ABSTRACT
This study is geared towards actualizing three
outstanding objectives, which includes the following: to find out if Nigeria
and United States political economic relations have promoted economic
development in Nigeria, to ascertain whether Nigeria and United States
political economic relations have supported democratization process in Nigeria
and also to know whether Nigeria and United State political and economic
relations have enhanced Nigeria’s military capacity and efficiency. This
research exposed trends in Nigeria and United States relations and also
highlight available literature on the subject matter. As a framework of
analysis, dependency theory was used to analyze the phenomenon in question.
Furthermore this research discourse provided detailed methodology. Hence it
also provided detailed information on selected hypothesis, research design, and
areas of study and instrument of data collection. Using evidence from political
and economic variables, this work examined Nigeria and United States political
economic relations; the central thesis of this study is that even though the
political terrain has transited from military autocracy to civilian democratic
governance in Nigeria, the economic relations in certain important areas remain
shallow, fragile and generally unstable. Findings reveal that Nigeria largely
depends on the United States for the production as well as sales of petroleum
products which is the mainstay of her economy, and which has adversely affected
her political and economic development. Hence, the study recommends the
rebuilding of Nigeria’s local content and capacity as well as the
diversification of the economy as means of optimizing the political and
economic gains accruable from her relations with the United States, without
compromising her national interest.
TABLE OF
CONTENTS
Front Page i
Certification ii
Dedication iii
Acknowledgements iv
Table of Contents v
Abstract vii
CHAPTER ONE:
INTRODUCTION
1.1 Background
of the Study 1
1.2 Statements of the Problems 5
1.3 The Objectives of the Study 7
1.4 Research Question 7
1.5 Significance of the Study 8
1.6 Methodology
9
1.7 Scope of the study 9
1.8 Limitation of the Study 9
1.9 Definition of Terms 10
CHAPTER TWO: LITERATURE REVIEW
2:1 Literature
Review … … …
11
2.2 Nigeria
- United States Foreign Policies
Respectively … … … … 11
2.3 The US
and Democratization Process in Nigeria … 14
CHAPTER THREE: HISTORICAL ANALYSIS
3.1 Historical Development of Nigeria-US Economic
Relations … … … … 21
3.2 United States and Military Reforms in
Nigeria … 34
3.3 Nigeria-United States Relations … … 37
CHAPTER FOUR: GENERAL ANALYSIS
4.1 The
Political Economy of Nigeria-US Relations … … 46
4.2 Political
Context Analysis … … …
56
4.3 The United States and Military Reforms in
Nigeria … … 70
4.4 Contextual Issues and Analysis ….
…… …… 73
CHAPTER
FIVE: CONCLUSIONS AND RECOMMENDATIONS
5.1
Summary 79
5.2
Conclusions 81
5.4 Recommendations 83
BIBLIOGRAPHY 87
CHAPTER ONE:
INTRODUCTION
1.1 Background
of the Study
The history
of Nigeria foreign policy towards United States since 1960 has constantly been
changing, though the principles guiding her foreign relations remain the same.
Strategic events are largely responsible for the unstable external relationship
between the two countries. The reason for this gross neglect may be partly a
function of America’s lack of interest in the scramble for Africa in the
colonial days when Britain and France were the major actors, or the importance
attached to Africa by the State department in the United States where
globalists tend to see Africa in strategic terms, and mainly in the context of
value in the East-West conflict (Ayo, 1992:5-8). The demands, challenges and
competition of this 21st century have made it pertinent that Nigeria
review her relation with United States in order to benefit maximally from their
relation. One would have thought that Nigeria-US political economic relations
since 1960 would have moved Nigeria from being the third world nation to at
least a second world nation but like the story of any other developing economy,
Nigeria has remained the same if not worse, Nigeria has remained just a market
for US to buy her crude oil and sell her manufactured goods (Ate, 2000: l43).
United
States adopted the policy of globalization, democratization, free market and
liberalism. However, one may say that the reason behind US democracy in Africa
is to create “FREE ATMOSPHERE” for the implementation of international Monetary
Fund (IMF) and World Bank inspired Adjustment Programs, thereby reinvigorating the
type of market, which made Europe prosperous. Expediently, one can say that the
free market/free trade they implemented is only free movement of capital and
free movement of labour (Ezea, 2005).
Now, more
than 50 years, one may subscribe to the view that Nigeria-US economic
development and that instead it has plunge Nigeria deeper into the role of a
mere primary producers of raw materials. Nigeria-US economic relations have
only strengthened Nigeria’s market economy instituted by the colonial masters.
Onuoha affirm this when he stated that:
...Nigeria
ranks second only to Saudi Arabia as the most important supplier of petroleum
to the United State, which buys over one million barrels of the highly
desirable light, low sulfur sweet crude daily. Nigeria provides about 10
percent of US oil imports. Annual trade amounts to more than $6 billion, and US
companies have about $7 billion investment in the country. The United States
supplies 100 percent of imported wheat to the Nigerian market (Onuoha, 2008.285-286).
As soon as
Nigeria got her independence and needed economic aid, US were all over her with
fund. In the immediate post-independence Nigeria, United States came third
after Britain and Germany in the areas of trade, aid and technical assistance.
In the address to the Nigerian parliament in 1961, the prime minister, Sir
Abubakar Tafawa Balewa remarked that we admire the American way of life, and we
respect the people of United State for their love of freedom. As a result of
sustained Africa interest in Nigeria, United State carefully executed through a
series of activities organized by USAID and an injection of US $225m aid in
support of the first Nigeria’s national development plan (Saliu and Aremu,
2006:135-136).
Unknown to
Nigeria, definite benefit accrue to donor countries as a result of their aid
programs. Typically, Nigeria believed US was a very big hearted friend but as
one former United States Aid Officer candidly put it:
The biggest
single misconception about aid programs is that we send money abroad, we don’t,
Aid consists of American equipment materials, raw materials, expert services
and food, all provided for specific development project which we ourselves
review and approve. Ninety-three percent of aid fund are spend directly in
United State to pay for those things (guard 1968:69).
Correspondingly,
Dean Acheson, former United States Secretary of State, once said, when he was
referring to the motive for American aid to the third world that: “ it is not
philanthropy that motivates US, but there is a hard- headed self- interest in
this program”. (Department of states Bulletin, Feb.4, 1952)
This of
course substantiates that capital aid technical assistance, which characterized
the Nigeria-United States bilateral relation between 1960 and 1967, was just
serving more of America’s interest than Nigeria. Nigeria Civil war interrupted
a steady growth in the bilateral ties between the two countries. But between
1970 and 1983, during the oil boom, Nigeria oil became the centerpiece of her
relation with U.S. It was more of relation of interdependence than dependence
until the sharp fall in oil price, which affected Nigeria’s monoculture economy
and plunged it back to aids recipient. Nigeria also founded herself in the
position of debtor in the international financial circles. The story of IMF and
structural adjustment programs followed suit with its adverse effect on the
Nigeria economy.
Since the
late 1990s and particularly after the 9/11 hijackings in the United States,
there have been resurgence of global strategic interests in West Africa. In
spite of the seeming leverage given by the terrorist threat to the US’s current
security cooperation in West Africa, it should be noted that the picture is
incomplete if it is not emphasized that American oil interest in the US
presence in a region that was described at the end of the Cold War to have
fallen off the world’s strategic map. US oil companies are at the forefront of
the “new scramble" for Africa’s oil (Obi 2005). The US is in competition
against Britain, France and China in the new scramble for West African’s oil
(AOPIG 2002; Leigh and Pallister, 2005).
In his
speech published on Wednesday 31st March 2010, then acting president Goodluck
Jonathan has urged President Barrack Obama to revisit the classification of
Nigeria by the United States as a “country of interest” on the terror list
following the botched Christmas day bombing of American aircraft by a Nigerian,
Umar Farouk Abdul Mutallab. According to Nigeria’s new Ambassador to the US,
Prof. Adebowale Adefuye, while presenting the message of the Acting President,
in his letter of credence to President Obama at the White House, Washington DC
has noted that the incident of December 25, 2009 is condemnable and had been
condemned several times by Nigeria, said he had been asked by Acting President
Jonathan “to again convey Nigeria’s shock at this and urge you to revisit this
issue as soon as possible” (Okey, N. 2010).
While noting
that US is one of Nigeria closest allies and a country which has identified with
the nation at all times, Adefuye said: “Indeed, the history of Nigeria’s 50
years of statehood will be incomplete without a mention of the proactive role
of the United States in supporting us in our quest for sustainable political
stability and economic development. The United States’ interest in our economic
and political well-being has been one of the critical factors for the progress
recorded in our effort to consolidated our democracy and deliver its dividends
to the people of the country, In his response, President Obama said the US is
encouraged by the acting president’s public promises to strengthen democratic
reforms, improve the economic environment, and address the ongoing violence and
impunity seen in the Niger Delta and Jos. The American leader said that Nigeria
and US have a tradition of positive bilateral relations based on a mutual
commitment to development and peace, adding that “the upcoming launching of the
US Nigeria bi-national commission illustrates our desire to further enhance
this relationship” (Okey, 2010).
With the
successful enthronement of democracy in Nigeria in l999, it was assumed in many
quarters that irritant in the bilateral relations between both states would
have been resolved. Using evidence from political and economic variables, this
research work examines Nigeria-US political economic relations.
Against this
background, this research work seeks to examine Nigeria-US economic relations
on Nigeria’s political economy. Equally, the focus of study is to identify the
other factors which drive US-Nigeria bilateral affairs and offer options for
stronger and deeper relationship to the mutual benefit of both states. And also
examine the specific experience of Nigeria in her democratization process and
the American influence in the Nigeria’s political process.
1.2 Statement
of the Research Problem
The fact
that Nigeria is dependent on the Western world is part of her history, and that
Nigeria economic and political behaviour on both external and internal issues
of importance is determined by her economic underdevelopment is recognizable
(Ghana, 1979:16, Ake, 1981:29), According to United State Information Agency
Report (1985), Nigeria and United State have enjoyed increasing active trade
since Nigeria’s independence. Currently, the US investment in Nigeria is larger
than any Africa country. The United State has remained a major investor in
Nigeria’s oil sector with Exxon- Mobil, Texaco, and Chevron etc. as key
players. Yet, the Nigeria-united States ties were almost negligible up till now
(Onuoha, 2008:285]. This relationship is essential to demonstrate that the
current dependence of Nigeria on the Western capitalist economy of which the
United States is its leader has its root on the pattern of political economic
links established during the colonial period.
It is
important to state that Nigeria’s relation with the United States has been
conditioned by the oil factor that is why the United States had maintained the
policy of not intervening in Nigeria’s domestic crisis if such crisis does not
disrupt the flow of Oil. More so, Nigeria-United States relations since
Nigeria’s independence have been raised on a tripod of democracy, trade and
foreign investment. Nigeria ranks second only to Saudi Arabia as the most
important supplier of petroleum to the United States, which buys over one
million barrels of the highly desirable light, low sulphur sweet crude oil
daily. Nigeria provides about 10 percent of US oil imports. Annual trade mounts
to more than $6 billion, and US companies have about $7 billion investment in
the country (Onuoha, 2001:285).
All the
former colonial powers are today reliable allies of the US in the postcolonial
Africa countries including Nigeria. The US role in Africa has effectively
secured the continent for expanded penetration of Euro-American Transnational
Corporation. The new unipolar world of globalization has perfected the
conditions of that penetration. The real issue from a US global security
perspective is how to ensure control over the oil-wealth in West Africa
(Krueger, 2002). In the global economy, the use of technology, trade,
investment, aid etc. to influence the course of events in the international
system has been an important reason nations engage in international economic
relation. In this relation, the weaker nations especially those like Nigeria
are usually subjected to manipulation by the stronger nations like US. This
means that the so-called mutuality of interests of Nigeria and US has
constantly depended on the preservation of the structural conditions where the
US is a dominant industrial power and Nigeria, a safe raw material supplier and
subordinate ally.
It is
obvious that Nigeria depends so much on the US for the sale of their oil, to
the extent, that if US refuse to buy Nigerian oil, it will affect the economy
of the country badly. It shows that, there is no mutual benefit between Nigeria
and United States in their economic relations.
Some
scholars like (Onuoha, 2001); Saliu and Aremu, (2006); Richard W. Leopold,
(1962) have argued that Nigeria-US relation has greatly undermined Nigeria
independence.
1.3 Research Question
This
research work seeks to provide answers to the following:
1. Do Nigeria-US political and economic
relations promote economic development in Nigeria?
2. Has Nigeria-US political and economic
relations supported democratization process in Nigeria?
3. Do Nigeria-US political and economic
relations enhance Nigeria’s Military Capacity and Efficiency?
1.4 Objectives
of the Study
As stated
earlier, Nigeria-US relations since l96O have tripod, namely: trade, foreign
investment and democracy (Onuoha, 2008:285). Then, with the successful
enthronement of Democracy in Nigeria in 1999, it was assumed in many quarters
that the irritant in the bilateral relations between both the states would have
been resolved. Using evidence from political and economic variables, this
research work examines the changes and continuity in Nigeria-US bilateral
relations. The central thesis of this research is that even though the
political terrain has transcended from military Autocracy to civilian
Democratic governance in Nigeria, which Washington actively promoted, bilateral
corporation in certain important areas remain shallow, fragile and generally
unstable. One important objective of this study therefore is to identify the
factors which drive US-Nigeria bilateral affairs and offer options for stronger
and deeper relationship for the mutual benefit of both states.
To that
extent, the board objective of this study is to examine Nigeria-United States political
economic relations since the inception of Olusegun Obasanjo’s administration to
that of the democratic dispensation of Goodluck Jonathan.
But in a
more concrete term, this research seeks to examine the following specific
objectives; they include:
1. To find out if Nigeria-US political and
economic relations have promoted economic development in Nigeria between 1999
and 2014.
2. To know whether Nigeria~US,political and
economic relations have supported Democratization process in Nigeria between 1999
and 2014.
3. To ascertain whether Nigeria-US political
and economic relations have enhanced Nigeria’s Military Capacity and Efficiency
between 1999 and 2014.
1.5 Significance
of Study
There is no
doubt that understanding the nature of cooperation between both countries will
greatly enhance effort at further improving economic relations between them. A
recent review of the Nigeria-US political economic relation reveals that as the
US expands her economy, Nigeria comprador bourgeoisie collaborate with US to
exploit Nigeria economy.
This
research provides an opportunity for us to review in-depth the traditional
assumptions and perspectives regarding Nigeria-US relations as well as
addressing questions that are pertinent in advancing these relations for Nigeria’s
national development.
In specific
term, this study derives its significance from both theoretical and practical
levels. At the first level, the study provides a theoretical framework for
period under study. Secondly, the study will examine the effect of the
Nigeria-US political economic relations on the Nigeria’s economy between 1999
and 2014. On the practical level, the study will suggest and advise Nigerian_
policy makers on steps they should take in order to maximize their benefits
from their relation with US. Finally, the study Will be valuable to scholars
and future researchers, as it will serves as a source of secondary data.
1.6 Methodology
The method employed in gathering data for this study
is secondary source. Therefore information gathered were mainly for books,
journal, magazines documents, newspapers and other issues relating to Nigeria –
United States interactions was explored to give the work the needed flavor. The
process of Nigeria –US relationship is an unfolding trend in international
relations, hence, adequate data gathering, both observation and intercourse are
considered original in its place.
The subject matter of this study is contemporary;
therefore, it adopts content method of analysis in presenting and examining the
data.
1.7
Limitation of the Study
In the
course of carrying out this research work, the researcher encountered certain
limitations. This includes shortage of fund and the time allocated for the
research work. Considering the limited time the researcher has in going out for
research, there will also be constraints in accessing necessary and vital
information required. All these and other anticipated problems would in no
doubt affect the accuracy of this work and perhaps limit the generalization of
the interpretations.
1.8 Scope
of the Study
This study
covers Nigeria-US Political Economic Relations from the period of 1999 to 2014.
The study
examines the bilateral relations between the two countries particularly the
Economic, Political and military relations from 1999 to 2014. Other area which
this study covers includes how the interplay of domestic factors shaped the
relationship between Nigeria and the United States of America.
1.9 Operationalization
of Key Concepts
The
globalists are a conglomerate of individuals, interest groups and large
corporations who actively seek to eliminate all countries to create a global
border-less society so that they can centralize, reduce and standardize all
economies, production and the processing of natural resources so that they can
directly control, manipulate and influence the decision make to ensure they
maintain their power, control wealth and historical influence.
Political Behavior: it entails the orientation and
action of persons or group towards partisan issues, political institutions and
events both inside and outside the state. Hence political behaviour as a
sub»field of political science focuses on the orientation and disposition of
politician, political institutions and process. In other words, the researcher
used political behaviour to explain the reason why Nigeria is underdeveloped
economically.
Political Economy: political economy was the original
term used for studying production, trade and their relations, as well as the
distribution of national income and wealth. It is the main concept of this
research work, and is used to analyze Nigeria-US political economic relations.
Democratization: democratization is the transition
to a more democratic regime. It is a process whereby a country adopts such a
regime. It may be from an authoritarian regime to a full democracy. Different
patterns of democratization are often used to explain other political
phenomena, such as whether a country’s economy grows. Democratization itself
influence by various factors includes economic development, history and civil
society. In other word, the researcher used it to analyze experience of Nigeria
in her democratization process.
Bilateral Relations: refers to the relationship between
two dependent regions. Cultural, economic and political factors influence this
relationship. As such, these relations may be diplomatic or hostile. Meanwhile
in this research work, bilateral relations are used to analyze Nigerian
relationship with United States.
Click “DOWNLOAD NOW” below to get the complete Projects
FOR QUICK HELP CHAT WITH US NOW!
+(234) 0814 780 1594
Login To Comment