Nigeria Trade Union Congress (NTUC)

Nigeria Labour Congress (NLC) is an umbrella organisation for trade unions in Nigeria. It was founded in 1978 following a merger of four different organisations: Nigeria Trade Union Congress (NTUC), Labour Unity Front (LUF), United Labour Congress (ULC) and Nigeria Workers Council (NWC). The numerous affiliated unions were restructured into 42 industrial unions. Its founding President was Wahab Goodluck.
During its history, conflicts with the military regime twice led to the dissolution of the NLC's national organs, the first in 1988 under the military regime of General Ibrahim Babangida and the second in 1994, under the regime of General Sani Abacha. Under Nigeria's military governments, labour leaders were frequently arrested and union meetings disrupted. Following democratic reforms in the country, some of the anti-union regulations were abolished in January 1999. The same month Adams Oshiomhole was elected President of the reformed organisation.
Today, the NLC has 29 affiliated unions. In total, they gather around 4 million members, according to their own figures. This makes the NLC one of the largest trade union organisations in Africa.
Recently conflict between the government and the NLC has escalated due to the organisation's opposition to higher fuel prices. The price increases are the result of decisions by the Olusegun Obasanjo government to dramatically reduce subsidies and to deregulate the purchase and sale of fuel. The NLC has led several general strikes protesting the government's fuel price policy.
In September 2004, the NLC gave the federal government an ultimatum to reverse the decision to reintroduce the controversial fuel tax or face a nationwide protest strike. The strike threat was made despite the fact that a Federal High Court judgement in an earlier dispute had declared the organisation lacking legal power to call a general strike over government policies. [1]
Following the announcement of the strike plans, the NLC claims President Adams Oshiomhole was arrested October 9, 2004 at a protest at Nnamdi Azikiwe Airport. According to the organisation, Oshiomhole was "abducted by a team of operatives of the State Security Services (SSS) numbering over fifteen, who overpowered him, wrestled him to the ground and bundled him into a standby Peugeot 504 station wagon, which bore no licence plates." [2] The State Security Services called the claim "sensational and inaccurate reporting", saying that the NLC president had a misunderstanding with field operatives, but that the matter was soon resolved. A presidential spokesperson claimed that Oshiomhole was only invited for a "chat" at the airport, no arrest having taken pla
CHALLENGES
It was Franz Fanon who argued that ‘every generation must out of its relative obscurity discover its mission’. It will fulfil it or betray. This is true for generations of individuals, organisations, leaders, communities or societies. What defines the mission of any generation would flow from the challenges facing it and in terms of organisations; it would further be shaped by its mandate or objectives.

The debate around the missions of leaders and organisations in the country is so personalised that specification of the mandate or objective of organisations are reduced to some narrow agendas of individual leaders. This is quite problematic and could undermine processes of organisational strengthening and development. While appreciating the role of leaders in the process of shaping organisational priorities and direction, a situation where leaders assume domineering role is authoritarian, no matter how well intentioned, articulated and correctly defined.

Perhaps the thing to emphasise is that organisations are only relevant to the extent that they are able to contribute to addressing the problems of people at any given point. In terms of trade unions therefore they are only relevant to the extent that they are able to redress the problem of injustice in the workplace and ensure improved welfare and working conditions. This is at the core of the discussion of the relevance, effectiveness or even validity of the mission of Nigerian trade unions and in particular Nigeria Labour Congress (NLC).

Since the February 16, 2007 election of the new leadership of the NLC, there are so many expressed opinions about what to expect from the new leadership. Having worked at a relatively high level in the organisation and being privileged to be part of the Oshiomhole team, it is important that one contribute to the discussion by raising issues around what could be the mission of the leadership.

One thing that must be placed in proper perspective is that external image of any organisation does not necessary depict its strength, capacity or even potential. The image of the NLC today is largely reflection of its role against the deregulation of the downstream sector of the petroleum industry. The capacity of the Oshiomhole leadership to spearhead the struggle against arbitrary price adjustments of petroleum products was the source of its relative popularity.

Although there are contending views about the efficacy of the management of the mass actions led by the NLC under Oshiomhole, one thing that cannot be denied is the fact Adams Oshiomhole was able to provide a high measure of courageous leadership. However, in terms of assessment of contribution of the NLC under Oshiomhole’s leadership towards raising welfare standards of workers, we may have to come to terms with some basic realities. These realities basically call for some humble recognition of the structural limitations and weaknesses that are embedded in the NLC and its affiliates.

One unaccomplished task of the Oshiomhole leadership has to do with the challenge of reinventing the structures of the NLC and ensure that they are efficient and positioned to competently service the needs of unions and workers. A major problem that confronted the Oshiomhole’s leadership throughout the eight-year tenure has to do with the burden of managing ineffective affiliates either on account of fundamental changes in the structures of work organisations in some sectors or having generation of leaders that are alienated from realities facing workers and therefore not able to gauge and service the needs of workers. In fact, if anything, one can conveniently argue that there are cases where unions or at least their leaders are a liability to workers and their expectation for improved welfare and working conditions. In some respect their actions or inactions worsened conditions of workers. Typical example was the case of anti-causualisation struggles and the role of some unions in protecting some management in the steel, hotel and food industry.

There is the big question of internal democracy both within the NLC itself and the unions. One immediate indicator is the fact that constitutional structures of particularly the NLC have not functioned properly, at least since 2001. Virtually all meetings of the NLC, either at the level of the National Executive Council (NEC) or Central Working Committee (CWC) were emergency meetings. As a result regular organisational challenges have suffered. Partly on account of absent of regular institutional reflections around the challenges facing workers and unions, and to the extent of that reflections, assessment of capacity to deliver effective services to workers and unions, it could be argued that the workings of the trade unions and the NLC have suffered stagnation.

Let me also quickly point out that the absence of institutional reflection is also to a large extent a function of the weakness of the Secretariat. Again, this could also be a measure of the unfinished task of the Oshiomhole leadership, but perhaps also compounded by historical factors, which includes conservative retention of a secretariat structure that may not be relevant to contemporary realities and challenges facing unions. But what are these contemporary challenges facing unions?

First, the structures of Nigerian trade unions, which the NLC secretariat reflect, have largely been the outcome of the 1978 restructuring with some slight amendments of the 1996 restructuring. They were therefore structures created based on 1970s work organisations that were largely Taylorian founded around hierarchies and command structures. To some considerable extent, they were also reflections of cold war politics, which incorporated an underlying responsibility for unions to be part of nationalist and anti-imperialist movement. The legal framework regulating both labour and union administration is similarly influenced by these factors.

Taking the issue of the Taylorian model, the rise of post-Fordist work organisations based on tasks and knowledge since the 1940s in industrialised countries is producing a paradigm shift, which since the 1990s, with the end of the cold war, has been influencing the emergence of giant, less-regulated and knowledge driven work organisations. In the process, many unions and their structures are fast becoming either moribund or incompetent in addressing the problems of workers.

A good reference point would be the case of the rise of what is commonly referred to as new generation banks. In the UBA, for instance, around the mid 1990s, a whole generation of staff were laid off and the new generation of IT driven staff could not just fit into the old analogue National Union of Banks, Insurance and Financial Institutions Employees (NUBIFIE). Related to that is the fact that given that the officers of the union were largely recruited from the old Taylorian industrial structure, the union is not able to address the challenges of workers. One can further prove this very point citing the 2005 agreement facilitated by Ministry of Employment, Labour and Productivity to the effect that management of all the new generation banks should recognise the existence of unions. About 2 years after that agreement, the union was not able to take advantage of that agreement and unionise the workers.

Second related issue is the case of private telecom operators and even the challenges of adjusting to NITEL privatisation. The leadership of the National Union of Post and Telecommunication Employees (NUPTE) were found to be grossly incompetent and corrupt in handling the matter leading to their sacking. There is also the case of the so-called senior and junior dichotomy, which is so entrenched most especially in the public sector.

These are issues that would serve as guide in assessing today’s challenges. What perhaps need to be further acknowledged is that these are to considerable extent internal issues. One will argue that one big external issue that appear to have constraint the capacity of unions is the moribund Ministry of Labour, Employment and Productivity. It is moribund in terms of injecting new initiatives that have capacity of strengthening the regulatory framework for the administration of labour and employment relations in the country. Similarly, its officials, like the unions, are also living in the Taylorian age and therefore not able to address challenges associated with the rise of modern knowledge driven work organisations.

With the emergence of civilian government, a critical challenge facing the unions is that of adjusting to the requirement of democratic practices. This issue would appear to be quite desolate particularly when taken in context of the internal operations of the trade unions both at national and at state levels. What is very glaring is that internal union administrations are undemocratic both at the level of the NLC, affiliates, national and state levels. This may be contestable by my colleagues in the trade unions largely on account of instinct for self-defence. However, it needs to be appreciated that democracy is about formal recourse to structures and ensuring that decisions of structures are complied with. I will argue that this is very weak and in the case of the NLC, in the last eight years, regular meetings of these structures never held as and when due. If anything, this is in part accountable to inability of the organisation to focus itself to attend to new and emerging challenges and perhaps re-organise, re-configure or amend its structures.

For those who seek to engage the discussion of challenges before the NLC around personalities, would miss these vital issues. Therefore my position is that anybody interested in locating the challenges facing the trade unions and most especially the NLC and to that extent seeking to influence the agenda of the new leadership, these are indications. Having raised these issues, one thing that should be emphasised is that the capacity of the NLC leadership to address some or all of the challenges would be determined by how it set out to approach key organisational questions, some of which have been identified above. A major determinant would be the capacity of the Secretariat.

From my little knowledge, I fear that the secretariat and its officers will be more concerned with negotiating power issues rather than focusing on developing broad strategic agenda proposals. This is because in reality the powers of the secretariat was greatly reduced not by any constitutional review but on account of having limited capacity to assert itself at the face of a towering and high profile leader in the last eight years. The process for actualising this may take varying forms, from formal to subtle and even crude but informal strategies. In the process, there may be some distractive consequences, including usual leadership personality conflicts and time lost, which as far as I am concerned should be avoided.

One issue that would appear to be very disadvantageous has to do with the fact that there is very little focus on the internal workings of the NLC and the trade unions, except when a national strike is looming. It will therefore be important that if truly we believe in the potency of the union movement to the process of socio-economic and political transformation of our society, we need to subject the internal workings of the NLC and the trade unions to greater national focus and in the process contribute to strengthening organisational capacity. The Umar leadership would find such an approach very helpful rather than the current one of simplistically measuring him up to Oshiomhole, which I would say at this point, is only meant to write him off. I am sure given the right space and with the correct assessment of challenges facing workers, the young leadership has its potential to record its own achievements. The question would be the quality of advice and input.
Addressing Workers’ Challenges in the Informal Sector
The informal sector in Nigeria refers to economic activities in all sectors of the economy that are operated outside the purview of government regulation. It encompasses a wide range of small-scale, largely self-employment activities as most of them operate the traditional method of production. Though activities in the informal sector are difficult to measure; they are highly dynamic and contribute substantially to the general growth of the economy.
Available statistics from the Ministry of Labour and Productivity indicates that the informal sector contributes about 60 per cent of the nation’s Gross Domestic Product (GDP). Like many other developing countries, the sector is considered crucial to job creation as it accounts for about 90 per cent of jobs in the country.
Despite these contributions, the Nigerian informal sector is faced with a number of challenges which include: lack of access to credit facilities, multiple taxations and levies. It is pertinent to also note that the sector is often not recognised and protected under existing legal and regulatory framework of government and are characterised by a high degree of vulnerability and poverty.
Deputy Director/Controller, Lagos office of the Federal Ministry of Labour, Mrs. Nofisat Abiola Arogundade, said government is aware of the informal sector contribution to economic development in the area of job creation, but however noted that “our concern is to create quality job and not just any job. It is long established that the ambition of people is to live a dignified life and the essence of dignity is work”.
“In realisation of this fact of life, our current Labour administration in Nigeria has made access to good quality jobs for all workers as a central policy, hence our commitment to the promotion and enforcement of Decent Work Agenda at all workplaces. Decent work is central to efforts to reduce poverty, and is a means for achieving equitable, inclusive and sustainable development,” she said.

Challenges of Informal Sector
The Nigerian government, at various levels, has adopted policies aimed at enhancing the performance of the informal sector. For instance, policies have variously been designed to promote small and medium scale enterprises. Some of the policies include the Entrepreneurship Development Policy, International Financial Assistance, Monetary policy through Microfinance banks; among others.
Whereas government has set up all sorts of intervention agencies such as Better Life Programme, Peoples’ Bank, National Agency for Poverty Eradication, (NAPEP), Small and Medium Enterprises Development Agencies (SMEDAN), National Directorate of Employment (NDE) etc. over the past two decades to ameliorate the sufferings of people toiling away in the informal economy, these policies have not translated into meaning development for the sector.
The sector has continued to suffer from comprehensive absence of social protection, vocational education facilities, access to business friendly credits, unfair competition through dumping of manufactured goods from more industrialised countries, lack of representation and participation in decision making processes resulting in unworkable, corruption prone public policies and programmes that have abysmally failed to significantly address the basic needs of Nigerian working people.
General Secretary of the Federation of Informal Workers of Nigeria (FIWON), Mr. Gbenga Komolafe, expressed dismay over various forms of extortion by government agencies from members in the sector. Specifically, he said workers in the informal sector are unduly subjected to multiple taxation and different types of levies by government.
“The informal sector has created employment opportunities for millions of workers in the formal sectors of the economy who lost their jobs since the 1980s when implementation of neo-liberal economic policies intensified in Nigeria and contributed 60 per cent of the nation’s GDP.
“Despite the contributions of the informal sector to the growth of the economy, informal workers are subjected to multiple taxations, levies and other forms of extortion by Government and its agencies,” he said.
Also, President of the Nigerian Labour Congress (NLC), Comrade Abdulwaheed Omar, who stated that the NLC is not unaware of the challenges in the sector, noted that workers in the sector are subjected to multiple levies and taxes by government. “They are affected by unilateral decisions and actions by local governments, incessant harassment by the police and numerous task forces and agencies of government”, he said
He listed other challenges to include "capitalisation, lack of funds, and endless manipulation by political parties and politicians for their selfish ends.
However, Arogundade maintained that the Federal Government, through the labour ministry, is poised to address these challenges under the Nigeria Decent Work Country Programme.
“The Ministry wishes to address the multitude of workers and enterprises who are often not recognised and protected under existing legal and regulatory frameworks and who are characterised by a high degree of vulnerability and poverty, and to redress these decent work deficits”.
According to Arogundade, the vision of the present administration is to make life meaningful and worthwhile for citizens of this country as well spelt out in the 7-point Agenda of government.
Labour’s Organising Efforts
Organising workers in the informal sector is quite challenging in view of the peculiar nature of the sector. With their diverse and widely dispersed enterprises and settlements, and their general orientation towards their rural hometowns, they are usually more difficult to organise and to develop much needed civic engagement.
But they need better organisation and self-regulation to be able to engage more constructively with government and other development partners, and to increase their power to lobby, negotiate, and influence public policy in favour of their sector.
For some years, the organised labour movement have been strategising on how to bring the informal sector into its fold. Moreso, the trade unions are losing members to the informal sector as a result of job losses, due to the effect of the global meltdown.
The need therefore to embrace the informal sector has become a front burning issue for the labour movement. In a bid to address this issue, the NLC recently organised a summit for operators in the informal sector where experts, stakeholders x-rayed the 'problems of the informal sector,' the challenges and the way forward.
In his address, the NLC President recalled the numerous efforts it has made at trying to organise the sector and better the life of workers, stressing that the Congress is not unaware of the problems of the informal sector.
He stressed the need for trade unions to help informal sector operators to organise themselves better and build a formidable base among others as the reason for bringing the sector into its fold.
“It is a known fact that compared to the self employed, the workers in the formal sector are far smaller. Another truth is that with the gales of mass retrenchment that has been sweeping through our country since 1975 and which were exacerbated during the General Muhammadu Buhari regime in 1984/85 and the President Olusegun Obasanjo administration in 2006-2007, most of the victims find sustenance as self employed peoples,” he said.
"Trade unions look at the vast ocean of humanity trapped in informal work and feel challenged about doing something about organising informal work. The question however is how to do it, given the different forms of challenges faced in the informal economy and the confused nature of the bargaining partner”, he added. Also, Secretary of the NLC in Lagos State Council, Comrade Ismaila Bello, listed some of the challenges of organising the informal sector to include: organisation building, financial management, capacity building for leaders, trade union education, skill development and vocational training.
He said those in the informal sector would like to find solutions to these challenges in the trade union movement and suggested that it is high time trade unions embraced informal sector workers.
Sharing his union's experience, Bello said, “Early 2005, the union established linkage with the Nigerian Union of Tailors in Lagos, Oyo and Ogun states. Further linkages were made were made in Kaduna, Kwara, and Benue states. While the organic organisational linkages have taken firm roots in Lagos, Benue and Kaduna, the relationship in other states are yet to be formalised.”
As a result of the successful experience with the tailors group, there are on-going attempts at formalising the union's relationship with the Kampala Makers Association in Lagos.
General Secretary of the Nigeria Automobile Technicians Association (NATA), Comrade David Ajetunmobi, explained that trade unions may not find it easy organising the informal sector because of the “diverse nature of this sector.”
According to him: “Trade unions look at the vast ocean of humanity trapped in informal work and feel challenged about doing something about organising informal work. The question however is how to do it, given the different forms of challenges faced in the informal economy and the confused nature of the bargaining partner”.
"The bargaining partners for informal workers are diverse: local governments for space and sane taxation system, state governments for appropriate policies, space and social protection, Federal Government for policies that address social protection needs in the informal economy, health insurance, vocational training".
Ajetunmobi however said his view does not in any way suggest that informal sector workers do not need trade union. His view is that the “Informal workers need the organisational experience of the trade unions while unions also need the vast number of informal workers to build more power to leverage more concessions on larger macro-economic issues such as the deregulation policy for example".
Trade unions he suggested, could help build informal workers' organisations through education, training and collaboration in developing policies that could make life better for informal sector workers.
Conclusion
The contribution of the informal sector to growth of the Nigerian economy is quite significant. The sector contributes mainly to national economy in terms of output and employment.
Therefore government must encourage and empower the sector through the provision of conducive macroeconomic policies aimed at boosting the performance of the sector.
Also, informal sector operators should not be content merely with self-help and being left alone to fend for themselves. The informal sector in itself may not be able to achieve due to inaccessibility to credit, but with the policy of the Central Bank of Nigeria through micro-finance banks, the macroeconomic objective of reducing unemployment in the country will become a reality. The microfinance policy has empowered the many microfinance institutions to provide credit to the informal sector.
Also, international development assistance needs to be reviewed and better coordinated in order to give greater priority to poverty reduction and improved social services.There is also the need for government at all levels to directly involve representatives of informal workers in the formulation, implementation, monitoring and evaluation of government intervention agencies.

Characteristics of Linear Programming Problems

Characteristics of Linear Programming Problems

Now that we have had the opportunity to construct several linear programming models, let's review the characteristics that identify a linear programming problem.

The components of a linear programming model are an objective function, decision variables , and constraints.


A linear programming problem requires a choice between alternative courses of action (i.e., a decision). The decision is represented in the model by decision variables. A typical choice task for a business firm is deciding how much of several different products to produce, as in the Beaver Creek Pottery Company example presented earlier in this chapter. Identifying the choice task and defining the decision variables is usually the first step in the formulation process because it is quite difficult to construct the objective function and constraints without first identifying the decision variables.
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The problem encompasses an objective that the decision maker wants to achieve. The two most frequently encountered objectives for a business are maximizing profit and minimizing cost.

A third characteristic of a linear programming problem is that restrictions exist, making unlimited achievement of the objective function impossible . In a business firm these restrictions often take the form of limited resources, such as labor or material; however, the sample models in this chapter exhibit a variety of problem restrictions. These restrictions, as well as the objective, must be definable by mathematical functional relationships that are linear. Defining these relationships is typically the most difficult part of the formulation process.
Properties of Linear Programming Models

In addition to encompassing only linear relationships, a linear programming model also has several other implicit properties, which have been exhibited consistently throughout the examples in this chapter. The term linear not only means that the functions in the models are graphed as a straight line; it also means that the relationships exhibit proportionality. In other words, the rate of change, or slope, of the function is constant; therefore, changes of a given size in the value of a decision variable will result in exactly the same relative changes in the functional value.

Proportionality means the slope of a constraint or objective function line is constant.


Linear programming also requires that the objective function terms and the constraint terms be additive. For example, in the Beaver Creek Pottery Company model, the total profit ( Z ) must equal the sum of profits earned from making bowls ($40 x 1 ) and mugs ($50 x 2 ). Also, the total resources used must equal the sum of the resources used for each activity in a constraint (e.g., labor).

The terms in the objective function or constraints are additive .


Another property of linear programming models is that the solution values (of the decision variables) cannot be restricted to integer values; the decision variables can take on any fractional value. Thus, the variables are said to be continuous or divisible , as opposed to integer or discrete . For example, although decision variables representing bowls or mugs or airplanes or automobiles should realistically have integer (whole number) solutions, the solution methods for linear programming will not necessarily provide such solutions. This is a property that will be discussed further as solution methods are presented in subsequent chapters.

The values of decision variables are continuous or divisible .


The final property of linear programming models is that the values of all the model parameters are assumed to be constant and known with certainty . In real situations, however, model parameters are frequently uncertain because they reflect the future as well as the present, and future conditions are rarely known with certainty.

THE USE OF LINEAR PROGRAMMING IN SOLVING BUSINESS PROBLEMS

THE USE OF LINEAR PROGRAMMING IN SOLVING BUSINESS PROBLEMS
Applications of linear programming for solving business problems:
1. Production Management: LP is applied for determining the optimal allocation of such re¬sources as materials, machines, manpower, etc. by a firm. It is used to determine the optimal product- mix of the firm to maximize its revenue. It is also used for product smoothing and assembly line balancing.
2. Personnel Management: LP technique enables the personnel manager to solve problems relating to recruitment, selection, training, and deployment of manpower to different departments of the firm. It is also used to determine the minimum number of employees required in various shifts to meet production schedule within a time schedule.
3. Inventory Management: A firm is faced with the problem of inventory management of raw materials and finished products. The objective function in inventory management is to minimize inven¬tory cost and the constraints are space and demand for the product. LP technique is used to solve this problem.
4. Marketing Management: LP technique enables the marketing manager in analyzing the audience coverage of advertising based on the available media, given the advertising budget as the constraint. It also helps the sales executive of a firm in finding the shortest route for his tour. With its use, the marketing manager determines the optimal distribution schedule for transporting the product from different warehouses to various market locations in such a manner that the total transport cost is the minimum.
5. Financial Management: The financial manager of a firm, mutual fund, insurance company, bank, etc. uses the LP technique for the selection of investment portfolio of shares, bonds, etc. so as to maximize return on investment.
6. Blending Problem: LP technique is also applicable to blending problem when a final product is produced by mixing a variety of raw materials. The blending problems arise in animal feed, diet problems, petroleum products, chemical products, etc. In all such cases, with raw materials and other inputs as constraints, the objective function is to minimize the cost of final product.
Linear programming: The technique of linear programming was formulated by a Russian mathematician L.V. Kantorovich. But the present version of simplex method was developed by Geoge B. Dentzig in 1947. Linear programming (LP) is an important technique of operations research developed for optimum utilization of resources.

According to famous Economist Robbins, the resources (land, labour, capital, materials, machines, etc.) are always limited. But each resource have various alternative uses. The problem before any manager is to select only those alternatives which can maximize the profit or minimize the cost of production. The linear programming technique is used for selecting the best possible strategy from a number of alternatives.
Linear programming consists of two words:
‘Linear and programming’: The world linear stand for indicating the rela-tionships between different variables of degree one whereas another word programming means planning and refers to the process of selecting best course of action from various alternatives.

Thus, linear programming is a mathematical technique for allocating limited resources is optimum manner. In the words of William M. Fox, “Linear programming is a planning technique that permits some objective function to be minimized or maximized within the framework of given situational restrictions.”
Characteristics:

All linear programming problems must have following five characteristics:
(a) Objective function: There must be clearly defined objec¬tive which can be stated in quantitative way. In business problems the objective is generally profit maximization or cost minimization.
(b) Constraints: All constraints (limitations) regarding resources should be fully spelt out in mathematical form.
(c) Non-negativity: The value of variables must be zero or positive and not negative. For example, in the case of production, the manager can decide about any particular product number in positive or minimum zero, not the negative.
(d) Linearity: The relationships between variables must be linear. Linear means proportional relationship between two ‘or more variable, i.e., the degree of variables should be maximum one.
(e) Finiteness: The number of inputs and outputs need to be finite. In the case of infinite factors, to compute feasible solution is not possible.

Assumptions:
(i) There are a number of constraints or restrictions- expressible in quantitative terms.
(ii) The prices of input and output both are constant.
(iii) The relationship between objective function and constraints are linear.
(iv) The objective function is to be optimized i.e., profit maximization or cost minimization.

Advantages and limitations:
LP has been considered an important tool due to following reasons:
1. LP makes logical thinking and provides better insight into business problems.
2. Manager can select the best solution with the help of LP by evaluating the cost and profit of various alternatives.
3. LP provides an information base for optimum alloca¬tion of scarce resources.
4. LP assists in making adjustments according to changing conditions.
5. LP helps in solving multi-dimensional problems.
LP approach suffers from the following limitations also:
1. This technique could not solve the problems in which variables cannot be stated quantitatively.
2. In some cases, the results of LP give a confusing and misleading picture. For example, the result of this technique is for the purchase of 1.6 machines.
It is very difficult to decide whether to purchase one or two- machine because machine can be purchased in whole.
3. LP technique cannot solve the business problems of non-linear nature.
4. The factor of uncertainty is not considered in this technique.
5. This technique is highly mathematical and complicated.
6. If the numbers of variables or constrains involved in LP problems are quite large, then using costly electronic computers become essential, which can be operated, only by trained personnel.
7. Under this technique to explain clearly the objective function is difficult.
Managerial uses and applications:
LP technique is applied to a wide variety of problems listed below:
(a) Optimizing the product mix when the production line works under certain specification;
(b) Securing least cost combination of inputs;
(c) Selecting the location of Plant;
(d) Deciding the transportation route;
(e) Utilizing the storage and distribution centre’s;
(f) Proper production scheduling and inventory control;
(g) Solving the blending problems;
(h) Minimizing the raw materials waste;
(i) Assigning job to specialized personnel.
The fundamental characteristic in all such cases is to find optimum combination of factors after evaluating known constraints. LP provides solution to business managers by understanding the complex problems in clear and sound way.
The basic problem before any manager is to decide the manner in which limited resources can be used for profit maximization and cost minimization. This needs best allocation of limited resources—for this purpose linear programming can be used advantageously.
Graphical method:
The business problems involving two variables can be easily solved by drawing the graph for various constraints. Following are the steps in graphical solution of linear programming problem (LPP):
1. Formulate LPP by writing the objective function (generally maximize profit) and the constraints.
2. Constraints are changed into equalities.
3. Plot the constraints on the graph.
4. Identify the feasible region and ascertain their coordinates.
5. Test which point is most profitable.

Applications of linear programming for solving business problems

APPLICATIONS OF LINEAR PROGRAMMING FOR SOLVING BUSINESS PROBLEMS

 

A mathematical optimization model consists of an objective function and a set of constraints in the form of a system of equations or inequalities. Optimization models are used extensively in almost all areas of decision-making, such as engineering design and financial portfolio selection. This site presents a focused and structured process for optimization problem formulation, design of optimal strategy, and quality-control tools that include validation, verification, and post-solution activities.
Applications of linear programming for solving business problems;

1. Production Management: LP is applied for determining the optimal allocation of such re­sources as materials, machines, manpower, etc. by a firm. It is used to determine the optimal product- mix of the firm to maximize its revenue. It is also used for product smoothing and assembly line balancing.

2. Personnel Management: LP technique enables the personnel manager to solve problems relating to recruitment, selection, training, and deployment of manpower to different departments of the firm. It is also used to determine the minimum number of employees required in various shifts to meet production schedule within a time schedule.

3. Inventory Management: A firm is faced with the problem of inventory management of raw materials and finished products. The objective function in inventory management is to minimize inven­tory cost and the constraints are space and demand for the product. LP technique is used to solve this problem.

4. Marketing Management: LP technique enables the marketing manager in analyzing the audience coverage of advertising based on the available media, given the advertising budget as the constraint. It also helps the sales executive of a firm in finding the shortest route for his tour. With its use, the marketing manager determines the optimal distribution schedule for transporting the product from different warehouses to various market locations in such a manner that the total transport cost is the minimum.

5. Financial Management: The financial manager of a firm, mutual fund, insurance company, bank, etc. uses the LP technique for the selection of investment portfolio of shares, bonds, etc. so as to maximize return on investment.

6. Blending Problem: LP technique is also applicable to blending problem when a final product is produced by mixing a variety of raw materials. The blending problems arise in animal feed, diet problems, petroleum products, chemical products, etc. In all such cases, with raw materials and other inputs as constraints, the objective function is to minimize the cost of final product.

Mathematica Optimization Model

A mathematical optimization model consists of an objective function and a set of constraints in the form of a system of equations or inequalities. Optimization models are used extensively in almost all areas of decision-making, such as engineering design and financial portfolio selection. This site presents a focused and structured process for optimization problem formulation, design of optimal strategy, and quality-control tools that include validation, verification, and post-solution activities.
Applications of linear programming for solving business problems: 1. Production Management:

LP is applied for determining the optimal allocation of such resources as materials, machines, manpower, etc. by a firm. It is used to determine the optimal product- mix of the firm to maximize its revenue. It is also used for product smoothing and assembly line balancing.
2. Personnel Management:

LP technique enables the personnel manager to solve problems relating to recruitment, selection, training, and deployment of manpower to different departments of the firm. It is also used to determine the minimum number of employees required in various shifts to meet production schedule within a time schedule.
3. Inventory Management:

A firm is faced with the problem of inventory management of raw materials and finished products. The objective function in inventory management is to minimise inven­tory cost and the constraints are space and demand for the product. LP technique is used to solve this problem.
4. Marketing Management:

LP technique enables the marketing manager in analysing the audience coverage of advertising based on the available media, given the advertising budget as the constraint. It also helps the sales executive of a firm in finding the shortest route for his tour. With its use, the marketing manager determines the optimal distribution schedule for transporting the product from different warehouses to various market locations in such a manner that the total transport cost is the minimum.
5. Financial Management:

The financial manager of a firm, mutual fund, insurance company, bank, etc. uses the LP technique for the selection of investment portfolio of shares, bonds, etc. so as to maximise return on investment.
6. Blending Problem:

LP technique is also applicable to blending problem when a final product is produced by mixing a variety of raw materials. The blending problems arise in animal feed, diet problems, petroleum products, chemical products, etc. In all such cases, with raw materials and other inputs as constraints, the objective function is to minimise the cost of final product.

NEGLECTING DEVELOPMENT PLANS AND ITS IMPLICTIONS FOR DEMOCRACY

NEGLECTING DEVELOPMENT PLANS AND ITS IMPLICTIONS FOR DEMOCRACY

INTRODUCTION

Theoretically, development plans of any sort involve deliberate efforts on the part of government to speed up the process of social and economic development of a country. In some countries, such as the former Soviet Union with a socialist ideology, the development plan efforts were usually found to be rewarding, as the government was able to intervene directly and extensively in the lives of the people (Ogunjimi, 1997:97). Similarly, in other countries like the mixed advanced Western economies and many developing countries with a purely capitalist ideology, the economy is structured in such a way that though the interventionist role of the government is usually relatively small, there is always emphasis on the provision of a policy framework (i.e through development plans) within which the economy and other sectors operate. What this means is that, in all areas of the economy, the need for a general framework in form of development plans cannot be overemphasized.

The essence of planning by government, therefore, is that it cloud make a conscious choice regarding the rate and direction of growth. The most logical interpretation of this is that the relative rates at which heavy industry, light industry, agricultural improvement, transport and commerce, housing and the like are to be pursued become a matter of conscious policy (Ayinla, 1998:21). It is therefore reasonable to say here that, through a national comprehensive plan, it will be possible to make rational decisions to achieve deliberate, consistent and well-balanced action towards socio-economic development and good governance.

The successful implementation of many projects before and after independence and up to a point in the history of Nigeria as a nation was due substantially to the strategy of pursuing economic and social development through periodic national development plans. The history of development plans in Nigeria can be traced to the colonial era when the British Colonial Office mandated the colonies to prepare development plans for the disbursement of the Colonial Development and Welfare Funds in 1940. Thereafter, a body known as the National Economic Council was set up in 1955 to co-ordinate the nation’s growth in line with the recommendation of the World Bank Mission to Nigeria. This eventually led to the preparation of a National Development Plan for Nigeria in 1959.

The main objective of the 1959 Development Plan was the achievement and maintenance of the highest possible rate of increase in the standard of living and the creation of necessary conditions to this end. Since 1960 therefore, Nigeria has formulated and launched development plans which had made it possible for governments to articulate policies in the following areas: equitable distribution of income; increase in employment opportunities; improved social services; and efficient allocation of available resources to eliminate waste (Ayinla, 1998:41).

Preparing and implementing development plans thus became one of the ways by which successive governments in Nigeria before and after the country’s independence have been trying to better the socio-economic and political conditions of Nigerian citizens. This is because the policies contained in such development plans touch on the various aspects of the society, which include the political, economic, educational, social and agricultural sectors (Olaniyi, 1998:104). Good as this may sound, in 1986, there was a gradual movement towards a cessation of national development plans in Nigeria. It is important to note that this has made the business of governance haphazard in the country. It is against this background that this paper sets out to examine the implications of neglecting development plans in Nigeria. In order to achieve this objective, the paper covers the following sub-areas: the history of development plans in Nigeria; the journey towards neglecting development plans in Nigeria; the implications of cessation of development plans on the mandate of democracy; and summary and recommendations.

The History of Development Plans in Nigeria

The history of conscious planning for development in Nigeria can be traced to the colonial days. To be specific, it has its origin in 1946 when the colonial government introduced what it tagged “Ten Year Plan of Development and Welfare for Nigeria”. This was under the Colonial Development and Welfare Fund. Under this historic Development Plan, a total planned expenditure of an equivalent of N110 million for a period of ten years was earmarked for the period starting from April 1, 1946 to March 31, 1956 (Ogunjimi, 1997:97). Analyzing the focus of the ten-year Development Plan, Ayo (1988:1) observes that the plan focused on building a transport and communication system, while little provision was made for industrial development. He notes further that this first development plan was also selective in its focus on agriculture, as attention was concentrated on a limited range of cash crops, which include cocoa, palm products, cotton, groundnut and timber. An important conclusion which one can draw from the analysis given by Ayo is that the Colonial Development Plan for Nigeria was meant to serve the interest of the colonial masters rather than that of the colony (i.e. Nigeria).

This foreign-centered development plan, however, did not run its full term because, by 1950, the inappropriateness of charting development over a period as long as ten years in a country experiencing rapid structural changes had become evident. Consequently, a decision was taken to break the plan period into two five-year sub-periods and to formulate a new plan for the sub-period 1950-1956. However, the introduction of a federal system of government affected this revision as each of the regional governments became autonomous and adopted different economic policies. The consequence of this, as can be noted from the work of Olaniyi (1998:106), the launching of a five-year development plan for the period 1955-1960 to be implemented by the Federal Government for itself. The plans reviewed above constitute the pre-independence development plans. Whatever their weakness, the fact remains that they constitute the beginning of the practice of development planning in Nigeria.

Since independence in 1960, Nigeria has formulated and launched other development plans, which, of course, were more comprehensive than the pre-independence plans. They were comprehensive because such plans were conceived and formulated within the framework of improved system of national accounts. Besides, they covered the operations of both the public and private sectors of the economy; and, more importantly, they had their projects related to a number of well-articulated overall economic targets. Therefore, between 1960 and 1985, there were four development plans in Nigeria which were referred to as the First, Second, Third and Fourth National Development Plans. Each of these development plans had its own focus and well-articulated objectives which had far-reaching effects on the nation’s developmental aspirations.

The First National Development Plan was launched in April 1962 and was to cover a period of six years (1962-68). Under this plan, a total investment expenditure of about N2.132 billion was proposed. Out of this, public-sector investment was expected to be about N1.352 billion, while the remaining investment expenditure of N780 million was to be undertaken by the private sector. The full implementation of this development plan was however interrupted by two major political events, namely, the military intervention in 1966 and the 1967-70 civil war. Consequently, the period of the plan was extended to March 31, 1970. These major interruptions notwithstanding, both the Federal Government and regional governments recorded a number of landmark achievements during the development plan period. During the crisis period, the Federal Government alone successfully executed projects like the Oil Refinery in Port Harcourt, the Paper Mill, the Sugar Mill and the Niger Dam (in Jebba and Bacita respectively), the Niger Bridge, and ports’ extension, while it also constructed a number of trunk ‘A’ roads. It is interesting to note that it was also during this period that the first-generation universities were established: Ibadan and Lagos by the Federal Government, Ahamdu Bello University by the Northern Nigerian Government , University of Nigeria Nsukka (UNN) by the Eastern Nigerian Government and the University of Ife (now known as the Obafemi Awolo University) by the Western Nigerian Government.

The federal and regional governments were able to achieve this much in spite of the crisis because, during the period, the annual capital budgets operated within the development plan framework. They were employed as the main instrument of control and allocation of development resources (Ogunjimi, 1997:98). This was in itself made possible by the existence of a development plan which provided guidelines for meaningful and co-coordinated development during the plan period despite two political crises.

General Yakubu Gowon launched the Second National Development Plan in 1970 on behalf of the Federal Government and the government of the then twelve states of the federation. It was launched shortly after the end of the war. Because it was a post-war development plan, its focus was on the reconstruction of a war-battered economy and the promotion of economic and social development in the new Nigeria. What this means, according to Olaniyi (1988:107), is that the philosophy of the plan was consequently influenced by the exigencies of the war, which include the building of a united, strong and self-reliant nation; a great and dynamic economy; a just egalitarian society; a land of bright and full opportunities for all citizens; and a free and democratic society.

Like the First National Development Plan, the Second National Development Plan also recorded a number of major projects, which were successfully executed by both the federal and state governments. Such projects include the successful construction of many federal roads; the successful take-off of the National Youth Service Corps scheme; the introduction of federal scholarship and loan schemes for Nigerian students, etc.

General Gowon also launched the Third National Development Plan on behalf of all governments in the country. The plan covered a five-year period from April 1975 to March 1980. Ayinla (1998:86) describes this plan as a watershed in the evolution of economic planning in Nigeria. It was a unique development plan because, apart from its huge initial investment of about N30 billion (which was later revised to N43.3 billion), extensive consultations with the private sector of the economy were made in the course of its preparation.

 

The cardinal objectives of this plan were also part of its uniqueness. Such objectives include increase in per capital income during the plan period; more even distribution of income; reduction in the level of unemployment; diversification of the economy; balanced development; and indigenization of economic activities. As laudable as the objectives of this development plan were, the implementation was adversely affected by the change of government in July 1975, barely three months after the plan was launched. In particular, the change of government led to a reappraisal of some of the cardinal objectives is contained in the plan. Here, more emphasis was placed on those projects which were thought to have direct effects on the living standard of the common man. Sectors that were thus given priority included agriculture, water supply, housing and health (Olaniyi, 1998:108).

The Fourth National Development Plan, (1981-85) was launched by President Shehu Shagari in 1981 on behalf of the Federal Government and the governments of the then nineteen states of the federal. This was the first plan to be formulated by a democratically elected government under a new constitution based on the presidential system of government. As observed by Ogunjimi (1997:100), the plan was intended to further the process of establishing a solid base for the long-term economic and social development of Nigeria. Unlike the previous development plans, the fourth plan was the first in which the local governments were made to participate at two levels. One, they participated at the level of preparation, and two, they were allowed to have their own separate programmes under the plan. The capital investment target was N82.2 billion shared between the public and private sectors with the former putting in about N70.5 billion, while the latter put in the balance of N11.7 billion.

The Fourth Development Plan was a gain affected by the change of government in 1983 and by yet another change in 1985. These two changes seriously disrupted the implementation of the programmes of the plan and, consequently, the performance of the economy during the fourth plan period was generally poor. Whatever the case (success or failure), it is interesting to note that between 1945 and 1986, the concept of development planning was common: planning for social and economic development in Nigeria. Beyond the end of this period, this concept gradually faded away and has now become a thing of the past.

 

The Journey towards Neglecting

Development Plans in Nigeria

It is important to note the real journey towards neglecting the tradition of development planning in Nigeria started with the Babangida administration. In response to the problems encountered during the Fourth Development Plan period, the Babangida administration suspended in October 1988 the idea of a five-year development plan, which had hitherto almost become a well-established traditions. At the end Fourth Development Plan in December 1985, a one-year economic emergency programme was instituted in 1986 probably to solve some obvious economic problems left behind by the Shagari administration. Interestingly, this was later absorbed by an economic policy christened the Structural Adjustment Programme (SPA). According to the apologist of SAP, the programme was introduced in 1986 for the economy to have a foundation before any meaningful planning could be done.

The Babaginda administration then believed that because the economy was largely indebted, the basis for planning was eroded. The government therefore wanted to do away with the already practiced medium-term planning and consequently introduced a perspective known as rolling plan. Based on this, the government decided on a 20-year perspective plan for the period 1989-2008. According to the philosophy of this rolling plan, the first phase of the perspective plan would constitute the Fifth National Development Plan. With this structural change of policy, the five-year planning model was replaced with a three-year rolling plan to be operated along with a 12 to 20 year perspective plan and the normal operational annual budgets. This plan become operational with the 1989 budget and it provided the foundation for the three-year rolling plan (1989-90-91). In order to effectively executive this programme, some fundamental reforms was the merging of budgetary and planning functions with the sole objective of minimizing conflict between the two (Ogunjimi, 1997:101; Ayinla, 1998:23; Ilesanmi, 2000:6).

According to the architects of this rolling plan programme, it was considered to be more suitable for an economy facing uncertainty and rapid change. The rolling plan was meant to be revised at the each end of each year, at which point estimates, targets and project were added for an additional year. What this means is that planner revised the 1990-92 three-year rolling plan at the end of 1990, issuing a new plan for 1991-93. In effect, a plan is renewed at the end of each year, but the number of years remains the same as the plan rolls forward. According to Ihonvbere (1991), the objectives of the rolling plan were to reduce inflation and exchange rate instability, maintain infrastructure, achieve agricultural self-sufficiency, and reduce the burden of structural adjustment on the most vulnerable groups.

In the same way that the tradition of five-year development plan was jettisoned by the Babangida administration, the idea of rolling plan was also shelved in 1996 by General Sani Abacha for Vision 2010, which was launched on September 18, 1996. The programme was to systematically improve the quality of life of Nigerians in fourtheen years (Ogunjimi, 1997:107). Although not directly related to the transition programme, the work of Vision 2010, a 250-member committee of private-sector representatives, government ministries, academics, journalists, traditional rulers, trade union leaders and foreign businessmen, among others, inaugurated by General Abacha on November 27, 1996, was similarly intended to move the country forward. The committee was chaired by Chief Ernest Shonekan, who headed a short-lived Interim National Government in 1993 before Abacha seized power (Jukwey, 1996).

Vision 2010 submitted its final report to General Abacha on September 30, 1997. The committee reportedly recommended “large-scale deregulation of the Nigerian economy”, the release of political detainees and rigorous compliance with the transition programme (Jukwey). In his October 1, 1997 National Day address, Abacha promised to introduce the measures required to begin the programme’s implementation immediately, in the firm belief that successive administrations will carry it to a successful conclusion with the support of Nigerian people and friends of the nation (National Day Address, 1997). The fear of Vission 2010 members that their recommendations would not be implemented were justified. Funds for the capital projects budgeted for the first half of 1997 were only released in September, bringing investment in infrastructure and the economy in general to a virtual halt. Massive lay-off of federal and states’ employees throughout the country had caused significant hardship. Pervasive of “failed bank” and “failed contract” tribunals, which seemed to have been designed to target potential opposition supporters rather than crack down on “illegal deals”.

From our discussion so far, it can be seen that the military intervention in 1966 and its subsequent prolonged rule in Nigeria become the genesis of truncating the process of adhering to national development planning as a strategy for economic and social development (Fika, 2004). What the nation has inherited in the absence of well-articulated development plans are budget frauds, road contract scandals, oil scams and unchallenged or unchecked high level of financial corruption at all level government in Nigeria. It is, however, imperative to note here that since the re-commencement of democratic government on May 29, 1999; the administration of President Olusegun Obasanjo has begun a series of bold economic and political reforms to put the country back on a sound economic and political footing.

The Implications for Democracy of Cessation of Development Plan

A democratic dispensation is considered as being so efficacious in pushing the frontiers of development that some authorities see it as being coterminous with government (Oshionebo, 2004:305). In this regard, Boeninger (1991) simply defines governance as

 

good government of society which guides a country along a course leading to a desired goal, in this case, development.

Development, here, is construed to mean equity, social justice, and the exercise of basic human rights. The point to note, however, is that this perspective acknowledges that democracy has a moral purpose and rationale. This means that the well-being of society is dependent not only upon the correctness and rationality of government policies or plans but also on public confidence that previously settled methods, procedures and rules of politics and government will not be violated or arbitrarily changed but in fact preserved (Obadan, Oshionebo and Uga, 2002).

The British Council (1993) regards democracy as symbolizing “good government”. It sees government as simply the framework of institutions and functionaries or officials that the state uses in running its affairs. A good government is regarded as good if it provides a responsive governmental and state administrative framework that facilitates good governance. Although good governance and economic development must be longer-term goal than good government, the former will be achievable without the latter.

Therefore, good government would, in practice, mean:

(i) A legitimate and representative government following democratic elections.

(ii) an accountable administration and a responsive government characterized by free-flowing information, separation of powers, effective internal and external auditing, low levels of corruption and nepotism, competent officials, realistic policies and low defence expenditure.

(iii) governmental respect for human rights, as indicated by freedom of religion and movement, impartial and accessible criminal justice system, and the absence of arbitrary government power (Oshionebo, 2004:306).

The essence of democracy, therefore, is to provide an organizational platform to tap the potential endowments of society so that opportunities will be generated for an all-round development (Oshionebo, 2003). For a democratic dispensation to perform competently enough to be adjudged “a good, honest government” (Galbraith, 1999) which is essentially “a pivot for responding to citizen expectations” (Cohen, 1995), the government must exercise state power and authority in the context of what Oshionebo (2002) describes as the institution that facilities effective performance appraisal of the policies, programmes and activities of government. Deriving from the foregoing, development plans are indispensable in good governance. As a result, it is logical to assert that the negligence of development plans in Nigeria, as a result of prolonged military intervention, is responsible for the various developmental problems which the country has experienced.

Nigeria’s development reports since independence eloquently point out the link between good governance and societal development. According to these reports, Nigeria is abundantly blessed with enormous human and natural resources that should translate to a decent standard of living. With a population of over 120 million, Nigeria is the most populous country in African and the eleventh in the world (Oshionebo, 2004:304). In spite of these blessings, the poor performance of the Nigerian economy in many sectors is very evident. The real sector (manufacturing and agriculture) is performing rather poorly. While the country still imports a lot of the agricultural produce for consumption, the capacity utilization in industry is around 400/0. The country’s per capita income which was as high as $1,281.4 in 1980, declined continuously to its lowest level of $240.0 in 1992; it stood at around $250.0 in 1995 and at $270.0 in 1997; roughly the same figure as in 1972 (Obadan and Odusola 1999). That figure is still below $300 as at today.

The economy may be experiencing some gains but these are only moderate, particularly given the resource disbursements on the country’s development efforts. As we have seen, Nigeria’s development indices point to a low rate of economic growth, low capacity utilization in the industrial sector, poorly performing utilities/infrastructure and the attendant increase in operating costs, among others. The Nigerian economy is therefore embattled on all fronts and with crises of ramifying description, including energy crisis, education crisis, unemployment crisis, food crisis, transportation crisis, debt crisis and, of course, the crisis of economic management (Oshionebo, 2004:304).

The overall consequence of the macroeconomic problems is the deplorable poverty profile of Nigerians. Indeed, the poverty profile of Nigerians appears to be worsening. The UNDP Human Development Report for 2001 places Nigeria at No. 148 out of the 173 countries surveyed. The situation was marginally compared with the 2003 report, which puts Nigeria at 152 among the 175 countries covered in the survey. Official statistics indicated that the national incidence of poverty has remarkably risen from a modest level of 15 percent in 1960 to 28 percent in 1980. It rose further to 46 percent in 1985 and 66 percent in 1996. As at 2001, it was estimated to stand at over 70 percnet (FRN, 2001 and Obadan, 2001).

These predicaments are no doubt manifestations of neglecting the practice of having development plans, which denies the country the required blueprints for development.

The present administration has made concerted efforts at redressing the various crises and reviving the economy, but the fact remains that in the year 2000, the economy “neither improved nor deteriorated significantly but was static and still low-income, low-growth, with distortions in several areas”. Indeed, President Olusegun Obasanjo made reference to the static nature of the economy while presenting the 2001 Appropriation Bill to the National Assembly in November 2000 when he started, “for this government and most Nigerians, our hard-won democracy is yet to translate into significant improvements in our lives (Taiwo, 2001).

What this means is that the level of development in Nigeria today does not match the level of resources available. This is a result of a high level of corruption, which lack of adequate resource utilization for development has made possible. No society can achieve anything near its full potential if it allows corruption to become a full-blown cancer as it has been in Nigeria.

With the jettisoning of development plans, which today remains one of the greatest tragedies occasioned by military rule, corruption was allowed to grow really unchecked. The rules and regulations for doing official business, which development plans entail, died. Consequently, cynicism, contempt for and cause of integrity pervade every level of the Nigerian bureaucracy, which used to be the vehicle for the execution of development plans in the past. Budgets, which are not tailored towards any development targets, are read without execution. This has provided an avenue for siphoning public funds by those in power. The implication of this is that the practice of reading the annual budget without anything to show for it has eroded public trust in government and undermined the rule of law. It has also weakened the effectiveness of governance at all levels. More importantly, it has hindered economic growth as the nation’s resources meant for development are plundered in an ineffective manner.

 

Summary and Recommendations

In summary, this paper has traced the history of development planning in Nigeria to the colonial era when the British Colonial Office mandated the colonies to prepare development plans for the disbursement of the Colonial Development and Welfare Funds in 1940. The paper also reported that the setting up of a body known as the National Economic Council thereafter, to co-ordinate the nation’s economic growth in line with the recommendations of the World Bank Mission to Nigeria in 1955, eventually led to the preparation of a National Development Plan for Nigeria in 1959.

The main objective of the 1959 Development Plan, as discussed in this paper, was the achievement and maintenance of the highest possible rate of increase in the standard of living as well as creating the required conditions for the achievement of the above-stated objective. The objectives of development plans that later followed the 1959 plan were the same. Indeed, with the various plans, the country was able to articulate policies that directly touched on the lives of common people in the country.

From our discussion, it has been shown that at a point around 1986, there began some signs of inconsistency in the implementation of development plans, which ultimately led to a total abandonment of the tradition of having development plans. This has been found to be one of the major factors militating against good governance in Nigeria, the business of governance began to be haphazardly conducted, while the quality of life began to decline.

The paper has reported that as a result of the cessation of development plans in Nigeria, the country has suffered some negative consequences among which are deplorable poverty profile and unchecked high level of corruption. The implication of all these is hindrance of economic growth because the country’s resources, which are to be used for development, are being plundered.

To remedy the negative consequences, it is hereby recommended that the present democratic government should go back to the old practice of formulating national and state budgets in the context of comprehensive development plans. To this end, there is the need for the following institution to be established or, where they are already in existence, they must be strengthened. First is the establishment of a National Council on Development Plans. This council, to be chaired by the President, should, among other things:

· supervise the implementation of national development plans;

· ensure harmonization of existing policy measures with the future development objectives and strategies;

· ensure effective and consistent dissemination of the development plan vision to institutions and the wider public; and

· co-ordinate and monitor all inter-sectoral related activities spanning rural development, poverty alleviation, water supply, urban and rural environmental sanitation, health, education, agriculture, control of population growth, electricity supply, communications, transportation, etc

Secondly, to ensure the success of the development plans in Nigeria, corruption must be eliminated. Consequently, it is suggested that all laws on corruption should be strengthened. Institutions such as the Independent Corrupt Practices and Other Related Offences’ Commission (ICPC) and Economic and Financial Crime Commission (EFCC) should be given more support by the government so that the implementation of development plans at any state will be free of corruption.

 

Finally, for development plans to lead to good governance, the rules and regulations governing the conduct of government activities must be widely known and understood. In order words, there is the need to develop the culture of transparency in the running of government as an enterprise. To this end, the bureaucratic processes in Nigeria should be developed to facilitate effective governance. This can be done by removing the bureaucratic red tape, which often undermines good governance via policy implementation as embedded in development plans.

 

References

Aboyade, O. (1983). Integrated Economics: A study of Development Economics. London: English Language Book Society.

Ayinla, M. A. (1998). Essays on planning and Budgeting Systems in Nigeria. Ilorin: Berende Printing and Publishing Company.

Ayo, E. J. (1988). Development Planning in Nigeria. Ibadan: University Press Plc.

Boeninger, E. (1991). “Governance and Development: Issues and Constraints. “Processing of the World Bank Annual Conference on Development Economic, The World Bank.

Cohen, H. J. (1995). “Good Governance, Democracy and Citizens Expectations in Africa “In Africa Demos: A Bulletin of the African Governance Programme. Vol III, No. 4. Atlanta: The Carter Centre.

Edward, J. A. (1988). Development Planning in Nigeria. Ibadan: Spectrum Books.

Fika A. (2004). Daily Trust, May 3, Abuja.

FRN (2001). National Poverty Eradication Programme (NAPEP): A Blueprint for the Scheme, NAPEP Secretariat, Abuja.

Galbraith, J. K. (1999). “Challenges of the New Millennium. “Finance and Development. Washington D. C. IMF.

Ihonvbere, J. O. (1991). “The State, Governance and Democratization in Africa: Constraints and Possibilities” Hunger Teachenet. Vol. 6, No. 3 Austin.

Ilesanmi, O. A. (2000). International Economics. Lagos. Fapsony Nigeria Limited.

Jukwey, J. (1996). “Nigerian Ruler Wins Some Accolades for Reforms” Reuters, November 28.

Jukwey, J. (1997) “Committee Gives Abacha Plan on Nigeria’s Development” Reuters, September 30.

Obadah, M. I. (2002). “Poverty Reduction in Nigeria: The Way Forward.” In Obadah, M. I; A. A. Adubi and E. O. Uga, (eds) Integration of Poverty Alleviation Strategies into Plans and Programmes in Nigeria. Ibadan: NCEMA/World Bank.

Obadah, M. I. and F. A. Odusola (1999). “Savings, Investment and Growth Connections in Nigeria: Empirical Evidence and Policy Implications. “NCEMA Policy Analysis Series Vol. 5, No. 2.

Obadah, M. I; B. O. Oshinebo and E. O. Uga, (2002). “Democratic Governance and the Imperatives of Effective Planning and Budgeting”. In Obadah, M. I., et al (eds.) Effective Planning and Budgeting in a Democratic Setting, Proceedings of the English Annual DPRS Directors’ Conference, 25 – 29 June, NCEMA, Ibadan.

Ogunjimi, S. O. (1997). Public Finance for Polytechnics and ICAN Stkudents. Niger: Leken Produtions

Olaniyi, J. O. (1998). Foundation of Public Analysis Ibadan: Sunad Publishers Limited.

Oshionebo, B. O. (2003). “Democratic Governance and the Imperative of Efficient Development Management”. A Paper Presented at the Annual Conference of NCEMA, Ibadan, 23-27. June.

Oshionebo, B. O. (2004). “Capacity Building in a Democratic Era. “In Bello Imam, I. B and M. I. Obadan, (eds.) Democratic Government and Development Management in Nigeria’s Fourth Republic, 1999 – 2003 Ibadan: Centre for Local Government and Rural Development Studies (CLGARDS).

Taiwo, I. O. (2001). “Review and Appraisal of the Year 2000 Federal Government Budget Performance. “A paper Presented at the CBN/NCEMAN/NES Seminar on the 2001 Federal Government, Budget Lagos, January 25.

 

BEING A MANAGER IN SOUTH AFRICA IN CONTEMPORARY WORLD TODAY (INTERCULTURAL)

INTERCULTURAL MANAGEMENT - SOUTH AFRICA

BEING A MANAGER IN SOUTH AFRICA

Management Guide South Africa

Successful cross cultural management is more likely is you understand the importance of spending time developing personal relationships and getting to know your colleagues. Because the country was closed to outside influences for many years, some older Afrikaners remain suspicious of anyone who might dilute their culture, including foreigners.

There are strong regional differences that affect the way business is conducted. There may be a lack of time urgency in cities such as Cape Town that is best explained by the phrase "just now", which means immediately, just past, now, later, or sometime in the future; whereas business can be quite fast paced in Johannesburg.

The white "Old School Tie" or "Old Boy" network that ran major businesses two decades ago is slowly being replaced by a new generation of executives who are more interested in accomplishment than where someone went to school. This is a country in transition and successful cross cultural management is more likely is you understand that you should expect to find many different management styles. Often the behavior you experience will be more a matter of personality than cultural dictate.


The Role of a Manager

The purpose of meetings in South Africa is to share information among co-workers. There is not a great deal of emphasis placed on position or status. All present are assumed to have value and therefore have value to contribute. The agenda will be set by the leader, and the leader will guide the pace and content of discussions, but all present have both an obligation and a right to contribute.

Meeting schedules are not rigid in South Africa. There may be an agenda, but it serves as a guideline for the discussion and acts as a springboard to other related business ideas. As relationships are highly important in this culture, there may be some time in the meeting devoted to non-business discussions. Time is not considered more important than completing a meeting satisfactorily, so meetings will go on until they come to a natural ending.

Approach to Change

South Africa’s intercultural adaptability and readiness for change is apparent. South Africa is seen to have a medium tolerance for change and risk. It is important for innovations to have a track record or history noting the benefits if they are to be accepted and implemented.

The fear of exposure, and the potential of embarrassment that may accompany failure, brings about aversion to risk. Because of this attitude, intercultural sensitivity is going to be required, especially when conducting group meetings and discussing contributions made my participating individuals.

Approach to Time and Priorities

South Africa is a controlled-time culture, and adherence to schedules is important and expected. In South Africa missing a deadline is a sign of poor management and inefficiency, and will shake people’s confidence.

Since South Africans respect schedules and deadlines, it is not unusual for managers to expect people to work late and even give up weekends in order to meet target deadlines. Successful intercultural management will depend on the individual’s ability to meet deadlines.

 

Decision Making

As with many other aspects of South African business, the relationship between managers and subordinates is changing. Afrikaner managers were known for being autocratic; however, the management style is becoming increasingly collaborative. That is not to say that hierarchical relationships are not respected.

Boss or Team Player ?

In South Africa, groups collaborate well together as teams. Members are generally chosen to participate based on tangible skills or the knowledge base they bring, and are equally welcome to contribute to any discussion that may arise. The success of the cross cultural manager will depend on the individual’s ability to harness the talent of the group assembled, and develop any resulting synergies.

Communication and Negotiation Styles

Women have yet to attain senior level positions. If you are a woman, you can expect to encounter some condescending behavior and to be tested in ways that a male colleague would not. Do not interrupt a South African while they are speaking. South Africans strive for consensus and win-win situations. Include delivery dates in contracts as deadlines are often viewed as fluid rather than firm commitments. Start negotiating with a realistic figure. Decision-making may be concentrated at the top of the company and decisions are often made after consultation with subordinates, so the process can be slow and protracted. Patience may be a necessary cross cultural attribute.

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