Peace and Environment Africa Journal, 2015 Edition

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com
Peace and Environment Africa

Journal of Centre for Peace and
Environmental Justice (CEPEJ) Nigeria
Volume 2
Number 1
November 2015
Centre for Peace and Environmental Justice

Warri
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Editor in-Chief
Professor Benjamin Okaba
Editorial Board
Professor Godwin Okon
Professor Henri Fouche
Professor Letticef Rutishobya
Professor Sunny Nwankwo
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Peace and Environment Africa
Editorial Comment
The Peace and Environment Africa is published annually by the Centre
Peace and Environmental Justice to deliberately and systematically amass a
formidable and credible data base on sustainable peace, security, Human Rights
and environmental best practices in Africa in particular and the world in general.
Succinctly put, this journal provides a platform for scholars and research
fellows to publish well-researched and properly articulated papers and analysis
of technical reports on the areas such as crime, criminality and development,
peace and sustainable development, flood, erosion and environmental
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kidnapping and compensation issues; the role of the media in development,
press freedom, Fol Act and implications for development, international and
inter-regional relations and African development, health, safety and
environment, security issue and African development, oil economy and
agricultural development in Africa, peacekeeping training and management
strategies, environmental sanitation and city beautification in Africa; drainage
system, waste management and flooding in Africa; transportation management
techniques in African cities, oil and mining related crises in African countries;
global warning and climate issues, implications for Africa; synergy between
security agencies and community policing in Africa; politics and good governance
in Africa; unemployment, capacity building and community empowerment
implications for African development and many other development related
topics.
GUIDELINES TO CONTRIBUTORS
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abstract. illustrations and references (using the APA format) should be electronically
submitted as an attachment through mubsheff12@yahoo.com, info@cepejngo.com
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Only papers adjudged to be good enough for publication in the edition through a
peer review system shall be accepted. However, responsibility for opinions
expressed and accuracy of facts shall rest on the respective contributors.
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TABLE OF CONTENT
Central Bank of Nigeria (CBN) Statutory Mechanisms and Supervisory Challenges of
The Nigerian Financial Sector for Economic Growth
G.O.DEMAKI (Ph.D., FCIS, ACIS)
Conflicts in Africa: Implementing International Court of Justice Judgment over

the Bakassi Dispute Between Cameroon and Nigeria.
AMOS ADEOYE IDOWU, Ph.D,
17
Globalization New Concept, Old Phenomenon: A Case of the Nigerian

Economy in Pre-Colonial Times
Ikonnaya Okomba Kalu, & Presley Kehinde Osemwengie
39
Managing an Accumulative Inorganic Pollutant: An Optimal Tax Prescription

for the Social Planner
ONYIMADU CHUKWUEMEKA
63
Analysis of Newspaper Coverage of the Niger Delta Crisis (2003 2004)

ORHADAHWE, GODWIN OKITE
77
Separating the Position of Chairman from that of Chief Executive Officer:

Challenges for Statutory Corporate Governance among Nigerian Companies
90
Fulani Herdsmen and Communal Conflicts: Climate Change as Precipitator

NTE TIMOTHY UBELEJIT (Ph.D)
110
CENTRAL BANK OF NIGERIA (CBN) STATUTORY MECHANISMS AND

SUPERVISORY CHALLENGES OF THE NIGERIAN FINANCIAL SECTOR FOR
ECONOMIC GROWTH
Department of Business Administration
Delta State University, Abraka
ABSTRACT
Proponents of corporate governance code insist that it is the legitimate means of
raising standards as opposed to legislative solution in most of the economies in
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the world. However, in Nigerias case, the most sensible approach is to focus on
law enforcement rather than developing new laws and codes. The agency theory
is the theoretical foundation on which this paper is rooted the agency theory
states that the presence of information asymmetry (i.e. disproportionate
information favourable only to the agent, in this cases the directors and
managers) the agent is likely to pursue interest that may hurt the principal or
shareholders. Anecdotal studies in support of the agency theory are disclosed.
The CBN statutory mechanisms and supervisory challenges of the financial sector
are highlighted. Findings from the Anecocodtal studies suggest that the CBN is
still losing a war with macroeconomic stability inspite of its statutory regulatory
mechanism leading to the underperformances of the real sector and slow
economic growth. The paper recommend that deposit money bank, the bankers
of first resort with robust domiciliary dollar account through which all tier of
government receives dollar allocation instead of disbursements in naira
equivalent by the federation account allocation committee from CBN
Introduction
Downs (2011) set out the case in favour of law enforcement rather
than developing new laws and codes in Nigeria. He stated that despite the
introduction of regulatory reforms in Nigeria to make it easier for firms to
start up and operate business for economic development and growth,
Nigeria in the World Bank survey Doing Business in 2011: Reforming
through Difficult Times ranks 137 out of 183 economies on its ease of
doing business. This is in comparison to the United Kingdom (UK) which
ranks 4th out of 183 economies. He therefore insist that the most sensible
approach is to focus on the strengthening of the existing law enforcement
mechanisms rather than developing new laws and codes as a means of
raising standards.
Adesina (2010) disclosed that individual banks fell into distress with
31 banks going under between 1989-1998. By 2008, the list of closed
banks increased from 31 to 49 as set out below.
S/N
1.
2.
3.
4.
BANKS (IN-LIQUIDATION)
Kapital Merchant Bank
Financial Merchant Bank
Alpha Merchant Bank Plc
United Commercial Bank Ltd
DATE OF REVOCATION OF LICENCE

January 21, 1994
January 21, 1994
September 8, 1994
September 8, 1994
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5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
41.
Republic Bank Ltd

Abacus Merchant Bank Ltd
ABC Merchant Bank Ltd
Allied Bank Plc
Amicable Bank of Nig. Plc
Century Merchant Bank Ltd
Commerce Bank Plc
Commercial Trust Bank Ltd
Continental Merchant Bank Plc
Co-operative & Commerce Bank
Credite Bank Nig. Ltd
Crown Merchant Bank Ltd
Great Merchant Bank Ltd
Group Merchant Bank Ltd
Highland Bank Plc
ICON (Merchant Bankers)
Lobi Bank of Nig. Ltd
Mercantile Bank Nig. Ltd
Merchant Bank of Africa Ltd
Nigeria Merchant Bank Plc
North-South Bank Nig. Plc
Pan African Bank Ltd
Pinacle Commercial Bank Ltd
Prime Merchant Bank Ltd
Progress Bank Nig. Plc
Royal Merchant Bank Ltd
Victory Merchant Bank Ltd
Ivory Merchant Bank Ltd
Premier Commercial Bank Ltd
Rims Merchant Bank Ltd
Savannah Bank of Nig. Plc *
Peak Merchant Bank Ltd *
Allstates Trust Bank Plc
Assurance Bank of Nigeria Plc
African Express Bank Ltd
City Express Bank Ltd
Eagle Bank Plc
7
June 16, 1998

January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
January 16, 1998
December 22, 2000
December 22, 2000
December 22, 2000
February 15, 2002
February 28, 2003
January 16, 2006
January 16, 2006
January 16, 2006
January 16, 2006
January 16, 2006
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42.
43.
44.
45.
46.
47.
48.
49.
Fortune Intl Bank Ltd*

Gulf Bank Plc
Hallmark Bank Plc
Lead Bank Plc
Liberty Bank Ltd
Metropolitan Bank Ltd
Trade Bank Plc
Triumph Bank Ltd*
January 16, 2006

January 16, 2006
January 16, 2006
January 16, 2006
January 16, 2006
January 16, 2006
January 16, 2006
January 16, 2006
* Liquidation Suspended due to litigation.

Table 1:
List of the 49 closed banks according to the year of closure
Source: Claims Resolution Department, NDIC 2008 Annual Report
Following the banks failures of 1989-1998, the Central Bank of
Nigeria (CBN) and the National Deposit Insurance Corporation (NDIC)
prepared a regulatory framework on distress resolution. During the 2005
banking sector consolidation, many weak banks were saved through
absorption while others that were seriously distressed found no partner
and lost their operating licenses leading to the emergence of universal
mega-banks with minimum share capital of N25 billion. These new
universal banks had huge fund at their disposal to deploy into commercial,
merchant and investment banking, sell insurance, hawk the full range of
financial products and hold equity in non-financial firms.
Conceptual Issues and Theoretical Framework

To proceed further will require definition of the terms contained in
this paper and the disclosure of the theoretical foundation on which it is
rooted:
Statute and Statutory Provision
Garner (2004:1447) defined Statute as:
a law passed by legislative body, specifically
legislation enacted by any law making body
including
legislatures,
administrative
boards and municipal courts.
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He went further to describe statutory provisions as:
A clause in statue, contract and other legal
instrument or stipulations made before
hand.
Lile (1914:1448) provided a more fundamental insight into statutory
provision insisting thus:
We are not justified in limiting the statutory
law to those rules only which are
promulgated by what we commonly call
legislature. Any positive enactment by
which the state gives the force of a law is a
statute whether it has gone through the
usual stages of legislative proceedings or
has been adopted in other modes of
expressing the will of the people.
The CBN supervisory mechanism is in tandem with this definition.
Alfaki (2006) stated that the legislation for regulating financial institutions
before the 2003 code of corporate governance in Nigeria included the
Company and Allied Matters Act (CAMA, 1990), Investment and Security
Act (ISA), 1999, Bank and Nigerian Accounting Standard Board (NASB) Act
2003. Despite the existence of the aforementioned regulatory provisions,
lack of proper coordination, uniformity in standard of best practices and
enforcement of the various laws were responsible for the failure of many
companies in the financial sector.
CBN Statutory Mechanisms
NDIC Report (2008) disclosed that CBN relied on the lending and
deposit facilities anchored on the Monetary Policy Rate (MPR)
complemented with Open Market Operation (OMO), sale of foreign
exchange through Wholesale Dutch Auction System (WDAS), reserve
requirements and auction of treasury securities in the primary market,
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appointment of resident examiners in the 24 universal banks and
electronic monitoring together with the enforcement of the 2006 Bank
post consolidation code of corporate governance.
Financial Sector: For the purpose of this paper, comprises the following
universal banks, namely; Access Bank Plc, Diamond Bank Plc, Ecobank
(Nigeria) Plc, Fidelity Bank Plc, First Bank Plc, Stanbic IBTC Bank Plc,
Sterling Bank Plc, UBA (United Bank for Africa) Plc, Unity Bank Plc, Wema
Bank Plc and Zenith Bank Plc. The population of banks in the financial
sector also included the previously consolidated banks that were
nationalized recently, namely; Afribank (Nig) Plc, Bank PHB Plc and Spring
Bank Plc (Now Mainstreet Bank Ltd, Keystone Bank Ltd and Enterprise
Bank Ltd respectively). However, Oceanic Bank International Plc and
Intercontinental Bank Plc which are intervened banks are excluded from
this paper because the Nigerian Stock Exchange has placed their shares on
technical suspension, following their signed transaction Implementation
Agreement, until the completion of their recapitalization transaction.
Economic Growth
According to CBN Report (2010) Economic Growth
Implies the reduction in the rate of inflation and
increase in Gross Domestic Product (GDP)
which is the market value of all goods and
services officially made within the borders of a
country in a year and in a measure of standard
of living together with the current value of the
naira which is an indicator of economic
stability.
Todaro and Smith (2003:3) defines economic growth as:
The steady process by which the productive
capacity of the economy is increased over time
to bring about rising level of national output
and income.
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They stated further that rapid economic growth has been a major
preoccupation of economists, planners and politicians in the least
developed countries (LDCs) and developing countries including Nigeria in
the last two or three decades because it has been thought to be the major
precondition determining levels of living. Etah (2008) also believes that
regulatory framework in Nigeria must be interlinked with global business
environment and continuously modernized in line with local circumstances
since securities regulators, institutional investors and a probing media are
still weak. Nigeria, he further stated, needs rules to be upscaled to align
with international best practices. The incidence of banking distress which
is traceable to lax supervision and failure to adhere to existing regulatory
provisions leading to economic stagnation
The Theoretical Framework
The theoretical framework on which this paper is rooted is the
Agency theory. The Agency theory posits that in the presence of
information asymmetry the agent (in this case the directors and managers)
is likely to pursue interest that may hurt the relationship between
managers and equity holders with no explicit recognition of other parties
interested in the wellbeing of the firm (Sanda et al 2005). The theory
assumes that managers are likely to place personal goals ahead of
corporate goals resulting in a conflict of interest between shareholders
and management. As for the financial industry, the retention of public
confidence through the CBN statutory supervisory mechanisms of the
financial sector for economic growth is of utmost importance given the
role of the industry in the mobilization of fund, the allocation of credit to
the needy sector of the economy, the payment and settlement system and
the implementation of monetary policies. McColgan (2001), stated that
agency conflict of interest between two parties to a contract has
developed into three key problem areas, namely;
(i).
Moral Hazards Conflict: This is whereby a hypothetical scenario, a
manager develop his incentive to consume prerequisites, rather
than investing in positive net present value projects, increases as
his ownership stake in the company declines. That is as the
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(ii).
(iii).
manager own smaller equity stakes in their companies, their

incentive to work may diminish (Jensen and Meckline 1976).
Earning Retention Agency Conflict: Jensen (1993) reaffirmed the
existence of the agency conflict by arguing that managers prefer to
retain earnings, whereas shareholders prefer higher level of cash
distribution. Managers benefit from retained earnings as size
growth grants a larger power base, greater prestige, ability to
dominate the board and award themselves higher remuneration.
Time Horizon Agency Conflict. McColgen (2001) further maintains
that shareholders and managers are divided with respect to the
timing of cash flow; shareholders usually will be concerned with
long term positive net present value (NPV) projects into indefinite
future.
However, management may only be concerned with company cash

flow for their term of employment leading to a bias in favour of short term
higher accounting return projects at the expense of long-term positive
NPV projects. Lemo (2010) insist that the financial sector crisis led to the
intervention of the CBN in 2009 among others by weak corporate
governance structure and unethical practices by the banks. Based on the
foregoing state of corporate governance failure, the CBN designed policy
strategies and embarked on a comprehensive supervisory mechanism
reforms to address the weaknesses observed in the existing corporate
governance practices in the financial sector. Komolafe (2007) in his
anecdotal studies disclosed instances of bank failures arising from the
agency conflicts although revitalized were victims of moral hazard conflict
between managers (including directors) and shareholders. Consequently,
upon the mismanagement of the bank (Wema Bank Plc) by the
management, the capital adequacy ratio dropped to an unacceptable
negative ratio of 3.6%, thus requiring capital injection of N23 billion. The
liquidity ratio of the bank was also below the required minimum of 40%.
As a result, the CBN current account was consistently overdrawn to the
tune of N30 billion. Likewise, borrowing from banks and discount houses
to finance Wema Bank Plc obligation stood at N21.4 billion as at the
examination cut of date. The removal of 13 directors from the Board of
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Spring Bank Plc in 2008 with the approval of the CBN was an
acknowledgement of the banks liquidity problem and gradual erosion of
its shareholders fund in violation of the prudential requirement stipulated
by the CBN pursuant to the provision of the Banks and Other Financial
Institutions Act (BOFIA) 1991 and the CBN Act 1991.
Anecdotal Studies of CBN Supervisory Mechanisms of the Financial
Sector
The CBN statutory supervisory mechanisms reforms over the
financial sector includes increasing the minimum capital base for banks to
N25 billion, phased withdrawal of public sector fund amounting to N74
billion, consolidation of banking institutions, through merger and
acquisition, adoption of risk focused and rule based regulation framework
especially in the area of data recording and reporting. The CBN policy
reform reduced the number of banks from 89 to 24.
The CBN monetary operation relied on the deposit taking and
lending rates of the banks, Nigerian interbank and exchange rates and
wholesale Dutch auction system together with monetary policy rates as
stated in the money market indicators below.
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NIGERIAN INTERBANK OFFERED RATE
Tenor
Rate% (Previous) Rate % (Current)
9 Feb. 12
10 Feb. 12
Call
14.7083
14.9167
7 days
15.0033
15.2917
30 days
15.6250
15.8583
60 days
16.0417
16.2833
90 days
16.4333
16.6500
180 days
16.7500
16.8333
365 days
17.0833
17.2500
Movement
AVERAGE TAKING AND LENDING RATES OF BANKS EXCHANGE RATES

Feb. 12
SAVINGS A/C
Overnight
Strict call
7 days
30 days
60 days
90 days
180 days
270 days
365 days
OVERDRAFT:
Prime
Normal lending
STRUCTURED LOAN
Prime
Normal lending
Week: 5
30 Jan. 12
2.3335%
2.2103%
2.8645%
3.5398%
6.4615%
6.9339%
7.3271%
7.3667%
8.0567%
8.1617%
Week: 1
6 Feb. 12
2.3335%
2.2103%
2.8645%
3.5398%
6.4875%
6.9599%
7.3531%
7.4292%
8.0567%
8.1817%
17.0773%
20.3040%
17.0772%
20.3043%
18.1420%
20.8095%
18.1429%
20.8095%
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CURRENCY
NGN USD
NGN GBP
NGN EUR
NIGERIAN INTERBANK
($N
BUREAU DE CHANGE
($N)
PARALLEL
MARKET
($N)
Year
start Current
offer
E/d
156.7000
155.5000
244.6557
246.4632
204.3995
205.3198
160.6625
158.7000
Current
Offer
156.9000
247.6456
297.1424
158.8000
Cv
Y3
0.13
.1.22
.1.34
1.16
162.5000
159.0000
160.0000
1.54
163.000
160.0000
161.0000
1.23
WHOLESALE DUTCH AUCTION SYSTEM

AMOUNT OFFERED MARKET DEMAND AMOUNT SOLD
DATE
US$450,000,000.00 US$450,000,000.00 US$450,000,000.00 8-Feb -12
US$250,000,000.00
US$250,000,000.00 1-Feb. -12
POLICY RATES
October
11
policy
12.00%
November
11
12.00%
December
11
12.00%
January
12
12.00%
14.00%
14.00%
14.00%
10.00%
10.00%
10.00%
30.00%
8.00%
10.50%
30.00%
8.00%
10.50%
30.00%
8.00%
10.50%
Monetary
rate
Standing lending
14.00%
rate
Standing deposit
10.00%
rate
Liquidity ratio
30.00%
Cash Reserve ratio
8.00%
Inflation rate
10.50%
Table 2: Money Market Indicators
Source: Business Vanguard. www.vanguardngr.com 4/2/12 pp. 23-24

In furtherance of transparency and full disclosure stance of the
CBN, the monetary policy committee has made it mandatory that the
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lending rate obtainable in all Deposit Money Banks (DMBs) in Nigeria be
made public to guide business decisions. The rate are published every
Wednesday on weekly basis in selected newspapers with wide
geographical spread, the rates are also available on the website of the
CBN. The main objectives of the monetary policy rates is to overcome the
liquidity overhang and maintenance of macro economic stability,
reduction in the cost of borrowing through reduced interest rate together
with the maintenance of monetary and exchange rate stability.
The Open Market Operation (OMO) is part of the CBN liquidity
management tool. Increased issuance of treasury securities in the primary
market are used to MOP UP excess liquidity. The Nigeria Treasury Bills of
various Tenors are auctioned. The CBN monetary policy rates (MPR) and
cash reserve ratio remain at 12% and 8% respectively since October 2011
January 2012, without adjustment in Table 2 above. The liquidity ratio of
30% between the same period are part of CBNs management strategy at
achieving price stability. The CBN promote market-based interest rate with
decisions on interest reviewed on quarterly basis. The wholesale Dutch
Auction System (WDAS) is the CBNs major exchange rate policy
instrument. As indicated above, the increase of supply of Foreign Exchange
of US$250,000,000 US$450,000,000 for example in February 2012 to the
market by the CBN is to promote efficiency in the foreign Exchange Market
by allowing market forces to determine the naira exchange rate. The CBN
direct banks to submit returns on interest rates on deposits and loans and
publish same in their websites. Failure to comply attract severe sanctions.
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INSERT TABLE
Table 3: Average Deposit and Lending Rates as at May 9, 2014.

Source: Vanguard, Wed. Mpay 24, 2014. P. 17
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The deposit and lending rate as at 9/5/2014 of twenty-one Nigerian
Deposit money banks for companies across ten sectors of the economy
including governments are shown in Table 3 above. This is in furtherance
of the transparency and full disclosure stance of the Central Bank of
Nigeria. The monetary policy committee also insists that Deposit and
lending rates obtainable in all Deposit Money Banks (DMB) be made public
to guide sound business decision for good corporate performance and
economic growth in Nigeria. The rates include interest rates bank charge
the public on loans and advances. It reflects the cost of borrowing and also
includes all charges and commissions levied by Deposit Money Banks are
also available on the website of the Central Bank of Nigeria But the DMB
are not bankers of first resort with robust domiciliary dollars account
required to stem the prevailing fiscal deficit occasioned by default of all
tier of government in default of the repayment of disbursement by
federation account allocation committee from CBN.
The CBNs abolition of exclusivity clauses in the agreement between
International Money Transfer operators and their agents bank in Nigeria is
in response to complaints of the market players over high cost of money
transfer in Nigeria. Violation of the CBNs directive on this matter may lead
to the rejection of such agreement. The CBN statutorily monitors the
banks electronically. In conjunction with the National Deposit Insurance
Corporation (NDIC) carry out a once-a-year routine audit on each bank.
However, the CBN officials merely plays the ostrich as they are aware that
banks actually keep many books and transmit to the regulatory agencies
cooked data and not information reflecting their respective state of affairs.
The same cooked books is what the CBN/NDIC examiners go through
during the yearly audit visit.
Dafinone (2011) emphasized that the sole purpose of the banking sector
reform is to safeguard the financial system, including protecting both
investors and depositors fund, jobs and ensuring confidence of local and
international public in the Nigerian economy.
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Conclusions
It is the duty of government through its agencies like the CBN to protect
the critical and sensitive financial systems and punish offenders without
jeopardizing the practice of free enterprise. The nationalization (Afribank
Nig. Plc, Bank PHB Plc and Spring Bank Plc) of private asset send
depressing signal to local and foreign investors. Rather than seize troubled
private businesses from their legitimate owners, the offending officials
should be subjected to judicial process. What is required for economic
development and growth is collaboration with private sector to attract
direct foreign investment into the Nigerian economy because to do
otherwise will further depress the economy.
Recommendations
1. According to Adesina (2010), promoting ascertainable effective
supervisory mandate, will require resident examiners to remit to
the CBN completed questionnaires bearing specific and duly
certified data on relevant banking operations at stated short
intervals within the financial year.
2. Any false information should attract severe sanction to every
member of the board of a bank even after the tenure of office has
ended.
3. This is necessary because a distress-free financial sector guarantees
reliable financials and provide the basis for economic development
and growth for the benefit of all.
4. Deposit money bank, as bank of first resort, should have a
domicilary dollar account through which all tier of government
receives dollar allocation instead of disbursement by the federation
account allocation committee in naira equivalent from the CBN to
stem fiscal deficit and promote macroeconomic stability for
economic growth.
5. The 2006 CBN code of corporate governance be up scaled to
International standard to prevent the collusion between CBN
officials and top management of the regulate banks in
compromising audited financials submitted for examination
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Financial Performance in Nigeria. African Economic Research
Consortium (AEFRC). Paper 149. Nairobi.
Todaro, M.P. and Smith S.C. (2003). Economic Development. 8 th Edition. Delhi:
Pearson Education. Plc Ltd.
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CONFLICTS IN AFRICA: IMPLEMENTING INTERNATIONAL COURT OF
JUSTICE JUDGMENT OVER THE BAKASSI DISPUTE BETWEEN CAMEROON
AND NIGERIA.
AMOS ADEOYE IDOWU, Ph.D,
Department of Public Law, Faculty of Law,
Obafemi Awolowo University,
Ile-Ife, Osun State, Nigeria.
ABSTRACT
The study revisited the judgment of International Court of Justice (ICJ) on
boundary dispute between Cameroon and Nigeria involving Bakassi Peninsula
and efforts by the two nations to ensure its full implementation. The
methodology included certain normative theories and principles using primary
and secondary sources of information. Data obtained were subjected to content
and contextual analyses. It found that the ICJ judgment of 10 October, 2002
ceding Bakassi to Cameroon was initially unacceptable to Nigeria. Despite the
Green Tree Agreement and Cameroon-Nigeria Mixed Commission established for
implementing the Judgment, agitations by Nigerians for its revision and violence
in the Peninsula had persisted. Though Nigeria and Cameroon had restrained
from war, the Judgment had not resolved the dispute completely. Effective
implementation of the judgment would depend upon workable strategies
between Nigeria and Cameroon for addressing humanitarian needs, demarcation
problems, intermittent violence and human rights violation in the peninsula. It
was recommended that Nigeria and Cameroon should continue to uphold their
commitment to abide by the judgment of the ICJ without reservation and all
obligations imposed on Cameroon and Nigeria by the Green Tree Agreement
should be discharged in good faith. Such obligations include, due regard by
Cameroon to human rights and nationality of Nigerians living in the Peninsula
pending the outcome of various strategies being adopted by the CameroonNigeria Mixed Commission for proper demarcation of the international boundary
between the two nations.
Keywords: Bakassi Peninsula, Cameroon, ICJ, Implementing, Judgment, Nigeria.
Introduction
Historically, the 19th century scramble for Africa by European
imperial powers encapsulated in the Berlin Conferences between 1884
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and 1885 gave countries like Britain, France, Belgium, Germany, Portugal
and Spain; the colonial audacity to divide African countries among
themselves. The development led to the coercive lumping of African
territories and arbitrarily drawing and partitioning their borders or
frontiers (Ajomo, 1994). This had resulted into boundary disputes among
many nations like those between Ethiopia and Eritrea; Libya and Chad;
Egypt and Sudan; South Africa and Namibia and lately, Nigeria and
Cameroon (Eme, 2003).
The land and maritime boundary dispute between Cameroon and
Nigeria seriously became a source of concern in 1981, when it was
reported that some Cameroonian soldiers launched sporadic attacks on
Nigerians living in the Bakassi Peninsula (The Comet, 2002). Nigerian
Government at that time, was observed not intending to embark on any
act of reprisal but took step to deploy light Military personnel to keep
peace in the area. Unfortunately, reports of intermittent incidents of
violence and hostilities between citizens of the two countries over the
Peninsula had continued to dominate both print and electronic media.
Also, the growing awareness of huge deposits of crude oil in the Bakassi
Peninsula with its inestimable economic value, had further rekindled the
interest of the Republic of Cameroon in the area and her desperate bid to
recover the property. Hence, the Cameroonian Government decided to file
action against Nigeria at the ICJ, on 29 March, 1994.
After some years of legal battle, the ICJ gave its judgment on 10
October 2002, ceding Bakassi Peninsula to Cameroon. In view of the socioeconomic, cultural, political and security implications of the judgment;
many Nigerians had intensified their support for a revision of the ICJ
judgment. In fact, the two Houses of the National Assembly in Nigeria,
came up with resolutions early October 2012, calling the Federal
Government to approach the ICJ for a revision of the judgment (The
Nation, 2012). However, the Federal Government of Nigeria indicated its
intention on 9th October, 2012 (barely 24 hours before the deadline), not
to appeal for a revision of the ICJ judgment.
Giving the geographical locations of the Peninsula, the age-long
occupation of some Nigerians on the island and snippets of documentary
evidence; was the ICJ judgment given in error? Was the intervention of the
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ICJ capable of resolving the Bakassi crisis? What factors motivated the
Federal Government of Nigeria to drop its intention to appeal for a
revision of the judgment? Could Nigeria have succeeded in seeking a
revision of the judgment? Why are the displaced Nigerians still agitating
for durable resettlement schemes and still uncomfortable with the refusal
of the Federal Government to appeal for a revision of the judgment? What
should Cameroon and Nigeria do to ensure a full implementation of the ICJ
judgment and make the Peninsula a peaceful buffer area between them
forever?
Statement of the Problem
In this study, an immediate issue of concern is the reality of an
outstanding boundary dispute between Cameroon and Nigeria which
could not be resolved over decades to the extent that one of the parties
did not find a satisfactory alternative other than a litigation before the
World Court. In human affairs, disputes and conflicts had remained
inevitable products of growth, development and transformation. Their
primary and ultimate causes may be political, economic, social, ethnic,
religious and nationalist (Fearon, 2000). It is not that conflicts should not
arise but whenever they arise, productive efforts are expected to be made
to resolve them before they get out of control thereby, leading to loss of
lives and property. If the boundary dispute over Bakassi Peninsula
between Cameroon and Nigeria was to occur between parties who are
biological beings, it would probably not have taken such a long period of
years before workable solutions would have been sought. However,
Cameroon and Nigeria being subjects of International Law and giving the
twin-problems of distance, language, culture, external interventions and
diplomatic bottlenecks; the dispute could not have been resolved earlier
than expected.
Beginning from 1981 when incidents of violence between
Cameroonian and Nigerian soldiers actually began in the Bakassi
Peninsula, many lives had been lost and huge properties destroyed. In a
bid to forcefully exercise control over the Peninsula, the two nations had
spent a lot of money on arms, ammunition and maintenance of troops.
Such expenses would have been committed to the provision of social
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amenities for the people. In the course of managing the crisis, Cameroon
and Nigeria had been led to the brim of enemity which could have
precipitated into a full-scale international war. This development had also
depressed the age-long friendly relationship between the two nations. In
externalizing the boundary dispute to the ICJ, the impression was that
Cameroon and Nigeria could not manage their problems as immediate
neighbours despite their eminent positions as dependable nations in the
continent of Africa. In diplomatic terms, this development has not neatly
presented the two nations before the international community. A lot of
money, time and materials had also been expended in prosecuting their
cases before the ICJ.
The inability of Cameroon and Nigeria to resolve the boundary
dispute over Bakassi had led to judicial intervention of the ICJ whose
judgment carried grave implications for the two nations. The nations
involved had to commit a lot of human and material resources to fashion
out strategies in forms of the (Cameroon-Nigeria Mixed Commission,
2003) and (Green Tree Agreement, 2006) to ensure effective
implementation of the judgment. In term of security, the territorial safety
and defence of the Nigerian Navy are being threatened along the maritime
boundary with Cameroon. Politically, the Bakassi Local Government Area
already entrenched in the 1999 Constitution of Nigeria had fallen into the
territory of Cameroon thereby, posing the urgent need to review the
Constitution in this regard. Economically, Nigeria had lost some prominent
oil wells located in the Bakassi shore-lines ceded to Cameroon while many
Nigerians had also lost their sources of livelihood as fishermen and
farmers. One of the legal implications of the ICJ ruling is that though, it has
no binding force except between parties; Cameroon and Nigeria should
have moral and diplomatic obligations to implement it haven voluntarily
subjected themselves to its jurisdiction. It was not impossible for the two
nations to have rejected the Judgment and look for other alternatives for
resolving the dispute. However, where any alternative chosen might likely
endanger international peace and security, the Security Council of the
UNO could have intervened (UNO Charter, 1945).
The recurring problem of resettlement of displaced people living in
the Bakassi Peninsula could be said to be more of Nigerian problem than
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that of Cameroon. About 300,000 Nigerians living in the Peninsula had
been reported to have been displaced while the Federal Government of
Nigeria had estimated about four Billion Naira (approximately 1.2 Billion
US Dollars) for their resettlement (Etim, 2012). Vital components of such
resettlement include: construction of roads, Public utility buildings,
schools, hospitals, installation of electricity, pipe-borne water,
communication facilities and provision of security personnel for ensuring
protection of lives and properties. As at October 2012, the Federal, State
and Local Governments involved in the resettlement schemes had not
been able to satisfy the yearnings of the people displaced.
Even after the Federal Government of Nigeria had indicated its
intention not to appeal against the ICJ judgment but continue in its
peaceful negotiation with Cameroon to implement it contrary to the
expectations of many Nigerians; there had been reports of gross violation
of human rights in the Peninsula through Gestapo-style repression of the
Cameroonian soldiers (Hugo, 2012). Arising from this development is the
ultimate problem that the intervention of the ICJ and its judgment had not
been able to resolve the land and maritime boundary dispute between
Cameroon and Nigeria over the Bakassi Peninsula till 2014 after a period of
fourteen years when it was pronounced.
Objectives of the Study
The overall objective of this study is to further advance the frontiers
of knowledge of scholars who have written and made public
pronouncements about the intervention of the ICJ in the land and
maritime boundary dispute between Cameroon and Nigeria. Based on the
present situation between the two nations, other additional and specific
objectives of the study are to
1
Procure more information about history, geography, socio-political
and economic affairs of Cameroon and Nigeria including their
present state of diplomatic relations;
2
attempt an overview of the description and location of the Bakassi
Peninsula;
3
examine the circumstances which led Cameroon and Nigeria to
international litigation before the ICJ;
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4
5
6
consider the main aspects of the ICJ ruling ceding the Peninsula to
Cameroon;
discuss some prominent implications of the ICJ Judgment;
appraise the efforts of Nigeria, Cameroon and other stakeholders in
the international community in ensuring a workable
implementation of the ICJ judgment;
attempt to ascertain the level of implementation of the ICJ
judgment with particular reference to resettlement of displaced
people and boundary demarcation between Nigeria and Cameroon;
determine whether or not, the ICJ judgment had been able to
resolve the land and maritime boundary dispute between
Cameroon and Nigeria over Bakassi and
Chart a way forward for Cameroon and Nigeria through some
recommendations.
Conceptualisation
The word implementing
Implementing is an act of carrying out, accomplishing and giving
practical effect to something. It is the process of ensuring the actual
fulfilment of a promise or an imposed obligation by concrete measures,
plans, devices or strategies. It can also be explained as the act of providing
instruments or means of expression for accomplishing an objective or set
of objectives (Webster, 2006). The word implementing has also been
explained as a detailed outline of steps, procedures, processes and devices
needed to achieve a goal (Bryan, 2004). In the context of this study,
implementing refers to all conceivable efforts, steps, procedures and
actions needed by both Cameroon and Nigeria to carry into full effect, the
ICJ ruling as enunciated in the Green Tree Agreement and the CameroonNigeria Mixed Commission.
The ICJ Judgment

Decisions, Rulings and Judgments are words often used in place
of one another in both constitutional and statutory interpretations. In
legal parlance, a decision or a ruling is a judicial determination after
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consideration of the facts and the law. It is usually a holding, order or
judgment pronounced by a court or tribunal when considering or
disposing of a case (Garner, 2004). On the other hand, a judgment is a
courts final determination of the rights and obligations of the parties in a
case. It also includes an equitable decree and any order from which appeal
lies. (Boleslaw, 2005). With regards to the intervention of the ICJ on land
and maritime boundary dispute between Cameroon and Nigeria, the
nature of the judgment may be regarded as reviewable since the ICJ
statute provides an opportunity for any aggrieved party to a case before it
to apply for a revision or review of any judgment emanating from it. It is
on the strength of this statutory provision that many Nigerians especially
those living in the Bakassi Peninsula, had agitated for a revision of the
judgment by the Federal Government of Nigeria.
In terms of geographical locations, Cameroon and Nigeria fall within
the West African belt of the African Continent (Britannica 2005). The two
nations share common land and maritime boundaries. They have been
playing significant roles in the socio-economic, cultural, political, security
and diplomatic cohesion of West Africa and Africa as a whole. Apart from
sharing some peculiar features of colonial heritage, the tie of diplomatic
relations between the two nations became noticeable through the
assistance of Cameroon to Nigeria during the 1967 and 1970 Nigerian civil
war. It was reported that the Republic of Cameroon granted the request of
Nigeria to block the passage of Bianfran rebel soldiers through the Bakassi
Peninsula to Nigeria; the island which later became the subject of dispute
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Overview of the History and Geography of the Bakassi Peninsula
Figure 1 (Bakassi Peninsula)
As seen in figure 1 above, Bakassi is a Peninsula located in the Gulf

of Guinea within the Atlantic Ocean extending from Southern part of
Cameroon and overlooking the Cross River State in the South-Eastern
corner of Nigeria. It is a stretch of land between the North and South
Western part of Cameroon and North and South-Eastern part of Nigeria. It
had been populated for over one hundred years by the Efut, Efik, Ibibio
and Annang tribes of Cross River and Akwa Ibom States of Nigeria totaling
about 300,000 people (Onukwube, 2012). The area is a network of rivulets
making the people mostly fishermen while others thrive on root-crops
farming. It is situated at the extreme eastern end of the Gulf of Guinea
where the warm east-flowing Guinea Current meets the cold northflowing Benguela Current. These two great currents of the Atlantic Ocean
interact thereby, creating huge foamy breakers, which constantly advance
towards the shore and building submarine shoals very rich in fish, shrimps,
crabs and other forms of aquatic lives and non-living things. The fertility of
the Bakassi Peninsula is comparable to Newfoundland in North America
and Scandinavia in Western Europe (Wikipedia, 2012). The Peninsula is
commonly described as oil rich arousing considerable interest from
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about eight multinational oil companies which have participated in the
exploration of the Peninsula and its offshore waters.
During the European scramble for Africa, Queen Victoria was
alleged to have signed a Treaty of Protection with the King and Chiefs of
the old Calabar people of Nigeria who first settled in the Bakassi Peninsula
on September 10, 1884 (Ajomo, 1994). The treaty enabled Great Britain to
exercise control over the entire territory of Calabar-South Eastern Corner
of Nigeria including the Peninsula. Geographically, the Bakassi Peninsula is
shared by Cross River, Borno, Taraba and Adamawa States of Nigeria along
the North-Southern part of Cameroon. By November, 1893, the British
Government and the German Government defined their boundaries and
ceded the present day Bakassi Peninsula to Cameroon. The Treaty of 10
September 1884 was a protectorate Treaty only to protect the people of
Calabar which Bakassi was a part of against other imperialists. According
to the Trusteeship principle, the British was merely holding and
administering the Peninsula in trust via indirect rule. However, there was
another Treaty in 1894 between Britain and Germany which ceded the
Peninsula to Germany without the consent of the people living in the area
(Bolaji, 2012). Cameroon got her independence in 1960 and when the
UNO Trusteeship ended, Bakassi was returned to France. There were so
many Treaties between 1913 and 1961 among Germany, France, Britain,
Cameron and Nigeria over the ownership of the Peninsula.
In 1914, Lord Lugard brought about the Amalgamation of the North
and Southern Protectorates of Nigeria. The colonial government drew out
the map of Nigeria reflecting the 1913 Treaty between Britain and
Germany. In that map, Bakassi Peninsula was never part of Nigeria. This
map was tendered by Cameroon before the ICJ to indicate that when
Nigeria first assumed a nationhood in 1914, Bakassi Peninsula was not part
of her territory. In 1961, the Southern part of Cameroon voted in a
plebiscite conducted by the UNO to join new Federal Republic of
Cameroon while the Northern part voted to join Nigeria (Britannica, 2005).
The Deputy Surveyor General of Nigeria at that time was a Cameroonian
and when he was going back to Cameroon he took the map of Nigeria
reflecting the 1913 position along. The Government of Cameroon, haven
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been convinced that Bakassi Peninsula belongs to it started redrawing the
map to say it wanted back the Peninsula (Robert, 2012).
The Nigerian civil war was fought between 1967 and 1970. Shortly
after the war and between 1972 and 1975, Nigerian government began to
experience a very strong demand from Cameroon to reclaim Bakassi
Peninsula. In order to avoid fighting another international war, the
Nigerian Military Head of State then, General Yakubu Gowon entered into
the 1975 Maroua Declaration with the President of Cameroon by drawing
an imaginary line on a map to divide Bakassi Peninsula into two from
North to South. Cameroon was to hold on to the part next to its territory
while Nigeria was to hold on to the other part pending the time when the
actual boundary between the two nations would be drawn (Oyebode,
2012). This was the position till the onset of the Nigerian First Republic in
1981 when some Nigerian soldiers were reported to have been killed by
the Gendarmes of Cameroon in the wake of a renewed hostility between
the two nations over the Peninsula (Tayo, 2002). The hostilities continued
in a staccato manner until March 29, 1994 when Cameroon dragged the
Federal Republic of Nigeria to the ICJ.
Conflicts and their Inevitable Nature
A conflict is a fight, battle, dispute or war. It is an antagonistic state
or action between parties (Webster, 2006). In International Law, it is a
state of open hostility between two nations or between a nation and an
aggressive force (Brownlie, 2006). There are various conflict situations in
the world particularly in Africa. At the root of the new or resurgent types
of conflicts epitomizing the disintegration of many political states through
wars are ethno-religious, political and boundary disputes (Warner, 1997).
This typifies the current situation between Cameroon and Nigeria. In
human affairs and state relations, competitive or opposing actions of
incompatibles are inevitable and that is why modern approaches to
domestic and international conflicts are geared towards possible
resolution or management. In the opinion of (Ottaway, 1999).
The challenge for African countries, as for
the rest of the world, is to accept the
inevitabilityof different national identities
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and to find way to manage conflicts arising
therefrom
Resolution of Conflicts through Interventions
Modern acts of resolving and managing conflicts, disputes, crises
and wars between nations often involve certain types of intervention.
Under Customary International Law and Treaties, States are expected to
be absolutely sovereign in their territories and so, any diplomatic, judicial
or military interference in the affairs of one nation by another or other
States and bodies must be with the consent of the State involved (Stowell,
1921). On the issue of participation by other States and organizations in
the affairs of a nation, the General rule is one of non-intervention (UNO
Declaration, 1970, Article 4). The issue of external intervention did not
arise in the case of Cameroon and Nigeria because the Republic
Cameroon, haven decided first, to initiate a suit against Nigeria at the ICJ;
the two nations thereafter, consented to subject themselves to the
jurisdiction of the World Court. This development led to judicial
intervention of the ICJ and ipso facto, the UNO.
Ownership, Occupation and Cession of Territory Via Treaties and
Agreements
The various devices or procedures over the ownership, transfer or
cession of territories including Bakassi Peninsula between Britain, France,
Germany, Cameroon and Nigeria especially within the period of 1884 and
1961 were untaken through some international treaties and agreements
(Ofonagoro, 2012). A treaty is an international agreement concluded
between States in written form and governed by International Law,
whether embodied in a single instrument or in two or more related
instruments and whatever its particular designation (Vienna Convention,
1969). Cession on the other hand, is the transfer of territory or part of it
from one sovereign to another usually by means of a treaty (Martin, 2003).
The ceding of Bakassi Peninsula to Britain by the Obong of Calabar,
(Nigeria) in 1884 was meant to facilitate effective protection of the
Calabar people against other imperialists by the British Government. In
other words, Great Britain was administering the territory occupied by the
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Calabar people in trust via her indirect rule. Also, Britain, Germany and
Cameroon ceded part of the Bakassi Peninsula to one another by a treaty
in 1893 while Britain and Germany in the process of redefining their
territories; effected another cession of part of the same Bakassi territory
by another treaty in 1913.
A legally procured treaty in International Law, should be
accompanied by certain conditions before it can be binding on parties
involved. In relation to this case, the various treaties undertaken by
colonial masters and their colonies ought to have been expressly assented
to, by parties (Vienna Convention, 1969), while any of such treaties ought
to have complied with the requirements of the municipal laws of the
countries of the parties (Vienna Convention, Article 46). Some of the
cardinal principles of property ownership include occupation and assertion
of possession (Freeman, 1985). Available facts revealed that the Efiks and
other tribes of South Eastern Corner of Nigeria known as the Calabar
people, had occupied and been in possession of the Bakassi Peninsula for
over a period of one hundred years (Etim, 2012). A long period of
occupation like this with empirical indications of physical development of
a property or territory involved, can go a long way to confirm assertion of
ownership over such property. There were no properly documented
judicial or administrative efforts on the part of Cameroon before the
outbreak of the Nigerian Civil War in 1967 to convince Nigeria that Bakassi
Peninsula belonged to Cameroon through a strong demand. This attitude
would have amounted to acquiescence which is a persons tacit or passive
acceptance or implied consent to an act (Bryan, 2004). In other words, for
sleeping over an ownership or possessory right for over a period of one
hundred years, Cameroon could be said to have tacitly accepted the
ownership of the Bakassi Peninsula by Nigeria.
Principles of Self-Determination and State Responsibility
One very serious implication of the ICJ ruling is the displacement of
about 300,000 people living in the Bakassi Peninsula. Under Customary
International Law, even if there was clear justification in the ceding, the
right of the people to self-determination is crucial. The people living in the
Peninsula would have been able to decide whether to remain in the ceded
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portion of the Peninsula as Nigerians in Cameroon or to naturalise under
Cameroonian laws as Cameroonians or to accept being resettled in
another area of Nigerian territory as Nigerians. The principle of selfdetermination is a procedure by which a group of people is given the
opportunity to decide whether to be represented as a distinct group in
their country or choose how to live and organise their affairs (Harris,
2004). The doctrine of State responsibility also imposes correlative
obligation on Nigeria and Cameroon to rehabilitate the displaced people of
the Peninsula (Riccardo, 1999, P.149). The two nations are under SocioPolitical obligations to protect the lives and properties of their citizens in
compliance with the doctine of Social Contract (John Locke and Jean
Rousseau, 1690).
Implementation of ICJ Judgment and Ineffectiveness of International Law
When a national court or tribunal gives a judgment, parties are
expected to carry it into effect without delay so that the initial causes of
litigation like disputes or other violative acts are solved to pave a way for
peace and harmony. Failure on the part of any party to comply without
evidence of appeal is tantamount to judicial contempt punishable in law
(Dangel, 1939). Unlike national courts, attitudes of State parties to
judgments of ICJ and other international tribunals are often complacent
and reluctant. This has to do with seeming ineffective nature of
International Law from which ICJ and other international tribunals
normally derive their legitimacy and authorities.
HIGHLIGHTS OF THE ICJ JUDGMENT AND IMPLEMENTATION STRATEGIES
- CAMEROON. V. NIGERIA: EQUATORIAL GUINEA INTERVENING (ICJ/10
OCT, 2002).
Presided over by Mr. Gilbert Guillanume, the ICJ gave its judgment on 10
October, 2002 composing the following main issues relevant to this study:
1
By 13 votes to 3 of the Judges, the Court decided that the
sorereignty over a sizeable Portion of the Bakassi Peninsula meant
to be properly demarcated later, lay with the Republic of
Cameroon.
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2
By 14 votes to 4, the Court decided that both Cameroon and Nigeria

were under an obligation expeditiously and without condition, to
withdraw their administration, military and police forces from
portions of the Peninsula falling within the sovereignty and
territorial jurisdiction of each other.
3
Between 2002 and 2006, there were many diplomatic and consular
mediations between Cameroon and Nigeria aimed at ensuring a
peaceful implementation of the ICJ judgment, all leading to the
establishment of the Cameroon-Nigeria Mixed Commission in 2003
and the Green-Tree Agreement of 12 June, 2006 which enjoined
Cameroon and Nigeria to abide by the terms of the Agreement with
a view to ensuring effective implantation of the ICJ judgment.
Findings
The study found as follows:
1
There arose a land and maritime boundary dispute between
Cameroon and Nigeria and governments of the two nations
consented to adopt peaceful means of resolving the dispute rather
than the use of force through hostility and war.
2
As at 1975, there had been incidents of violence leading to loss of
lives and properties over the ownership of Bakassi Peninsula
between Cameroon and Nigeria (The Comet, 2002).
3
There were pieces of evidence to confirm that certain agreements
between Great Britain, Germany, France, Cameroon and Nigeria
between 1884 and 1861 to cede territories (Bakassi Peninsula
inclusive) were encapsulated in certain treaties. However, most of
the treaties did not follow traditional norms of International
Law.(Etim, 2012).
4
There were sufficient indications that Nigeria had been occupying
the Bakassi Peninsula before 1884 (Ajomo, 1994). A lot of farming,
trading, commercial and other occupational activities had also been
undertaken by Nigerians on the Peninsula. Why was it that
Cameroon had allowed her property to be so neglected for an
unbroken period of over One hundred years before she took
concrete initiative after the Nigerian civil war in 1975 to reclaim the
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property? It could not be far from the truth if it is concluded that

Cameroon acquiesced on her right of ownership.
The ICJ ruling could be said to have been given by many of the
judges who were not familiar with the geography, terrain and
locations of the Bakassi Peninsula. The judgment was based on
annotated maps, plans, description of locations of the Peninsula as
well as other oral and documentary evidence canversed before the
ICJ. No attempt was made by judges to visit the locus in quo (actual
place of the matter) to actually undertake an empirical
confirmation of facts presented before them. The attempt would
have been arduous, expensive and taskful, but it could have been
rewardingly possible.
There have been a wide range of complaints from the people who
were displaced due to the ICJ judgment. One of such was that their
right to self-determination had been violated since they were not
given the opportunity to decide through a plebiscite, whether they
had wanted to remain in the part of the Peninsula ceded to
Cameroon as Cameroonians, retain their nationality while obeying
the laws of Cameroon or accept to be relocated to other places in
Nigeria as Nigerians.
After a period of ten years when the ICJ gave its ruling ceding
Bakassi Peninsula to Cameroon, the Cameroon-Nigeria Mixed
Commission was established in 2003 while the Green Tree
Agreement was conceived in 2006 for the implementation of the ICJ
decisions. Despite these attempts, reports of extra-judicial killing
and violation of human rights had been rampant in the area (Hugo,
2012). Also, the displaced people had continued to agitate painfully
for durable resettlement schemes by concerned Federal, State and
Local Government Authorities in Nigeria. It was not impossible that
corruption, wastes and mismanagement of resources had
prevented the four billion Naira (about 1.2 billion US Dollars)
earmarked for the resettlement to have been judiciously dispensed.
They had also wanted the Federal Government of Nigeria to appeal
the ICJ Judgment seeking for a revision of the judgment.
Interestingly, the Federal Government of Nigeria did not appeal
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against the ruling for certain diplomatic and political reasons
(Adoke, 2012). The Federal Government was convinced that giving
the conditions for appeal in Article 61 of the ICJ statute, it would
not have succeeded in another round of legal battle. All these
developments clearly tend to show that the ICJ judgment had not
been properly implemented by Cameroon and Nigeria to resolve
their land and maritime boundary dispute.
8
In her bid to enforce the ICJ Judgment and the provisions of the
Green Tree Agreement 2008, the Government of Cameroon finally
moved its law enforcement agents to Bakassi Peninsula on
Wednesday 14th August, 2013 and took over the portion of the
Peninsula ceded to it (Radio Nigeria 16.08.13). This was in
compliance with the Five year period of transition embedded in
the Green Tree Agreement of 2008. The final steps taken by
Cameroon have two political implications. First, is bringing further
to light, the inefficiency of the intervention by the Cameroon
Nigeria Mixed Commission more so that much complaints about
insecurity of Life and Property were still being made by people
living around the Peninsula. Second, is the practical reality dawned
on Nigeria to find appropriate and lasting solutions to the problems
of resettlement of her displaced citizens.
Conclusion
In its geographical locations and physical identity, the Bakassi
Peninsula will continue to remain an immovable land and maritime
property contiguous to both Cameroon and Nigeria so long as the
earth exists. The value of the Peninsula in terms of oil exploration,
security, commerce, farming, transportation and other human
activities cannot be under estimated in the Gulf of Guinea. In view
of its strategic importance, neither Cameroon nor Nigeria will like to
be careless again in protecting, preserving and securing those
portions of the Peninsula ceded to it by the ICJ Judgment. While it is
much gratifying to observe that the two nations had refrained from
war in settling their boundary dispute, their joint and progressive
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efforts would have been more appreciated in implementing the ICJ
ruling so as to further cement their long period of tradition of peace
and diplomatic relations.
Recommendations
The following recommendations are put forward:
1
Nigeria and Cameroon should continue to uphold their
commitment to abide by the judgment of the ICJ without
reservation.
2
All obligations imposed on Cameroon and Nigeria by the Green
Tree Agreement should be discharged in good faith. Such
obligations include, due regard by Cameroon to human rights and
nationality of Nigerians living in the Peninsula pending the outcome
of various strategies being adopted by the Cameroon-Nigeria Mixed
Commission for proper demarcation of the international boundary
3
Cameroon and Nigerian Governments should continue to monitor
the activities of their military and police personnel deployed to
maintain peace in the Peninsula so as to prevent them from
breaching their rules of engagement in form of violating the rights
of the people in the area.
4
Authorities of the Cameroon-Nigeria Mixed Commission should
further be provided with full powers and adequate tools to
demarcate land and maritime boundaries between the two nations.
The activities of the Commission should be predicated more, on
how to further concretise the friendship relations between Nigeria
and Cameroon rather than emphasizing the harsh provisions of the
ICJ ruling in boundary demarcation process. In other words, every
attempt should be made not to weep-up sentiments and emotions
of any party.
5
All procedures relating to boundary demarcation between
Cameroon and Nigeria should take account of steps necessary to be
taken by every party. For instance, the Federal Government of
Nigeria should further amend the 1999 Constitution by updating
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the location of the Bakassi Local Government Area now falling in

the territory of Cameroon by virtue of the ICJ decisions.
It was true that the UNO had commended Nigeria for not
appealing the ICJ judgment over Bakassi (Vanguard, 2012).
However, this decision did not confirm Nigerias commitment to the
implementation of the judgment. If profused agitations for
enduring resettlement policies by displaced people still persisted till
October, 2012 (Ten years after the ruling), there could be justifiable
ground to conclude that the judgment had not been practically
implemented. Hence, Nigeria should address the burning issue of
resettlement of displaced people by attending to the socioeconomic, humanitarian and security needs of the people affected.
These would have included: construction of roads, provision of
housing, pipe-borne water, electricity, hospitals, finance and
educational institutions as well as security agencies for the
maintenance of law and order and for the protection of lives and
properties in the portion of Bakassi territory ceded to Nigeria.
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Adoke, M. (2012). Bakassi: Why Nigeria wont Appeal ICJ Verdit, Statement by
the Nigerian Federal Attorney-General and Minister of Justice in The
Nation
(Nigerian
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9th
October
2012,
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Ajomo, M.A. (1994). The Bakassi Peninsula Problem: Legal, Political and
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Judiciary. Lagos: MIJ Publications.
Bolaji, O. (2012). Bakassi: Green Tree Treaty and Way Forward, in Sunday
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Boleslaw, A.B. (2005). International Law: A Dictionary. Maryland: Scarecrow
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Bradley and Ewing. (2007). Constitutional and Administrative Law. London:
Longman.
Brownlie Ian. (2006). Principles of International Law, London: Oxford University
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Bryan, A. Garner. (2004). Blacks Law Dictionary. Minnesota: Thomas West
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Cameroon-Nigeria Mixed Commission (2008). Established for ensuring proper
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Charter of the United Nations and Statute of the International Court of Justice,
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Dangel, E.M. (1939). Contempt. London: Oxford Press.
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Eme, O. (2012). The Cardinal Sin of Imperial Powers in Africa in Vanguard
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Etim Okon Edet. (2012). Nigeria should leave Bakassi alone in Vanguard
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Fearon, J. (2000). Violence and the Social Construction of Ethnic Identity,
Journal of International Organisation 54 (2000) 845-877.
Freeman, M.D. (1985). Lloyds Introduction to Jurisprudence. London: Stevens.
Green-Tree Agreement (2006). Between Cameroon and Nigeria for ensuring full
implementation of the ICJ Judgment.
Harris, D.J. (2004). Cases and Materials on International Law. London: Sweet &
Maxwell.
Hugo Odiogor. (2012). Nigerians Cry Out as Cameroon tightens Security on
Bakassi, in Vanguard (Nigerian Newspapers), 4th October, 2012,33.
John Locke (1690), Second Treaties on Government quoted in Human Rights
Reader (1989), London, Penguin Books, 62 67.
Martin Dixon et al. (2003). Cases and Materials on International Law. London:
Oxford University Press.
Ofonagoro Walter. (2012). Bakassi: UN should organize a Plebiscite in
Vanguard (Nigerian newspapers), 5th October 2012, 36.
Onukwube Ofoelue. (2012). Bakassi: Dilemma of a People, in Sunday Mirror
(Nigerian
Newspapers),
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6,
www.nationalmirroonline.net (retrieved on 06-10-12).
Ottaway, M. (1999). Ethnic Politics in Africa. Challenge and Continuity in
Joseph. R, State Conflict and Democracy in Africa. Pretoria: Centre for
Human Rights.
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Oyebode, A. (2012). Why Law Cannot Resolve the Bakassi Crisis, in The
Guardian (Nigerian newspapers), 11th September 2012, 69,
www.ngrguardiannews.com (retrieved on 12-912).
Radio Nigeria (2013) news@radionigeria.org (7a.m., Friday 16 - 08- 13).
Riccardo, P.M. (1999). International Obligations to Provide Reparation Claims
in Albrecht & Tomuschat, State Responsibility and the Individual. Boston:
Martin Nijhoff.
Robert Clerk. (2012). Bakassi: Agitations for ICJ verdict Review Fueled by
Opportunists in The Guardian (Nigerian newspapers), 7th October 2012,
27.
Sally et al. (2005). Oxford Advanced Learners Dictionary of Current English.
London: Oxford University Press.
Stowell, E.C. (1921). Intervention in International Law. Washington: State Press.
Tayo, B. (2002). How Supper Powers Cheated Nigeria on Bakassi, in Sunday
Tribune (Nigerian newspapers),13 October 2002, 1, www.tribunescom.ng
(retrieved on 14-10-12).
The
Comet. (2002). (Nigerian newspapers) 18 October

http://www.cometnewsonline.com (retrieved on 19-10-12).
2002,
5,
The
Nation. (2012). (Nigerian newspapers) 28 September 2012, 1,

www.thenationonlineng.net (retrieved on 28-09-12); The Guardian, 2nd
October 2012, 10 featuring Akhigbe, others urge Federal Government to
appeal Bakassi Ruling www.ngrguardiannews.com (retrieved on 02-1012).
The New Ecyclopaedia Britannica. (2005). London : Britannica Inc..

The United Nations Organisation General Assembly Declarations on nonintervention in the affairs of a nation 1970.
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The United Nations Vienna Convention on the Law of Treaties, 1969 Articles 2
(1) (b) & 11
Vanguard. (2012). (Nigerian newspapers), 12 October, 45.
Warner Daniel. (1997). Human Rights and Humanitarian Law. Boston: Martinus
Nijhoff Publishers.
Webster. (2006). The Lexicon Webster Dictionary. New York: Webster Inc. Press.
Wikipedia. (2012). Free Encyclopedia, www.wikibakassi: (retrieved on 14-10-12)
43
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GLOBALIZATION NEW CONCEPT, OLD PHENOMENON: A CASE OF THE
NIGERIAN ECONOMY IN PRE-COLONIAL TIMES
IKONNAYA OKOMBA KALU,
Department of History & International Studies;
PRESLEY KEHINDE OSEMWENGIE

Department of Economics & Statistics,
University of Benin, Benin City
Abstract
This paper is the outcome of an investigation into the concept of globalization, as
a new and an old phenomenon, using the Nigerian economy in pre-colonial times
as a case study. The idea of the world being a global village is quite novel but the
phenomenon has always existed overtime. In the time past, peoples of the world
related with one another in varying forms and Africa was not exempted even
before the colonial era. Although this interaction has been described in several
writings as inter-group relations, this paper has established that to use the
term inter-group relations is to oversimplify the kind of relationships that
existed among nations, in what we can now refer to as globalization. It is in line
with this argument that this paper has conceptualized globalization and submits
that the Nigerian economy has been in global economic relations since precolonial times though differing in scope and measure from what exists today.
Keywords: Globalization, Nation, Nigerian economy, Intercontinental Relation &
Pre-colonial times
Introduction
Globalization as a concept is one of the most debated issues of our time. It
borders on every aspect of social life so much so that its discourse elicits
both great enthusiasm and deep concern. However, the argument
continues to loom as to whether the phenomenon is a recent
phenomenon or an old concept that has its roots in history. While social
scientists would prefer the first position, many historians pitch their tent
with the second.
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Despite the vast literature and ongoing discussion on globalization,
there is no one universal definition of the concept. This is as a result of the
many different perspectives from which such definitions have been
attempted and as such the confusion subsists on whether it is a term
generally employed to refer to a historical epoch, a process, a theory, or a
new paradigm (United Nations 2001). This paper has considered some of
the descriptions put forward in an attempt to explain and define the term
as a framework for which the paper was based.
Harvey (2000) suggests that globalization should be viewed as a
process rather than as a political-economic condition that has recently
come into being. This according to him will enable the understanding of
how globalization has occurred and is occurring. Many others agree with
the suggestion of Harvey and in like manner, have given the description of
globalization as a process. One of such is Clark (2000) who points out that
globalization is the process of creating networks of connections among
actors at multi-continental distances mediated through a variety of flows,
including people, information and ideas, capital and goods. This implies
that the globalization process involves the creation of networks on a wide
scale across continents and movements of all categories. Further, the
Department of Economic and Social Affairs of the United Nations (2001)
although recognizing the difficulty in defining globalization has offered a
similar description thus, as the increasing and intensified flows between
countries of goods, services, capital, ideas, information and people which
produce national cross-border integration of a number of economic, social
and cultural activities.
The point of note here is that globalization is a process that is
integrative of all parts of the world and occurs in all spheres of human life
be they economic, social or political. This becomes important because
some like Williamson (1998), Kwanashie (1999) and Obadan (2004) among
several others believe that in the present time more emphasis is placed on
the economic aspect than any other aspect and they argue that this makes
it the very heart of globalization. However, Riggs (slide 1) in a research
from members of the International Sociological Association was able to
explain this. He explains that different categories of scholars consider the
concept of globalization differently thus, while economists will focus on
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production/consumption, money, distribution capital as key variables;
political scientists will be more interested in governance, peace and
conflict, justice and order; and Anthropologists and Sociologists on the
other hand will concentrate on class and caste, social structures and
pathologies, communities and groups with each of them feeling the more
that his own area is the most important aspect of globalization. From the
UN report above, what is implied is that globalization includes a lot of
trends and tendencies and is not a single process but a combination of
different processes that is multidimensional in character not only
economic, but also political, social, and cultural. As such, we can talk about
different facets or dimensions of the concept to include economic
globalization,
political
globalization,
sociological
globalization,
anthropological globalization, communication globalization and
geographical globalization. Indeed while the fact remains that
globalization is manifested in several respects, this paper will attempt a
concentration on economic globalization because it will be considering the
role that Nigerias economy played in pre-colonial global relations.
Economic globalization refers to the process of change towards
greater international economic integration through trade, financial flows,
exchange of technology and information, and movement of people
(Obadan, 2004). Kwanashie (2000) like Obadan opines that it is a process
of increased integration of national economies with the rest of the world
to create a more coherent global economy albeit, the integration referred
to encompasses all forms of economic activities from economic decisions
of consumption, investment to saving processes and others in order to
create a global market place in which free markets, investments flows,
trade and information are integrated.
Again, economic globalization has been described as the increasing
breakdown of trade barriers and the integration of world markets
(Akindele et al, 2002). There are others that have associated it with the
spread of capitalism describing it as an imperial policy that connotes the
final conquest of capital over the rest of the world (Toyo, 2000).
Madunagu (1999) states that the concept connotes the rapid expansion
through giant multinational companies of capitalism through principles
that are repressive and obnoxious. Although this places moral judgment
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on what is referred to as economic globalization, it gives the idea of its
inseparation from the factor of capital, and more of its linkage with the
age of capitalism dated from the 1500s. In recent time, the concept is
characterized by rapid economic expansion of international trade, foreign
direct investments (FDI) and capital market flows (UN, 2001) and is
propelled by the forces of technology and telecommunications and
especially with the reductions in transport and communication costs,
capital account opening, financial market deregulation, trade
liberalization, and privatization of state enterprises (Obaseki, 2002).
Although the definitions given above by the different scholars have
their individual interpretations, a line can be drawn that links them. This is
in the fact that the general point being made is that of integration and
interconnection of the world economies into a global economy such that
what happens in one part of the world has a direct or indirect bearing to a
nation in another corner. Also, this is suggestive of the creation of a
borderless world where trade restrictions that used to exist in the past are
no longer there. The definitions most likely revolve around the
contemporary and recent events surrounding globalization. As a term,
globalization may be new and rightly describe the current ongoing
economic integration in and around the world however, it is possible to
infer that these definitions can be related to the kind of economic
interconnections that existed in ancient times especially in the period
before the colonization of Africa.
On the issue of the origin of globalization, Friedman (2000)
maintains that the concept is the inexorable integration of markets,
nation-states and technologies to a degree never witnessed before, in a
way that is enabling individuals, corporations and nation-states to reach
around the world farther, deeper and cheaper than ever before.
Globalization is not simply a trend or a fad but it is, rather, an international
system that replaced the Cold War. By this definition, Friedman claims that
globalization is a new phenomenon and it is impossible to explain the
concept from a similar process in the past or a historical perspective.
However, Kwanashie (1999) on the other hand avers that globalization is
an integral part of human history and in its most generic and broadest
sense, part of the movement of history. Also, Weidner (1973) opines that
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all through history, inter-country movements, travels, trade, and migration
had been taking place and gives a clear case in hand in the ancient
Mediterranean and Middle East where goods and ideas and people moved
frequently and easily in Phoenician, Greek and Roman ships sailing as far
as India.
Further, the UN Department of Economic and Social Affairs (2001)
reports that globalization is not a new phenomenon; that
interdependence and interconnections among nations and peoples of the
world like Weidner stated have a long history as early as the sixteenth
century or even earlier during the era of the Roman, Hellenistic and even
Persian empires. In the ancient and medieval world, international trading
companies were formed, promoted and financed by states, governments
and groups of individuals to explore and at times pillage and conquer
distant and less privileged peoples to their benefit (Aluko, 2004). All these
operated internationally and in the globe/world of their time. The mideighteenth to the nineteenth centuries according to the UN report has
experiences that are quite comparable to the current development in
globalization. In fact, Aluko (2004) has referred to these worldwide
enterprises as globalization of some sort or as he puts it,
internationalization" in a bid to set a distinction between the ancient
manifestation of world integration from the recent stage.
According to Wells (2001), globalization is a process inherent to life,
from the creation of lifes self-sustaining envelope aeons ago to the transmigration of primitive humans that ultimately encompassed the entire
planet characterized by continual flux and adjustment. This description
dates globalization as far back as the very early history of man and his
migration to different regions and areas around the world as no
boundaries were in existence at that time. The implication therefore is
that since globalization refers to world integration and interconnection, it
can be rightly subsumed that this relationship existed since the formation
of nations. Also, with the development of needs that were unavailable in
one region and abundant in another, there was the need for exchange.
The transformation came with technological discoveries and breaks first in
ancient times that enabled communication and transportation across
inter-continental boundaries. This sped up and boosted the interaction
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especially economically among once separated peoples of the world. It is
to this form of relationship that Nigeria though as independent individual
nations had their economies as active participants. Thus, instead of
distinguishing and designing another concept to explain the early phase of
globalization, it would be more acceptable to appreciate globalization as a
historical process that is very dynamic; one that continues to witness
succinct and impressive changes and in the recent time, as a result of
some driving forces especially the advancement in information and
communication technology, have progressed into an advanced phase
which differs in scope, manner and intensity and one which continues to
accelerate with an unprecedented momentum.
The Idea of a Nation
The concept of nation like others such as state, nation-state,
nationality and nationalism are usually easier to identify when
encountered than to define in their abstract nature however, effort will be
made to give a brief explanation in this section of what the idea of a nation
connotes in order to explain off the fact that although the term is used to
describe modern political groups in the eighteenth century, it
appropriately fits into the status of the independent individual groups that
made up Nigeria till 1914.
The Greek word for nation ethnos share the same root with the
Greek word for custom, ethos and may as such indicate that the idea of
the nation connotes people with shared customs (Afolayan, 2002). To
Minogue (1967), the nation identifies people of common birth and is
described as the stock. To this end, a Nation can be described as a
group of people possessing common traits (without necessarily living
together within a bounded territory) and therefore implies two important
points the first, that these groups are those whose past and recent
history suggest a long period of grudges and political antagonism around
contested interests and the second that these groups posses certain
cultural commonalities such as language and religion among others
(Afolayan 2002). Craig Calhoun (1993) further asserts that claims to
nationhood do not just constitute internal claims to social solidarity,
common descent or any other basis for constituting a political community;
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they are also claims to distinctiveness vis--vis other nations, claims to at
least some level of autonomy and self-sufficiency and claims to certain
rights within a world system of states.
The concept of the nation seems to have taken full shape in the late
eighteenth century with the French Revolution when it referred to a public
interest which contrasted favorably with the tangle of the special
privileges which made up the ancient rgime with plurality of classes,
regions, corporations, and religions (Minogue, 1967). Before then, what
seemed to have existed were the ideas of the tribe, clan, city-state or
the empire to which men pledged their loyalty. This was evident in the
scores of civilizations that developed in Egypt, Assyria, Greece, and Rome.
Rourke (2006) in distinguishing between a nation and a state notes that a
nation is a less tangible phenomenon than is a state and although it
includes some tangible elements like people, it is created by less tangible
elements such as similarities among the people, a sense of connection,
and a desire of the people to control themselves politically.
Given the above description therefore, it is clear that although
simpler and less definitive terms have been used to describe people and
groups in very early times the point being made here is that the term
nation is deeply rooted in peoples culture and history and incorporates
fundamental elements of their identity and is also closely linked to political
ideologies, which have exploited it and adulterated its original meaning
(Council of Europe, 2005). A nation in general can be referred to as people
of a particular political group who share some form of bond in their
relationship and herein lies the justification for independent political
entities such as existed among the Igbo, Yoruba, Benin and Hausa amidst
several others and their classification as nations that qualified in their
economic activities within and outside the African continent into what can
be regarded as globalization.
Early Economic Interaction of the Nigerian Economy to 1500
Nigeria as a political entity was the creation of the British colonialist
in 1914. Although many scholars have argued that the process for
integration was already in motion, it was to the British that credit for the
amalgamation is owed. The individual independent nations that made up
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Nigeria had been in contact with each other in one form of relationship or
the other whether political, military, social or economic. However, they
considered themselves as strangers or foreigners to each other owing to
their divergence in culture, language and beliefs and related with each
other as such. The economic activities of many Nigerians were divided into
four branches: agriculture, transportation, trade, and manufactures.
Agriculture constituted the mainstay of most of the people in pre-colonial
times and trade was only a subsidiary. However, trade was to become
more prominent in the later history of these people because of the
importance that was attached to it and the role it came to play in the
socio-political development of the various nations and empires.
Most of African prehistory was not documented and this has
continued to create serious contentions when it comes to constructing
events that occurred within that period. Other sources such as oral
tradition, archaeology, art history, linguistics, anthropological and
ethnographical studies have been employed in a bid to achieve a recovery
of the African past within this period. Thus, it is from archaeological
evidence that long distance trade within West Africa is recorded to have
begun as early as 700AD (Shaw, 1980). Long distance trade was engaged in
by peoples in and around Nigeria, within the West African region and
farther to include North Africa and the Mediterranean states, to Europe
and the Middle East. Although until about the beginning of the nineteenth
century many of their traders did not get to either of these places directly,
their goods and products found their way there.
Again, from archaeological findings, some distinctive and peculiar
art culture was discovered in the area of Nigeria to have existed in the very
early period of her history. These included Nok, Ife, Benin and Igbo-Ukwu
art cultures. The distinguishing feature of these cultures lay in their
production of life-sized sculptures and the use of brass, copper, bronze
and terracotta materials. There is no evidence to prove that brass, copper
and bronze can be found anywhere in Nigeria. In fact, the nearest sources
of copper to Nigeria were at Azelik in the Ahir region of the Republic of
Niger; at Nioro in Mali and at Akjoujt in Mauritania. This shows therefore
that these materials were imported into the regions where they were
utilized. Shaw (1980) argues that the archaeological proof of the existence
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of trade that carried brass, bronze and copper comes from the wreck of a
caravan discovered in the Mauritanian desert carrying over 2000 brass
rods in about the twelfth century. Also, Arab records of the tenth century
include copper as a commodity exported southwards from Islamic North
Africa. This was probably in the conduct of the popular trans-Saharan
trade which involved the exchange of goods between West Africa and
North Africa across the Sahara desert. Originally, there was the use of
cattle, donkeys and later Camels and goods such as gold, ivory, kolanuts
and slaves from West Africa were exchanged for copper, salt, horses,
textiles, and glass beads from North Africa.
Benin was one of the Nigerian nations in its southern hemisphere
that were adept when it came to trading activities in this period. They had
established trading links with other nations within not only Nigeria and
Africa but also their link extended to Europe. Benin is noted to have drawn
some of her wealth by collections from toll points for trade in products
from a wide area of the forest, which ultimately went up the Niger
northwards as evidenced by the fact that Benin used small white shells as
currency even before Europeans arrived on the coast. These cowries were
not common on the Guinea coast but only on the shores of the Indian
Ocean and the Persian Gulf again, showing the existence of inter-regional
trade between West Africa and East Africa. Arabic records show their
usage on the middle Niger from the tenth century although this excluded
the Hausa states and Borno until much later suggesting therefore that
Benin trading activities went directly up the Niger to Gao and Timbuktu in
the Western Sudan (Davidson 1967). In addition, the fashion for pink coral
in Benin suggests connections, which led finally to the Mediterranean
(Shaw, 1980).
In the northern part of Nigeria, there was Kano whose economy
participated fully in economic integration and interdependence within this
period. Kano lies within the Sudanic vegetation zone about 840km south
of the edge of the Sahara desert (Olaniyi, 2005). Through the effort of
Sarki Abdullahi Burja (1438-52 A.D.), Kano was transformed from a small
kingdom into a city-state with wide economic networks in the Sudan. The
political and economic expansion was followed by provision of safety and
incentives to traders, which attracted merchants, scholars and artisans
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from Borno, Mali, Songhay, Asben and North Africa. Another leader that
continued the work started by Sarki Burja was Sarki Yakubu (ca. 1452-63
A.D.) who made political and strategic alliances to create and expand
external markets for Kanos manufactures and products and to strengthen
Kanos position as intermediary in the long-distance trade. It was to
effectively achieve this that in Kanos external relations with Nupe,
commercial links was established such that re-exporting horses in
exchange for human cargo. Again, mail coats, iron helmets and quilted
armor reached Kano possibly from Egypt, which distinguished her military
base amongst others in the central Sudan. Many of the slaves acquired by
Kano were transported across the Sahara to North Africa.
Kano also had large market centers, which were regarded as the
hub of both regional and intercontinental trade as it put in place major
economic transformations that increased the volume, value and variety of
goods exchanged across the Sahara. One of such market centers is Mano
market. The market has been described as crowded from sunrise to sunset
everyday and drew traders from areas as wide apart as Tripoli in North
Africa, Salaga in modern Ghana to the south, Tuat in north western part of
West Africa and Barghimi in the south eastern part of the Middle Belt of
Nigeria (Itsueli, 2002: 98). Another prominent center was Kurmi market
established by Sarki Muhammed Rumfa (1463-99 A.D.). From this point,
Kano became a major supplier of grains, leather goods and dyed cloth to
the trans-Saharan markets in North Africa to regional markets in the Sudan
and the savannah rainforest belt. In fact, Kurmi market was so important
in its commercial relevance that it was classified as one of the three most
important markets in Africa during the fifteenth and sixteenth centuries
the other two being Fez in Tripoli and Cairo in Egypt (Smith, 1997).
Furthermore, Kano was not just a mere terminus on the transSaharan trade routes, but was also a starting point for the trans-Saharan
caravans and a distribution node for other regional trading networks
especially the ones that linked the Sudan with the rainforest belt. From
Kano, caravans traversed the Saharan desert to various circuits of trade on
the shores of the Niger and the Nile rivers, the Mediterranean littoral, and
the Red Sea. Kano was also one of the trans-Sudan commercial traffic
through which Kukawa and Wadai in the east were linked with Gonja and
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Timbuktu in the west, and Kumasi, Bida and Old Oyo (Katunga) in the
south. There was also strong economic links with the other Hausa states
including Zamfara, Jega, Kebbi, Katsina, Zaria, Zinder and Agades showing
the strong web of economic connection created by Kanos economy in this
period.
Several other forms of local trade were engaged in within West
Africa across the different vegetation belts such that the people in the
mangrove swamp provided riverine goods to those in the rainforest belt
and vice versa. As has been mentioned the rainforest belt supplied the
savannah and sudanic regions with products from their region and from
the swampy regions and vice versa, such that there was a network of
connection amongst the people even before foreign interactions ever
began. The propensity of this trade however increased with its linkage to
the trans-Saharan trade, which connected West Africa to North Africa, the
Mediterranean and the Middle East. Europeans began to arrive at the
West African coast from the 1440s and the Portuguese were the pioneer
in this move. Although this was still at its novel stage and the interaction
limited in scope, it was from this time that the Nigerian economy and its
connection to other economies within and outside its region was to
witness very significant transformations.
The Beginning of Intercontinental Relations, 1500-1800
Economic globalization is the ongoing world integration of
economies that long began with the civilizations of the Greeks and the
Romans and the spice trade between Europe and Asia in the early years
before the 1400s. At that time, Europe had come in contact with the
Northern part of Africa and had established both a political relationship
(via conquest) and an economic interaction. However, the Muslim
conquest of North Africa and penetration into Europe via the
Mediterranean first disturbed the spice trade with Asia which necessitated
the discovery of a subsequent route and second, it created the need to
stop this penetration. Therefore, the church in Rome began series of wars
of re-conquest known as Crusades to prevent the further spread of the
Moorish religion and the recovery of already conquered territories. The
end of the fourteenth century and the beginning of the fifteenth century
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witnessed the rise of two major sea powers in Europe Spain and Portugal
that pioneered explorations for the discovery of new lands and a
subsequent sea route to India and also for the Christian evangelization of
these lands. It was to Portugal that the discovery of West African coast
was accrued and in fact, they were the first European nation to have
visited Nigeria (Alagoa, 1980).
Portuguese interest in West Africa has been explained under two
principal reasons. The first was economic and lay in the commercial
expectation of the hidden riches and wealth of Africa especially the
flourishing cities and trade centers of Timbuktu, Mali, Gao and Taghaza
which the Catalan Atlas complied by a Mallorcan Jew in 1375 depicted
(Ryder, 1965). The other reason was more socially inclined as it relates to
the century-old conflict between Christianity and Islam where the
Portuguese with the intention of continuing the Crusades against Muslim
hegemony in the Mediterranean and North Africa embarked on
explorations of evangelization. By 1441, the Portuguese had reached the
coast of West Africa. Nevertheless, the Portuguese were not alone in their
search for new lands of opportunities as they were closely followed by the
Spanish. Under the leadership of King Ferdinand II and Queen Isabella,
Spain having advanced in science and technology considered explorations
as necessary for both economic profits and religious demands. It was in
achieving this twain motive that a flag was granted to Christopher
Columbus of Genoa, whose exploration led to the discovery of the
Americas called the West Indies in 1492. The West Indies opened up vistas
of opportunities to Europe and other countries besides Portugal and Spain
joined the race for colonies there. Thus, the Dutch, Danish, British and
French all became major players in the Americas. This discovery was very
significant to the history of globalization as it marked the very start of
direct intercontinental integration involving people from three different
continents Europe, Africa and America.
Several occurrences in Europe constituted reasons why Europeans
moved in their large numbers from the sixteenth century to the West
Indies ranging from political unrest, religious persecutions to economic
considerations. Under the economic sphere, the lands in the West Indies
were greener and far more fertile than the lands in Europe. This led to the
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developments of plantation agriculture which had been earlier introduced
to the off-shore Islands in West Africa where it was not much of a success.
The Spaniards were the first to introduce this system in the West Indies
followed by the Portuguese who introduced the same from the Cape
Verde Islands and San Thom in West Africa to Brazil in the Americas
(Oliver & Fage, 1962). The early Spanish colonies had been supplied with
African slaves, mainly through the Portuguese from about 1510. This was
the beginning of the trans-Atlantic slave trade and meant that the
Europeans were engaged in obtaining slaves in exchange for their goods
which was transported to the West Indies although the number at this
time was still very few. However, it was not until the competitive irruption
into the West Indies of the Dutch, French, and English in the seventeenth
century, when there was a rapidly growing European demand for sugar
that the trans-Atlantic slave trade began to dominate European activities
in West Africa. Sugar was a crop that made heavy demands on labour and
as such the number of slaves imported and the unavailable labour of the
indigenous people known as the Red Indians were insufficient to cater
for the high demand. Thus, it became a necessity to embark upon the
importation of a larger number of Africans and this marked the increased
volume of the trans-Atlantic slave trade.
In the conduct of the trans-Atlantic slave trade, Nigerians featured
prominently whether as the captives or the captured that is, they
participated both as slaves and the slave merchants that protracted the
trade. Ryder (1980) discloses that the first cargo of slaves carried from
Nigerian shores in European ships were destined not for the Americas but
for the Gold Coast where Portuguese traders seeking gold found it
necessary to offer slaves alongside other goods in exchange for slaves. It
was soon discovered that slaves could be obtained in the rivers of the
Niger Delta and by 1480 it became regular for Portuguese caravels to
enter these rivers in search of slaves. The attention of West African
merchants from this time began to move from the Sahara to the Atlantic
and the hinterland created the commodity for the new market.
The trans-Atlantic slave trade has also been referred to as the
triangular trade. This is because the trade was a connection from Europe
to West Africa, to the West Indies and back to Europe. The advent of the
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Atlantic commerce transformed the economic perspectives of the nations
that made up Nigeria and while some were victims (acquired from
kidnapping, slave raids and/or intergroup wars and criminals or as tributes
from vassal states) and never received any economic benefit, there were
others that amassed so much wealth that it elevated their socio-political
status amongst others.
The Delta region for one became a center for the collection of
European merchandise and for redistribution in the hinterland. In its early
stages, the trade involved the export of such goods as ivory, pepper,
beeswax and some enslaved peoples in exchange for European imports.
However, by the late seventeenth century through to the eighteenth
century, the African exports from this region were dominated by human
cargo (Okpreva, 2005). Thus the Delta merchants played the role of
middlemen as they operated between the Europeans on the coast and
other Nigerians in the interior.
There was also the Aro of Igbo land that possessed an intricate
economic structure that needs be mentioned here. They were strategically
located on the border land between the Igbo, Ibibio and Cross River
peoples and came into prominence as traders in the middle of the
seventeenth century. They were soon to build up a trading network which
covered the former Eastern region of Nigeria penetrating into the areas
covered by the Idoma, Igala and some peoples of the Western Delta
(Afigbo, 1980). The Aro were able to combine trade and magic (as oracle
agents) to demonstrate outstanding entrepreneurial skills during the
eighteenth century, the period the trans-Atlantic slave trade peaked. The
commercial exploits of the Aro transcended the entire southeastern
Nigeria extending as far as its Cameroon border and parts of the Benue
Valley in the Middle Belt (Okpoko & Obi-Ani, 2005). The items of trade
consisted of both imported European objects and locally produced items,
including objects of wealth, instruments of magical and religious rites, cult
objects, cloth, plaited fiber work, mats and tobacco pipes amongst others.
The Aro economy was closely linked to the Atlantic commerce as such,
their sphere of influence in the hinterland expanded as the European
demand for human cargoes on the coast increased. By 1750 the traders
had gone beyond Awka and Nsukka in northern Igbo land. As they moved
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farther hinterland they established outposts and small settlements to
facilitate their commercial, especially slave trading activities.
Several other nations at that time had their economies geared
towards providing human cargo for the Atlantic trade. The direct trade
boosted Benins economy with the Europeans. Kano in the eighteenth
century witnessed the introduction of cowries from the Atlantic Ocean,
which was acquired in exchange for slaves. The importance of the
monetization of Kanos economy meant that her trading horizon was
expanding and in fact reached its peak in the eighteenth century; also, that
she was now more connected to the major continental commercial
centers through intermediaries in both the North African in the transSaharan trade and West African coasts through the trans-Atlantic trade.
Fyfe (1981) notes that from the late 15th century onwards
Europeans were trading along the coast of West Africa and this completely
altered the map of West Africa making the coast the center of trade;
intercontinental export trade hitherto absorbed into the center and then
dispersed to the north now diverted to a new outlet on the coast in a new
pattern of trading networks. This diversion did not terminate the transSaharan trade rather it created two principal spheres of influence in West
Africa the Muslim sphere inland and the Christian sphere on the coast.
The point is that the Nigerian economy was incorporated in an
intercontinental web that cannot be denied. The European merchants and
their plantations in the West Indies depended so much on the slaves
supplied by West Africa much of which came from Nigeria (Ryder, 1980)
and so did the Nigerian nations come to depend on the goods imported
from Europe for the growth of their economies. The significance of the
European trade can be seen in its injection of merchant capital into the
Nigerian economy although this took the form of mainly consumer goods,
which could be produced locally. It is evident from the events within this
period that what today is regarded as global interconnection or
interdependence began a long time ago and the Nigerian economy was
not dormant as it participated fully in the unfolding of the process.
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The Nigerian Economy in the Nineteenth Century
The nineteenth century was an epochal one for Nigeria as it was for
all of Africa. More importantly, it marked a period of tremendous changes
especially in its external economic relationship that was to completely tilt
the tide and alter the course of its history. The century began on the note
of the flourishing trade in slaves across the Atlantic that had dominated
the previous two centuries. In 1802, Denmark abolished the slave trade
within its territories becoming the first European nation to accomplish this
feat. Britain followed in 1807 by the Act of Parliament for the abolition of
the trans-Atlantic trade. By the end of the eighteenth century, sociopolitical and economic events in Britain pointed to the fact that the end of
the slave trade era was in sight. She took the lead in the Industrial
Revolution in Europe, which represented a ground-breaking
transformation in economic production with the establishment of
industries to replace labour afore-handled manually. Again, she was
already experiencing losses in her sugar plantation in the Americas
following from the high competition of sugar in Europe and the constant
slave revolts in her colonies. These alongside pressures coming from a new
class of abolitionists consisting of missionaries and humanitarians have
been advanced as explanations why the country pioneered the abolition
movement (Webster & Boahen, 1967).
In Britain, the new industries created new needs. These included
raw materials such as palm oil needed for the lubrication of the machines,
the production of other materials such as soap and candles; and new
markets for the surplus products from the industries. Instead of labor
therefore, Britain needed Africans to remain in Africa, produce these raw
materials, and provide the markets. Although Britain had abolished the
Atlantic trade, other European, American, and African merchants
continued the trade, which even received a boost in the nineteenth
century. These other nations had not quite become as industrial and
therefore did not see the advantage in this system. Britain knew she had
to adopt all measures possible to get the others to buy into their idea of
abolition and thus through treaty signing, bribes to African chiefs and
Europeans and even punishable sanction with the establishment of an
Anti-Slavery Naval Squadron they were finally able to convince the others
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into their camp. The British proposed a new form of trade, which they
called the legitimate trade, which was trade in agricultural products. The
argument was that trade in human cargo was inhuman and evil and
against the law of nature as such, a more humane and legal form of trade
was to be opted for with the Africans. The other European powers and the
United States of America soon began to abandon the slave trade and
embrace the legitimate trade. In the 1840s, the French became industrial
and it was from this time that she began to engage in the legitimate trade
in high measure. New European nations such as Germany also joined in
this trade.
Nigeria was one of the numerous West African states that were
engaged in the business of the legitimate trade. Palm oil was the major
commodity for export in the first half of the nineteenth century. It was in
high demand in Europe to create oil and fat. It was also used as lubricating
oil for the machines, to manufacture candles and soap as earlier stated.
One of the greatest centers of production was the Niger Delta, which
became the Oil Rivers. Calabar, Brass and Bonny became the abode of oil
production in the Delta. Other agricultural products that became
important in the latter part of the nineteenth century included groundnut,
timber, rubber, cotton, coffee, pepper and indigo amongst others. These
raw materials were exchanged for European manufactures as guns and
gunpowder, hardware, beads, tobacco, salt iron, textiles, spirit and some
food items (Falola, 2005). Iron, salt, spirit and textiles were the chief
imports, accounting for about three-quarters of the total value of export.
The trans-Atlantic slave trade did not alter trade relations within
Africa. In fact, since it redirected trading activities to the coast, it created
more networks intra-regionally and inter-regionally to meet the demands
of the foreigners. One of the most vivacious trading relations in this
century that involved the Nigerian economy was between Sokoto
Caliphate and Asante. The trade was mainly conducted through the cities
of Salaga and Kano and the trade commodities were kola nut and natron.
The two cities fulfilled complementary functions thus, Kano acted as
wholesale center for kola distribution in the central Sudan while Salaga
served as the bulking point and transit terminus for kola exports and other
northern imports (Lovejoy, 1980). However, kola and natron were not the
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only commodities in this trade, Asante exports to Sokoto also included
gold and in the course of the century, European manufactures acquired
from the coast mainly guns, gunpowder and metal ware. Sokoto on the
other hand exported to Asante animals such as horses, asses, donkeys,
bullocks, sheep and goat, textile and leather goods, dried onion leaves and
some North African re-exports, particularly silk. Slaves constituted another
item that moved in both directions (Zeleza, 1993).
The importance of this trade was measured in the events that
unfolded from its conduct. The idea of monopoly came to dominate the
affairs of the trading companies in Nigeria and rivalries arose between
merchants of same nationality on one hand and between merchants of
separate nationalities on the other. A case in hand is that of how new
small-scale traders in Bristol and London sought to challenge the big
established Liverpool traders from the 1830s to the 1850s for the palm oil
trade of the Niger Delta; another is the deep-seated antagonism between
French and British traders in the same Niger Delta. The French companies
Compagnie Franaise de LAfrique and the Compagnie du Senegal
formed in 1880 and 1881 respectively, established branches all over the
delta. British companies especially Goldie Taubmans National African
Company later the Royal Niger Company was given to much concern by
this development and continued to cause tension until 1884 when the
NAC bought over the French firms (Zeleza: 383 & 386).
Trade rivalry amongst the merchants soon translated into rivalry
amongst the governments. The European powers were torn between who
would hold political control in the region most dominated by their traders
and/or missionaries. It was to avert a major conflagration between these
European powers that the Berlin conference held in 1884 to first, give
international recognition to an already existing condition of the scramble
for Africa and further to decide the future of European relations in Africa.
The legitimate trade was mainly between Europe and Africa and started a
period of integrating Africa into an international mercantile capitalism. In a
bid to establish direct control over these states, the gunboat was
employed to subjugate nations that refused to peacefully sign away their
independence in treaties drawn by the Europeans along biased terms.
Thus was the conquest and colonization of Nigeria as was taking place all
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over Africa and a direct control of these nations, which implied that their
economies were to be infused into the European economies and the terms
of trade determined by these powers.
Conclusion
What this paper has done is to establish from the various
definitions advanced that economic globalization involves the integration
and interconnection of the world economies into a global economy such
that what happens in one part of the world has a direct or an indirect
bearing to a nation in another corner. Although the concept is new in that
it was only in the 1980s that it gained widespread usage making many
social scientists and economists argue that its roots can only be found in
the contemporary process of economic integration, the phenomenon is
historical and is rooted in ancient economic interactions across national,
regional, and continental boundaries. The Nigerian economy in the precolonial era was involved in commercial linkages with other economies of
the world though existing as independent nations.
The paper used examples of the economic relationship that existed
between Nigerian economy and other national economies within and
across continents in the pre-colonial period to prove that globalization is,
as Kwanashie (1999) describes it as an integral part of human history and a
historical process that connected economies of the world and also uncover
the active participation of Nigeria in this process. Having seen clear
examples from Kano, Benin, and Aro amongst others in their connection
within the West African region and outside from early times, the argument
for the progressive nature of globalization can be established. Thus, the
influence of technology cannot be under emphasized as was first
witnessed in the sixteenth century when Europeans began to move out of
their continents into other parts of the world. This points to the fact that
globalization especially in its economic sense may indeed be a new
concept nevertheless; the event surrounding the idea is as old as mans
interaction economically within and outside his sphere of influence.
Today, Nigeria is not aloof in the increased speed at which
globalization is engulfing the world. In fact, she like other African countries
stands to be one of the major benefactors of the flows across borders in all
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the ramifications globalization manifests. In the economic aspect, Nigerias
economy although a developing one has witnessed increased integration
with several nations of the world in terms of the flow of goods and
services, foreign direct investment (FDI), capital and labour amongst
several others.
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MANAGING AN ACCUMULATIVE INORGANIC POLLUTANT: AN OPTIMAL
TAX PRESCRIPTION FOR THE SOCIAL PLANNER
ONYIMADU CHUKWUEMEKA
Michael Okpara University of Agriculture
Umudike
Abstract
The paper strives to postulate a possible optimal policy path for a social planner
who is concerned with managing the stock of an accumulative pollutant within
the society. Using Hamiltonian functions in a dynamic optimising problem, the
paper was able to show that the policy path that will minimise the damages of an
accumulative pollutant depends on the steady state of the accumulative
pollutant as compared to the level of the accumulative pollutant present within
the society. This relationship between the steady state and level of accumulative
pollutant determines both abatement levels and pollution tax: policy tool kits for
the social planner.
KEYWORDS: Accumulative Pollutant, Dynamic Optimization, Pollution.
Introduction
The United Nations Conference on Environment and Development
(UNCED) held in Rio de Janeiro in 1992, recognized the pressing
environment and development problems of the world and, through
adoption of Agenda 21, produced a global program of action for
sustainable development into the 21st century (Sachs and Warner, 1995).
After a decade known as the rhetoric decade, the World Summit for
Sustainable Development (WSSD), held in Johannesburg in August 2002,
made it clear that urgent formulation and elaboration of national
strategies for sustainable development are necessary. The main result of
the summit was, that one of the three pillars of sustainable development the environment - is seriously damaged because of the distortions placed
on it by the actions of human population. The collapse of the
environmental pillar is a serious possibility if action is not taken as a
matter of urgency to address human impacts, which have left: increased
pollutants in the atmosphere, vast areas of land resources degraded,
depleted and degraded forests, biodiversity under threat, reduction of the
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fresh water resources, depleted marine resources (Dasgupta and Maeler,
1994).
Sustainability does not mean that resources must remain
untouched; rather it means the rates of use of their services must be
chosen so as not to jeopardize future generations. Services both in the
sense of inputs for the production and consumption system, and in the
sense of dump for residuals (Faucheux et al, 1996). The Justification of this
paper is premised on the need for providing a postulate for the social
planner, that includes, a policy road map whereby sustainable progress
can be achieved with minimum harm to the environment as well as
ensuring societal welfare.
This paper is primarily concerned with the role of environmental
economics in assessing how society can sustain its economy and
environment.This paper will abstract from reality by using a case study to
draw policy implications for managing a cumulative inorganic pollutant. In
essence, the paper strives to examine the waste products or residuals
from production and consumption and how to reduce or mitigate the flow
of residuals so they have less damage on the natural environment and
depletion of natural capital. According to Solow (1993), accumulative
pollutants are a major source of pollution in the society because they stay
in the environment in nearly the same amounts as they are emitted. Thus,
their total stock builds up over time as these pollutants are released into
the environment each year. The rest of the paper is arranged as follows: in
(2) the paper defines and explains what accumulative pollutants are. In (3)
the paper uses a Hamiltonian function to explain the evolution of the
pollutant stock while, (4) and (5) derives the steady state and postulates
policy implications of the Hamiltonian function respectively. In (6) the
paper espouses management strategies for the social plannerand in (7)
conclusions are drawn.
1.
Accumulative Pollutants: What are they?

As already emphasized, studies in environmental economics
examine the waste products or residuals from production and
consumption and how to reduce or mitigate the flow of residuals so they
have less damage on the natural environment and depletion of natural
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capital. Production and consumption create all types of materials residuals
that may be emitted into the air or water or disposed of on land. The list is
incredibly long: sulphur dioxide, volatile organic compounds, toxic
solvents, animal manure, pesticides, particulate matter of all types, waste
building materials, heavy metals, and so on. Waste energy, in the form of
heat and noise, and radioactivity, which has characteristics of both
material and energy, are also important production residuals. Consumers
are also responsible for enormous quantities of residuals, chief among
them are domestic sewage and automobile emissions. All materials in
consumer goods must eventually end up as residuals, even though some
may be recycled along the way. These are the source of large quantities of
solid waste, as well as hazardous materials like toxic chemicals found in
items such as pesticides, batteries, paint, and used oil.
One simple and important dimension of environmental pollutants is
whether they accumulate over time or tend to dissipate soon after being
emitted. The classic case of a non-accumulative pollutant is noise; as long
as the source operates, noise is emitted into the surrounding air, but as
soon as the source is shut down, the noise stops. At the other end of the
spectrum we have accumulative pollutants that stay in the environment
in nearly the same amounts as they are emitted. Their total stock thus
builds up over time as these pollutants are released into the environment
each year. Radioactive waste, for example, decays over time but at such a
slow rate in relation to human lifespans that for all intents and purposes it
will be with us permanently. Another accumulative pollutant is plastics.
The search for a degradable plastic has been going on for decades and,
while gains have been made, most plastics decay very slowly by human
standards; thus, what we dispose of will be in the environment
permanently(Asheim et al, 2001).
2.
Managing a Stock of Accumulative Pollutant

A stock pollutant is a pollutant that accumulates over time, and the
damage it causes at a point in time is a function of how much has
accumulated to that point (Dasgupta, 2001). For this paper, as already
mentioned, the focus will be on inorganic pollutant / waste. The method
of study employed is dynamic optimization (see.Beltratti, 1996; Grossman
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and Krueger, 1995; and Grimaud, 1999). The choice of dynamic
optimization to espouse possible measures on managing an accumulative
pollutant is premised on the characteristic of the social problem of:
1) Managing the stock of accumulative pollutants.
2) Decisions in one time period will affect opportunities and payoffs in
the future.
3) All decisions are functions instead of single values. These decisions are
time paths of actions over some time frame.
The fundamental problem for the social planner is to find a control which
minimize or maximize a certain objective, subject to constraints on the
evolution of the stock of accumulative pollutant. To do this, the paper
employs a current value Hamiltonian function.
Notation:
S Stock of accumulative pollutant
X Potential aggregate effects: this is aggregate effect of the pollutant to
the society without any control. The portion of production or consumption
residuals that are placed in the environment, sometimes directly,
sometimes after treatment
A Abatement, i.e. Reduction of loss in welfare due to the presence of the
pollutant (example: pollution tax)
(X-A) Aggregate flow of pollutant
g Percentage of the stock of the pollutant that decays in a time
period, g (0,1).
The state equation is
accumulative pollutant over time.
. Which shows the evolution of the
Let:
D(S) aggregate damage function with D >0 and D >0.Damages are the
negative impacts produced by environmental pollutionon people in the
form of health effects, visual degradation, and so on, and on elements of
the ecosystem through things like the disruption of ecological linkages or
species extinctions
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C (A) aggregate abatement costs with C >0 and C >0.
i discount rate held constant over [0,].
The social planners objective is to minimize the present value of the flow
of total costsdamage plus abatement costs:
Minimize
Subject to
S(0) = S0 (the initial stock of S).
T = , S (T) =
The current-value Hamiltonian is
H c = D(S) + C(A) +(X A gS)1
Since D and C are strictly convex, the Hamiltonian is strictly convex in (S,
A). Therefore, the following necessary conditions are also sufficient.
H Ac = C(A) = 0
d(eit ) dt= HSceit eit ieit= (D(S) g)eit
= D(S) +(i+ g)
= X A gS
The current-value costate variable () is the marginal reduction in future
damages and abatement costs from abating one unit now. Thus, = C (A)
balances the marginal benefit of current abatement against marginal
costs. Since is the shadow value of abating a unit of emissions, we can
interpret it as the optimal tax2 on emissions. Graphically:
rt
e =. (lagrangian multiplier) is the present value of the shadow price ofS.

This form of tax is not in the strict sense. It could also include all effort (assume the effort can
be measured) directed towards abatement i.e government policy recycling.
2
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C ( A)
3.
The Steady State
To identify the steady state we use the first three first order conditions
and set S== 0. Take the costate equation first and solve,
= D(S) +(i+ g) = 0, which yields
= D(S) (i+ g).
Now consider the state equation:
= X A gS= 0.
Then, with
= C(A) ,
we have a system of three equations, with three unknowns (S, A,). The
solution to
is the steady state (S s, As,s).
To illustrate the solution in two dimensions lets focus on and S for which
= 0 . From
note that S = D(S) (i+ g) >0. Graphically,
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( = 0)
Given = X A gS= 0,
To get ,Note first that = X A gS= 0 implies
A = X gS
in the steady state3
= C(X gS)
andcollects all combinations of and S for which = 0.
/S = C(X gS) <0. Graphically:
( ) and A = X gS
= C A
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( = 0)
(=S 0= 0)
S
Ss
The steady-state value of and S are determined as the simultaneous

solution to
= D(S) (i+ g) [ = 0],
= C(X gS) [ = 0].
The steady-state level of abatement is determined easily with the state
equation
= X A gS= 0; that is, AS = X gSs .
4.
Policy ImplicationsA Phase Diagram
One of the most interesting aspects about steady-state analysis is the

analysis of how , S, and A move toward the steady state. To do this we
construct a phase diagram by examining how moves when the system is
away from = 0 and doing the same with S .
Begin with :
= (S,) = D(S) +(i+ g).
Note that
/S = - D(S) < 0
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Consider a pair ( ,
such that = 0 . That is,

= (
= - D( ) + i + g) = 0
Leave = , but consider S 0 < . Since /S < 0and

0
, ) >0. For S1 > , (S 1, ) <0. Graphically:
( ,
,then (S
( = 0)
( > 0)
( < <0)
=
S1
S0
Thus, for pairs (,S) above = 0, >0. For every (,S) below = 0, <0.
Now consider away from = 0. Take the state equation = X A gS. We
need this in terms of , so consider = C(A). Since C is strictly increasing
(C >0), it has an inverse that is also strictly increasing. Let (C)1 = h. Then
= (S,) = X h() gS,
with / = h'() < 0
Take a pair (S,) such that
(S,) = X h() gS = 0.
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Fix S = S and consider 0 < . Since / < 0 and (S,) = 0, then
(S,0 ) >0. For
1>, (S,1)< 0 Graphically:
(
1
< 0)
> 0)
= 0)
Ss
Therefore, for any (,S) above = 0, <0. For any (,S) below = 0, >0.
Combining our findings about and away from = = 0 yields the
following graph.
The directional arrows (like
) tell us the qualitative movement of
(,S) away from or toward the steady state in each of the four regions of
the diagram. Given some initial stock of accumulative pollution, S0 Ss, we
can draw qualitative conclusions about the path of (,S) toward the steady
state. This will be particularly revealing for the path, because this will
be the path of the optimal tax on emissions (management strategy).
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s
( = 0)
( > 0,
( > 0,
< 0)
> 0)
( < 0,
( < 0,
> 0)
< 0)
( = 0)
Ss
5.
Management Strategy
Following graph, the paper assume that S0 <Ss, drawn the paths (a), (b) and
(c), but only path (b) reaches the steady state. Note that a tax policy that
originates above s(0) > s as for path (a)cannot reach the steady
state. Therefore the optimal initial tax must be below the steady state tax.
However, it cannot be too low like(0) for path (c).
Path (b) converges to the steady state. Note the policy prescription: set
the initial emissions tax lower than the steady state tax and increase it
toward s as time goes by. This also implies that optimal abatement starts
out relatively low and increases as the tax is increased [use = C(A)].
Abatement is higher in later periods, because in present value terms it is
cheaper to push it off into the future. Of course, doing so has to be
balanced against increased damage in earlier periods.
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( = 0)
(a)
(b)
(c)
( = 0)
Ss
S0
Using the same phase-diagram we can draw the opposite

conclusions if the initial stock is greater than the steady-state stock. In this
case the initial tax is set higher than the steady state tax and the tax is
decreased toward the steady state as time goes by. Consequently,
abatement starts out relatively high and is gradually decreased as the
system moves toward the steady state.
6.
Conclusions
From the above analysis, it becomes imperative that the social
planner is laden with the task of providing an optimal control for managing
accumulative pollutants in the society. The Hamiltonian model used to
espouse possible policy paths in the paper can also be used in determining
other social problems not restricted to accumulated pollutants. The paper
has been able to derive a valid (both in the short and long time horizons)
solution that the social planner can use to stymie growth in accumulative
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pollutants as well as inherent damages in form of loss in welfare to the
society.
The social planners strategy depends on the steady state stock of
accumulative pollutants in the society. Once this is known, the social
planner has the responsibility of postulating optimal tax on emissions of
these pollutants and invariably the level of abatement. As seen in the
model, the optimal tax policy is one which must be lower than the steady
state of the stock pollutant, if and only if the present stock of accumulated
pollutant is lower than the already established steady state. This implies
that abatement will be lower in earlier periods and higher in later periods
as pollutant tax increase. Conversely, if the present stock of accumulated
pollutant is higher than the established steady state, abatement will be
high in earlier periods (with an attendant high tax) and lower in later
periods(lowering taxes).
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Reference
Asheim,G.B., Buchholz, W. and B. Tungodden. (2001). Justifying Sustainability, J.
Environmental Economics and Management 41, 252-68.
Beltratti, A. (1996) "Models of Economic Growth with Environmental Assets",
Kluwer Academic Publishers, Dordrecht.
Dasgupta, P. (2001) "Human Well-Being and the Natural Environment", Oxford
University Press, Oxford, UK.
Dasgupta,P. and K. G. Maeler(1994). Poverty, Institutions, and the
Environmental-Resource Base, World Bank Environment Paper 9,
Washington, D.C.
Faucheux, S., Pearce, D. and J. Proops.(1996). "Models of Sustainable
Development", Edward Elgar, Cheltenham, UK.
Grossman, G.M., and A. B. Krueger.(1995). Economic Growth and the
Environment, Quart. J. Economics 110, 353-77.
Grimaud, A. (1999). Pollution Permits and Sustainable Growth in a
Schumpeterian Model, J. Environmental Economics and Management 38,
249-66.
Sachs, J.D., and A. M. Warner. (1995).Natural Resource Abundance and Economic
Growth, NBER working paper 5398, Cambridge, MA
Solow, R. M. (1993) An Almost Practical Step Toward Sustainability, Resources
Policy, 162-72.
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ANALYSIS OF NEWSPAPER COVERAGE OF THE NIGER DELTA CRISIS
(2003 2004)
ORHADAHWE, GODWIN OKITE
M.Ed, MA; PhD (Dissertation).
Assistant-General Manager, News & Current Affairs,
Delta Broadcasting Service, Warri.
ABSTRACT
The thrust of this study was premised on the need to analyze the nature of
coverage given to the Niger Delta crisis by Vanguard, Guardian, Punch and
Daily Champion newspapers between 2003 and 2004 with a view to
ascertaining the pattern of coverage. The primary objective was to infer
the disposition of the newspapers towards the crisis in the light of recurring
regional crises in Nigeria, as highlighted through the contextualization of
news within the ambit of advocacy journalism. The agenda-setting theory
formed the theoretical framework for the study, while its conceptual
framework derived from the concept of advocacy journalism. The
peculiarities of the study necessitated the use of a content analysis. From a
population of 1,460 newspaper editions, 184 issues of the four newspapers
were selected and studied using a constructed calendar as a frame. Intercoder reliability test showed a high correlation of 0.72 which validates the
coding categories. Quantitative analysis was done using news-hole as
measured in column centimeters and percentages, while the constant
comparative technique (CCT) was used for the qualitative analysis. Findings
revealed that not much prominence was accorded reports on the
underlining development issues as they were tucked within inside pages.
The dominant news writing style was the straight news format with few
eye witness accounts. Findings also revealed very few editorials and
feature stories on the crisis indicating poor advocacy performance by the
newspapers. It was, therefore, recommended that the Nigerian press
should renew attention towards enriching its reports with depth while
being proactively disposed towards advocacy journalism. It was also
recommended that Nigerian newspapers should intensify their agendasetting and advocacy roles, using repeated coverage to provoke public
dialogue on regional crises towards mitigating the problems.
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Introduction
The Niger Delta region consists of Abia, Akwa-Ibom, Bayelsa, Cross
Rivers, Delta, Edo, Imo, Ondo and Rivers states. It lies within the SouthSouth, South-East and South-West geo-political zones of Nigeria. It is a
vast expanse of land mass extending East West to the Cameroon border
and bounded in the South by the Atlantic Ocean (Okinono, 2013)..The
Niger Delta crisis revolves around oil and development. Despite its many
oil wells, the region has remained under-developed thus it has been
engulfed in conflict since the pre-amnesty period, 1992-2009.
The Nigerian press often comes into focus when issues relating to
the Niger Delta crisis, are being discussed (Akowe, 2010). Therefore, most
of what was known about the crisis is attributable to the press through its
surveillance function of ensuring constant flow of news. Newspapers were
expected to serve as the repertoire of information needed to advance
knowledge through rational discourse, as well as illuminate perspectives
on the crisis through feature stories, editorials and opinion pages.
Newspapers were also expected to use their reports to proffer answers to
questions that streamline causality (Okon, 2013). In other words,
newspaper reports are supposed to throw light on the nature, causes and
negative implications of the crisis. Judging from the fact that Nigeria once
experienced a prolonged civil war that almost shattered its corporate
existence, coupled with the recurrent regional crises across the six geopolitical zones of the Federation, the need for stakeholders such as the
mass media to intensify efforts towards mitigating the problem has
become very imperative. Through its agenda-setting functions, the press
can provoke public dialogue on regional conflicts in Nigeria towards
preventing the problem from escalating. This is because the news media
have tremendous potential for directing public attention (Roberts, 1971)
as cited in Anibueze, 2008.
Within the study period (2003-2004), Nigerian newspapers
presented the Niger Delta crisis to the public through their daily reportage.
It is important to ascertain the relationship between media content and
societal reality, whether the newspapers highlighted the development
issues underlining the Niger Delta crisis or the press just reported only the
violence, militancy and the criminality in the crisis. It is important to
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ascertain the pattern of coverage in order to infer the disposition of the
newspapers concerning the regional crisis. The strength of the foregoing
argument lies in the assertion of Okon (2013) that the coverage given to
an issue by the mass media, especially the print, gives an insight into the
disposition of the media concerning that issue (p. 3). The thrust of this
study, therefore, was to ascertain the extent to which the newspapers
accorded prominence to the crisis through placement, the extent to which
they used interpretative journalism to illuminate perspectives on the
causes and negative effects of the Niger Delta crisis, and the extent to
which the newspapers proffered solutions to the crisis through advocacy
and development journalism.
Statement of the Problem
Two schools of thought exist over the pattern of newspaper
coverage of the crisis. In their content analysis of the New Nigerian, Daily
Champion and Tribune newspapers, Olamide and Ajibola (2008) as cited in
Chiluwa (2011) of the first school of thought, argued that the three
newspapers failed to capture the development issues that caused the
crisis and as such distorted the truth by reporting it as a cr4ime against the
government. For Chiluwa (2011), this could make the conflict escalate and
cause more problems. Similarly, Ogbeni (2010) in her work on framing as a
form of agenda-setting, argued that the Nation Newspaper of January 1,
2009 commended the JTF for curbing crime in the region but was silent on
why the Movement for the Emancipation of Niger Delta, MEND went into
armed conflict, thereby denying the public information about the issues
underlining the conflict. Ogbenis view reinforces an earlier assertion by
Ndoaka (2004) that the mass media in Nigeria shut out fundamental issues
but publish sensational news stories and official explanations by
government.
In the second school of thought, other media scholars argued that
Nigerian newspapers adequately captured the development issues that
underlined the Niger Delta crisis. Nwane (2013) in a study on media,
environmental sustainability and national development in Nigeria, argued
that the media in Nigeria and internationally have made concerted efforts
in bringing ecological issues to the front burner of national discourse. The
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scholar concluded that recent flooding of towns along coastal areas
attracted media attention, and that many of such stories made front page
headlines. This school of thought views Nigerian newspapers as
developmental in their pattern of covering regional crises. However, the
position of Weje and Alikor (2010) fall between the two polarized
arguments. In their evaluation of the role of the mass media in conflict
management - the Niger Delta experience, the scholars argued that some
media practitioners played useful conflict management roles in the region,
while others blew mere misunderstanding and misconception of issues
into violent conflicts thereby making the Niger Delta a hotbed of crises.
The divergent views and varying arguments above have established a
controversy over the pattern of newspaper coverage of the crisis in the
Niger Delta region of Nigeria. This study was therefore aimed at
ascertaining the true position, whether the newspapers reported the crisis
as mere violence and crime against the Nigerian State, or as a crisis caused
by under-development of the oil-rich region.
Aim/Objectives of the Study
The aim of this study is to ascertain the disposition of the press to
the crisis in the Niger Delta region of Nigeria, using the pattern of
newspaper coverage as a parameter, while the specific objectives of the
study are to:
1)
2)
3)
4)
5)
6)
Examine, through content, the depth of coverage given by the

newspapers to the Niger Delta crisis.
Determine the extent to which the newspapers were disposed
towards details concerning the Niger Delta crisis.
Examine the pattern of newspaper coverage of the Niger Delta
crisis in terms of volume and frequency.
Determine the level of prominence accorded reports on the Niger
Delta crisis in terms of placement on the pages of newspapers.
Ascertain the extent to which the newspapers employed advocacy
tools to call public attention to the negative implications of the
crisis.
Determine the extent to which the newspapers were disposed
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1.4
towards development communication in their pattern of coverage

of the Niger Delta crisis.
Research Questions
The following research questions were raised to achieve the stated

objectives:
1)
2)
3)
4)
5)
6)
To what extent did the newspapers display depth in the coverage

of issues underlining the Niger Delta crisis?
To what extent were the four newspapers disposed towards details
concerning the Niger Delta crisis?
What was the pattern of newspaper coverage of the Niger Delta
crisis in terms of volume and frequency?
How prominent were the reports on the Niger Delta crisis in terms
of placement on the pages of newspapers?
To what extent did the newspapers use advocacy tools to call
attention to the negative implications of the crisis?
To what extent were the newspapers disposed towards
development communication in their pattern of coverage of the
Niger Delta crisis?
Significance
This study is very apt because it is coming at a time when
development stakeholders are seeking solutions to communal and
regional crises in Nigeria and beyond. The study will enlighten the Federal
Government and other stakeholders in Nigeria on the peculiar
development needs of the Niger Delta region towards influencing policies
and programmes in favour of the oil-rich region. This will forestall further
crises in the region, and also stop existing communal conflicts from
escalating into full-blown regional crises. The study has illuminated some
communication factors that could exacerbate or reduce the intensity of
regional crisis, thereby helping to re-shape regional conflict reporting and
conflict management in Nigeria.
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Scope
The study covers the nine oil-producing states of Nigeria that is,
Abia, Akwa-Ibom, Bayelsa, Cross Rivers, Delta, Edo, Imo, Ondo and Rivers.
It also covers the news reports on the Niger Delta crisis published by the
Vanguard, Guardian, Punch and Daily Champion newspapers in the critical
period (2003-2004) when arms struggle, violence, militancy and criminality
characterized the crisis. The four news dailies were selected to represent
the entire Nigerian press with a view to reducing the study to a
manageable scope. This study, therefore, ascertains the extent to which
the four newspapers, Guardian, Vanguard, Punch and Daily Champion
used advocacy tools to draw attention to the causes and negative
implications of the Niger Delta crisis, with a view to solving the problem.
Theoretical and Conceptual Clarifications
The Agenda-setting media theory provided appropriate theoretical
framework for this study. The theory which was propounded by Maxwell
McCombs and Donald Shaw in 1972, assumes that the press, does not
reflect social reality because news is filtered, chosen and shaped by
newsroom staff, and that people rely on the mass media for information.
The theory also postulates that media agenda set by professional
gatekeepers, lead people to perceive certain issues as important. Anaeto,
Onabajo and Osifeso (2008) posit that the facts which people know about
public issues tend to be those which the mass media present to them. The
agenda-setting role of the media leads to the general belief that the media
are the worlds most powerful communication channel. The agendasetting theory agrees with the Dependency media theory propounded by
Ball-Roacheach and De Fleur in 1976. The theory proposes an integral
relationship among audiences, media and the larger social system and
stipulates that people depend on the media to meet certain needs and
achieve certain goals. It assumes that people do not depend on all media
equally, but that people will become more dependent on the media that
meet a number of their needs than on the media that provide just a few of
their needs. This agrees with the assumptions of the Uses and Gratification
theory propounded by Katz, Blumler and Gurevitch in 1974.
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The study derived its conceptual framework from the concept of
Advocacy Journalism which involves raising awareness of issues and
concerns to produce change. It is the organization of information into
arguments to convince a specific group to take action on a specific goal.
Journalism primarily has to do with investigation and reporting of events.
Advocacy journalism or communication is a genre of journalism which is
fact-based and supports a specific point of view on an issue. Kenechukwu,
Morah and Uzochukwu (2012) posit that advocacy journalism takes a
position on the issue of the day. They argue that advocate journalists
focus on stories dealing with corporate business practices, government
policies, political corruption, and social issues. The concept refers to the
use of feature stories, opinion pages and editorial comments as tools to
draw public attention to the development issues that caused regional
crises, and also to educate the public on the need for sustainable peace
and development in the crisis zone. Public interest is the ultimate concern
of the advocate journalist.
Advocacy journalism is also known as activism journalism. It is
described as another alternative to objective journalism (Uwakwe, 2010).
Citing De Fleur (1991) Uwakwe states that with this style, a journalist can
take a point of view, take a position or support a cause in a story. It is
hybrid news . . . and because it appears in news columns, it differs from
editorial. . . . Advocacy reporting is not widely practiced, and most studies
of journalists show that it is not particularly admitted in the field (pp. 201,
202).
Research Methodology
The fact that the topic focused on newspaper coverage of the Niger
Delta crisis makes this study peculiar hence it necessitated a content
analysis. The manifest content in this study comprises straight news,
features, and opinion pages/editorials and they form the units of analysis.
This study entails a descriptive analysis of the news content of the
Guardian, Vanguard, Punch and Daily Champion newspapers from June 1,
2003 to May 31, 2004. They were purposively selected based on their wide
circulation. The period of study (2003-2004) was purposively chosen based
on timeliness as a core news value. This was the critical period when the
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crisis in the Niger Delta region of Nigeria assumed a more violent, militant
and criminal dimension with devastating consequences for the region and
the entire country. The contents of the four newspapers were carefully
analyzed to determine the direction or tilt, or the depth and pattern of
coverage.
Population and Sample
For the one year period, each newspaper published 365 issues.
Therefore, the four dailies published 1,460 editions, and this formed the
population of the study. With the aid of a constructed calendar, editions of
each newspaper were systematically selected at an interval of seven days,
that is, every eighth edition was picked. The constructed calendar began
from 1st of June 2003 and ended in 31st of May, 2004. Forty-six (46) issues
of each of the four newspapers were systematically sampled, bringing the
total sample size to 184 representing 12.6 percent of the population.
Research Instrument
Coding sheets were used as instruments for conducting the
research. The contents of the sampled newspapers were coded, using
straight news reports, feature articles and opinion pages/editorials (op.ed)
as manifest contents or units of analysis. These were assigned to
community violence, military attacks, oil-related crimes, other crimes,
community projects, peace advocacy, resolved conflicts, employment
needs and environmental or ecological issues as hidden contents or
content categories.
Validity and Reliability
Reliability is the extent to which the measuring procedure yielded
the same result on repeated trials. To ensure reliability of the instrument
and objectivity of the process, as well as to reduce the margin of error, a
professional coder was employed to assist in coding the content
categories. This was followed by an inter-coder reliability test. The
categories independently recorded by the two coders were compared. A
total of 25 items were categorized. The two coders agreed on 9 categories
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and disagreed on 16. The difference in categories was correlated using the
Holsti agreement formula:
2(CI.2)
r=
----------C1 + C2
The correlation coefficient r was 0.72 which confirmed the validity and
reliability of the instrument. It also validated the coding categories.
Data Analysis
The procedure for analysing data consisted of an operationalization
of any news story, straight or interpretative, devoted to the Niger Delta
crisis with implicit or explicit reference to militancy, crime, peace and
development. Quantitative analysis was done using news-hole as
measured in column centimetres and percentages, while qualitative
analysis was done through the constant comparative technique, CCT.
Findings
Data analysis revealed that the dominant news writing style was the
straight news format with very few eye witness accounts showing lack of
depth and details. Findings also revealed that the four newspapers
devoted 38% of their spaces in col.cm to reports on violence and crime,
while 62% was devoted to peace and development reports. However,
reports on violence and crime made front page headlines, while reports on
underlining development issues were tucked within inside pages,
indicating that insignificant prominence was accorded peace and
development issues in terms of placement of such issues on the pages of
the four dailies. Furthermore, it was discovered that none of the four
selected newspapers published any report on the Niger Delta crisis on its
back page or central spread, indicating that the press attached
insignificant importance to the Niger Delta crisis. According to findings, the
newspapers published few editorials and features on the crisis, showing
abysmal performance in terms of advocacy and development journalism.
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Conclusion
The Niger Delta region is underdeveloped despite its oil and gas
wealth. This resulted in series of agitations and communal conflicts that
degenerated into a full-blown regional crisis especially between 2003 and
2004 when the crisis was characterized by violence, arms struggle and
criminality. Much of what the world knew about the crisis was through the
mass media especially the newspapers. This necessitated the need to
analyze the pattern of coverage given to the crisis by Vanguard, Guardian,
Punch and Daily Champion newspapers within the period under review.
The primary objective was to infer the disposition of the
newspapers towards the crisis in the light of recurring regional crises in
Nigeria, as highlighted through the contextualization of news within the
ambit of advocacy journalism. Analysis revealed that the newspapers were
not significantly disposed towards advocacy journalism. This indicates that
the Nigerian press hardly transcends spot or straight news reporting in
stories of collective interests such as those on regional crises. The spot or
straight news format leaves readers in a state of passivity, and makes
them unable to contribute to rational discourse, since the format denies
them of details about the crisis.
Mainstream journalism, in line with international best practices,
requires diligent investigation and non-evasive advocacy geared towards
accuracy and objectivity. Journalism practice in Nigeria, as depicted in the
coverage of the Niger Delta crisis by the Guardian, Punch, Vanguard and
Daily Champion newspapers, is a far cry from the attributes above.
Perhaps this explains why the Niger Delta crisis took a more deadly
dimension in the critical period (20032004) under review, when oilrelated crimes, armed militia and other crimes were introduced into the
struggle.
Recommendations
i) Newspaper journalists in Nigeria should enrich their reports with
depth by practising investigative reporting using eye witnesses
to cross-check and confirm their facts before going to press.
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ii) Nigerian newspapers should go beyond the use of straight or spot
news format in reporting communal or regional conflicts, since
the straight news format lacks details and the potential to take
readers beyond the level of ordinary knowledge about the crisis.
iii) Newspapers in Nigeria should publish more of peace and
development reports about the Niger Delta than those on crime
and violence, since the latter are the aftermath. This will help to
place the issues that underline regional crises in their proper
perspectives.
iv) The Nigerian press should give prominence to reports on the
negative implications of regional crises in terms of priority
placement on the pages of newspapers. A situation where
reports on arson, killings, kidnapping, hostage taking, pipeline
vandalism and other criminal activities make front page
headlines, while the causes of these violent and criminal acts are
tucked within inside pages, is anti-development and should be
jettisoned.
v) The Nigerian press should be well disposed towards advocacy
journalism with a view to giving animation and verve to its role
as the watch dog or sentinel of the society. Newspapers should
be alive to their agenda-setting and advocacy functions by using
their reports to provoke public dialogue, since the press has the
capacity to influence the psyche of the people, through
repeated coverage.
vi) Nigerian newspapers should be proactively disposed towards
development communication within the framework of advocacy
journalism so that they can proffer answers to questions that
streamline causality and thus help to resolve regional conflicts
and attract sustainable development to conflict-prone areas.
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REFERENCES
Akowe, C. (2010). Comparative study of the coverage of the Niger Delta crisis:
The role of the media. Retrieved from www.akowedestiny.blogspot.com
Anaeto, S. G., Onabajo, O. S., & Osifeso, J. B. (2008). Models and theories of
communication. Maryland, U.S.A: African Renaissance Books Inc.
Anibueze, S. (2008). Mass media, population education and Nigerias health
concern. The Nigerian Journal of Communications volume 6, numbers 1 &
2. Ogui, Enugu: Rhyce Kerex Publishers. 18.
Chiluwa, I. (2011). Labelling and ideology in the press, a corpus-based critical
discourse study of the Niger Delta crisis: The Nigerian media and the
Niger Delta crisis.
Berlin: Peter Lang. 18, 19.
Kenechukwu, S., Morah, N. D., & Uzochukwu, C. E. (2012). New media and the
public sphere perspectives for the growth of advocacy journalism in
Nigeria. Journal of Linguistic and Communication Studies volume two,
number one:. Port Harcourt: University Press Limited. 2, 3.
Ndoakah, N. (2004). Development communication. Stirling-Horden Publishers
Nigeria Ltd.
Nwanne, B. U. (2013). Media, environmental sustainability and national
development in Nigeria. Peace and Environment Africa, special edition,
September. A publication of the Center for Peace and Environmental
Justice, (CEPEJ) Warri Nigeria, in collaboration with Kofi Annan
International Peacekeeping Training Centre, (KAIPTC) Accra Ghana.
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Ogbeni, J. (2010). Propaganda tactics adopted by the federal government of
Nigeria and movement for the emancipation of Niger Delta over control
of oil and gas resources in Niger Delta. Sustainable Environmental Peace
and Security in the Niger Delta. Abraka: Delsu Printing Press, 292-295.
Okon, G. B. (2013). The coverage of Augusta 109 naval helicopter crash in
Bayelsa state by three Nigerian newspapers: The depth, disposition and
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pattern. Paper presented at a seminar, Rivers State University of Science
and Technology, Port-Harcourt.
Okinono, O. (2013). Oil multinational corporations and government responses to
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with the Centre for Niger Delta Studies. Wilberforce Island: Niger Delta
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Uwakwe, O. (2010). Introduction to mass communication in the digital age:
Media agenda-setting, media framing, journalism, law and ethics.
Onitsha: Base 5 Publishers Limited. 187, 201, 202 & 278.
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conflict management: The Niger Delta experience. African Journals
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SEPARATING THE POSITION OF CHAIRMAN FROM THAT OF CHIEF
EXECUTIVE OFFICER: CHALLENGES FOR STATUTORY CORPORATE
GOVERNANCE AMONG NIGERIAN COMPANIES
Department of Business Administration
Delta State University Abraka
Delta State Nigeria
ABSTRACT
This paper is on the challenges posed by the separation of the Chairman from
that of the Chief Executive Officer (CCEO) for Nigerian companies. Specifically, the
study examined the influence of CCEO on four performance ratios, namely: Profit
Margin (PM), Earnings per Share (EPS), Return on Equity (ROE) and Return on
Asset, respectively of Nigeria which are listed in the Nigeria Stock Exchange
(NSE). CCEO is the independent variable in this study while keeping Boardsize
(BSIZE) and Ownership Concentration (CONCENT) constant. PM, EPS, ROE and
ROA are the dependent variables. The population of the study is all the listed
companies in the N.S.E. The sample size was arrived at by a stratified random
sampling technique. Relevant literatures, including the provision of CCEO in the
2003 Securities and Exchange Commission (SEC) code of Corporate Governance
were reviewed. The stakeholder theory is the theoretical foundation on which this
study is rooted. Descriptive statistics and panel least squares (PLS) data
regression were the method of estimation adopted in this study. The research
questions and hypotheses were tested using the t-statistic. The decision rule is to
accept the alternative hypothesis if the t-calculated > t-critical. The study
discovered that CCEO had positive influence on PM, EPS and ROA respectively of
Nigerian companies while keeping BSIZE and CONCENT constant despite a
relatively small positive effect on ROE due to CCEO. The study recommends the
appointment of Non-Executive independent directors on the board of directors be
domesticated among Nigerian companies. The judicial stature of SEC be
upgraded to that of its peers in the USA and UK to empower it to act decisively in
regulating NSE and other capital market participants in Nigeria.
Keywords: Return on Equity (ROE), Return on Assets (ROA), Profit Margin (PM),
Earnings per Share (EPS), Chairman and Chief Executive Officer (CCEO)
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Introduction
The separation of the position of the Chairman and Chief Executive
Officer (CCEO) which was intended to be a control mechanism over the
agency conflict of interests between the corporation and outside investors
has also become a strong corporate governance mechanism for envisaged
corporate profitability.
Odedokun (2008) corroborates this by stating that the principals
(outsiders or shareholders) and the insiders (management and board) who
are agents have conflicting interest. This gives rise to asymmetric
information problem, whereby insiders tend to take advantage of their
superior information about the company affairs against shareholders.
Good corporate governance including the separation of the position of
Chairman and Chief Executive Officer, overcomes this problem by
preventing undue concentration of power in an individual combining these
two positions. The Securities and Exchange Commission (SEC) code of
corporate governance 2003 also amplified the significance of the
separation of the Chairman and Chief Executive Officer (CCEO) positions as
stated below:
The position of the Chairman and Chief
Executive Officer should ideally be separated
and held by different persons. Combinations of
the two positions in an individual represent
undue concentration of power.
Sanda et al (2005) states also that principal-agency conflicts arises
in the presence of information asymmetry, the agent is likely to pursue
interest that may hurt the principal or shareholders. McColgan (2001) also
identifies agency conflict of interest to include moral hazard agency
conflict, earnings retention agency conflict, managerial risk aversion
conflict and time-horizon conflict. Cadbury (1992) posits that to improve
monitoring and prevent one individual dominating board, the Chairman
and Chief Executive Officer (CCEO) positions should be split. Ettah (2008)
disclosed also that high inclination for corporate hospitality in board of
directors in Nigeria threatens the independence of outside directors and it
build a cult of personality around some Chief Executive Officer who
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dispense such hospitality to the extent that most companies in Nigeria are
characterized to be working for the CEO rather than the CEO working for
the company.
This paper is a report of an empirical study of how the separation of
the Chairman and Chief Executive Officer positions which prevent undue
concentration of power in an individual overcomes the principal agency
conflict and improve corporate performance profitably.
Though Adekinju and Ayorinde (2001), Sanda, Mikailu and Garba
(2005) Oyejide and Soyibo (2001) and Olayiwola (2010) have previously
undertaken similar investigation in Nigeria but none of them was on the
effect of the separation of the Chairman and Chief Executive Officer
(CCEO) position on Nigerian companies that are listed in the Nigerian Stock
Exchange (NSE) using the 2003 Securities and Exchange Commission code
of Corporate Governance (SEC Code 2003) as a benchmark for such
evaluation for the period 2005 to 2009.
Data from the financial statements of 40 companies across 21
sectors of the Nigerian economy which are listed in the NSE between 2005
and 2009 were the sample companies used in this study (See Appendix I).
Aim and Objectives
The aim of this study is to ascertain the challenges that will arise for
statutory corporate governance among Nigerian companies if the position
of chairman is separated from that of chief executive officer.
The specific objectives are to:
(i)
Find out the influence of the separation of the position of Chairman
and Chief Executive Officer, CCEO, on Profit Margin among Nigerian
companies.
(ii)
Examine the influence CCEO on earnings per share in Nigerian
companies.
(iii) Determine the influence of CCEOon return on equity among
Nigerian companies.
(iv) To Determine the effect of CCEO on return on assets among
Nigerian companies
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Research Questions
(i)
What influence does the separation of the position of Chairman
from that of the Chief Executive Officer have on profit margin
among Nigerian companies?
(ii)
What influence does the combination of the position of Chairman
and that of Chief Executive Officer in one person have on earnings
per share among Nigerian companies?
(iii) Does the combination of the position of Chairman and that of Chief
Executive Officer have any influence on return on equity among
Nigerian companies?
(iv) What influence does the combination of the position of Chairman
and that of Chief Executive Officer in one person have onreturn on
assets among Nigerian companies?
Research Hypotheses
(i)
The separation of the position of Chairman from that of the Chief
Executive Officer has no significant influence on the profit margin
among Nigerian companies.
(ii)
The combination of the position of Chairman and that of Chief
Executive Officer in one person has no significant influence on the
earnings per share among Nigerian companies
(iii)
The combination of the position of Chairman and that of Chief
Executive Officer in one person has no significant influence on
return on equity among Nigerian companies
(iv) The combination of the position of Chairman and that of Chief
Executive Officer in one person has no significant influence on
return on assets among Nigerian companies.
Delimitation of the Study
The scope of this study is limited to the assessment of the influence
of the provisions of separation of Chairman and Chief Executive Officer
(CCEO) positions in the 2003 Securities and Exchange Commission (SEC)
code of corporate governance on the sample of 40 companies listed in the
NSE between 2005 and 2009 because the current 2011 Securities and
Exchange Commission Code of Corporate Governance is presently
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undergoing review to transition it to a mandatory code. Furthermore, the
financial statements of the sample companies examined in this study were
based on the 2003 SEC code of corporate governance. Again, throughout
the duration of the study, the International Financial Reporting Standard
(IFRS) based accounts of the 40 sample companies that took effect since
January 2012 was not available at the NSE. The Financial Reporting Council
Act of Nigeria Act No. 6 2011, establishing the Financial Reporting Council
(FRC) requires the sample companies used in this study, as a matter of
compliance, to prepare their transition financial statements for
comparison with the new standards for two years (i.e. 2010 and 2011)
prior to the transition year of 2012.
This means that for 2010 and 2011 transition period, annual
account for purpose of comparison shall be prepared beginning from
1/1/2010 ending 31/12/2010 and 1/1/2011 ending 31/12/2011
respectively (Essien Akpan, 2011). Consequently as a result of the above
constraints, it was difficult to extend the period of the coverage of this
study beyond 2009 as the audited financial statements of the sample of
companies examined in this study were neither based on the 2011 SEC
code of corporate governance nor on the new IFRS which took effect from
1st January 2012. Also, the audited financial statements of the sample
companies of this study did not disclose the appointment of NonExecutive independent directors on their board of directors. Small and
medium-scale enterprises (SME) were also excluded in this study as SMEs
are not governed by the provisions of the 2003 SEC code of Corporate
Governance. The 2003 SEC code is neither mandatory nor was it comply
or explain in character. Only publicly quoted companies are regulated by
the 2003 SEC Code in Nigeria.
Theoretical Framework The Stakeholder Theory
The modified stakeholder theory is the theoretical foundation of
this study. The original stakeholder theory posits that managers have
multiplicity of objectives to optimize towards the satisfaction of a much
broader range of stakeholders interest. It differs from the principal-agency
theory that is concerned with the relationship between managers and
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equity holders with no explicit recognition of other parties interested in
the well-being of the firm.
The stakeholder framework below (Figure 1) adopted in previous studies
was used in analyzing corporate social performance with primary and
secondary stakeholders only.
Figure 1: Corporation and Stakeholders
Media
Education
institution
Competitor
s
The poor
Suppliers
Stockholde
r
Future
generatio
n
Customer
s
Governmen
t
Corporatio
n
Earth
biosphere
Religious
groups
Trade
association
s
Political
interest
groups
Employee
Communitie
s
Political
parties
Unions
Creditors
Primary Stakeholders
Secondary Stakeholders
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Source: Claskson M. (1995). A stakeholder framework for analyzing an
evaluating corporate social performance.In G.A. Steiner and J.F. Steiner
(Eds).Business, Government and Society.A Managerial Perspective.Text and
Cases. 8th Edition, New York: McGraw Hill.
However, to survive in business, corporations must be proactive to social,
political and economic forces in the environment of business by the
adoption of effective corporate governance practice. The original
stakeholders framework above (Figure 1) failed to address the effect of
corporate governance mechanisms, including the separation of Chairman
and Chief Executive Officer position on Nigerian companies which is the
main objective of the study. The modified stakeholder framework below
(Figure 2) analyzing and evaluating the effect of the separation of
Chairman and Chief Executive Officer positions on Nigerian companies was
adopted to fill this gap as shown below:
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Figure 2: Modified Stakeholders Framework
Media
Education
institution
Competitor
s
The poor
Stockholder
Future
generatio
n
Suppliers
Corporation
Separation of
Chairman and Chief
Executive Officer
Position
Government
Earth
biosphere
Customer
s
ROE PM ROA
EPS
Performance
Ratio
Employee
Political
interest
groups
Communitie
s
Political
parties
Unions
Creditors
Primary
Stakeholders
Secondary
Stakeholders
BSIZE = Board Size

Equity
CCEO = Chairman/Chief Executive Officer
Margin
CONCENT = Block or ownership concentration
Assets
INDEPTH = Independent Director
Share
102
Dependent
Variables/ meaning
Independent
Variables/ meaning
Religious
groups
Trade
associations
ROE = Returns on
PM = Profit
ROA = Returns on
EPS = Earnings Per
www.cepejngo.com
Source: Researchers modified stakeholder framework evaluating the
effect of CCEO on the performance of Nigerian Companies from
2005 to 2009.
Furthermore, the ability of corporations to discharge social
investments to their primary and secondary stakeholders in Figure 1
depend on business success arising from the positive effect of the
separation of Chairman and Chief Executive Officer (CCEO) positions as a
corporate governance mechanisms on Nigerian companies as illustrated
above. According to Oteh (2013) the interest of these divergent groups are
sometimes difficult to align and this is where a framework as
demonstrated in Figure 2 above, comes in to define roles and
responsibilities and guide this study.
Literature Review
According to Adesina (2010) undue concentration of power as a
result of the combination of the two positions of Chairman and Chief
Executive Officer in an individual in the absence of a strong Non-Executive
independent director as Vice-Chairman is an infraction of section 26 (3) of
Companies and Allied Matters Act (CAMA) Cap. C.20, LFN 2004 and
Section 6 of memorandum and Articles of Association of the NSE which
shall be applied solely towards the promotion of the object of NSE and no
portion shall be paid or transferred directly or indirectly by way of
dividends, bonuses or otherwise by the external auditors. The interim
administration of the NSE was mandated to retrieve N1,350 billion from
the NSE council members which they wrongly collected as bonuses from
2006 to 2008.
According to Awoyemi (2009), the domination of the board by a
single individual has been fingered in other jurisdictions across the world
as a key source of poor corporate governance and the resultant corporate
failures. Nevertheless, there are family banks (not just in Nigeria) that are
run on sound business and corporate governance principles. Some
jurisdictions permit combination of the board and management roles in an
individual where there are strong independent board members to balance
the dominant individual. Cadbury (1992) posit that corporate board in
order to improve monitoring and prevent one individual from dominating
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the board, it should consist of at least 3 Non-Executive Directors (NED)
and should split the positions of Chief Executive Officer (CEO) and
Chairman of the Board.
The empirical study of Weiback (1988) confirms that CEO is not
likely to be removed for poor performance on outsider dominated boards.
This may also explain the time-horizon agency conflict. According to
McColgan (2001), shareholders and managers are divided with respect to
the timing of cashflow. Shareholders usually will be concerned with longterm positive Net Present Value (NPV) projects into indefinite future.
However, management may only be concerned with company cash flow
for their term of employment leading to a bias in favour of short term high
accounting returns project at the expense of long term positive NPV
project.
Dechow and Sloans (1991) corroborate the time-horizon agency
conflict in their study which examined Research and Development (R&D)
expenditure as top executives approach retirement and found that such
expenditure tend to decline. R&D expenditure reduces executive
compensation in the short term and since retiring executive would not be
around to reap the benefits of such investment. This may explain their
findings.
Jenson and Mackling (1976) also propose moral-hazard explanation
for principal-agency, conflict. This model is whereby in a hypothetical
situation a manager develops his incentive to consume perquisites rather
than investing in positive NPV projects increases as his ownership stake in
the company declines.
Jenson (1986) and Jensen (1993) argue that managers prefer to
retain earnings also, whereas shareholders prefer higher level of cash
distribution. Manager benefit from retained earnings as company size and
growth grant a larger power base, greater prestige, an ability to dominate
the board and award them higher level of remuneration.
However, Fama and Jensen (1983) argue that to overcome the
moral-hazard problems arising from the Principal-Agency conflicts, the
board of directors should be composed largely of outside non-Executive
independent directors holding management positions in other companies.
Furthermore, effective board had to separate the problem of decision
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management and decision control. Yermack (1996) using a sample of 452
firms in annual Forbes magazine ranking of 500 largest United States of
America (USA) firms between 1984 and 1991 discovered in their findings
that firms are more valuable where CEO and Chairman of Board positions
are occupied by different persons.
Research further support the notion that combining the position of
CEO and chair in one person may prevent the board from effectively
exercising its monitoring and oversight duties (creating agency costs) and
will result in lower performance (Lorsch and Maclver, 1989, Millstein,
1992; Coles et al 2001). However, if the CEO was able to dominate the
board, separation of that function could be more difficult and
shareholders suffer as a result. Oteh (2013) corroborated this by disclosing
that Central Bank of Nigeria (CBN) introduced CBN code of corporate for
Banks in 2003 (amended in 2006) to guard against the re-occurrence of
corporate failure in banks as witnessed during the period leading to the
bank financial crisis in Nigeria prompting the CBN in 2007 to release a limit
on the tenure of such directors not to exceed four years for a single term
and eight years total for a two term.
From the literature reviewed above, the effect of the separation of
Chairman and Chief Executive Officer Position on the companies in other
jurisdiction is still in contention. The statement of problem of this study is
the disparity in the performance of Nigerian companys inspite of the
existence of separation of the position of Chairman and Chief Executive
Officer Positions in the2003 corporate governance code in Nigeria. This
study is on the challenges of the separation of Chairman and Chief
Executive Officer Positions (CCEO) among Nigerian companies. To this end,
the objective of the study, research questions and hypotheses were
accordingly stated, raised and formulated respectively in this study as
disclosed hereunder.
Methodology
The study design is case study of 40 quoted companies in the
Nigerian Stock Exchange derived by stratified random sampling technique
which covered a period between 2005 and 2009. Descriptive statistic and
panel least square data regression are the method of estimation adopted
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for this study. Research questions and hypotheses were tested using tstatistics. The decision rule is to accept the alternative hypothesis if tcalculated is greater than t-critical.
Empirical Results and Discussion
4.1
Table 1: Summary of Descriptive Statistics
The mean EPS, PM, ROA and ROE above are 9k, 9k, 10k and 9k
respectively for every N1 turnover of the sample companies. The average
boardsize of the sample is 7. The 2003 SEC code on board membership
stipulates a minimum of 5 and a maximum of 15 persons.
4.2
Regression Results, Test of Hypotheses and Discussion
Table 2: Summary of Panel Least Squares (PLS) result on Profit
Margin and separation of the position of Chairman/Chief Executive
Officer (CCEO). Dependent Variable:LPM
R2 = 0.92, R2 = 0.69, F-statistics = 16.02, Prob (F- statistics) = 0.0000 DW =

2.22
Source: Authors computation with E-view 7.
Research Question One and Test of Hypothesis One
Research Question One: Has separation of position of Chairman and Chief
Executive Officer (CCEO) influenced Profit Margin (PM) among Nigerian
companies?
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Hypothesis One: There is no significant relationship between the
separation of the position of the Chairman and Chief Executive Officer
(CCEO) and Profit Margin among Nigerian companies.
The E-views result output in Table 2 above indicates t-calculated
(2.99) > t-critical (2.012). This is an indication of the invalidation of the null
hypothesis and an acceptance of the alternative hypothesis that there is a
significant relationship between separation of the position of the
Chairman and Chief Executive Officer (CCEO) and Profit Margin (PM)
among the sampled companies examined. The result also disclosed that
1% prevention of undue concentration of power in one person combining
two positions of Chairman and Chief Executive Officer by ideally having
them separated and held by two persons increased profit margin of the
sample companies by 45%.
Table 3: Summary of Panel Least Squares (PLS) result on Earnings Per
Share and Separation of the Position of Chairman/Chief Executive Officer
(CCE) Dependent Variable: LEPS
R2 = 0.99, R-2 = 0.96. F-statistics = 35.17, Prob. (F-statistics) = 0.0000 DW =

1.52
Source: Authors Computation with E-views 7.
Research Question Two and Test of Hypothesis Two
Research Question Two: Has the separation of the position of Chairman
and
Chief Executive Officer (CCEO) influenced Earnings Per Share (EPS) among
Nigerian companies?
Hypothesis Two: There is no significant relationship between separation
of the position of Chairman and Chief Executive Officer (CCEO) and
Earnings Per Share (EPS) among Nigerian companies.
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Result from the E-views output in Table 3 above indicates the
t-calculated (3.15) > t-critical (2.012). This is a demonstration of
invalidation of the null hypothesis and an acceptance of the alternative
hypothesis that there is a significant relationship between separation of
the position of Chairman and Chief Executive Officer (CCEO) and Earnings
Per Share (EPS) among the sample companies. Furthermore, the result
above indicates that 1% improved compliance with the SEC corporate
governance code provision of separation of the position of Chairman and
Chief Executive Officer (CCE) increases Earnings Per Share (EPS) of the
sample companies by 41%.
Table 4: Summary of Panel Least Squares (PLS) result for Returns on Equity
and Separation of the position of Chairman/Chief Executive Officer (CCE).
Dependent Variable: LROE
R2 = 0.89 R2 0.57, F statistics = 22.88, Prob (F statistic) = 0.000, DW =

2.22
Research Question Three and Test of Hypothesis Three
Research Question Three: Has the separation of the position Chairman
and Chief Executive Officer (CCEO) influenced Return on Equity (ROE)
among Nigerian companies?
Hypothesis Three: There is no significant relationship between separation
of the position of Chairman and Chief Executive Officer (CCEO) and Return
on Equity (ROE) among Nigerian companies.
The result from Table 4 above indicates the t-calculated (2.02)
>t-critical (2.012). The result is an indication of a weak invalidation of the
null hypothesis and not a very strong acceptance of the alternative
hypothesis that there is a significant relationship between separation of
the position of Chairman and Chief Executive Officer and Return on Equity
(ROE) among the sample companies. Furthermore, the result indicates
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that separation of the position of Chairman and Chief Executive Officer by
1% increased the Return on Equity (ROE) by only 17%. This is an indication
that the separation of the position of Chairman and Chief Executive Officer
(CCEO) did not strongly influence the performance of the sample
companies which are listed in the Nigerian Stock Exchange (NSE).
Table 5: Summary of Panel Least Square (PLS) result for return on assets
and separation of the position of Chairman/Chief Executive Officer (CCE).
Dependent Variable: LROA
R2 = 0.92, R2 = 0.69, F-statistics = 13.94, Prob (F- statistics) = 0.0000 DW =

2.00
Research Question Four and Test of Hypothesis Four
Research Question Four: Has separation of position of Chairman and Chief
Executive Officer (CCE) influenced Return on Asset (ROA) among Nigerian
companies?
Hypothesis Four: There is no significant relationship between separation
of the position of Chairman and Chief Executive Officer (CCE) and Return
on Asset (ROA) among Nigerian companies.
Result from the aforementioned Table 5 indicates the t-calculated
(4.58) > t-critical (2.012). This is an invalidation of the null hypothesis and
acceptance of the alternative hypothesis that a significant relationship
exists between separation of the position of Chairman and Chief Executive
Officer (CCE) and Return on Asset among the sampled Nigerian companies.
This is also a confirmation that separation of the position of the Chairman
and Chief Executive Officer (CCE) has influenced the Return on Asset
(ROA). Furthermore, upscaling the practice of separation of the position of
Chairman and Chief Executive Officer (CCE) by 1% increases the Return on
Asset (ROA) by 48%.
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Conclusions
The empirical result from the study indicates that separation of the
position of Chairman and Chief Executive Officer (CCEO) has significant
and fundamental influence on the performance of publicly quoted
companies in Nigeria. Except the insignificant influence of CCEO on Return
on Equity (ROE), CCEO influenced all the other performance indicators of
publicly quoted companies in Nigeria which include Earnings Per Share
(EPS), Profit Margin (PM) and Return on Asset (ROA).
Recommendations
(i)
It is thus recommended that Non-Executive independent director
be appointed to the board of directors of publicly quoted
companies in Nigeria.
(ii)
The judicial status of SEC should be upgraded to that of its peers in
the USA and UK to empower it to act decisively in regulating NSE
and the other capital market participants in Nigeria.
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Millstein, I. (1992). The Limit of Corporate Power: Existing Constraints on the
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Odedokun, M. (2008).Interplay of Foreign Private Capital Flow and Good
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Olayiwola, W.K. (2010). Practice and Standards of Corporate Governance in the
Nigerian Banking Industry.International Journal of Economics.2 (4).
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Oyejide, T. A. and Soyibo, A. (2001).Corporate Governance in Nigeria. A paper
presented at the Conference of Corporate Governance. Accra-January
30th and 31st.
Sanda, A., Mulailu A.S. and Garba, T. (2005).Corporate Governance Mechanisms
and Financial Performance in Nigeria.African Economic Research
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Yermack, D. (1996). Higher Market Valuation of Companies with a small Board
of Directors. Journal of Financial Economics. Vol. 40. Pp. 185-211.
APPENDIX I
Performance Ratios
Dependent Variables
Profit Margin (PM)
Earnings Per Share (EPS)
Return on Equity (ROE)

Return on Asset (ROA)
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
Method of Estimation
Profit before interest and tax
Sales
Profit after interest, tax and preference
dividend
Number of equity shares in issue
Profit after Tax
Total equity shares in issue
Profit before interest and tax
Total asset
APPENDIX 2
LIST OF COMPANIES USED IN THE SAMPLE
FTN COCA PROCESSOR PLC
PRESCO PLC
OKOMU OIL PALM COMPANY PLC
RT BRISCOE NIG. PLC
ECOBANK NIG PLC
GUARANTY TRUST BANK PLC
STIRLING BANK PLC
INTERNATIONAL BREWERIES PLC
NIGERIAN BREWERIES PLC
ASHAKA CEMENT PLC
NIGERIA WIRE INDUSTRIES PLC
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12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
23.
24.
25.
26.
27.
28.
29.
30.
31.
32.
33.
34.
35.
36.
37.
38.
39.
40.
BERGER PAITNS (NIG) PLC

IPWA PLC
REDSTAR EXPRESS PLC
TRANSNATIONAL EXPRESS PLC
AG. LEVENTIS (NIG) PLC
COSTAIN WEST AFRICA PLC
JULIUS BERGER (NIG) PLC
NIGERIAN WIRE AND CABLE PLC
INTERLINKED TECHNOLOGIES PLC
CADBURY NIGERIA PLC
NESILE NIGERIA PLC
GLAXO SMITHKLINE CONSUMER PLC
UNION DIAGNOSTIC AND CLINICAL SERVICES PLC
IKEJA HOTELS PLC
CAPITAL HOTELS PLC
VITAFOM NIGERIA PLC
NIGERIAN ENAMELWARE PLC
E-TRANSACT INTERNATIONAL PLC
HIS NIGERIA PLC
EQUITY ASSURANCE PLC
GUINEA INSURANCE PLC
STOKVIS NIGERIA PLC
JAPAUL OIL MARKETING SERVICES PLC
AFROMEDIA NIG PLC
DAAR COMMUNICATIONS PLC
ABBEY BUILDING SOCIETIES PLC
RESORT SAVING AND LOANS PLC
BETA GLASS PLC
GRIEF NIGERIA PLC
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FULANI HERDSMEN AND COMMUNAL CONFLICTS:
CLIMATE CHANGE AS PRECIPITATOR
NTE TIMOTHY UBELEJIT (PhD)
University of Port Harcourt
ABSTRACT
The crux of this article is that there is a diametrical link between climate change
and communal conflicts caused by Fulani herdsmen. These conflicts have
engulfed communities in different states of Nigeria such as Benue, Nassarawa,
Plateau, Taraba, Kaduna, Adamawa, Zamfara, Oyo, Imo, Cross-River and Enugu.
Climate change is a great precipitator of communal conflicts and this potential is
to a reasonable extent determined by migration and other variables like attitude
of the immigrants on the one hand and perception of host communities on the
other hand. Descriptive survey method was used to investigate the study. The
study finds out that Fulani herdsmen are completely dependent on pastures
which the desertification of the Sahel region have depleted and this makes them
go all out to get these pastures thereby making them susceptible to resistance
which they fight back and communal conflicts tantamount. The study
recommends that government should come up with policies to create grazing
reserves and dams for pasture and water in states that are predominantly Fulani
so that they dont stray long distances in search of pastures which degenerates
into conflicts.
Introduction
The menace posed by Fulani Herdsmen in the different
communities they migrate to for purposes of grazing their cattle is
becoming very alarming. They constitute major security challenges to their
host communities. The propensity towards engaging the land and farm
owners of the sites they graze their cattle is increasing by the day as they
update their arsenal with highly sophisticated weapons. This is the
prevalent security challenge in most communities and states in Nigeria.
The scenario is most succinctly portrayed by Durojaiye (2014) who
said that recently there have been escalations of reported attacks by
Fulani herdsmen who brutally kill natives of the invaded farming
communities including women and children in various states across the
country. Worst affected states include Benue, Nassarawa, Plateau, Taraba,
Kaduna, Adamawa, Zamfara, Oyo, Imo, Cross-River and Enugu.
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It is so bad that some scholars have suggested that incursion by
Fulani herdsmen is the second greatest security challenge confronting
Nigeria. According to Akevi (2014 Apr 18) apart from Boko Haram, one
recurrent security challenge that confronts many states in the country is
the scourge of Fulani herdsmen. The attacks by the herdsmen on the
sedentary communities have being increasing with each passing day. This
article explores the communal conflicts caused by Fulani herdsmen and
portrays the fact that there is a diametrical link between climatic change
and these communal conflicts. A delineation of the communal conflicts
caused by Fulani herdsmen in juxtaposition with the consequences of
climate change buttress the assertion.
Fulani Herdsmen and Communal Conflicts
Communal conflicts between Fulani herdsmen and host
communities usually arise when grazing cattle are not properly controlled
and consequently graze on cultivated plants like cassava, maize etc in
farms of host communities. Attempts by the owners of such farms to
register their grievance of destruction of their major means of livelihood
that is the food crops and cash crops by the cattle of Fulani herdsmen is
always stoutly resisted thereby degenerating into communal conflicts.
When the communities try to resist them and request their exit, the
Fulani herdsmen become violent and attack the community sometimes
with the aid of hired mercenaries [Durojaiye 2014] He goes further to
state that the Fulani herdsmen armed with sophisticated weapons usually
attack their target communities at the time they are most vulnerable such
as mid-night or on Sundays when they are in their churches, killing people
indiscriminately, mostly women and children, burning houses and looting
properties.
Benue State seems to be the worst hit at the moment because of
scores of communal conflicts perpetrated by Fulani Herdsmen. There have
been highly devastating conflicts that have claimed so much lives and
properties engendered by Fulani Herdsmen in communities of local
government areas such as Agatu, Guma, Gwer West, Makurdi, Kwande,
Katsina-Ala and Loggo. The communal conflicts orchestrated by Fulani
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herdsmen in Benue State had claimed the lives of more than 5000 victims
in the first half of this year 2014. This is subscribed to by Akevi (2014) who
noted that at least over 5000 persons, including women and children
have in the past five months been murdered when the Fulani herdsmen
invaded and rendered over 100 communities desolate. He went further
to state that one of the most gruesome attacks occurred in Shengev
community in Gwer west local government council were over 200 people
were killed by the herdsmen with a substance suspected to be chemical
weapons. What this means is that there sophistication and combat
readiness is increasing by the day as they are apparently armed not just
with AK47 riffles but with chemical weapons.
There combat readiness and sophistication gives them the courage
not only to attack host communities but to confront and attack
constituted authorities that are heavily protected with state of the art
military convoys. A scenario where the convoy of the Governor of Benue
State (Gabriel Suswan) was ambushed and attacked by these herdsmen on
his way from Tse-Akanyi village in Guma Local Government Area where he
went to commiserate with the victims of attacks by Fulani Herdsmen
elucidates the picture better. The fact that Governor Gabriel Suswam
eventually summoned an emergency security council meeting and
solicited the intervention of the international community showed that
communal conflicts perpetrated by Fulani herdsmen in Benue State is
getting out of control.
This is corroborated by Durojaiye (2014) who said that earlier this
month, some local Governments in Benue State were savagely attacked by
suspected Fulani herdsmen who killed hundreds of people, torched
houses, sacked some communities and occupied them. He went further
to site the instance of Ghajimba, headquarters of Guma L.G.A., where no
less than 25 community farmers were killed. Accordingly in a strange act
of impunity, the invading Fulani herdsmen who exchanged gunfire with his
security operatives ambushed the convoy of the Benue state Governor,
Gabriel Suswan who visited the attacked area to see things for himself.
The Governor and his entourage were lucky to escape with their lives to
tell the gory story.
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The situation is not too different in Taraba State which is a
neighbouring state to Benue State. In Taraba state for some months
now, precisely 5 to 6 months, the southern senatorial zone of Taraba State
has witnessed sudden and unprecedented influx of Fulani people into this
geo political entity. [Ahima 2014] He went further to state that
Beginning from January this year, relationship between the Fulani and the
Tiv in both Taraba and Benue became more sour as the Fulani increased
their attacks on the Tiv, with terrible tolls in terms of human casualties and
property.
Evidently the constant attacks on the Tiv from Taraba State by
Fulani Herdsmen had made most landowners in the affected communities
to flee their homes in search of safe alternatives. As they fled their homes
and farm products, the Fulani have maliciously guided their cattle into
their farms, destroying their cassava and yam seedlings, and threatening
other local people who try to question them. [ibid]
There have been a number of crisis in Wukari with gruesome
murders of dozens of people and wanton destruction of property.
According to Aji (2014) the Red Cross yesterday said in Wukari, Taraba
State that about 77 people lost their lives during the crises between some
Fulani herdsmen and the indigenous people of the area few days ago. Aji
further said that 40 people were receiving treatment for various degrees
of injuries sustained during the mayhem, pointing out that the number of
the victims was still being collated. The logical deduction is that the
casualty level would eventually be much higher.
In Kaduna State the story is not different as Fulani Herdsmen cause
communal conflicts. According to Shiklam (2014) Rampaging gun men
suspected to be Fulani herdsmen on Tuesday killed about 123 people in
seven villages in Sanga local government area of Kaduna state in an
onslaught which started on Monday night. He goes further to state that
the invaders had earlier killed 38 people on Monday in simultaneous
attacks on Kabamu and Ankpong villages.
Although subsiding, the crisis that tore communities of Plateau
State apart in violent conflicts with gruesome murders was not
unconnected to the siege by Fulani Herdsmen. Recently it was Zamfara
state where no fewer than 200 villagers have been killed in a wave of
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sustained three day attacks on a village in Zamfara state by suspected
Fulani herdsmen. Some of the worst hit communities are Dansadau and
Yargaladima village in Dansadau Emirate of Maru Local government area.
Eastern Nigeria is not left out in the onslaught of Fulani Herdsmen
with respect to communal conflicts. Some communities of Enugu State are
also under siege. As the case in other instances, the crisis is caused by the
indiscriminate search for cattle pastures by the Fulani herdsmen. In the
process they encroach on farm lands and their cattle destroy food crops
and cash crops. Instead of these herdsmen to take responsibility for the
destructions caused by their cattle they confront and challenge farm
owners expressing their plight. Such challenges get heated and leads to
conflicts which creates great insecurity to host communities because the
herdsmen are said to be well armed.
In the case of Ezeagu LGA for instance agricultural and economic
activities in those communities have been brought to a halt on account of
the violent activities of the herdsmen while the local vigilante group in the
area had become helpless due to the superior arms being carried by the
invading herdsmen. [Ozobu 2014] He goes further to state that I do not
know what government has done or any action taken by security
operatives to checkmate the insurgency by the Fulani Herdsmen. This
people who we thought carry only sticks and machete now carries AK47
raffles openly and we wonder where they got those guns from.
This situation is very pathetic and can cause economic depression in
the area because according to Ozobo People no longer go to farm
anymore and every one now lives in fear of these people. They come in
and settle down as if it is their home; nobody is doing anything to stop
them. In Ezeagu we do not sleep at night because they can come at
anytime and begin to slaughter people he laments. Ezeagu Local
Government Area of Enugu State has more than forty communities and
they are under siege by Fulani Herdsmen at the time of writing.
Very recently the menace posed by Fulani Herdsmen with respect
to communal conflicts would have engulfed the Obimma Community, in
Ikwerre Local Government Area of Rivers State but for the diplomatic and
prompt intervention of the State Governor. There were reports that the
herdsmen where harassing farmers and their cattle destroying cash crops
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and food crops in Obimma Community. The decisive intervention of the
governor saved the community from the scourge of Fulani herdsmen
which nearly degenerated into full blown conflict.
The magnitude of attacks on host communities by Fulani herdsmen
assumes such a sophisticated dimension that more often than not the host
communities are overwhelmed by their might. This is reminiscent of
warfare waged by highly experienced and trained soldiers. The most
pathetic issue is the gruesome manner in which attacks are carried out. In
this regard Vande-Acka (2014) noted that some suspected Fulani
herdsmen had attacked Uipkam in Guma LGA of the state [Benue] were
they captured and slaughtered some of the farmers, gorged out their eyes
and removed their genitals.
The attacks are sometimes shrouded in mystery and diabolism. A
situation where a multitude of community men are held helplessly captive
and slaughtered without any resistance or gun shots depicts elements of
clairvoyance. This is because most of the persons that were slain by their
assailants during the crisis at Ayilamo were captured with little or no
resistance to prove this there was no bullet wounds on some of the
bodies that were recovered. [ibid]
This mysterious picture is illuminated on account that most of the
men that were captured alive by the Fulani herdsmen were physically
strong and well-armed community warriors. Invariably the Fulani
herdsmen are powerful and endowed with subjugating and conquering
skills. They adopt these skills to survive the challenges of the different
communities they migrate to for purposes of pasturing their herds. The
question here is why do they migrate to other communities which bring
them into conflict? To this we turn
Climate Change as Precipitator of the Conflicts
The most fundamental reason why Fulani Herdsmen migrate to
other areas is because of desert encroachment (desertification) of the
Sahel region caused by climate change. Climate change destroys and
depletes the natural resources of citizens. A lot of communities are heavily
dependent on natural resources and it is also very crucial for individual
wellbeing. Climate change significantly undermines individual livelihoods
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and community growth thereby undermining the capacity of state to
provide social services and economic opportunities requisite for state
development and stability. The lack of opportunities to sustain livelihood
makes indigenes of such communities very susceptible to conflicts.
Climate Change impedes development, intensifies income
disparities between rich and poor and ultimately degenerates into
communal conflicts. This is alluded to by Sawin (2013) who said that
Climate change will undermine efforts to mitigate world poverty, directly
threatening people's homes and livelihoods. Not only could this impede
development, it might also increase national and regional instability and
intensify income disparities between rich and poor. She goes further to
state that Climate change will likely trigger severe disruptions with everwidening consequences for local, regional, and global security. Droughts,
famines, and weather-related disasters could claim thousands or even
millions of lives and exacerbate existing tensions within and among states
[ibid]
Climate change not only triggers communal conflicts but can
engender state failure. In an International Alert publication (Smith and
Vivekananda 2007) have noted that threats to international stability
associated with climate change, is placing some 40 states at risk of climate
induced conflict. Climatic factors have given rise to water related hazards;
lack of water causes draughts and excess of water causes floods, high tidal
water causes salinity and acidity in soil.
These impact negatively on land causing food scarcity and energy
depletion, thereby making people to migrate and spiraling into communal
conflicts. Purvis and Busby (2004:72) argue that preventing large-scale
humanitarian catastrophes from climate-related droughts, floods, crop
failures, mass migrations and exceptionally severe weather remains the
most significant policy challenges. Drought triggers desertification and
famine with spiral disastrous consequences.
More often than not the catastrophes of climate change
degenerate into cutthroat rivalries which causes ethnic conflicts and
sometimes religious crisis. This is because there is the tendency of groups
bound together by ethnicity or creed to gang up against other groups with
a view to protecting their interest on the negative impacts of climate
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change. This is most succinctly presented by Paterson (1996) who said that
as countries are hit by the negative impacts of climate change, existing
ethnic, religious, or other divides may play a role in decision-making
processes, and governments may favor dominant groups in decisions.
Whatever direction the pendulum swings climate change is a major
contributor to communal conflict in Nigeria and other third world
countries. The Fulani herdsmen are completely dependent on resources of
the natural environment and this makes them go all out to get these
resources thereby making them susceptible to resistance which they fight
back and communal conflicts tantamount. This is subscribed to by Barnett
(2008) who argues that there are different levels of vulnerability to
climate change. Those impacted most are likely to be those who depend
on natural resources and ecosystem services for their livelihoods. This
underscores the fact that the negative impacts of climate change are
expected to fall disproportionately on poor countries in Africa, Asia, and
Latin America (Biermann et al 2004).
In a related development Valerie (2010:10) noted that Water is a
key resource for sustaining life and society through agricultural
production, industry, and hydro power, as well as health and human
development at large. No community and economy will prevail without
water of sufficient quality and quantity. He goes further to state that
Water and security are primarily linked in two ways: Resource conflicts
can arise over water, especially if the amount available becomes scarce
and competition increases; Water scarcity can impact on human security
and potentially lead to instability, migration, and increased resource
competition. (Houdret & Carius 2010)
This is supported by Gareth (1995:232) who noted that in
developing countries, one of the greatest environmental threat is to
water. Today, the worlds supply of water per capita is only one-third of
what it was in 1970. Water scarcity is increasingly becoming a factor in
ethnic strife and political tension. Also it is estimated that about 1.4
billion people already live in areas that are water-stressed. Up to 5 billion
people (most of the world's current population) could be living in such
regions by 2025. [Sawin 2013] In another vein, Valerie (2010:11) noted
that fragile and weak states are not only less capable of adapting to
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climatic change but also of managing and controlling conflicts peacefully.
As a consequence, Africa is highly vulnerable to the impacts of climate
change, as its ability to cope with the adverse impacts remains low. Most
Fulani communities are in the Sahel zone which has been taken over by
desertification thereby compelling the Fulani herdsmen to migrate
towards coastal areas in search of pasture and water.
Migration is a rational drive imposed on Fulani herdsmen by
climatic conditions. This is succinctly subscribed to by Flavell (2010:29)
who said that In the early and intermediate stages of environmental
degradation, migration can represent a logical and legitimate livelihood
diversification option. It is an adaptation strategy for affected populations
to help them cope with the effects of environmental degradation and
climate change. He goes further to state that when environmental
degradation becomes severemigration can become permanent and may
require relocation of affected populations, either internally or in another
country. [ibid] This is what is happening in Plateau State, Benue State,
Taraba State etc.
Ostensibly, these migrations would generate discontent, attrition
and conflicts. Schultz (2013) puts it succinctly when he said climate
change impacts abroad could spur mass migrations, influence civil conflict
and ultimately lead to a more unpredictable world. He goes further to
state that Change in weather patterns is causing drought and famine
leading to food shortages. Water scarcity and competition for resources
are exacerbated by the rural-to-urban migration of populations. [ibid]
The major alternative is to migrate to other countries with it
attendant consequences. The case of Fulani herdsmen is a perfect
illustration of such migrations. Because of persistent droughts and
desertification in the Northern part of Nigeria, most Fulani herdsmen have
migrated South in search of green pastures for their cattle. In terms of
migration, the influx of migrants into new areas has been a significant
factor in many environmental conflicts large migrations have at times
lead to violent conflict, and large migrations may be a consequence of
climate change (Van 1996). This is also the case with Fulani herdsmen
whose migration has been causing a lot of violent conflicts for the host
communities.
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Invariably climate change is a great facilitator of communal
conflicts, this potential is to a reasonable extent determined by migration
and other variables like attitude of the immigrants on the one hand and
perception, reception, response and cordial relationship with host
communities on the other hand.
Conclusion
Conflict with different host communities by Fulani herdsmen is a
survival strategy that is perpetrated by climate change. The only reason
why Fulani herdsmen migrate long distances to communities whose
indigenes would eventually challenge and oppose their modus operandi is
because of the search for green pastures and water. There immediate
environment is bereft of these pasture because of desertification and
other environmental challenges. Most Fulani communities are in the Sahel
zone which has been taken over by desertification thereby compelling the
Fulani herdsmen to migrate towards coastal areas in search of pasture and
water.
The areas Fulani herdsmen migrate to are not completely protected
from climatic change environmental hazards. Consequently the migrant
Fulani herdsmen and the host communities they migrated to have to
compete for scarce natural resources. This degenerates into communal
conflicts. The situation is aggravated by the fact that natural resources are
worst hit by climatic change.
Recommendations
The study recommends that there should be legislation to remedy
the effect of desertification in the Sahel region and other Fulani
communities. Government should come up with policies to create grazing
reserves and dams for pasture and water in states that are predominantly
Fulani so that they dont stray long distances in search of pastures. On
issues of climate change the study recommends stronger international
cooperation. The dictates of the Kyoto Protocol with respect to reducing
the emission greenhouse gas and other harmful emissions should be
observed. This would save our environment and contain radical climate
change.
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Ahima Caleb S. (Apr 2014) Fulani Herdsmen Attack Wukari, Taraba State
Aji Saidu (2014) Clash Between Fulani Herdsmen and Wukari Residents Leaves 77
Dead
Akevi John (2014 Apr 18), Addressing the scourge of Fulani Herdsmen in Benue
State, Eagle Reporters Journal
Babajide Johnson (2014, Jul 8) Benue residents raise the alarm over influx of
Fulani herdsmen, Nigerian Tribune Newspaper
Barnett, J. (2008). Climate change, human security and violent conflict. Tyndall
Centre for Climate Change Research and CSERGE, School of Environmental
Sciences, University of East Anglia, Norwich NR4 7TJ, UK
Biermann, F., & Klaus, D. (2004). Global Environmental Change and the Nation
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Durojaiye Rotimi (2014 July 8) Challenge of Fulani Herdsmen, Editorial, Daily
Independence
Flavel, A. (2010). Migration. In V. Ndaruzaniye, L. Lipper, D. Fiot, A. Flavell & J.
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Women Raped
Paterson, M. (1996). Global Warming and Global Politics. New York: Routledge.
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Shiklam John (2014 Jun 25), Kaduna: Suspected Fulani Herdsmen Kill 123 in Fresh
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AVERAGE TAKING AND LENDING RATES OF BANKS EXCHANGE RATES

WHOLESALE DUTCH AUCTION SYSTEM

Source: Business Vanguard. www.vanguardngr.com 4/2/12 pp. 23-24

Table 3: Average Deposit and Lending Rates as at May 9, 2014.

The ICJ Judgment

As seen in figure 1 above, Bakassi is a Peninsula located in the Gulf

By 14 votes to 4, the Court decided that both Cameroon and Nigeria

property? It could not be far from the truth if it is concluded that

the location of the Bakassi Local Government Area now falling in

Comet. (2002). (Nigerian newspapers) 18 October

Nation. (2012). (Nigerian newspapers) 28 September 2012, 1,

The New Ecyclopaedia Britannica. (2005). London : Britannica Inc..

PRESLEY KEHINDE OSEMWENGIE

Accumulative Pollutants: What are they?

Managing a Stock of Accumulative Pollutant

. Which shows the evolution of the

e =. (lagrangian multiplier) is the present value of the shadow price ofS.

The Steady State

/S = C(X gS) <0. Graphically:

The steady-state value of and S are determined as the simultaneous

Policy ImplicationsA Phase Diagram

One of the most interesting aspects about steady-state analysis is the

such that = 0 . That is,

Leave = , but consider S 0 < . Since /S < 0and

Using the same phase-diagram we can draw the opposite

Examine, through content, the depth of coverage given by the

towards development communication in their pattern of coverage

The following research questions were raised to achieve the stated

To what extent did the newspapers display depth in the coverage

BSIZE = Board Size

Table 1: Summary of Descriptive Statistics

R2 = 0.92, R2 = 0.69, F-statistics = 16.02, Prob (F- statistics) = 0.0000 DW =

R2 = 0.99, R-2 = 0.96. F-statistics = 35.17, Prob. (F-statistics) = 0.0000 DW =

R2 = 0.89 R2 0.57, F statistics = 22.88, Prob (F statistic) = 0.000, DW =

R2 = 0.92, R2 = 0.69, F-statistics = 13.94, Prob (F- statistics) = 0.0000 DW =

Return on Equity (ROE)

BERGER PAITNS (NIG) PLC

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