HISTORY OF COUP D’ETAT IN NIGERIA
THE FIRST COUP IN NIGERIA
On January 15, 1966, Chukwuma Kaduna Nzeogwu led the first ever-military coup in Nigeria that led to the death of Sir Ahmadu Bello, the Sardauna of Sokoto and Premier of Northern Nigeria, Chief S.I. Akintola, the Premier of Western Region, Sir Abubakar Tafawa Balewa, Prime Minister of Nigeria, Chief Festus Okotie-Eboh, Federal Minister of Finance and other military officers. The coup was poorly carried out in certain parts of the country and there was a strong accusation of tribalism. The Northern People accused Chukwuma as well as his fellow coup plotters of staging an Igbo coup. This is because most of the officers killed during the coup were those from other part of the country. The then general officer commanding the Nigerian army, Major-General Johnson Thomas Ununakwe Aguiyi Ironsi was sworn-in as the Military Head of State of Nigeria.
THE SECOND COUP IN NIGERIA
On 29 July, 1966, six months after the first coup plot, three young military officers of Northern background led by Lieutenant Colonel Murtala Muhammed staged a counter coup to even the score. This led to the death of Major-General J.T.U. Aguyi-Ironsi, Head of State, Col. Francis Adekunle Fajuyi Military Governor, Western region and other military officers. General Yakubu Gowon was then sworn-in as the Military Head of State.
THE THIRD COUP IN NIGERIA
In July 1975, a group of Colonel sacked the government of General Yakubu Gowon in a bloodless coup. General Murtala Muhammed also masterminded this coup. In this coup, no live were lost. General Murtala Muhammed assumed power in July 1975.
THE FOURTH COUP IN NIGERIA
On 13 February 1976, six months later, Lieutenant-colonel Bukur Suka Dimka with his loyalist stage an abortive coup which claimed the lives of three officers; General Murtala Muhammed, Head of State, Col. Ibrahim Taiwo, Governor of Kwara State and Lt. Akintunde Akinsehinwa, ADC to Muhammed. This led to their arrest and subsequent execution of one civilian and 38 soldiers, including Major-General Illya Bisalla, five Colonel, four majors and other officers for their role in the failed coup. Civilians involved in the coup include, Abdulkareem Zakari, a staff of Radio Nigeria, Lagos and Helen Gomwalk, sister-in-law of Joseph Gomwalk, were tried by military tribunal and punished. Zakari was executed for his involvement in the coup while Helen Gomwalk bagged a life sentence. She was later given amnesty by the Shehu Shagari administration.
THE FIFTH COUP IN NIGERIA
On 31 December 1983, General Buhari Muhammadu stage a coup which sacked the shehu Shagari’s administration. This coup led to the death of a loyal officer to the government, Brigadier Ibrahim Bako.
THE SIXTH COUP IN NIGERIA
On 27 August 1985, Babangida led a palace coup which terminated the Buhari’s 20 months reign.
THE SEVENTH COUP IN NIGERIA
In 1986, Major-General Mamman Vatsa led an abortive coup to overthrown the government of President Babangida. That same year, he and other 10 military officers were tried and were executed in March 1986.
THE EIGHTH COUP IN NIGERIA
On 22 April 1990, Gideon Orka staged an abortive coup to unseat the government of Ibrahim Babangida. The coup attempt has been describe as one of the bloodies coup and it was the largest execution of coup plotters in the nation’s history. This led to the death of nine loyal Soldiers. 69 soldiers of various ranks were accused of treason and they were killed by firing squad. The second in command and Chief of general staff, Vice-admiral Augustus Aikhomu, revealed that at least three of the plotters of the April 22 coup were arrested, caution and released in 1987 over an alleged coup plot to overthrow the government. They were G.T. Nyiam, a Lieutenant Colonel, S.D. Mukoro and Gideon Orkar, both majors. They were later released. Aikhomu also said that the officers regrouped once again in January to overthrow the government and had intended to kill not only the president, but also, the AFRC members and military governors, all civilian members of the council of ministers and senior military and police officers. The suspects were later tried by the treason and other offences special military tribunal headed by Ike Nwachukwu, Major-General and general officer commanding the 1 mechanised division of the Nigerian Army, Kaduna. After the trial, 42 persons were found guilty and condemned to death by firing squad. This was the largest execution of coup plotters in Nigeria’s history breaking the record of the 1976 coup led by Buka Suka Dimka in which 32 officers and men were executed.
ALLEGED COUP
On October 2, 1993, there was a coup attempt by Lieutenant-Colonel Abubakar Umar, an army Colonel and Commandant of the elite Amoured corps centre and school.
THE NINETH COUP IN NIGERIA
On November 17, 1993, General Sani Abacha staged a palace coup to unseat the Interim National Government led by Chief Ernest Shonekan.
ALLEGED COUP
In 1995, there was an alleged coup plot which involve General Obasanjo (retired), former head of state; Major General Shehu Musa Yar’Adua (retired) and other prominent Nigerians majority of whom were soldiers. The civilians among them include Beko Ransome-Kuti, chairman of the Campaign for Democracy (CD), and his deputy, Shehu Uba Sani and four other Journalist. General Obasanjo and General Yar’Adua were jailed 15 and 25 years respectively. Yar’Adua died on Monday, December 8 1997 at Abakaliki prison, where he was serving his term while Obasanjo was released in 1998 by the then Head of State, General Abubakar.
ALLEGED COUP
In December 1996, some top military officers were accused by General Abacha of an alleged coup plot. The Chief of defence staff, General Abdulsalam Abubakar announced this on television. In his statement, he announced the arrest of 12 people who were planning to overthrown the federal government. They are, Lieutenant-General Oladipo Diya, Chief of general staff and vice-chairman of the provisional Ruling Council ( PRC), Major-General Abdulkareem Adisa, former housing minister, Tajudeen Olanrewaju, former minister of communications, Colonels Daniel Akintonde, former military administrator in Ogun State, Edwin Jando, artillery brigade-commender, Abeokuta, Emmanuel Shoda, military assistant to Diya, Femi Peters, National War College, Abuja; Lieutenant-Colonel Olu Akiode, former military assistant to Olanrewaju; Major Biliaminu Mohammed, administrative officer in the presidency; Major Oluseun Fadipe, Chief security officer to Diya; K.A. Yusuf Ishiyaku, Artillery Department, Abuja; and Professor Femi Odekunle political adviser to Diya. General Abacha to set up a 12-man committee to determined if indeed there was a coup plot.
RUNDOWN
Nigeria has had the following
· Five successful coups
· Two abortive coup
· One attempted coup
· Three alleged coup
CASUALTIES OF THE FIRST AND SECOND COUP PLOT IN NIGERIA·
The first military coup (January 1966) in Nigeria claimed 12 lives (Eight soldiers and Four Top politicians).
· The July 1966 coup also claimed 12 lives (all soldiers).
Sunday, March 29, 2009
Wednesday, March 18, 2009
THE NIGERIAN MONEY MARKET
THE NIGERIAN MONEY MARKET
The money market is a market for short – term funds: and as the name suggests, it is a market in which money is bought and sold, the market is used by business enterprises to raise funds forthe purchase of inventories, by banks to finance temporary reserve loss, by companies to finance consumer credit and by government to bridge the gap between its receipts and expenditure.
Unlike the market for textiles, for example, there is no place that one can call a money market. Although activities in the money market cam be concentrated in a particular street. For example, all street in New York, Lombard street in London and Broad street in Lagos. Transactions in the market are impersonal taking place mostly by telephone (Ajayi and Ojo, 1981). Thus, it is a market for the collection of financial institutions set up for the granting of short-term loans and dealing in short-term securities, gold, and foreign exchange (Anyanwu, 1993).
11.1 RESONS FOR THE ESTABLISHMENT OF THE NIGERIAN MONEY MARKET
(a) To provide the machinery need for government short-term financing requirements.
(b) It is a part of a modern financial and monetary system which enables the nation to establish the monetary autonomy which is part and parcel of the workings of an independent, modern state.
(c) To domesticate the credit base by providing local investment outlets for the retention of funds in Nigeria and for the investment of funds repatriated from abroad as a result of government persuasions to that effect.
(d) It provides a good barometer to CBN, which can use it to judge the shortage of surplus of funds in the economy.
(e) The existence of the money market enables the central bank to undertake vigorous monetary policy.
11.2 THE DEVELOPMENT OF THE NIGERIAN MONEY MARKET
No money market existed in Nigeria before the establishment of the Central Bank of Nigeria. This is however not to say that a market for short-term funds did not exist before then. Before the advent of commercials banking, there existed some elements of short-term lending and borrowing based of commercial paper. The market was an integral part of the London money market. It worked by moving funds from London to Nigeria during the season in order to finance the export of produce. At the end of the season, the funds were moved back to London, when there was all-season money-market activity. The establishment of the Nigerian money market involved, on the part of the Central Bank of Nigeria, repatriating these “roving” funds to Nigeria for the country’s economic development.
The development of the Nigerian money market is not unconnected with the systematic introduction of the various instruments used in the market. Hence, discussion shall be on these instruments and time of introduction.
1. Treasury Bills (TBS)
These are money-market (short-term) securities issued by the federal government of Nigeria. They are sold at a discount (rather than paying coupon interest), mature within 90 days of the date of issue. They provide the government with a highly flexible and relatively cheap means of borrowing cash.
Thus, TBS and IOUs, are used by the federal government to borrow for short periods of about three months pending the collection of its revenue. Their issue for the first time in Nigeria (in April 1960) was provided for under the Treasury Ordinance of 1959. It was issued in Nigeria in multiples of #2000 (later reduced to #100 in order to expand the coverage of holders for 91 days and at fixed discount. TBS outstanding average #34.421.8 million in 1989 with # 10,879.5 million issued between1992, and 1995, it averaged #2585.05 million.
2. Treasury Certificate (TCS)
These are similar to TBS but are issued at par or face value and pay fixed interest rates. These fixed in interest rates are called coupon rates. Thus, each issue promises to pay a coupon rate of interest and the investor collects this interest by tearing coupons off the edge of the certificate and cashing the coupon at a bank; post office, or other specified federal office. Each coupon is imprinted a year from the date of issue. In the Nigeria context, their rates became market-determined like TB rates following interest rates deregulation.
Thus, treasury certificates are medium-term government securities which mature after a period of one to two tears and are intended to bridge the gap between the treasury bill and long term government securities. They were first issued in 1968 at a discount of 45/8 percent for one-year certificates and 41/2 percent for two year certificates.
At the end of 1990, treasury certificates outstanding had risen to #34214.6 million. This further rose to N36554.32 in 1993, #37342.7 million in 1994 but declined to #23596.5 million in 1995. Thus, between 1990 and 1995 it averaged #39230.2 million. The main holders of treasury certificates are the commercial banks with the CBN ranking second.
3. Call Money Fund Scheme- Money at call or Short Notice
This refers to money lent by the banks on the understanding that it is repayable at the bank’s demand or at short notice (e.g. 24 hours or over-night). Overnight loans are simply bank reserves that are loaned from banks with excess reserves to banks with insufficient reserves. One bank borrows money and pays the overnight interest rate to another bank in order and obtains the lending bank’s excess reserves to hold as one-day deposits. The borrowing bank needs these one day deposits in order to acquire the legal reserves the CBN examiners require banks to maintain.
They act as a cushion which absorbs the immediate shock of liquidity pressures in the market. The scheme was introduced in 1962 in Nigeria. Under the scheme, fund was created at the CBN and the participating banks had to agree to maintain a minimum balance at the CBN. Any surplus above the minimum balance was then lint to the fund. The CBN administered the fund on behalf of the banks and paid interest at a fixed rate somewhere below the treasury bill rate. The CBN then invested the funds in the treasury bills.
The scheme was abolished in 1974 due to buoyant oil revenue of the federal government consequent upon the oil boom. While the scheme lasted, it had a beneficial impact on the efficiency with which the banks managed their cash balances while helping to reduce the degree of dependence of the banks on overseas money market facilities.
4. Commercial Papers or Commercial Bills
These are short-term promissory notes issued by the CBN and their maturities vary from 50 to 270 days, with varying denominations (sometimes #50,000 or more). They are debt that arise in the course of commerce.
Commercial papers may also be sold by major companies (blue-chips-large, old, safe, well-known, national companies) to obtain a loan. Here, such notes are not backed by any collateral, rather, they rely on the high credit rating of the issuing companies. Normally, issuers of commercial papers maintain open lines of credit (i.e. unused borrowing power at banks) sufficient to pay back all of their commercial papers outstanding. Issuers operate in this form since this type of credit can be obtained more quickly and easily than can bank loans.
This instrument was introduced in 1962 to finance the export-marketing operations of the then Northern Marketing Board. Under the arrangement, the marketing boards meet their cash requirements by drawing ninety-day bills of exchange on the marketing boards. The bills are then discounted with the commercial banks and acceptance houses participating in the scheme. The role of the CBN is that to provide rediscounting facilities for the bills.
In 1968, CBN took over the responsibility for the marketing Board crop finance and hence, the demise of the bill market. What remains today of the commercial paper market, following the disappearance of produce bills are import and domestic trade bills.
By 1968, commercial paper outstanding was #5.1 million falling from #36.4 million in 1967. However, in 1989, commercial paper outstanding averaged #868.8 million. Between 1990 and 1995, it averaged #2219.05 million recorded in 1990.
5. Certificates of Deposits (CDS)
Negotiable (NCO) or Non-negotiable (NNCO) deposits are inter-bank debt instruments designed mainly to channel commercial banks surplus funds into the merchant banks. NCO’s are rediscountable with the CBN and those with more than 18 months tenure are eligible as liquid assets in computing a bank’s liquidity ratio. These attributes make the instruments attractive to banks.
It was introduced in Nigeria by the CBN in 1975. They are issued to fellow-bankers within that maturity period, as one of the deposits they accept. The CDS outstanding by 1989 averaged #2079.2 million,
The money market is a market for short – term funds: and as the name suggests, it is a market in which money is bought and sold, the market is used by business enterprises to raise funds forthe purchase of inventories, by banks to finance temporary reserve loss, by companies to finance consumer credit and by government to bridge the gap between its receipts and expenditure.
Unlike the market for textiles, for example, there is no place that one can call a money market. Although activities in the money market cam be concentrated in a particular street. For example, all street in New York, Lombard street in London and Broad street in Lagos. Transactions in the market are impersonal taking place mostly by telephone (Ajayi and Ojo, 1981). Thus, it is a market for the collection of financial institutions set up for the granting of short-term loans and dealing in short-term securities, gold, and foreign exchange (Anyanwu, 1993).
11.1 RESONS FOR THE ESTABLISHMENT OF THE NIGERIAN MONEY MARKET
(a) To provide the machinery need for government short-term financing requirements.
(b) It is a part of a modern financial and monetary system which enables the nation to establish the monetary autonomy which is part and parcel of the workings of an independent, modern state.
(c) To domesticate the credit base by providing local investment outlets for the retention of funds in Nigeria and for the investment of funds repatriated from abroad as a result of government persuasions to that effect.
(d) It provides a good barometer to CBN, which can use it to judge the shortage of surplus of funds in the economy.
(e) The existence of the money market enables the central bank to undertake vigorous monetary policy.
11.2 THE DEVELOPMENT OF THE NIGERIAN MONEY MARKET
No money market existed in Nigeria before the establishment of the Central Bank of Nigeria. This is however not to say that a market for short-term funds did not exist before then. Before the advent of commercials banking, there existed some elements of short-term lending and borrowing based of commercial paper. The market was an integral part of the London money market. It worked by moving funds from London to Nigeria during the season in order to finance the export of produce. At the end of the season, the funds were moved back to London, when there was all-season money-market activity. The establishment of the Nigerian money market involved, on the part of the Central Bank of Nigeria, repatriating these “roving” funds to Nigeria for the country’s economic development.
The development of the Nigerian money market is not unconnected with the systematic introduction of the various instruments used in the market. Hence, discussion shall be on these instruments and time of introduction.
1. Treasury Bills (TBS)
These are money-market (short-term) securities issued by the federal government of Nigeria. They are sold at a discount (rather than paying coupon interest), mature within 90 days of the date of issue. They provide the government with a highly flexible and relatively cheap means of borrowing cash.
Thus, TBS and IOUs, are used by the federal government to borrow for short periods of about three months pending the collection of its revenue. Their issue for the first time in Nigeria (in April 1960) was provided for under the Treasury Ordinance of 1959. It was issued in Nigeria in multiples of #2000 (later reduced to #100 in order to expand the coverage of holders for 91 days and at fixed discount. TBS outstanding average #34.421.8 million in 1989 with # 10,879.5 million issued between1992, and 1995, it averaged #2585.05 million.
2. Treasury Certificate (TCS)
These are similar to TBS but are issued at par or face value and pay fixed interest rates. These fixed in interest rates are called coupon rates. Thus, each issue promises to pay a coupon rate of interest and the investor collects this interest by tearing coupons off the edge of the certificate and cashing the coupon at a bank; post office, or other specified federal office. Each coupon is imprinted a year from the date of issue. In the Nigeria context, their rates became market-determined like TB rates following interest rates deregulation.
Thus, treasury certificates are medium-term government securities which mature after a period of one to two tears and are intended to bridge the gap between the treasury bill and long term government securities. They were first issued in 1968 at a discount of 45/8 percent for one-year certificates and 41/2 percent for two year certificates.
At the end of 1990, treasury certificates outstanding had risen to #34214.6 million. This further rose to N36554.32 in 1993, #37342.7 million in 1994 but declined to #23596.5 million in 1995. Thus, between 1990 and 1995 it averaged #39230.2 million. The main holders of treasury certificates are the commercial banks with the CBN ranking second.
3. Call Money Fund Scheme- Money at call or Short Notice
This refers to money lent by the banks on the understanding that it is repayable at the bank’s demand or at short notice (e.g. 24 hours or over-night). Overnight loans are simply bank reserves that are loaned from banks with excess reserves to banks with insufficient reserves. One bank borrows money and pays the overnight interest rate to another bank in order and obtains the lending bank’s excess reserves to hold as one-day deposits. The borrowing bank needs these one day deposits in order to acquire the legal reserves the CBN examiners require banks to maintain.
They act as a cushion which absorbs the immediate shock of liquidity pressures in the market. The scheme was introduced in 1962 in Nigeria. Under the scheme, fund was created at the CBN and the participating banks had to agree to maintain a minimum balance at the CBN. Any surplus above the minimum balance was then lint to the fund. The CBN administered the fund on behalf of the banks and paid interest at a fixed rate somewhere below the treasury bill rate. The CBN then invested the funds in the treasury bills.
The scheme was abolished in 1974 due to buoyant oil revenue of the federal government consequent upon the oil boom. While the scheme lasted, it had a beneficial impact on the efficiency with which the banks managed their cash balances while helping to reduce the degree of dependence of the banks on overseas money market facilities.
4. Commercial Papers or Commercial Bills
These are short-term promissory notes issued by the CBN and their maturities vary from 50 to 270 days, with varying denominations (sometimes #50,000 or more). They are debt that arise in the course of commerce.
Commercial papers may also be sold by major companies (blue-chips-large, old, safe, well-known, national companies) to obtain a loan. Here, such notes are not backed by any collateral, rather, they rely on the high credit rating of the issuing companies. Normally, issuers of commercial papers maintain open lines of credit (i.e. unused borrowing power at banks) sufficient to pay back all of their commercial papers outstanding. Issuers operate in this form since this type of credit can be obtained more quickly and easily than can bank loans.
This instrument was introduced in 1962 to finance the export-marketing operations of the then Northern Marketing Board. Under the arrangement, the marketing boards meet their cash requirements by drawing ninety-day bills of exchange on the marketing boards. The bills are then discounted with the commercial banks and acceptance houses participating in the scheme. The role of the CBN is that to provide rediscounting facilities for the bills.
In 1968, CBN took over the responsibility for the marketing Board crop finance and hence, the demise of the bill market. What remains today of the commercial paper market, following the disappearance of produce bills are import and domestic trade bills.
By 1968, commercial paper outstanding was #5.1 million falling from #36.4 million in 1967. However, in 1989, commercial paper outstanding averaged #868.8 million. Between 1990 and 1995, it averaged #2219.05 million recorded in 1990.
5. Certificates of Deposits (CDS)
Negotiable (NCO) or Non-negotiable (NNCO) deposits are inter-bank debt instruments designed mainly to channel commercial banks surplus funds into the merchant banks. NCO’s are rediscountable with the CBN and those with more than 18 months tenure are eligible as liquid assets in computing a bank’s liquidity ratio. These attributes make the instruments attractive to banks.
It was introduced in Nigeria by the CBN in 1975. They are issued to fellow-bankers within that maturity period, as one of the deposits they accept. The CDS outstanding by 1989 averaged #2079.2 million,
THE NIGERIAN MONEY MARKET
THE NIGERIAN MONEY MARKET
The money market is a market for short – term funds: and as the name suggests, it is a market in which money is bought and sold, the market is used by business enterprises to raise funds forthe purchase of inventories, by banks to finance temporary reserve loss, by companies to finance consumer credit and by government to bridge the gap between its receipts and expenditure.
Unlike the market for textiles, for example, there is no place that one can call a money market. Although activities in the money market cam be concentrated in a particular street. For example, all street in New York, Lombard street in London and Broad street in Lagos. Transactions in the market are impersonal taking place mostly by telephone (Ajayi and Ojo, 1981). Thus, it is a market for the collection of financial institutions set up for the granting of short-term loans and dealing in short-term securities, gold, and foreign exchange (Anyanwu, 1993).
11.1 RESONS FOR THE ESTABLISHMENT OF THE NIGERIAN MONEY MARKET
(a) To provide the machinery need for government short-term financing requirements.
(b) It is a part of a modern financial and monetary system which enables the nation to establish the monetary autonomy which is part and parcel of the workings of an independent, modern state.
(c) To domesticate the credit base by providing local investment outlets for the retention of funds in Nigeria and for the investment of funds repatriated from abroad as a result of government persuasions to that effect.
(d) It provides a good barometer to CBN, which can use it to judge the shortage of surplus of funds in the economy.
(e) The existence of the money market enables the central bank to undertake vigorous monetary policy.
11.2 THE DEVELOPMENT OF THE NIGERIAN MONEY MARKET
No money market existed in Nigeria before the establishment of the Central Bank of Nigeria. This is however not to say that a market for short-term funds did not exist before then. Before the advent of commercials banking, there existed some elements of short-term lending and borrowing based of commercial paper. The market was an integral part of the London money market. It worked by moving funds from London to Nigeria during the season in order to finance the export of produce. At the end of the season, the funds were moved back to London, when there was all-season money-market activity. The establishment of the Nigerian money market involved, on the part of the Central Bank of Nigeria, repatriating these "roving" funds to Nigeria for the country’s economic development.
The development of the Nigerian money market is not unconnected with the systematic introduction of the various instruments used in the market. Hence, discussion shall be on these instruments and time of introduction.
1. Treasury Bills (TBS)
These are money-market (short-term) securities issued by the federal government of Nigeria. They are sold at a discount (rather than paying coupon interest), mature within 90 days of the date of issue. They provide the government with a highly flexible and relatively cheap means of borrowing cash.
Thus, TBS and IOUs, are used by the federal government to borrow for short periods of about three months pending the collection of its revenue. Their issue for the first time in Nigeria (in April 1960) was provided for under the Treasury Ordinance of 1959. It was issued in Nigeria in multiples of #2000 (later reduced to #100 in order to expand the coverage of holders for 91 days and at fixed discount. TBS outstanding average #34.421.8 million in 1989 with # 10,879.5 million issued between1992, and 1995, it averaged #2585.05 million.
2. Treasury Certificate (TCS)
These are similar to TBS but are issued at par or face value and pay fixed interest rates. These fixed in interest rates are called coupon rates. Thus, each issue promises to pay a coupon rate of interest and the investor collects this interest by tearing coupons off the edge of the certificate and cashing the coupon at a bank; post office, or other specified federal office. Each coupon is imprinted a year from the date of issue. In the Nigeria context, their rates became market-determined like TB rates following interest rates deregulation.
Thus, treasury certificates are medium-term government securities which mature after a period of one to two tears and are intended to bridge the gap between the treasury bill and long term government securities. They were first issued in 1968 at a discount of 45/8 percent for one-year certificates and 41/2 percent for two year certificates.
At the end of 1990, treasury certificates outstanding had risen to #34214.6 million. This further rose to N36554.32 in 1993, #37342.7 million in 1994 but declined to #23596.5 million in 1995. Thus, between 1990 and 1995 it averaged #39230.2 million. The main holders of treasury certificates are the commercial banks with the CBN ranking second.
3. Call Money Fund Scheme- Money at call or Short Notice
This refers to money lent by the banks on the understanding that it is repayable at the bank’s demand or at short notice (e.g. 24 hours or over-night). Overnight loans are simply bank reserves that are loaned from banks with excess reserves to banks with insufficient reserves. One bank borrows money and pays the overnight interest rate to another bank in order and obtains the lending bank’s excess reserves to hold as one-day deposits. The borrowing bank needs these one day deposits in order to acquire the legal reserves the CBN examiners require banks to maintain.
They act as a cushion which absorbs the immediate shock of liquidity pressures in the market. The scheme was introduced in 1962 in Nigeria. Under the scheme, fund was created at the CBN and the participating banks had to agree to maintain a minimum balance at the CBN. Any surplus above the minimum balance was then lint to the fund. The CBN administered the fund on behalf of the banks and paid interest at a fixed rate somewhere below the treasury bill rate. The CBN then invested the funds in the treasury bills.
The scheme was abolished in 1974 due to buoyant oil revenue of the federal government consequent upon the oil boom. While the scheme lasted, it had a beneficial impact on the efficiency with which the banks managed their cash balances while helping to reduce the degree of dependence of the banks on overseas money market facilities.
4. Commercial Papers or Commercial Bills
These are short-term promissory notes issued by the CBN and their maturities vary from 50 to 270 days, with varying denominations (sometimes #50,000 or more). They are debt that arise in the course of commerce.
Commercial papers may also be sold by major companies (blue-chips-large, old, safe, well-known, national companies) to obtain a loan. Here, such notes are not backed by any collateral, rather, they rely on the high credit rating of the issuing companies. Normally, issuers of commercial papers maintain open lines of credit (i.e. unused borrowing power at banks) sufficient to pay back all of their commercial papers outstanding. Issuers operate in this form since this type of credit can be obtained more quickly and easily than can bank loans.
This instrument was introduced in 1962 to finance the export-marketing operations of the then Northern Marketing Board. Under the arrangement, the marketing boards meet their cash requirements by drawing ninety-day bills of exchange on the marketing boards. The bills are then discounted with the commercial banks and acceptance houses participating in the scheme. The role of the CBN is that to provide rediscounting facilities for the bills.
In 1968, CBN took over the responsibility for the marketing Board crop finance and hence, the demise of the bill market. What remains today of the commercial paper market, following the disappearance of produce bills are import and domestic trade bills.
By 1968, commercial paper outstanding was #5.1 million falling from #36.4 million in 1967. However, in 1989, commercial paper outstanding averaged #868.8 million. Between 1990 and 1995, it averaged #2219.05 million recorded in 1990.
5. Certificates of Deposits (CDS)
Negotiable (NCO) or Non-negotiable (NNCO) deposits are inter-bank debt instruments designed mainly to channel commercial banks surplus funds into the merchant banks. NCO’s are rediscountable with the CBN and those with more than 18 months tenure are eligible as liquid assets in computing a bank’s liquidity ratio. These attributes make the instruments attractive to banks.
It was introduced in Nigeria by the CBN in 1975. They are issued to fellow-bankers within that maturity period, as one of the deposits they accept. The CDS outstanding by 1989 averaged #2079.2 million,
The money market is a market for short – term funds: and as the name suggests, it is a market in which money is bought and sold, the market is used by business enterprises to raise funds forthe purchase of inventories, by banks to finance temporary reserve loss, by companies to finance consumer credit and by government to bridge the gap between its receipts and expenditure.
Unlike the market for textiles, for example, there is no place that one can call a money market. Although activities in the money market cam be concentrated in a particular street. For example, all street in New York, Lombard street in London and Broad street in Lagos. Transactions in the market are impersonal taking place mostly by telephone (Ajayi and Ojo, 1981). Thus, it is a market for the collection of financial institutions set up for the granting of short-term loans and dealing in short-term securities, gold, and foreign exchange (Anyanwu, 1993).
11.1 RESONS FOR THE ESTABLISHMENT OF THE NIGERIAN MONEY MARKET
(a) To provide the machinery need for government short-term financing requirements.
(b) It is a part of a modern financial and monetary system which enables the nation to establish the monetary autonomy which is part and parcel of the workings of an independent, modern state.
(c) To domesticate the credit base by providing local investment outlets for the retention of funds in Nigeria and for the investment of funds repatriated from abroad as a result of government persuasions to that effect.
(d) It provides a good barometer to CBN, which can use it to judge the shortage of surplus of funds in the economy.
(e) The existence of the money market enables the central bank to undertake vigorous monetary policy.
11.2 THE DEVELOPMENT OF THE NIGERIAN MONEY MARKET
No money market existed in Nigeria before the establishment of the Central Bank of Nigeria. This is however not to say that a market for short-term funds did not exist before then. Before the advent of commercials banking, there existed some elements of short-term lending and borrowing based of commercial paper. The market was an integral part of the London money market. It worked by moving funds from London to Nigeria during the season in order to finance the export of produce. At the end of the season, the funds were moved back to London, when there was all-season money-market activity. The establishment of the Nigerian money market involved, on the part of the Central Bank of Nigeria, repatriating these "roving" funds to Nigeria for the country’s economic development.
The development of the Nigerian money market is not unconnected with the systematic introduction of the various instruments used in the market. Hence, discussion shall be on these instruments and time of introduction.
1. Treasury Bills (TBS)
These are money-market (short-term) securities issued by the federal government of Nigeria. They are sold at a discount (rather than paying coupon interest), mature within 90 days of the date of issue. They provide the government with a highly flexible and relatively cheap means of borrowing cash.
Thus, TBS and IOUs, are used by the federal government to borrow for short periods of about three months pending the collection of its revenue. Their issue for the first time in Nigeria (in April 1960) was provided for under the Treasury Ordinance of 1959. It was issued in Nigeria in multiples of #2000 (later reduced to #100 in order to expand the coverage of holders for 91 days and at fixed discount. TBS outstanding average #34.421.8 million in 1989 with # 10,879.5 million issued between1992, and 1995, it averaged #2585.05 million.
2. Treasury Certificate (TCS)
These are similar to TBS but are issued at par or face value and pay fixed interest rates. These fixed in interest rates are called coupon rates. Thus, each issue promises to pay a coupon rate of interest and the investor collects this interest by tearing coupons off the edge of the certificate and cashing the coupon at a bank; post office, or other specified federal office. Each coupon is imprinted a year from the date of issue. In the Nigeria context, their rates became market-determined like TB rates following interest rates deregulation.
Thus, treasury certificates are medium-term government securities which mature after a period of one to two tears and are intended to bridge the gap between the treasury bill and long term government securities. They were first issued in 1968 at a discount of 45/8 percent for one-year certificates and 41/2 percent for two year certificates.
At the end of 1990, treasury certificates outstanding had risen to #34214.6 million. This further rose to N36554.32 in 1993, #37342.7 million in 1994 but declined to #23596.5 million in 1995. Thus, between 1990 and 1995 it averaged #39230.2 million. The main holders of treasury certificates are the commercial banks with the CBN ranking second.
3. Call Money Fund Scheme- Money at call or Short Notice
This refers to money lent by the banks on the understanding that it is repayable at the bank’s demand or at short notice (e.g. 24 hours or over-night). Overnight loans are simply bank reserves that are loaned from banks with excess reserves to banks with insufficient reserves. One bank borrows money and pays the overnight interest rate to another bank in order and obtains the lending bank’s excess reserves to hold as one-day deposits. The borrowing bank needs these one day deposits in order to acquire the legal reserves the CBN examiners require banks to maintain.
They act as a cushion which absorbs the immediate shock of liquidity pressures in the market. The scheme was introduced in 1962 in Nigeria. Under the scheme, fund was created at the CBN and the participating banks had to agree to maintain a minimum balance at the CBN. Any surplus above the minimum balance was then lint to the fund. The CBN administered the fund on behalf of the banks and paid interest at a fixed rate somewhere below the treasury bill rate. The CBN then invested the funds in the treasury bills.
The scheme was abolished in 1974 due to buoyant oil revenue of the federal government consequent upon the oil boom. While the scheme lasted, it had a beneficial impact on the efficiency with which the banks managed their cash balances while helping to reduce the degree of dependence of the banks on overseas money market facilities.
4. Commercial Papers or Commercial Bills
These are short-term promissory notes issued by the CBN and their maturities vary from 50 to 270 days, with varying denominations (sometimes #50,000 or more). They are debt that arise in the course of commerce.
Commercial papers may also be sold by major companies (blue-chips-large, old, safe, well-known, national companies) to obtain a loan. Here, such notes are not backed by any collateral, rather, they rely on the high credit rating of the issuing companies. Normally, issuers of commercial papers maintain open lines of credit (i.e. unused borrowing power at banks) sufficient to pay back all of their commercial papers outstanding. Issuers operate in this form since this type of credit can be obtained more quickly and easily than can bank loans.
This instrument was introduced in 1962 to finance the export-marketing operations of the then Northern Marketing Board. Under the arrangement, the marketing boards meet their cash requirements by drawing ninety-day bills of exchange on the marketing boards. The bills are then discounted with the commercial banks and acceptance houses participating in the scheme. The role of the CBN is that to provide rediscounting facilities for the bills.
In 1968, CBN took over the responsibility for the marketing Board crop finance and hence, the demise of the bill market. What remains today of the commercial paper market, following the disappearance of produce bills are import and domestic trade bills.
By 1968, commercial paper outstanding was #5.1 million falling from #36.4 million in 1967. However, in 1989, commercial paper outstanding averaged #868.8 million. Between 1990 and 1995, it averaged #2219.05 million recorded in 1990.
5. Certificates of Deposits (CDS)
Negotiable (NCO) or Non-negotiable (NNCO) deposits are inter-bank debt instruments designed mainly to channel commercial banks surplus funds into the merchant banks. NCO’s are rediscountable with the CBN and those with more than 18 months tenure are eligible as liquid assets in computing a bank’s liquidity ratio. These attributes make the instruments attractive to banks.
It was introduced in Nigeria by the CBN in 1975. They are issued to fellow-bankers within that maturity period, as one of the deposits they accept. The CDS outstanding by 1989 averaged #2079.2 million,
THE CENTRAL BANK OF NIGERIA
ESTABLISMENT, GROWTH AND FUNCTION
The West African Currency Board (WACB) was establishment in 1912 as a result of the recommendation of the EMOH committee. It was set up to cater for the finance needs of expatriates in West Africa and to introduce a common currency within the sub-region. It did not have any discretionary powers to control the currency it issued, and thus, was impotent as a monetary authority. This situation is believed to have led to agitation for the establishment of a Central Bank of Nigeria.
A central bank is a pivotal institution in any modern economy. It is important to remind ourselves about its origin as well as the functions it performs in the Nigerian economy. The Central Bank of Nigeria was established by the CBN Act of 1958.Origin and structure:The first recorded move towards the establishment of a central bank in Nigeria was in April, 1952 when a private member of the federal House of representative proposed a motion for the establishment of a central bank in Nigeria to perform those functions generally expected of England. Mr. J.L. Fisher who was commissioned in 1952 to study the possibility and practicability of establishing the bank did not favour the proposal in the immediate future. It was the World Bank mission to Nigeria in 1953 which regarded the request for a Central Bank of Nigeria expedient on both political and national grounds and therefore recommended a state Bank of Nigeria.
Subsequently, the government invited another adviser to the Bank of England Mr. Loynes in 1958 to advise it on the feasibility of establishing the bank and the recommendations made then formed the essential basis for the bank of Nigeria Act of parliament, known as the CBN Act of 1958 which established the Central Bank of Nigeria.Structurally, under the enabling Act, the policy and the general administration of the affairs and business of the Bank were the responsibilities of the Board of Directors made up of the Governor of CBN (as chairman), the Deputy Governor and five other part-time directors, all appointed by the Head of State. The Board is assisted by departmental directors who are career employees of the bank. The reorganisation in the bank’s structure, carried out in 1988, provided for an enlarged board of directors consisting of the governor, five deputy governors and five part-time directors. At present, the Board is assisted by twenty-five departmental directors in the day-to-day running of the bank.
ESTABLISMENT, GROWTH AND FUNCTION
The West African Currency Board (WACB) was establishment in 1912 as a result of the recommendation of the EMOH committee. It was set up to cater for the finance needs of expatriates in West Africa and to introduce a common currency within the sub-region. It did not have any discretionary powers to control the currency it issued, and thus, was impotent as a monetary authority. This situation is believed to have led to agitation for the establishment of a Central Bank of Nigeria.
A central bank is a pivotal institution in any modern economy. It is important to remind ourselves about its origin as well as the functions it performs in the Nigerian economy. The Central Bank of Nigeria was established by the CBN Act of 1958.Origin and structure:The first recorded move towards the establishment of a central bank in Nigeria was in April, 1952 when a private member of the federal House of representative proposed a motion for the establishment of a central bank in Nigeria to perform those functions generally expected of England. Mr. J.L. Fisher who was commissioned in 1952 to study the possibility and practicability of establishing the bank did not favour the proposal in the immediate future. It was the World Bank mission to Nigeria in 1953 which regarded the request for a Central Bank of Nigeria expedient on both political and national grounds and therefore recommended a state Bank of Nigeria.
Subsequently, the government invited another adviser to the Bank of England Mr. Loynes in 1958 to advise it on the feasibility of establishing the bank and the recommendations made then formed the essential basis for the bank of Nigeria Act of parliament, known as the CBN Act of 1958 which established the Central Bank of Nigeria.Structurally, under the enabling Act, the policy and the general administration of the affairs and business of the Bank were the responsibilities of the Board of Directors made up of the Governor of CBN (as chairman), the Deputy Governor and five other part-time directors, all appointed by the Head of State. The Board is assisted by departmental directors who are career employees of the bank. The reorganisation in the bank’s structure, carried out in 1988, provided for an enlarged board of directors consisting of the governor, five deputy governors and five part-time directors. At present, the Board is assisted by twenty-five departmental directors in the day-to-day running of the bank.
THE STRUCTURE OF THE NIGERIAN FINANCIAL SYSTEM
WHAT IS FINANCIAL SYSTEM?
A financial system is a conglomerate of various markets, instruments, operators, and institutions that interact within an economy to provide financial services such as resource mobilization and allocation, financial intermediation and facilitation of foreign exchange transactions to exchange foreign trade.
Financial system in a market economy is comprised of:
Money and non-monetary claims (served debt and equity).
Places, institutions or communication systems that provide a market where financial claims can be bought and sold.
Specialists such as brokers and underwriters who aid in the direct transfer of funds from surplus to deficit units.
A wide variety of intermediaries that provide attractive indirect routes for the transfer of funds surplus to deficit units.
Households, business firms and government unit that generate financial surpluses and deficits.
THE DEVELOPMENT AND STRUCTURE OF THE NIGERIAN FINANCIAL SYSTEM
The Nigerian financial system comprises the regulatory/ supervisory authority, banks and non-bank financial institutions. The regulatory/supervisory authorities are the Central Bank of Nigeria (CBN) at the apex, the Nigerian Deposit Insurance Corporation (NDIC), Security and Exchange Commission (SEC), the Federal Ministry of Finance (FMF), the Nigerian Supervisory Board (NISB), and the Federal Mortgage Bank of Nigeria (FMBN).
The CBN is a major regulator and supervisor in the money market, with the NDIC playing a complementary role. The CBN exclusively regulates the activities of finance companies and promotes the establishment of development banks. The National Board for Community banks, while the final granting of licence is the CBN’s responsibility.
The SEC is the Apex regulator/ supervisor in the capital market, with NSE as self-regulatory institution. The FMF and the CBN share control over Bureaux de change while the NISB is the regulatory authority in the insurance sector. The FMBN regulates mortgage financial business in Nigeria (CBN, 1990).
Developmentally, the Nigeria financial system has witnessed a rapid growth in the last two decades. This could be seen from the widespread establishment of many financial institutions. The growth can be claimed to due to the oil boom and the awareness of the importance of money by Nigerians.
One of the characteristics of the Nigerian financial system is the dominant role the Federal and State Government play in the financial intermediation directly or indirectly. There are a number of government parastatals which the government often lend money to. The state and federal governments also borrow money from the financial system. The governments are also involved in the financial intermediation indirectly through ownership of banks or financial institutions.
Though Nigeria has one of the most modern financial institutions today, there are some worrying features about the system. Nigeria still has an undiversified and unspecialised banking system. The merchant banks are supposed to provide wholesale banking while commercial banks are supposed to provide retail banking. The only exceptions are the development banks and insurance companies. Others perform the same functions. The difference only lies in the quality of service. The co-operative Banks are supposed to operate essentially for the Co-operative Societies but they compete with commercial Banks for all normal banking services. There is no noticeable line of difference between the commercial and merchant banks. They both lend to individuals, corporate bodies and the government. Again, the structure of the financial institutions is such that concentration is in the urban areas despite the rural banking scheme.
Tuesday, March 17, 2009
SHOULD THE NYSC SCHEME BE SCRAPED
SHOULD THE NYSC SCHEME BE SCRAPPED?
Some people in some quarters are calling for the scrapping of the NYSC scheme while others are of the view that the scheme should not be scrapped but instead review for better delivery.
THOSE CALLING FOR THE SCRAPPING OF THE NYSC
Those calling for the scrapping of the NYSC are of the view that the scheme exposes Corp members to dangers. This is of the view of recent killings of Corp members posted to serve in places where there are religious and ethnic crisis. A recent example is the 2008 Jos crisis which claim the lives of several Corp members. Some were butcher in their cold blood for no reasons at all. These are communities which are supposed to protect Corp members, but, they ended up being the ones attacking them. It is very sad.
Some are of the view that Corp members are badly treated in some quarters by the indigenes of that place. They milk Corp members dry and sometimes oppress them.
Sometimes, Corp members are faced with language barrier. In some communities, they do not understand English Language which is the Official Language of Nigeria. So, Corp members posted to such area will find it difficult to interact freely with the people in the community.
In some communities, when they see Corp members in their uniform, they see it as an opportunity defrauding them. A man told me in one of the eastern states where I did my service, that since the federal government pay me millions and since in future I may work in a federal position where I will have the opportunity to loot federal governments money. He saw no reason why he would not have his own share now that he is within my reach. Imagine such mentality!
THOSE WHO DO NOT WANT THE SCHEME SCRAPPED
Those calling for the review of the NYSC scheme were of the opinion that the scheme has some good part and that the good part should be improved upon while the government should try to reduce the bad part.
They went further to state that many graduates look forward to the day they will serve their father land and earn their first salary.
People who held this view are of the opinion that the scheme be reviewed. They noted that the scheme has lost its value and National coherence which has characterized its inception. Some people attributed this decline to the fact that Corp members are not too enthusiastic about the scheme.
Corp members are not taking care of properly and their enumerations are poor.
Some people are also of the opinion that the amount of money pumped into the scheme by the federal government is a waste of public fund and therefore the scheme should be scraped and the money be given to Nigerian youths so as to enable them empower themselves.
Some graduates have not leave their place of birth to other parts of the country. Imagine a graduates who did his primary education, secondary education, university education and who do not travel outside his community will not know what is happening in other parts of the country. Therefore, the scheme will help such graduate to know other parts of the country and learn other people’s cultures and traditions.
Some people in some quarters are calling for the scrapping of the NYSC scheme while others are of the view that the scheme should not be scrapped but instead review for better delivery.
THOSE CALLING FOR THE SCRAPPING OF THE NYSC
Those calling for the scrapping of the NYSC are of the view that the scheme exposes Corp members to dangers. This is of the view of recent killings of Corp members posted to serve in places where there are religious and ethnic crisis. A recent example is the 2008 Jos crisis which claim the lives of several Corp members. Some were butcher in their cold blood for no reasons at all. These are communities which are supposed to protect Corp members, but, they ended up being the ones attacking them. It is very sad.
Some are of the view that Corp members are badly treated in some quarters by the indigenes of that place. They milk Corp members dry and sometimes oppress them.
Sometimes, Corp members are faced with language barrier. In some communities, they do not understand English Language which is the Official Language of Nigeria. So, Corp members posted to such area will find it difficult to interact freely with the people in the community.
In some communities, when they see Corp members in their uniform, they see it as an opportunity defrauding them. A man told me in one of the eastern states where I did my service, that since the federal government pay me millions and since in future I may work in a federal position where I will have the opportunity to loot federal governments money. He saw no reason why he would not have his own share now that he is within my reach. Imagine such mentality!
THOSE WHO DO NOT WANT THE SCHEME SCRAPPED
Those calling for the review of the NYSC scheme were of the opinion that the scheme has some good part and that the good part should be improved upon while the government should try to reduce the bad part.
They went further to state that many graduates look forward to the day they will serve their father land and earn their first salary.
People who held this view are of the opinion that the scheme be reviewed. They noted that the scheme has lost its value and National coherence which has characterized its inception. Some people attributed this decline to the fact that Corp members are not too enthusiastic about the scheme.
Corp members are not taking care of properly and their enumerations are poor.
Some people are also of the opinion that the amount of money pumped into the scheme by the federal government is a waste of public fund and therefore the scheme should be scraped and the money be given to Nigerian youths so as to enable them empower themselves.
Some graduates have not leave their place of birth to other parts of the country. Imagine a graduates who did his primary education, secondary education, university education and who do not travel outside his community will not know what is happening in other parts of the country. Therefore, the scheme will help such graduate to know other parts of the country and learn other people’s cultures and traditions.
APPRAISAL OF THE NYSC SCHEME
APPRAISAL OF THE NYSC SCHEME
The NYSC scheme was established by decree No 24 of May 22, 1973 by General Yakubu Gowon’s administration. The scheme was created with a bid to reconstruct, reconcile and rebuild the country after the Nigerian civil war. The purpose of NYSC is primarily to inculcate in Nigerian youths the spirit of selfless service to the community and the spirit of oneness and brotherhood of all Nigerians, irrespective of cultural or social background.
Since inception, the NYSC scheme has made Nigerian graduates to leave their place of birth or state of origin to a different state entirely. As such, Corp members mixed with people of other tribes, learn their cultures and traditions. With this, Corp members appreciate other ethnic groups in the country. In addition, the scheme has been able to erase doubt about a place, the people and their culture. For example, there is the general saying that the Urobos are "Wayo". However, Corp members posted to Urobos land may find out that this is not actually true.
The NYSC scheme has enable young, active, intelligent Nigerian graduates to contribute their quarters towards national development.
The NYSC scheme has enable Corp members to get temporary and in most cases permanent employment. There are many cases of Corp members who were retained in their area of primary assignment.
The scheme has also enable Corp members to have a sense of belonging and to be less dependent so as to be less dependent so as to be able to face the challenges ahead.
The achievements of NYSC are too numerous to mention. However, there are some lapses which I feel should be improve upon in order for the objectives of NYSC to be achieved. These include the following:
The general welfare of Corp members should be taken seriously. This is to enable Corp members perform creditably.
The monthly allowances for Corp members should be increased. This is because, the amount paid is not enough to meet the basic needs of Corp members.
Most employee use the NYSC scheme as an avenue to over use Corpers, making them work for longer hours for little or no pay. This area should be looked into.
Most NYSC orientation camp is in a sorry state and the NYSC officials should do something to ensure that Corp stay there memorable.
I feel that when these areas are looked into it will go a long way towards improving the scheme.
HISTORY OF NIGERIA
HISTORY OF NIGERIA
PRE-INDEPENDENCE HISTORY OF NIGERIA
1851: The British Annexed Lagos
1861: Lagos was ceded to the territory of Britain, which becomes a British crown colony.
1865: British established a consulate at Lokoja, Kogi State.
1886: The Royal Niger Company was chartered.
1887-1900: Nigeria was brought under British colonial rule as protectorates of southern and Northern Nigeria.
1900: The Royal Niger Company’s territory came under the control of the British government.
1903: The Sokoto Empire becomes part of the British protectorate of Northern Nigeria.
1906: The Colony of Lagos merges with the protectorates of Southern Nigeria.
1914: The colony of Lagos and Protectorate of southern Nigeria was merged with the protectorate of Northern Nigeria as a colony and protectorate of Nigeria. Administratively, Nigeria remained divided into the northern and southern provinces and Lagos colony.
1939: Governor Bourdillion divides Southern Nigeria into Eastern and Western Provinces, which later became Eastern and Western Regions.
1953: On April 1, Action Group Member, Chief Anthony Enahoro moved a motion for Nigeria’s independence.
1954: The Lyttleton constitution, establishing Nigeria as a Federation of three (3) regions; Eastern, Western and Northern regions, goes into effect.
1956: Oil was discovered in Nigeria in commercial quantity in Olobiri.
1959: Elections were held in Nigeria in preparations for independence. With Chief Nnamdi Azikiwe emerging as the first Ceremonial President-elect and Sir Abubakar as the first prime Minister-elect of Nigeria.
POST INDEPENDENCE HISTORY OF NIGERIA
October 1, 1960: Nigeria granted independence as a Federation of three (3) Regions (Northern, Eastern and Western). With this development, it became a member of the Commonwealth of Nations and joining the United Nations.
1961: The Northern Cameroon elected to become a province of the Northern region of Nigeria.
October 1, 1963: Nigeria altered its relationship with the United Kingdom by proclaiming itself a Federal Republic. With this, a new constitution promulgated. This same year, a fourth region, the mid-west region was created.
January 15, 1966: Army officers, mostly from Southern Igbos, overthrown the government and assassinated the Federal Prime Minister and the Premiers of the northern and western regions. General Aguyi Ironsi became the president of Nigeria.
On July 29, there was a coup which resulted in the killing of General Aguyi Ironsi and Lt. Col. Adekunle Fajuyi. 1967: Lt. Col. Emeka Ojukwu, who was then the military Governor of the Eastern region, and who emerged as the Leader of Igbo Secessionist, declare the independence of the eastern region as the “Republic of Biafra”. Which resulted in the Nigerian Civil war on 6th July.
General Gowon divided the four regions of Nigeria into 12 States.
On 1st of August, the leader of the 1966 January coup, Major Nzeogwu was killed.
January 1970 Biafra was defeated by the Federal government of Nigeria after 31 months of Civil war.
April 22, 1972: Nigeria changed from right hand drive to left hand drive.
1973: On 1 January, Nigeria’s currency was changed to Naira and Kobo.
On 22 May, the National Youth Service Corps (NYSC) was introduced under decree 24 of 1973.
July 29, 1975: General Murtala Muhammed and a group of fellow officers stage a coup thereby overthrowing Gowon’s government and ending its nine-year rule.
1976: On 3 February, General Murtala Muhammed created seven additional states increasing the total number of states in Nigeria from 12 to 19.
General Murtala Muhammed was assassinated. His Chief of Staff, Lt. Gen. Olusegun Obasanjo succeeded him as the Head of State of Nigeria.
Seven (7) new states were created in Nigeria bringing the total number of states in Nigeria to 19.
1977: On 15 February, Nigeria hosts Africa through the Festival of Arts and Culture(FESTAC) held in Lagos.
1979: President Olusegun Obasanjo handed over to a civilian government headed by Alhaji Shehu Shagari. This signify the beginning of the second Republic.
December 31, 1983: Alhaji Shehu Shagari lead government was peacefully overthrown by a military government headed by General Muhammadu Buhari. He was the leader of the Supreme Military Council (SMC), the country’s new ruling body.
December 20, 1984: The Head of State, General Buhari and his Deputy Idiagbon introduced the War Against Indiscipline (WAR).
August 1985: The Buhari’s government was peacefully overthrown by Maj. Gen. Ibrahim Babangida.
December 1990: Elections were held in Nigeria at the Local Government Levels.
1991: Gubernatorial and State legislative elections were held.
June 12, 1993: Presidential elections were held in Nigeria with M.K.O. Abiola winning a decisive victory.
On June 23, the then Military Head of State, Ibrahim Babangida, annulled the election.
On August 27, Babangida retires and handed power to an interim government headed by businessman Ernest Shonekan.
On November 17, General Sani Abacha assumed power, forcing Shonekan to resign.
1996: On May 11, first President of Nigeria, Chief Nnamdi Azikiwe died at the age of 92 years.
On June 4, M.K.O. Abiola’s wife, Alhaji Kudirat Abiola was assassinated.
On October 1, the Head of State, General Sani Abacha created six (6) additional states bringing the total number of states in Nigeria to 36 .
June 8, 1998: General Sani Abacha died while still in office and was replaced by another military ruler, General Abdulsalami Abubakar.
May 29,1999: Former Military Head of State, Olusegun Obasanjo won the presidential election conducted by the Independent National Electorial Commission (INEC) and subsequently, he was inaugurated as the First democratically elected president of Nigeria.
August 2006: Nigeria handed over the oil rich Bakassi peninsula to Cameroon, in compliance with a 2002 world court ruling.
2007: On April 14, Gubernatorial and States House of Assembly elections were conducted nationwide.
On April 21, Presidential and National House of Assembly election was conducted in Nigeria. Umaru Musa Yar’Adua was declare the winner.
On May 29, the President-elect, Umaru Musa Yar’Adua was sworn-in as the president of Nigeria, signifying the beginning of the fourth Republic.
PRE-INDEPENDENCE HISTORY OF NIGERIA
1851: The British Annexed Lagos
1861: Lagos was ceded to the territory of Britain, which becomes a British crown colony.
1865: British established a consulate at Lokoja, Kogi State.
1886: The Royal Niger Company was chartered.
1887-1900: Nigeria was brought under British colonial rule as protectorates of southern and Northern Nigeria.
1900: The Royal Niger Company’s territory came under the control of the British government.
1903: The Sokoto Empire becomes part of the British protectorate of Northern Nigeria.
1906: The Colony of Lagos merges with the protectorates of Southern Nigeria.
1914: The colony of Lagos and Protectorate of southern Nigeria was merged with the protectorate of Northern Nigeria as a colony and protectorate of Nigeria. Administratively, Nigeria remained divided into the northern and southern provinces and Lagos colony.
1939: Governor Bourdillion divides Southern Nigeria into Eastern and Western Provinces, which later became Eastern and Western Regions.
1953: On April 1, Action Group Member, Chief Anthony Enahoro moved a motion for Nigeria’s independence.
1954: The Lyttleton constitution, establishing Nigeria as a Federation of three (3) regions; Eastern, Western and Northern regions, goes into effect.
1956: Oil was discovered in Nigeria in commercial quantity in Olobiri.
1959: Elections were held in Nigeria in preparations for independence. With Chief Nnamdi Azikiwe emerging as the first Ceremonial President-elect and Sir Abubakar as the first prime Minister-elect of Nigeria.
POST INDEPENDENCE HISTORY OF NIGERIA
October 1, 1960: Nigeria granted independence as a Federation of three (3) Regions (Northern, Eastern and Western). With this development, it became a member of the Commonwealth of Nations and joining the United Nations.
1961: The Northern Cameroon elected to become a province of the Northern region of Nigeria.
October 1, 1963: Nigeria altered its relationship with the United Kingdom by proclaiming itself a Federal Republic. With this, a new constitution promulgated. This same year, a fourth region, the mid-west region was created.
January 15, 1966: Army officers, mostly from Southern Igbos, overthrown the government and assassinated the Federal Prime Minister and the Premiers of the northern and western regions. General Aguyi Ironsi became the president of Nigeria.
On July 29, there was a coup which resulted in the killing of General Aguyi Ironsi and Lt. Col. Adekunle Fajuyi. 1967: Lt. Col. Emeka Ojukwu, who was then the military Governor of the Eastern region, and who emerged as the Leader of Igbo Secessionist, declare the independence of the eastern region as the “Republic of Biafra”. Which resulted in the Nigerian Civil war on 6th July.
General Gowon divided the four regions of Nigeria into 12 States.
On 1st of August, the leader of the 1966 January coup, Major Nzeogwu was killed.
January 1970 Biafra was defeated by the Federal government of Nigeria after 31 months of Civil war.
April 22, 1972: Nigeria changed from right hand drive to left hand drive.
1973: On 1 January, Nigeria’s currency was changed to Naira and Kobo.
On 22 May, the National Youth Service Corps (NYSC) was introduced under decree 24 of 1973.
July 29, 1975: General Murtala Muhammed and a group of fellow officers stage a coup thereby overthrowing Gowon’s government and ending its nine-year rule.
1976: On 3 February, General Murtala Muhammed created seven additional states increasing the total number of states in Nigeria from 12 to 19.
General Murtala Muhammed was assassinated. His Chief of Staff, Lt. Gen. Olusegun Obasanjo succeeded him as the Head of State of Nigeria.
Seven (7) new states were created in Nigeria bringing the total number of states in Nigeria to 19.
1977: On 15 February, Nigeria hosts Africa through the Festival of Arts and Culture(FESTAC) held in Lagos.
1979: President Olusegun Obasanjo handed over to a civilian government headed by Alhaji Shehu Shagari. This signify the beginning of the second Republic.
December 31, 1983: Alhaji Shehu Shagari lead government was peacefully overthrown by a military government headed by General Muhammadu Buhari. He was the leader of the Supreme Military Council (SMC), the country’s new ruling body.
December 20, 1984: The Head of State, General Buhari and his Deputy Idiagbon introduced the War Against Indiscipline (WAR).
August 1985: The Buhari’s government was peacefully overthrown by Maj. Gen. Ibrahim Babangida.
December 1990: Elections were held in Nigeria at the Local Government Levels.
1991: Gubernatorial and State legislative elections were held.
June 12, 1993: Presidential elections were held in Nigeria with M.K.O. Abiola winning a decisive victory.
On June 23, the then Military Head of State, Ibrahim Babangida, annulled the election.
On August 27, Babangida retires and handed power to an interim government headed by businessman Ernest Shonekan.
On November 17, General Sani Abacha assumed power, forcing Shonekan to resign.
1996: On May 11, first President of Nigeria, Chief Nnamdi Azikiwe died at the age of 92 years.
On June 4, M.K.O. Abiola’s wife, Alhaji Kudirat Abiola was assassinated.
On October 1, the Head of State, General Sani Abacha created six (6) additional states bringing the total number of states in Nigeria to 36 .
June 8, 1998: General Sani Abacha died while still in office and was replaced by another military ruler, General Abdulsalami Abubakar.
May 29,1999: Former Military Head of State, Olusegun Obasanjo won the presidential election conducted by the Independent National Electorial Commission (INEC) and subsequently, he was inaugurated as the First democratically elected president of Nigeria.
August 2006: Nigeria handed over the oil rich Bakassi peninsula to Cameroon, in compliance with a 2002 world court ruling.
2007: On April 14, Gubernatorial and States House of Assembly elections were conducted nationwide.
On April 21, Presidential and National House of Assembly election was conducted in Nigeria. Umaru Musa Yar’Adua was declare the winner.
On May 29, the President-elect, Umaru Musa Yar’Adua was sworn-in as the president of Nigeria, signifying the beginning of the fourth Republic.
OVERVIEW OF NIGERIA
OVERVIEW OF NIGERIA
FULL NAME: The Federal Republic of Nigeria.
PRESIDENT: Umaru Musa Yar’Adua.
LOCATION: Nigeria is located between latitude 40N and 140N of the Equator and between longitude 30E and 150E of the Greenwich Meridian. Therefore, latitudinal extent is 100 while the longitudinal extent is 120.
POSITION: Nigeria is located on the Gulf of Guinea in West Africa. She is surrounded by French speaking Countries; in the west by Benin Republic, in the north by Niger Republic, in the northeast by Chad Republic, in the east by Cameroon Republic and the south is occupied by the Atlantic Ocean.
SIZE: In terms of land area, Nigeria is the fourth largest country in West Africa after Niger, Mali and Mauritania. She has a total land area of 923,768 square kilometres. The greatest distance from east to west is about 1,300 kilometres while from north to south is about 1,100 kilometres.
POPULATION: 140,003,542 million people (2006 population census). This makes her the most populous country in Africa.
CAPITAL: Federal Capital Territory (FCT), Abuja.
LARGEST CITY: Lagos.
STATES: Nigeria currently has 36 states throughout the Federation and the FCT.
NATIONAL HOUSE OF ASSEMBLY: The National House of Assembly comprises the Senate, which has 109 members and House of Representative with 360 members.
STATE HOUSE OF ASSEMBLY: Nigeria has 36 states house of Assembly and 1205 states House of Assembly legislators.
LOCAL GOVERNMENT: Nigeria has 774 Local Government Areas/Local Government Chairmen.
GEO-POLITICAL ZONES:
Nigeria is divided into six geo-political zones in Nigeria. These are:
North-Central: Niger, Benue, Plateau, Nassarawa, kwara, Kogi, and The Federal Capital Territory (FCT).
South-West: Lagos, Ekiti, Ogun, Osun, and Oyo States.
South-South: Bayelsa, Cross River, Delta, Edo, Rivers and Akwa Ibom States.
South-East: Anambra, Imo, Abia, Enugu, and Ebonyi States.
North-East: Borno, Yobe, Bauchi, Gombe, Adamawa and Taraba States.
North-West: Sokoto, Kebbi, Zamfara, Katsina, Kano, Jigawa and Kaduna States.
MAJOR LANGUAGES: English Language (Official), Yoruba, Hausa and Igbo. Nigeria has over 500 Indigenous Languages.
RELIEF: The relief of Nigeria can be classified into two major regions; the highlands and the lowlands.
The highlands can be subdivided into the following:
The North-Central Plateau.
The Western Highlands
The Eastern Highlands, and
The Eastern Scarpland
The lowlands can be subdivided in the following:
The Sokoto Plains.
The Niger-Benue Trough.
The Chad Basin.
The interior coastal lowlands of Western Nigeria.
The lowlands and scarplands of Eastern Nigeria.
The coastal margins and swamps.
The cross River basin.
DRAINAGE:
ETHNIC GROUPS: Nigeria has about 200 ethnic groups. The largest ethnic groups are the Hausa-Fulani in the north, the Igbo in the southeast and the Yoruba in the southwest.
MAJOR RELIGION: Christianity, Islam and several Indigenous Languages.
HOUSE OF ASSEMBLY: The Nigerian House of Assembly has two levels; the National House of Assembly and the States Houses of Assembly. The National House of Assembly comprises the Senate and the House of Representative. The Senate has 109 members, while the House of Representative has 360 members.
SYSTEM OF GOVERNMENT: Nigeria practices the Democratic system of government which began in May 29th, 1999 during the transition from military to Civilian rule. Former President, Chief Olusegun Obasanjo was the first democratically elected President of Nigeria. President, Umaru Musa Yar’Adua is the third democratically elected president of Nigeria. He was sworn-in on May 29th, 2007.
PARTY SYSTEM: Nigeria operates a multi-party system of government. The Peoples Democratic Party (PDP), the Action Congress (AC) and the All Nigerian Peoples Party (ANPP) are the major political parties.
ECONOMY: The Nigerian economy depends heavily on the oil and gas sector. This sector dominates the Nigerian economy. It account for about 99 percent of export revenues and 85 percent of government revenues. The agricultural sector was formally the mainstream of Nigeria’s economy, but the government of Nigeria shifted attention from agriculture to oil and gas from the time of Oil boom in the 70s up till the present administration. Despite the country’s wealth , GDP per capital is still low and poverty is widespread with about 54 percent of the population living on less than 1 dollar per day.
LIFE EXPECTANCY: 46 years (Men), 47 years (Women).
MONETARY UNIT: 100 kobo = 1Naira.
MAIN EXPORT: Petroleum, Cocoa, Rubber, etc.
INTERNET DOMAIN: .ng.
INTERNATIONAL DIALING CODE: +234.
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