CHAPTER ONE

INTRODUCTION

Background of Study

Nigeria in October 1 1960 gained independence from British colonial rule, three years later there was crisis in the polity as a result of the 1963/1964 general census in which there was financial corruption, ethnic politics and abuse of power by the politicians and leaders. As a result of this crisis, the western regional thuggery, riot in the North and West, the army took over on 15 January 1966, which however did not achieve its aim in correcting the ills of the society, rather led to a counter-coup in July of the same year by another group of soldiers in the army targeted towards the Igbo soldiers in the army and the Igbo people.

On 18 August, 1966, a new government was installed under Lt. Colonel Yakubu Gowon. This was followed by a period of breakdown in communications between the then Eastern region and the rest of the country. Efforts to resolve the crisis by constitutional means proved unsuccessful. In fact the governor of the Eastern region, Lt Colonel Ojukwu, had virtually severed all economic links with the rest of the four regions of Nigeria. This was followed, on 30 May 1967, by the proclamation of the Republic of Biafra by the former Governor of the Eastern region, Lt. Colonel Ojukwu, thus precipitating the civil war which started on 6 July 19671.

With the outbreak of the war, the Nigerian economy was to undergo a change, this was evident in the steady decline in government revenue, particular from the oil sector largely as a result of the breakaway of the three Eastern states. This revenue shortage, coupled with the burden of financing the war put severe strain on government finances2.

Nigerians post-independence economy was characterised by heavy dependence on imports. At the advent of the war in 1967, it had not recorded any noticeable departure from this pattern. Most of the traded goods in Nigeria were produced abroad and merely imported for distortion in the country. On the other hand, apart from crude oil, very little was exported both by way of goods and services. The economy was not self-reliant and so had difficulties in coping with heavy bills on imports of arms and ammunition in addition to the normal requirements3.

As the war progressed, its impact on the economy began to be felt, and by 1969 government expenditure had outpaced revenue. Goods and services began to be in short supply, and this led to a substantial increase in the domestic price level. On the other hand, the demand for goods and services increased astronomically as the armed forces expanded and as more and more areas of the eastern states were liberated from rebel control.

The political and civil disturbances of the 1966/67 era also significantly affected the supply and demand for labour in the country. Following the outbreak of these disturbances, there was a mass movement of labour from one region to another invariably for security reasons. This mass movement of workers continued into the second quarter of 1967. Many civil servants of eastern region left the Federal Northern and Western region public services and transfer to the services of the Eastern region government while citizens and workers from other regions were repatriated by the Eastern region government to their regions of origin. There was unprecedented absenteeism from work. Some employees even abandoned their posts without prior notice to their employers. Industry and commerce, miners and plantations, were faced with manpower shortages as a result of the exodus. The mass movement resulted in a distortion of the labour market, with a high concentration of skilled and unskilled persons in the eastern region and an acute shortage of skilled workers in other parts of the country, particularly in the Northern region.

This situation was aggravated by the austerity measures taken by Federal Military Government. The measure led to the retrenchment of workers. Some regional governments, overwhelmed by the austerity measures, also profer some vacancies in their services thereby curtailing employment opportunities.

Statement of the Problem

The economy of the Nigerian civil war is one topic that has not been properly addressed. So in this work, we will be looking at how the war affected the economy. First, we will look at the economy before the war and then the economy during the war. Meaning, we will look at the various aspects of the economy affected by the war, the agricultural and industrial sectors, baking and financing of the war with resource mobilization and utilization then techniques and innovations in the war.

So I will be looking at how the economy fared during the war, because it is the concern of this study and then the economy after the war up to fifteen years later. This are the lapses I am going to cover in this study.

Aims of the Study

This research work is aimed at revealing the economy of the Nigerian civil war (1967-1970). It will first show some important sector of the economy like agriculture, trade (import and export) before the war and then the state of the economy during the war, the sectors of agriculture, industry, banking and finance, the financing of the war, resource mobilization and utilization and then the technological innovations during the war will be looked at. Then, we will look at the consequence on the economy after the war and how the government try to resurrect the economy, and this we will study up to 1985.

Significance of the Study

This study is of importance to those who are interested in knowing the economy of the Nigerian civil war. Also, through this work one will see how war is devastating to a people and their society and how terms of trade change from consumer goods to arms and ammunitions during the war.

Also, economic historians and economist will find the work useful, since the study will reveal how a war economy look like.

We will also see how Nigeria had a progressing economy in the six years after independence before the war and how till date after the war the country is still trying to find her lost track.

Scope of the Study

This study focuses on the impact of the civil war on the economy of Nigeria and even after the war up to 1985. It will first discuss the economy before the war and then show the state of the economy during the war. And then the consequences of the war on the economy up to 1985.

It will show the sector of agriculture, import and export trade and the economic policies made by the government before the war. And then during the war, we will also see the agricultural sector, industries, banking and finance, financing of the war, the resource mobilization and utilization and technological innovation in this period.

The period of our study 1967-1985 is unique in the history of the country, it falls under the first 25 years after independence. The first six years of civilian rule and how the army took over in 1966 to eventual break out of the war from 1867-1970, and also the next fifteen years after war, that saw the government trying to reconcile the citizens, rehabilitate and reconstruct the society. In this case, our focus will be on how the government tried to resurrect the economy, for fifteen years after the war.

Limitation of the Study

This research work will be limited by finance, for it involves enormous funds to travel and get books. So I will chiefly be using academic libraries around my area and then internet sources. There is also the limitation of time, the time given is not enough to carry out a thorough research work. So I will be making use of the time given very well to get a good research work.

Research Methodology

In carrying out this research work, I will use the historical research method of sourcing for material and using them as they concern the topic of research that is to say, there will be content analysis of the existing literature on the research subject, and then vital information will be used.

I will consult journals and documents as my primary sources. And then for my secondary sources, I will consult books, conference proceedings and internet sources.

Review of Related Literature

Books have been written about this topic including articles, but for this work we will be taking a look at some of them.

Longe noted that the civil war period saw the steady decline in government revenue, particularly from the oil sector largely as a result of the secession of the three Eastern states. This revenue shortage together with the burden of financing the war put a strain on government finances4.

For Cervenka, soon after the war broke out, it was not the losses on the battle field but the suffering of the masses that gradually became the concern of the outside world. The war exposed civilians to mass starvation and diseases, which spread in areas affected by the war. From the middle of 1968, the Nigerian war swiftly grew into a total war with the deaths of innocent civilians greatly exceeding the losses of the fronts. The Biafrans with all their vital supply links with the outside world cut off were exposed to starvation5. Thus, showing us the negative effect of warfare on a populace which is of vital importance to our study.

Okigbo said that the Biafrans leadership, on the other hand had cut the territory away from the Nigerian community and economy, thereby throwing upon themselves the difficult problem of managing an economy which they regarded as independent but which Nigerians regarded merely as a truculent and difficult sub-economy6.

Oragwu revealed that, as a result of the war the importation of the technology for production and extraction of raw materials was not possible, the foreign technical personnel who were sustaining the modern sector of the economy also left. To sustain the mass of the population the need arose for self-reliant, self-sustaining production and technical services. This deprivation and common necessity forged a common bond among the population7. Thus showing us how war conditions can bring out the ingenuity of a people, like they say “necessity is the mother of invention”. The war time economy did not encourage importation in Biafra, for there was a blockage created by Nigeria. The people were ingenious and there were technologies of their own to persecute the war, one such technology was the “ogbunigwe” a bomb, and this is where it is of vital importance to our study, revealing the ingenious technology of the Biafran people8.

Ukwu talked about how the war led to a sense of national self-reliance. How the government made new decrees, the idea of a new currency and more restrictive fiscal measures were also introduced9. They were methods the Federal Government initiated in order to get enough finance to persecute the war. It is this financing aspect of the war that is of vital importance to our work.

Uwechue explained the intervention by the big powers in the war with emphasis on Britain and the Soviet Union supporting Nigeria, France and Portugal supporting secessionist Biafra. He argued of an economic interest this big powers but failed to give the details and content in this regard. This is where the content study will be of vital importance. For it aim to show the very content of this economic relations10.

John wrote on the arms race, showing how the trade between Nigeria and the outside world of Britain and Russia turned to strictly arms with the coming of the war, but failed to give the terms of commodity agreement, which this present study will tackle11.

Brandler noted how the Nigerian economy was flourishing after independence with investors and was lost with the coming of the war. This loss of expatriates certainly led to a self-reliant economy in this period for the purpose of survival and which is a focus of our study12.

Ojukwu explained how the Biafrans were able to create indigenous technology in the war and how at the end of the war, the Nigerian government failed to improve on this by developing the so much needed indigenous technology13. This present study will give more enlightenment on the invention and creativity of this period of the civil war.

Onimode wrote about the inhibition of the national mobility of labour, capital and even goods occasionally with open discrimination against non-state indigenes in various ways14. This present study will fortify this aspect of the war economy.

Odey stated that during the war years, there was a general down turn of the economy and Gross Domestic Products (GDP) as a result of war circumstances. He also went further to emphasise the war inflation, strains and deficit in balance of payment and inadequate skilled labour for industrialisation efforts12. This present study will go on to show the statistics of the downturn and the fiscal quote of the inflation and balance of payment.  

End Notes

G.A.E.Longe “administering the war machine: the federal experience”, TekenaN.T& Samson C.U. (eds.), Nigeria since independence: the First twenty-five years volume VI, Heinemann Educational books Nigeria. Ltd 1989. P.185

G.A.E. Longe, p186

G.A.E. Longe; p.186

G.A.E. Longe; p.185

Zdenek Cervenka; a history of the Nigerian War 1967-1970, Ibadan: Onibonoje Press, 1972. P48

P.N.C. Okigbo, “the Economics of the Civil War: the Biafran experience,” TekenaN.T. & Samson C.U. (eds), Nigeria since independence: the first Twenty-Five Years Volume VI, Heinemann Educational Books Nigeria. Ltd. 1989

Felix N.C. Oragwu, “Scientific and Technological Aspects of the war-machine in Biafra”Tekena N.T.& Samson C.U. (eds), Nigeria since independence: the first Twenty-Five Years Volume VI, Heinemann Educational Books Nigeria. Ltd. 1989 p 220

Achebe, C., There was a country, London: penguin, 2012, p156

Ukwu I. Ukwu., “Management in Nigeria: Public Private” TekenaN.T. & Samson C.U. (eds), Nigeria since independence: the first Twenty-Five Years Volume VI, Heinemann Educational Books Nigeria. Ltd. 1989 p 169

Raph Uwechue; reflections on the Nigerian civil war, Paris: JeuneAfrique, 1971. P 90

John De St. Jorre; the Nigerian Civil War, London: Hodder and Stoughton, 1972. P81

J.LBrandler; out of Nigeria, Ibadan: Spectrum Books Ltd, 1993. P231