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THE NATIONAL ECONOMIC EMPOWERMENT AND DEVELOPMENT STRATEGY (NEEDS) AND THE DEVELOPMENT OF CAPITAL MARKET

CHAPTER ONE

INTRODUCTION

1.1     Background of the Study

National Economic Employment and Development Strategy (NEEDS) was developed by the National Planning Commission, then headed by Charles Soludo. The Federal Executive Council of Nigeria as a poverty alleviating strategy endorsed it. The aim of the scheme was to meet the Millennium Development Goals of curbing the menace of poverty in Nigeria and bringing it to the barest minimum by the year 2015.

National Economic Improvement and Development Strategy is a way of letting the International Community know where Nigeria stands in the region and the world, and how it wishes to be supported. In looking at the possibilities of National Economic Employment and Development Strategy (NEEDS) m meeting the aspirations of Nigerians, we must not fail to state that NEEDS specifically, addresses the international Development Targets (IDTs), which were set in 1996 to improve economic wellbeing, social and human development and ensure environmental sustainability and regeneration.

In September 2000, 149 world leaders adopted the United Nations Millenniums Declaration which listed a series Millennium Goals (MDGs). The declaration commits UN member states to achieving the following goals by 2015:

- To halve the proportion of people whose income is less than one dollar a day and who suffer from hunger?

-  Achieve universal primary education.

- Reduce material mortality by three - quarters and under five child mortality by two thirds. Halt and begin to reverse the spread of HIV/AIDS, malaria and other major diseases. Provide special assistance to children orphaned by HIV / AIDS.

-   Significantly improve the lives of at least 100 million slum dwellers by 2020. In addition, the efforts of the government in achieving NEEDS (i. e needs of Nigerians) as well as the monetary policy will be considered.

Capital market is a market that deals in lending and borrowing in long - term loan able funds.It is the source from which firms obtain their capital for establishment and expansion and from which the government borrows on long-term basis for development purpose.

The stock exchange perform the function of providing facilities to the public for the purchase and sale of stock and shares of any kind and investment of money and controlling the grant of quotation on the exchange in respect of the shares and stock under the listing requirement of the stock exchange market.

Base on the above introduction, the research shall focus on how the NEEDS has been able to contribute to the development of the nation most especially the capital market and the various problems that NEEDS is meant to address in terms of industries, infrastructural development among others.

1.2     PROBLEM ANALYSIS

Prior before the restoration of democracy in 1999, Nigeria as a nation is been faced with series of problems ranging from economic dwindling, inadequate and lack of infrastructural maintenance, poverty and inequality, lack of security and weak and inappropriate public sector among others. The researcher observed that the following problem need to be researched upon:

-   The problem of inadequate and lack of job creation is one of the area in which tireintroduction of NEEDS in Nigeria is meant to address. Hence, has it been able to address this problem?

- NEEDS equally is expected to address the problem of alleviating poverty among Nigerians. Both the federal and state government have set up various poverty alleviating programme to reduce to the minimum poverty among the citizens.

- The introduction of NEEDS is also expected to facilitate efficient and effective capital market development. It is also expected to address the problem?

Lastly, the introduction of National Economic Empowerment and Development Strategy (NEEDS) is to meet the Millennium Development Goals by the year 2015.

1.3    PURPOSE OF STUDY

This research is aimed at analysing and critically examining' The National Economic Empowerment of Capital Market.

-  The study will look at the concept of NEEDS and how it contributes to the capital market development.

- The study is also aimed at look at the concept of capital market.

- The study is also aimed at look at the concept of capital market and the correlation to the establishment of (NEEDS) National and Capital market can facilitate superioreconomic performance among others.

1.4     RESEARCH QUESTIONS

This aspect of the research question will go a long way in asking various questions aimed at looking in to the 'NEEDS' and the capital market.

1.      Is there any relationship between ineffective infrastructural facilities and the performance of NEED?

2.      What is the relationship between NEEDS and efficient capital market'?

3.      Does any relationship exist between poverty alleviation and NEEDS?

4.      What is the significant relationship between the NEEDS and the development of small and medium scale industry?

1.5     STATEMENT OF HYPOTHESIS

Ho1:   There is no relationship between ineffective infrastructural facilities and the performance of NEEDS.

HA1:  There is relationship between ineffective infrastructural facilities and the performance of NEEDS.

Ho1: No relationship between NEEDS and efficient capital market.

HA2:   Relationship exist between NEEDS and efficient capital market.

Ho3:   There is no significant relationship between poverty alleviation and NEEDS.

HA3:     There is significant relationship between poverty alleviation and NEEDS.

H04:   Relationship does not exist between NEEDS and the development of small and medium scale industry.

HA4:     Relationship exist between NEEDS and the development of small and medium scale industry.

1.6    SCOPE OF STUDY

This research work is expected to cover the National Economic Empowerment and Development Strategy NEEDS and the development of capital market. Various sub-topics like small and medium scale industry; poverty alleviation among others shall be discussed.

However, the primary data (questionnaire) for this study is limited to only hundred (100) staff of selected banks, capital market and small scale industries within the Lagos State. ]

1.7     JUSTIFICATION OF STUDY

The introduction of NEEDS by the government: seeks torestore the trust in government as a facilitator of development, which the country needs badly. The study of NEEDS is important because it enables Nigerians to implements livelihood strategies and achieve personal goals. The government has to stop trying to run businesses and redirect its effort providing essential services. It must sell off the businesses currently under it control in order to free up labour and funds that it can use to improve basic service.

NEEDS is essential because changing the way the government works is a colossal task, but NEEDS will build on processes that have already begun to make a difference.

NEEDs is also important in the area of curbing and strengthening as well as modernizing the anticorruption organisations it has established. Exposing unethical and illegal practices and punishing those who engage in them. It is also expected to establish formal training in ethics and fostering leadership by example.

Furthermore, NEEDS is also essential because it will encourage all levels of government to adopt an annual budget framework and guidelines. The guidelines will promote balanced budgets, implementation of priority programmes, budget discipline, cost effectiveness and the generation of internal revenues and savings.

A peer-review mechanism will enable leads of government agencies to compare their performance and nurture a common culture of excellence. The NEEDS period should be characterized by the punctual release of annual budgets.

The government also instituted massive anti-corruption campaigns and established the independent corrupt practices and other related crimes commission and the Economic and Financially Crimes Commission, which outlaw corrupt practices. The government is committed to the Extractive Industries Transparency imitative, which encourages oil companies to fully disclose revenue and cost of operations.

Lastly, the study of this nature can be justified when one look at the important role that NEEDS play in term of developing the capital market as well as improving the lives of Nigerians.

REFERENCES

1.NEEDS NIGERIA (2004):Meeting Everyone's NEEDS by National Planning Commission.

2.      NEEDS (2007): www.cenbank.org.

3.      How Capital Markets Enhance Economic Performance and Facilitate

job Creation. Goldman, SACNS & CO.

4.      Omoruyi, P. (2003):            Capital Market and Portfolio

Management in Practice.

5.      Nnamdi, a. (1991): Research Methodology in the Behavioural

Sciences. Longman Publication, Lagos.

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