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 adefinition of terms used in such discussion. However, populationgrowth can be seen by a demographer as a change in the size of thepopulation. But when this change occurs in such a way that it reducesthe size of population, the demographer refers it as a negative growthbut when it adds to the size of the population he regards it as a positiveone. What we get from this concept is that population growth can bepositive 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 anddeath rates in underdeveloped countries are quite different from that ofdeveloped countries. Births rate in underdeveloped are generally high,why those of developed countries are low. On the other hand, deathrates are higher in underdeveloped nations. The higher rate ofpopulation growth is therefore a major characteristic of underdevelopednations and is partly responsible for the low rates of economicdevelopment.Moreover, the population of any country constitutes the most vitalcomponent of its resource base. This aspect is based mostly on its size,growth rate, spatial distribution, demographic structure and quality interms of level of education, fitness and social welfare. Populationstatistics are indispensable impute into the planning process in any area.To government issuing programmes for instance in the efforts ofgovernment in the developing countries to feed the people and also2
provide quality services for them are being frustrated by rapidpopulation growth. This growth is attributable on the one hand toimprovement in human survival associated with the application ofmodern medical science to health matters, better sanitation andimmunization 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 lasttwo decades have been demographically unprecedented as it rose from4.2 billion people in 1985 to 6.4 billion in 2010. Much of this occurredin the developing nations as their population grew from 3.7 billion to5.1 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 theworld 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.3
Obviously, the population of Nigeria is large which makes it a “giant”relative to the other Africa countries. The large population of Nigeriaimplies a large market for goods and services as well as large pool ofhuman resources for development. However, the impact of populationon development depends not only on the absolute size but also on itsquality. The major function responsible for the rapid increase in thepopulation of the country is the relatively high fertility level asportrayed by a total fertility rate of about 6.0 life – birth per woman inthe 1990?sHaving seen from theoretical and empirical view that the populationgrowth is an impediment to the economic growth and developmentespecially under developing countries. It is then important to answerthis question, how detrimental is population growth to the economicgrowth? To answer these we look into the interactions betweenpopulation 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 populationon economic growth will be based on the study of the relationship
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between population growth, interest, unemployment and inflation. Nowthe question to answer becomes how those population growthinfluences unemployment? Since we are working on the impact ofpopulation growth on Nigeria, as whose population according the 2006census was estimated to be at a growth rate of 3%, our limitation of thisstudy would be on the Nigeria GDP (Gross Domestic Product) or GNI(GROSS NATIONAL PRODUCT) versus the population growth rate ofNigeria.
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 thedevelopment that is why Nigeria?s economic growth had continue todominate the main thrust of government paramount objective moreimportantly, growth is associated with policies of control populationgrowth because a high population lead to a vicious depletion of anation?s financial and material resources. According to CBN (1997) thepopulation growth rate of Nigeria is at an average of 2.83% from 1993to 1997 as compared to developed country like United States whosepopulation rate is 1.00% on the average. This rapid population growthhas efficiently induce wide spread poverty. According to Chege (1992),Nigeria became worst than the early post-colonial period. In the 1980?sthe agricultural sector declined in productivity by 1.3% whilepopulation grew by 3.1% thus creating severe food shortage, a fall incapital income, a fall in savings and living standard . Because of thistype 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 andeconomic growth.
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 notsignificant.7
H1:= The impact of population growth on Nigerian economy issignificant.H0:= There is no casual relationship between population growth andeconomic growth.H1:= There is casual relationship between population growth andeconomic 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 ofpopulation growth rate and economic growth rate in Nigeria from 1980to 2010 a period of 30 years. The study also focuses on the effects ofpopulation growth on economic growth in Nigeria in a bid to analyzethe options available to accelerate economic development, taking intocognizance of the fact that other factors outside the sphere of populationare 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.