CHAPTER ONE

1.1 BACKGROUND OF THE STUDY

Over the years
if has become established that the existence of an efficient human capital is
the key to economic growth and development in any nation. This seems from the
fact that every other facility and resources required for economic development
is driven by the availability of human capital. More so, in the absence of
effective human capital development, an increasing population can have adverse
negative effect on the economic growth of a nation. This is because a lot more
resources are taken out to manage and cater for the teeming population that the
same can generate.

 It is therefore
correct to state that the economic growth of a nation is significantly
dependent on the growth of its population. This effect or impact can be either
negative or positive depending at the existence of certain factors and
conditions, when studied and understood can be managed or controlled to ensure
continuous and sustainable economic growth and development. Meier (1984).

 Economic development
and growth depend on many factors or variables. These variables include
variable resources, capital, population and technology.

Development is also dependent on growth. Lipase (1963).

People have
often said to crucial to the development of every society. Growth in population
is one of the components of economic growth (wish the associated, although
delayed increase in the labour force) has traditionally been considered a
positive factor in stimulating economic growth and development. Lipase (1963).

 The relationship between economic development
and the growth of

population is theoretically held to be positive especially
when the population is largely productive and not dependent. Increased economic
growth does not by itself guarantee economic development it makes economic
development possible. Havey (1983). Economic growth enables improvements or
positive changes to take place in various of economic activity due to increased
production of goods and services. Larger population provide the need consumers
demand to generate favourable economies of scale in production to costs of
labour force means more productive man power in the economy.

 The ability for a country to effectively
exploit natural resources is dependent on among other things, the managerial
and technical skills of its people. It is the people who exploit natural
resources, accurate capital and carry out national political organizations and
carry out national development programms. Thus, labour is the major contributor
to prosperity and growth. Tadaro, (1982).

According to the
theory of demographic transition growth occurs only after country would have
undergone different levels of population growth to arrive to an optimum wide
will naturally lead to growth.

 A more conventional
economic argument is that population growth in many third world countries a
region is in-fact desirably to stimulate economic growth and development.  

 This is not a case in
Nigeria; Nigeria is a less developed country and a highly populated one at
that, more so her growth rate has always been very low, compared with the
increase in population. This features of the nation is an cause for concern.

 During the study, it
is necessary to state that because development has no unit if measurement and
because of lack of reliable date on its components economic growth will be used
as a proxy for measuring development. This is because economic growth is the one
component from which other components spin off and to which other components
are related. 

1.2 STATEMENT OF THE
PROBLEM

Growth is a
complex process as development is a multi dimensional one. The nature and
causes of growth go beyond what is expressed by improvement in

Gross Domestic Product.

Every economics primary objective is to develop in the
medium or

intermediate, this objective is stated as the need for
growth. In the short run it is stated as the need for growth to attain whatever
improvement is necessary for growth. In relation to this study the condition
necessary for economics development and growth is population growth while
growth itself is a condition necessary for development.

 Population growth is
the rate of which a given population multiplies itself. The population growth
rate is as important to economists as the size of the population. Governments
and economists would like to know if the population is growing faster or slower
than the rates of other economic indicators.

 Economics growth
refers to the study process by the productive capacity of the economy is
increased overtime to bring about increase in the output of goods and services
and rising levels of national income. (Hodder’s (1980).

 The growth in the
output of goods and services (i.e growth in GDP). It is the process by which
national income or output is increased. An economy is said to be growing if
there is a sustained increase in the actual output of goods and service per
head. Meier GM (1984).

 The rate of economic growth therefore measures
increase in real national income, during a given period of time, usually a
year.

Economic
development is not the same as economic growth. It means more than mere growth
of the economy (in terms of increased output) it is in the process of
increasing substantial positive transformation in the various sectors of the
economy. Meier GM (1984). The positive changes which take place improve the
general rise in the standard of living of the masses with economic development;
there are structural transformations in the different sectors of the economy as
well as general improvement in different areas of the country, leading to
increase economic welfare of the citizens. Economic development on the other
hand is generally defined as consisting of “Improvement” in the various aspects
of the life of the entire population of a country such improvements are
generally manifested in greater numbers of useful tools for employable persons,
higher real incomes, better health conditions, (literacy) and better government
services.

 Given Nigerians
economic structure, population and rate of economic expansion, most people have
blamed Nigerians low growth and development on a high population that is large
and not very productive. Other has opined that the little growth the country
has attained is a direct consequence of a large population.  These divergences question the theoretical
relationship between populated but not growing but China is highly populated
and growing rapidly. Also the growth of population in Western Europe has lead
to its rapid industrialization. This study is prompted by the need to
understand population growth and economic development in Nigeria.

 The Nigeria population has been growing while
the rate of economic growth has such little improvement the question on how
best to exploit the theoretical relationship between population growth and
economic development has persisted for long and it has become necessary to
asses the issues. Thus, this scenario prompts us to find out whether the increasing
population growth has a positive or negative effect on Nigerians development.

1.3 RESEARCH QUESTION

The following questions point to
our research 

1.     Does
over population hamper socio- economic growth?

2.    
Does over population have any effect on income?

1.4 OBJECTIVES OF THE
STUDY

The following
of the study research includes the followings

1.    
To determine whether a relationship exists between over
population and socio-economic development.

2.    
To determine the direction of causality between over population
and socio-economic growth.

1.5  HYPOTHESIS

The study will be guided by the
following hypothesis 

HO: There is no significant relationship between over
population and socio- economic development in Nigeria.

Ha: b1=0: There is no direction of causality between over population
and socio-economic development in Nigeria.

1.6  SIGNIFICANT OF THE STUDY

The importance
of the research is to be appreciated by all since concepts of population growth
economic growth and development affects everybody

irrespective of class, status or
occupation.

 However, the study will be importance to the
following categories of

persons.

i.                  
Government
(policy makers) 

The government will benefit from the study since it will
provide the basics for making policy changes and formulating future policies.
It helps the economy in planning for development.

ii.                
Students:
The study is important to students since it will reveal more details and
provide more information for those who are interested in finding out population
trends in Nigeria and its consequences to economic growth in Nigeria and also
for further studies.

iii.             
Research:
This study will provide more information for further research about the
population trend in Nigeria.

1.7 SCOPE AND
LIMITATIONS OF THE STUDY

 Chronologically the
study covers the period of about twenty nine years (1981-2011). The data or any
other pieces of information utilized in the conduct of the study will be
restricted to those published by national institution to ensure consistency.

          The population under study covers an
estimate for the entire population of the Nigeria economy.

 Geographically the
study is restricted to the territory of Nigerians sovereignty. In terms of
context, the study scope is primary inclined to macroeconomics is nothing but
an aggregate of micro-economics.

          During the course of its conduct, this
study has been limited or hindered from early completion due to factors such as

i.  Financial constraints ii.Unwillingness of certain institution to
provide needed information. iii.      Discrepancies
between data from different sources.