This study was designed to appraise the causes, effects and remedies of economic degeneration in a developing economy; analyzing Nigerian situation. Today, our economy is going down the drain, but the truthful and actual situation, is that for over a decade now, Nigerian economy has been under severe stress. To address this above problem, this work aims at taking a good look at the factors that contribute to this degeneration of our economy, with a view on how to elicit actions towards eradicating them. Data collected for this work was through the use of questionnaires, survey and historical research method. Further extensive literature survey was also carried out to expose all the possible areas of hypothesis. A total population figure of 106 million (based on 1991 census figure) was used. Out of this, a randomly selected sample size of 311 respondents was computed through the use of Yarmane’s and Kumar’s model. Data analysis was done using tables and percentages, while acceptance and rejection of hypothesis used in this study was based on tests conducted using statistical test of z-test. The details of results, indicated that political instability impinges adversely on the economy through divestment, lack of new foreign investment and that corruption is a major impediment to our development goals. Recommendations offered in line with the findings of this study are thus: that corruption in all its ramifications and manifestations, should be discouraged in the strongest term: Legacy of lasting and enduring democracy should be bequested. Conclusively, the unhealthy state of Nigerian economy today is as a result of bad governance occasioned by poor quality of leadership or absence of it.
1.1. BACKGROUND OF THE STUDY
Nigeria at independence joined the committee of nations with hope for a better tomorrow. she was able to feed herself and had a view of becoming independent. She had lofty ideas of leading the African Continent to the promised land of economic emancipation.
She believed that these were easily attainable goals due to her richly endowed economic and human resources, good climate and stable socio-political conditions.
Today, due to political and economic disequilibrium, she is yet to attain these hopes. The actual and truthful situation is that for over a decade now, the Nigerian economy has been under severe stress. She seems to be going deeper and deeper down the drain. The consensus is that it has never been this bad for Nigeria.
The price of any conceivable item from Garri and Bread and Razor blade and Yam not to mention petrol and complex industrial products have been soaring in geometric proportions over the years.
The economy is truly in dire difficulty Factors such as stagflation, taxation, economic and political instability, foreign exchange ratio policy, outrageous cost of capital, subterranean cum subversive competition and market forces have compounded and complicated the situation even more.
Due to the adverse economic conditions prevailing in the country, many businesses have closed. For example, Leventis Plc at Enugu and banks declared distressed at an alarming rate by the Central Bank of Nigeria (CBN). All these has contributed in no small measure to the submerging of many businesses. Many of these that are still afloat are experiencing economic degeneration.
Thus, it is based on this background that the researcher wants to research on the causes, effects and remedies of Economic Degeneration in a stagflated developing Economy like Nigeria.
This economic degeneration is much more pronounced in the industrial sector but not to say that it is not existing in the Agricultural Sector, perhaps other sectors and sub-sectors of the economy. This has contributed to low industrial output occasioned by low capacity utilization and socio political factors. In Agricultural sector, this is observable in the diminishing quantity and quality of both staple food items and cash crops.
Economic Degeneration in Nigerian Industries and Society