CHAPTER ONE

INTRODUCTION

1.1 THE BACKGROUND OF THE STUDY

The consequences of population growth on the economic

development of less developed countries are not the same because the

condition prevailing in these countries are quite different from those of

developed economy. Therefore the body of literature on population

growth in Nigeria has always emphasized either the negative or the

positive effect.

Therefore in every discussion it is conventional to start with a

definition of terms used in such discussion. However population

growth can be seen by a demographer as a change in the size of the

population. But when this change occurs in such a way that it reduces

the size of population the demographer refers it as a negative growth

but when it adds to the size of the population he regards it as a positive

one. What we get from this concept is that population growth can be

positive or negative depending on whether there is an increase or

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decrease in the size of a given population. Population whether positive

or negative is derived from three demographic variables such as birth

death and migration rates

Udabah (1999) Threw more light on this by adding that birth and

death rates in underdeveloped countries are quite different from that of

developed countries. Births rate in underdeveloped are generally high

why those of developed countries are low. On the other hand death

rates are higher in underdeveloped nations. The higher rate of

population growth is therefore a major characteristic of underdeveloped

nations and is partly responsible for the low rates of economic

development.

Moreover the population of any country constitutes the most vital

component of its resource base. This aspect is based mostly on its size

growth rate spatial distribution demographic structure and quality in

terms of level of education fitness and social welfare. Population

statistics are indispensable impute into the planning process in any area.

To government issuing programmes for instance in the efforts of

government in the developing countries to feed the people and also

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provide quality services for them are being frustrated by rapid

population growth. This growth is attributable on the one hand to

improvement in human survival associated with the application of

modern medical science to health matters better sanitation and

immunization of children which have caused the death rate to decrease.

On the other hand so many socio-cultural issues have complimented

the growth of population in Nigeria positively (Lee and Miler 1990

Rennne 1995 Ainsword et al 1996).

Consequently the world population has been increasing and the last

two decades have been demographically unprecedented as it rose from

4.2 billion people in 1985 to 6.4 billion in 2010. Much of this occurred

in the developing nations as their population grew from 3.7 billion to

5.1 billion as against that of developed nation which grew from 1.1

billion to 1.2 billion over the same period (United Nation 2001 billion).

Nigerian‟s population is one of the fastest growing population in the

world and Nigeria is the most populous country in Africa ranked the

tenths as obtained from two major sources viz the 1991 census and the

Population Reference Bureau World Population Data Sheet.

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Obviously the population of Nigeria is large which makes it a “giant”

relative to the other Africa countries. The large population of Nigeria

implies a large market for goods and services as well as large pool of

human resources for development. However the impact of population

on development depends not only on the absolute size but also on its

quality. The major function responsible for the rapid increase in the

population of the country is the relatively high fertility level as

portrayed by a total fertility rate of about 6.0 life - birth per woman in

the 1990‟s

Having seen from theoretical and empirical view that the population

growth is an impediment to the economic growth and development

especially under developing countries. It is then important to answer

this question how detrimental is population growth to the economic

growth? To answer these we look into the interactions between

population growth and any of the economic variable such as

population growth unemployment savings interest and inflation etc.

So in this research work our demonstration of the impact of population

on economic growth will be based on the study of the relationship

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between population growth interest unemployment and inflation. Now

the question to answer becomes how those population growth

influences unemployment? Since we are working on the impact of

population growth on Nigeria as whose population according the 2006

census was estimated to be at a growth rate of 3% our limitation of this

study would be on the Nigeria GDP (Gross Domestic Product) or GNI

(GROSS NATIONAL PRODUCT) versus the population growth rate of

Nigeria.

Nevertheless economic growth is the GDP OR GNI divided by

the total population of the whole country. This measures the level of

output in the economy. This equation implies that if population is

rapidly growing the economic growth will reduce marginally and

people income will also decrease. So according to the finding GDP can

be improved that is GDP per capital by checking the population growth

rate through birth control death rate migration and some other

economic variables and demographic variables.

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1.2 STATEMENT OF THE PROBLEM

Fundamentally growth is an indispensible requisite for the

development that is why Nigeria‟s economic growth had continue to

dominate the main thrust of government paramount objective more

importantly growth is associated with policies of control population

growth because a high population lead to a vicious depletion of a

nation‟s financial and material resources. According to CBN (1997) the

population growth rate of Nigeria is at an average of 2.83% from 1993

to 1997 as compared to developed country like United States whose

population rate is 1.00% on the average. This rapid population growth

has efficiently induce wide spread poverty. According to Chege (1992)

Nigeria became worst than the early post-colonial period. In the 1980‟s

the agricultural sector declined in productivity by 1.3% while

population grew by 3.1% thus creating severe food shortage a fall in

capital income a fall in savings and living standard . Because of this

type of situation economic growth been severely retarded and dwarfed.

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The above presentation points to the critical stance of the economy

and therefore makes a clarion call for adequate measure to control the

growth rate of Nigeria‟s population which is at 2.8%per annum. To

check this we require constructive demographic policy approaches that

will seriously enlighten citizens of the eminent socio-economic danger

of rapid population growth.

1.3 OBJECTIVE OF THE STUDY

1 To find out the relationship between population growth and

economic growth.

2. To examine the impact of population growth on economic growth.

3. To proffer appropriate solution / recommendation to authority in

Charge of managing the economy on how to remedy the situation

population growth.

1.4 STATEMENT OF THE HYPOTHESIS

The hypothesis to be used is stated thus:

H0:= The impact of population growth on Nigerian economy is not

significant.

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H1:= The impact of population growth on Nigerian economy is

significant.

H0:= There is no casual relationship between population growth and

economic growth.

H1:= There is casual relationship between population growth and

economic growth.

1.5 SIGNIFICANT OF THE STUDY

1 It provides information on population trends and their implication

To the policy makers educators the media and the concern public

Servant.

2 To ascertain the truthfulness whether population growth impact

Negatively or positively to the economic development.

3 This study will also serve as a reference research work for the

society further studies

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1.6 SCOPE OF THE STUDY

This research is macroeconomic in nature and over the trend of

population growth rate and economic growth rate in Nigeria from 1980

to 2010 a period of 30 years. The study also focuses on the effects of

population growth on economic growth in Nigeria in a bid to analyze

the options available to accelerate economic development taking into

cognizance of the fact that other factors outside the sphere of population

are also important in the determination of the face of economic growth.

1.7 LIMITATION OF THE STUDY

The utility of this research work is restricted to the exclusive focus

on population size and growth.

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