This stage is characterized by high birth rate and death rates. The high Birth rate is due to level of illiteracy, absence of family planning, early marriage, etc. High death rate is also due to wide spread of diseases, poor medical facilities, poor hygiene and poor diet

1. Stage Two: Transition Phase

In stage two, the country is now developed economically. Thus, there is a high birth rate but low death rate. This is due to:

1. Large production of food
2. Improved standard of living

• Dietary improvement

1. Industrialization, etc.
2. Stage Three: Post Transition Stage

This is the last stage of the demographic transition. It is characterized by low birth and death rates. This is due to the fact that people prefer to maintain a small family size. Therefore, the population growth rate is low. Advanced countries like Europe, North America and Australia are said to have reached this stage.

 

Distribution or Structure of Population

Population is distributed or structured into four: Geographical Distribution, Age Distribution, Sex distribution and Occupational Distribution.

1. Geographical Distribution:

This is the breakdown of the population of a country into different geographical zones.  It shows the number of people that are living in the various parts of the country.

Factors Affecting Geographical Distribution of Population

1. Concentration of Industries: People generally tend to move towards areas where industries, factories, or offices are situated. This is in hope of seeking employment in such places.
2. Commercial Centres:Commercial activities going on in certain areas encourage population growth there. This is one reason why urban areas like Lagos, Port-Harcourt, Onitsha, Aba, etc are heavily populated.
3. Topography and Fertility of Soil: Since farming is a major occupation of people of West Africa, farmers tend to settle in areas with good topography and where the soil is fertile for agricultural
4. Climatic and Weather Condition: Some areas with friendly climate tend to be densely populated than areas with harsh climate.

2. Age Distribution:

This refers to how the total population is spread among the various age groups. We shall group the ages into three:

0-17 years    ⇒   Dependent Population

18-60 years   ⇒   Working Population or Labour force

60 and above   ⇒   Dependent Population

Implications of Age Distribution:

1. Dependent Population: This is made up of children who are below 18years and the aged who are above 60 years.  The implication of this is that if the larger number of a country falls within these age groups, it will impose a lot of burden on the working population.
2. Working Population: This constitutes the strength of the nation. It is active and productive. The implication of this also is that if the nation has a large working population, the nation will be productive and economic development would not be far-fetched.

3. Sex Distribution:

This is the distribution of population into male and female. Sex distribution is necessary because it guides the government in policies formulation. For example: the larger number of female in the country, will indicate that, there is need to produce more female-related goods like maternity centres. It will also show that there is likely going to be increase in birth rate.

4. Occupational Distribution:

This is the distribution of population according to various jobs and occupation such as engineers, teachers, farmers, etc.  Occupation is usually divided into three:

1. Primary Occupation/Extractive Occupation
2. Secondary Occupation/manufacturing
3. Tertiary occupation/Services

 

Population Census and Rural-Urban Migration

Population Census

Meaning of Population Census:

This refers to the official head-to-head counting of the people in a country at a given time. Nigeria has conducted series of censuses. These were in 1952/53, 1962/63, 1973, 1991. Census could not be conducted in 1983 because of certain reasons. The administration of Chief Olusegun Obasanjo made move to conduct census in 2003, but this was delayed until 2006. The result of the census gave the population of Nigeria to be 140,003,542 persons.

Two Methods of Census

1. De Jure Method: – In this type of census, persons who are regular residents in a particular place are counted irrespective of the place they are residing temporarily. In this case people are counted by proxy.
2. De Facto Method: – This is a system of counting only those who are physically present in the census. This is an ideal population census.

Importance of Population Census

1. Population census helps to know the size of a nation’s population as well as its spatial distribution which can be very useful in implementing socio-economic policies.
2. It helps a nation to detect her present socio-economic needs and also make forecast against her future needs and the solution applicable.
3. It helps in measuring and comparing the standard of living among various countries. This is possible through the use of per capita income.
4. It helps the government in policy formulation
5. It helps the government to determine the amount of revenue accruable to the national purpose within a given time.
6. It aids allocation of resources by the government

Problems or Difficulties of Population Census in West Africa

1. Conducting a census usually costs a huge amount of money: This is the reason why many developing countries only conduct censuses over a relatively long period of time.
2. Inadequate skilled personnel: census figures are sometimes inaccurate because those who conduct them are not qualified to do so.
3. Inadequate means of transportation: some remote places in a country are inaccessible because of poor transportation system thereby frustrating the effort of enumerators in reaching them.
4. Illiteracy and Ignorance: Many people of West Africa usually run away from being counted because they tend to associate census with tax payment.
5. Religious Belief: Some religious beliefs make it difficult to get accurate figures. For example, some religions do not allow women to appear in the public let alone to be counted.
6. Political Interference: Censuses in West African countries are usually manipulated for political reasons. In other to get a fat share of national allocation people do their best to ensure that huge population figures are reported for their areas.
7. Poor Town Planning: many towns in West Africa are poorly planned and many houses are so remote that they are difficult to locate. This can really confound most except some unrelenting enumerators. Inability to locate an address invariably means non-counting of the people residing there.

 

Rural-Urban Migration

Meaning of Rural-Urban Migration

Rural-Urban Migration is the mass and continuous movement of people from the rural to the urban areas in search of better and social economic opportunities.

Reasons for Rural-Urban Migration

1. Inadequate social infrastructure like education, medical care, adequate security, good roads, etc. in the rural areas.
2. Practice of subsistence agriculture in the rural areas.
3. Neglect of the rural areas in the allocation of government spending
4. Concentration of economic and employment opportunities in the urban areas.
5. Desire for adventure

Effects of Rural-Urban Migration

1. Rural-urban migration exerts a lot of strain on facilities available in the urban areas.
2. It necessitates increased government spending in the urban areas
3. If too many people are migrating to the urban areas without commensurate expansion in the economic and job opportunities therein widespread unemployment can arise.
4. The agriculture sector of the economy suffers as manpower drifts from the rural to the urban centres.
5. There is increase in social problems such as immorality, prostitution, armed robbery, thuggery, etc as a result of high unemployment rate.

How to Control Rural-Urban Migration

1. Agriculture needs to be urgently modernized. This will retain people on farms and present engaging challenges to them.
2. Social infrastructure such as adequate water supply, electricity, good road,hospitals, schools etc should be provided in the rural areas.
3. Agro-based industries should be established in the rural areas. This will serve the need of farmers and as well create more job opportunities for rural dwellers.
4. Overhauling of education system such that people will be encourage to take up agriculture-related courses.

 

Dependency Ratio

This is the ratio of the dependent population to the working population.

Formula = Dependent population : Working population

Example: Use the data in the table below to answer the questions that follow.

	Age Group	No. of Persons in Thousands
		1955	1960
	0 – 18	150	143
	18 – 45	51	107
	46 – 60	29	33
	Above 60	15	17

1. Calculate the ratio of the dependant population to the working population in 1955
2. Calculate the ratio of the dependant population to the working population in 1960

Solution:

1. Ratio of the Dependant in 1955

Dependant = 150 + 15 = 165

Working Population  = 51 + 29  =    80

= 165 : 80

= 33 : 16

Assignment:

Attempt the ratio of the dependant population to the working population in 1960.

 

TOPIC: LABOUR MARKET

Labour market is defined as a market which workers and employers are brought into contact and conditions of work are decided.  It is made up of people who are looking for job, employers and government.

                                          THE CONCEPT OF LABOUR FORCE

 

Labour force can be defined as the total number of people of working age in a country who are gainfully employed and those who fall within the age bracket, capable and willing to work by law but have no work to do in a country at a particular period of time.

Labour force is the working population and it comprises all persons who have jobs and who are seeking for jobs in the labour market.  They are between the age of 18 years and 60 years.  Working population varies from one country to another.

 

FACTORS AFFECTING THE SUPPLY OF LABOUR OR SIZE OF LABOUR FORCE (WORKING POPULATION)

1. THE SIZE OF POPULATION: The higher the size of the population, the higher the working population and vice versa.
2. OFFICIAL SCHOOL LEAVING AGE: If the school leaving age is low, the proportion of labour force will be high and vice versa
3. OFFICIAL AGE OF RETIREMENT: If the age of retirement is raised the supply of labour will tend to increase because more people will be available for work
4. LEVEL OF REMUNRATION OR THE WAGE RATE: The extent of salaries, wages and other remunerations paid to the workers determines the number of people who may be willing to work.
5. MIGRATION: Immigration will increase and emigration will decrease the supply of labour.

 

                                            MOBILITY OF LABOUR

The mobility of labour refers to the ease with which workers or labour can move from one occupation to another or from one geographical area to another.

 

TYPES OF LABOUR MOBILITY

1. OCCUPATIONAL MOBILITY OF LABOUR: This refers to the ease with which workers can move from one job to another.  For instance, a messenger can easily change to become a cleaner or a farmer.
2. GEOGRAPHICAL MOBILITY OF LABOUR: This refers to the ease with which workers can move from one geographical location to another.e.g Port Harcourt to Jos.
3. INDUSTRIAL MOBILITY OF LABOUR: This refers to the ease with which workers can move within the same industry or from one industry to another.

CAUSES OF MOBILITY OF LABOUR OR FACTORS INFLUENCING MOBILITY OF LABOUR

1. Unfavorable working condition
2. Marriage
3. Irregular payment of salaries
4. Promotion
5. Bad management
6. Climate
7. Lack of job security
8. Lack of social amenities
9. Accommodation problem

• Political instability
• Personal reasons.

                                    THE EFFICIENCY OF LABOUR

The efficiency of labour refers to the extent or degree to which labour can be combined with other factors of production to yield maximum output.

In other words, efficiency of labour is the ability of labour to attain higher level of output without a reduction in the quality of output.

FACTORS DETERMINING EFFICIENCY OF LABOUR

1. Education and training
2. General working conditions
3. Health of workers and availability of improved health facilities
4. The amount of incentives or remuneration given to workers
5. Efficiency of other factors of production
6. Degree of specialization and division of labour
7. Welfare services and state of mind of the worker
8. Weather conditions

 

SUPPLY OF LABOUR

Supply of labour may be defined as the total number of people of working age offered for employment at a particular time and at a given wage rate.

This supply of labour also relates to the quantity of labour.

FACTORS AFFECTING SUPPLY OF LABOUR

1. The size of population and population growth
2. The age structure of the population
3. The official school leaving age
4. Official age of entry and retirement
5. The number of people the pursue full time education beyond the normal school leaving age
6. The number of married women who take up paid employment
7. The number of people of working ages in the country who are disable or incapacitated
8. The number of able-bodied people in the country who are not willing to work
9. The number of working hours per week

• The rate of remuneration or the wage rate

 

DEMAND FOR LABOUR

Demand for labour may be defined as the total number of workers employer are willing and ready to employ or hire at a particular time and at a given wage rate.

The demand for labour relates to the quantity of human effort required by entrepreneur for carrying out production.

The demand for labour is a derived demand.

FACTORS INFLUENCING DEMAND FOR LABOUR

1. The number of industries in a country
2. The nature of industries
3. The quantity of other factors of production available
4. The price of labour or the wage rate
5. The state of employment in the economy
6. The demand for labour output and the price level within the economy.

 

 

TOPIC: THE NATURE OF THE NIGERIAN ECONOMY

Meaning of Economy

What does the word ‘Economy’ mean?

The word ‘economy’ refers to the mechanism through which labour, land, structures, vehicles, equipment and natural resources are organized to satisfy the desire of those who live in a society.

General Overview of the Nigerian Economy

Nigerian is a richly endowed nation in terms of her physical and human resources.

1. Nigeria’s Physical Endowments:

 

(i) Land

Nigeria covers about 923,768 square kilometers. About 85% of the land area is suitable for agricultural production.  12.2% is covered by forest resources while 1.4% containswater bodieswhich are richly endowed for fishery.  Only about 42.3% have been put into cultivation as at 2010.

(ii) Natural Resources

Nigeria is also richly endowed with crude oil deposits. The crude oil reserve as at 2008 was 36.2 billion barrels, while crude oil production was 2.4 million barrel per day.

2. Human Resources:

Nigeria is the most populous country in Africa and the seventh largest in the world.  Her current total population is put at over 150million.  The breakdown is shown in the table below.

	Description	Figures
	Estimated population in 2010 (millions)	158.4
	Population density (per square km) in 2010	171.5
	Population Growth rate (% per annum) (as at 2010)	2.5
	Population aged 0-14 years in 2008 (%)	43.4
	Working Population (Millions)	69.31
	Female in Workforce (%)	38.7
	Population aged  60+ years in 2008 (%)	9.8
	Rural Population (%)	51

 

 

Nature and Structure of Industries in Nigeria

The mining sector (comprised of the oil and natural gas sector) is the largest Nigeria industrial sector. The sector accounts for more than 90% of the annual national production, while generating more than 80% of the government revenues. For instance, the country produces 2.169 million barrels per day (2007 statistics). In terms of oil export volumes, the country ranks approximately 8^th in the world. Consequently, it is safe to say that the oil sector more or less the mainstay of the Nigerian economy.

But asides the oil sector, there are other sectors which play pivotal roles in terms of revenue generation and job creation. These are-

1.     Agriculture- accounts for 18 percent of the national GDP

2.     Services- Nigeria is said to rank 27th worldwide and first in Africa in terms of services’ output.

3.     Transport

4.     Tourism

5.     Entertainment- The Nigerian entertainment industry serves as the source of employment to many people especially the youth. The Movie and Entertainment sectors also generates quite a lot of money.

6.     Overseas Remittances-A major source of foreign exchange earnings for Nigeria are remittances sent home by Nigerians living abroad. In 2014, 17.5 million Nigerians lived in foreign countries, with the UK and the USA having more than 2 million Nigerians each.

 

Classification of Industries in Nigeria:

1. Primary Sector.
2. Secondary Sector.
3. Tertiary Sector.
4. Primary Sector: The primary sector of the economy includes industries concerned with the extraction and production of raw materials, such as mining, farming, logging, fishing, forestry and livestock production. This sector makes up a larger portion of the economy in developing countries than it does in developed countries.
5. Secondary Sector: The secondary sector is concerned with the production of finished goods. Raw materials are converted into consumable or finished goods. e.g. construction, food processing, oil refining, building, chemical industries, etc.
6. Tertiary Sector: The tertiary sector is concerned with the rendering of services. This includes indirect services like policemen, soldiers, customs, etc, and direct services like teaching, banking, security, transportation, etc.

 

 

Contribution of Primary, Secondary & Tertiary Sectors:

1. The primary sector contributes to the increase in the GDP of the country.
2. The primary sector is the pathway to a successful secondary sector.
3. The secondary sector enables the country to be involved in the processing of goods.
4. The tertiary sector which is the service sector of the country provides essential public services to the country.
5. The three sectors provide economic stability in the country.
6. Under the tertiary sector as a result of an increase in trade, distribution and transportation services are now in higher demand.
7. The three sectors increase the employment opportunity for the country.

 

There are six geo-political zones in Nigeria:

1. North-Central.
2. North-East.
3. North-West.
4. South-West.
5. South-East.
6. South-South.

 

 

 

 

 

 

 

 

 

 

Products of the Different Geo-Political Zones:

S/n	Geo-political Zone:	States:	Agricultural Products:	Mineral Resources:
1.	North-Central	Benue, Kogi, Nasarawa, Niger, Plateau and FCT Abuja.	Rice, cotton, yam, cassava, fish, citrus, sugar cane, wheat, groundnut, etc.	Limestone, tin, iron ore, columbite, lignite, etc.
2.	North-East	Adamawa, Bauchi, Borno, Gombe, Taraba, and Yobe.	Cotton, hide & skin, coffee, tea, fish, goat, maize, cattle, millet, guinea corn, etc.	Lignite, gold, salt.
3.	North-West	Jigawa, Kaduna, Kano, Katsina, Kebbi, Sokoto, Zamfara.	Cotton, groundnut, sheep, cattle, goat, fish, millet, sorghum, etc.	Salt, limestone.
4.	South-West	Ekiti, Lagos, Ogun, Osun, Oyo, and Ondo.	Timber, rubber, kola, cocoa, coffee, pineapple, cassava, kola, plantain, etc.	Gold, limestone, bitumen, etc.
5.	South-East	Abia, Anambra, Ebonyi, Enugu, and Imo.	Rice, yam, oil palm, citrus, cassava, maize, rubber, kola, etc.	Limestone, zinc, lead, coal.
6.	South-South	Akwa Ibom, Bayelsa, Cross River, Delta, Edo and Rivers.	Cassava, cocoa, rubber, kola, plantain, fish, timber, etc.	Granite, limestone, marble, etc.

 

 

 

 

TOPIC: AGRICULTURE

Meaning of Agriculture

The word Agriculture is derived from two Latin words Ager and culture which means field and cultivation respectively. Agriculture therefore, is the tilling of the soil to produce both food and cash crops, livestock, etc.

Components of Agriculture

The main components of agriculture are:

1. Crop production
2. Livestock farming
3. Forestry
4. Fishery

1. Crop Production

Crop production is in two categories food crops and cash crops. Food crops are produced primarily to provide food for the entire population. These include yam, cassava, millet, rice, com, beans etc.

Cash crops are produced primarily either for export or as raw materials for the industries. These include rubber, cocoa, groundnut, cotton etc.

2. Livestock Farming

Livestock consists of cattle, pigs, sheep, goats and poultry. They are produced mostly for domestic consumption.

3. Forestry

These are the resources provided by the permanent forest estates. They include wood and timber, palm produce as well as wildlife.

4. Fishery

Fishing is an important occupation for many people in West Africa. Fishing is of two categories:

1. Industrial fishing– involving distant water fishing, marine in nature and capital intensive. It usually involves the operation of deep sea trawlers and the on-shore fishery which operates within the continental shelf.
2. Artisanal fishing– is characterized by high labour intensity and low productivity. It includes coastal canoe fishery, fresh water fishery and fish farming among others.

Systems of Agriculture

Various systems of agriculture are practised in different part of the world including West Africa, Middle-East and South America. These include:

1. Subsistence peasant farming: This is the type of farming carried out by a peasant farmer. He usually cultivates small holdings using primitive hoes and cutlasses. His labour force is usually himself, his wife and children.

Peasant farming has the following characteristics:

1. Its use of land is usually small so the output is consequently small.
2. Its method of production is primitive and traditional.
3. It has little access to modern city markets because of transportation difficulties.
4. It has little or no access to high-yielding crops provided by agricultural research institutions.

2. Commercial Farming: The primary concern of this system is to produce for the market. Most peasant farmers are increasingly moving into this category. They are no longer satisfied to produce for consumption alone.

This is made possible by increasing access to fertilizer as well as improved farm market roads. This system is characterized by the following:

1. Production for the market.
2. Increased use of modem farm equipment such as fertilizer and tractors.
3. Increased benefits from improved seedlings and agricultural extension workers.

Roles of Commercial Farming

1. It can make available more raw materials for agro-based industries.
2. It can expand the production of export products to earn foreign exchange for the country. This can be employed to obtain industrial inputs thereby contributing to industrial growth in the country.
3. lts expansion will reduce number of peasant farmers and thus create surplus labour for industrial absorption.
4. lf increased output of commercial farming replaces previously imported products, there will be conservation of foreign exchange which can be used to support the country’s industrialization drive.
5. Commercial farmingwhich are capital intensive, will bolster allied industrial activities e.g. production of spare parts, maintenance of farm machinery, etc.
6. It can bring about increase in output of basic food stuffs which can help to keep wages stable. This can aid low cost industrial products that can compete with similar products on the global market.
7. It can create a conducive environment that will accelerate capital accumulation in the country.
8. It will create additional job openings for labour in other sectors of the economy.

3. Plantation Farming: Plantation farming is another type of farming. In the past, most of them were developed by foreign companies, but after indigenization, many plantations were developed and owned by govemment, government agencies and private companies.

Examples of these are Rubber Plantation, Cocoa Plantation, Oil Palm Plantation etc. There have been efforts to grow oranges, mangoes, pineapples and guava in plantations.

4. Large Scale Mechanized Farming: Large scale production involves an extensive use of machinery and other forms of advanced mechanical devices such as tractors, ploughs and combined harvesters not only to plough and plant but also to harvest.

Mechanized farming is promoted by the government through such programmes as River-Basin Authorities in Nigeria. Privately owned companies and individuals have also ventured into large-scale mechanized farming.

5. Co-operative Farming: This involves agricultural activities undertaken by groups of people. Most governments in West Africa encourage co-operative agriculture to be able to save some of them from the problems which a single farmer faces, such as small land area, limited capital and equipment.

A co-operative farm has a greater chance of borrowing from banks and easily attracts grants or loans from government. Cooperative venture is feasible for most of the various agricultural activities in fishing, livestock or in crop production.

6. Farm Settlement: Farm settlement is another type of farming which was practised by some governments in many countries. The farm settlement has a dual objective of increasing food production and providing gainful employment for the settlers.

Importance of Agriculture

1. Agricultureprovides the bulk of the capital required for industrial take off in the country.
2. Agriculturereleases unskilled and semi-skilled labour needed for the operation of the industrial sector.
3. The agriculturalexports provide the necessary foreign exchange required for the purchase of necessary raw materials, manufactured goods and capital equipment for the country.
4. Agricultureprovides food for the entire population.
5. Agricultureprovides an income for a large percentage of the population thus forming a good market for the products of different industrial enterprises.
6. It provides employment opportunities.
7. It provides raw materials for industries.