Updates from Professionals

  • Litcaf - Remilekun Falade

    Remilekun Falade 2 months ago

    Hello everyone. We are on to LitCaf. The very big one.

  • Litcaf - Adedamola Abraham

    Adedamola Abraham 2 months ago

    Kids should not be encouraged to dump the sciences for anything. That is not hoe to grow an economy.

  • Litcaf - Temitope Jeremiah

    Temitope Jeremiah 2 months ago

    What caption for this? Surely a great shot.

  • Litcaf - Temitope Jeremiah

    Temitope Jeremiah 3 months ago

    This is how we do it. Happiness at work..Come try LitCaf

  • Litcaf - Temitope Jeremiah

    Temitope Jeremiah 4 months ago

    What we do at #LitCaf #Coworking

  • Litcaf - Temitope Jeremiah

    Temitope Jeremiah 4 months ago

    Not all about tech. Our use base is diverse array of gentle men and ladies. #LitCaf is where you want to be. #Coworking #Yaba #Lagos

  • Litcaf - Tope

    Tope 4 months ago

    Lets do this together, Otondo friends.

  • Litcaf - Temitope Jeremiah

    Temitope Jeremiah 4 months ago

    Dictionary definition of freelancer. How well do you agree with that?

  • Litcaf - Lovey Dovey

    Lovey Dovey 5 months ago

    Hello Everyone. Happy to be here on LitCaf

  • Litcaf - Apoola

    Apoola 5 months ago

    Idealized Biafra. Nothing shameful about that.

  • Litcaf - Temitope Jeremiah

    Temitope Jeremiah 5 months ago

    Good morning everyone. Wake up with a newer determination to achieve your objective.

  • Litcaf - Tope Apoola

    Tope Apoola 5 months ago

    Still testing. One long test.

  • Litcaf - Apoola

    Apoola 5 months ago

    We got books to lend.

  • Litcaf -

    6 months ago

    Memory lane...Ken Saro Wiwa

  • Litcaf - Temitope Jeremiah

    Temitope Jeremiah 6 months ago

    One innovation of ours.

  • Litcaf - Temitope Jeremiah

    Temitope Jeremiah 6 months ago

    May7ven was born in May 7. I thought that was obvious. However, that isn\'t what we are talking about now. Do you know that this website actually does not allow copy and paste because of its care about aesthetics?

  • Litcaf - Tope Apoola

    Tope Apoola 6 months ago

    Me..Me..Me

  • Litcaf - MI Apoola

    MI Apoola 6 months ago

    We research and present needed data to help with forecast, survey, and decision making. SND MiniMax Consultancy.

  • Litcaf - MI Apoola

    MI Apoola 6 months ago

    Hello everyone. I like to introduce SND MiniMax Consultancy. We are involved in data collection and human capacity building.

  • Litcaf -

    6 months ago

    Hello, LitCaf. Seems very exciting, what\'s coming down here. Meanwhile, making a shout-out to best gal, May7.

Capitalism

Capitalism allows for the accumulation of profits. Here, CEOs meet in an event by the Nigerian Stock Exchange.
Capitalism allows for the accumulation of profits. Here, CEOs meet in an event by the Nigerian Stock Exchange. Photo Source: Herals News

Capitalism, according to Investopedia, is a system of economics based on the private ownership of capital and production inputs, and on the production of goods and services for profit. This Adam Smith’s doctrine, Aynrand adds, is a social system based on the recognition of individual rights, including property rights.

Nigeria was incorporated into the free market economy system by imperial Britain. Because of his experience of the colonial times, Obafemi Awolowo in his 1940 memorandum to the Nigerian Youth Movement advocated a gradualist approach to the entrenchment of capitalism as the economic policy of Nigeria. He believed the cooperative option will be beneficial for the Nigerian entrepreneur who is stifled by the domineering presence of foreign economic players. Nigeria’s approach to capitalism, termed nurture-capitalism by Sayre P. Schatz, changed in 1949, with the colonial government’s new policy to “provide all possible opportunities for the Nigerian businessman to take an increasing share in the trade of the country.” The inability of indigenous companies to meet the technological and managerial advantage of foreign corporations led the government to involving itself in ventures which were supposed to be profit-oriented. The frustration of indigenous capitalists and poor performance of public corporations made the reliance on foreign businesses inevitable. Post-Civil War prosperity permitted a more promising resumption of emphasis on welfare.

The growing indigenization sentiment was accentuated with the 1972 Indigenization Decree. By the next two years, a windfall had begun to come for a few fortunate Nigerians. With indigenous businessmen financing acquisition by credit and other similar means, capital shortage would naturally become the excuse for poor performance. Schatz alleged false demand for capital was widespread in Nigeria. Reinvestment of profit was a major source of capital for Nigerian firms, as it is for firms in many developed countries, says John R. Harris in his Industrial entrepreneurship in Nigeria book. Bank loans were difficult to get for understandable reasons on the part of the banks. Harris, agreed that the lack of capital was not the problem of many businesspersons, but of viable investments. In all, it appeared in Sayre’s account that the Nigerian capitalist slacked in their duty to modernize the economy in the ways and at the levels envisaged in national development policies. Public ownership again became the response to this market failure. Equity transfers of 1974 had seen shares from foreign companies passing into State hands too. Although the State Owned Enterprises filled a gap that was necessary to fill, they were wasteful and paid no attention to making profit.

From the early 1980s it had become clear that many public enterprise need to be privatised. While the military government of General Buhari exercised restraints in changing the economic order, his successor, President Babangida, went all the way to adopt the privatization program. President Babangida’s Structural Adjustment Programme was designed among other things, to reduce the dominance of unproductive investment in the public sector. This, in a joint paper by Olanrewaju Olutayo and Jimo Hamzat of the Ibadan and Sokoto Universities was described as a typical journey into the mainstream capitalism and glaring effort that destroyed the failing economy. The paper also posits that there is embedded inequity in Nigerian ‘grafted’ capitalist system. One of the major focus of Obasanjo’s reform, under the National Economic Empowerment and Development Strategy (NEEDS), was to promoting private enterprise as the engine of growth of the economy. Government is only to serve as an enabler, a facilitator and a regulator.