CHAPTER ONE

INTRODUCTION

1.1 Background to the Study

Poverty has become so severe in Nigeria that it is widely regarded as one of the major obstacles to the country's economic and social development. It also conflicts with the enjoyment of basic human rights, since people who are poor cannot comfortably afford food, clothing and shelter. The scale of the problem is large. According to the National Bureau of Statistics (NBS, 2022), 40.1 per cent of Nigerians were poor by the 2018/19 national monetary poverty line, and 63 per cent, about 133 million people, were multidimensionally poor in the 2022 National Multidimensional Poverty Index. The NBS also reported that multidimensional poverty is higher in rural areas than in urban areas and that about 65 per cent of the poor live in the North. Successive governments have introduced many programmes to reduce poverty, including the National Directorate of Employment, the Better Life Programme for Rural Women, the Family Support Programme, the Directorate of Foods, Roads and Rural Infrastructure, the Bank of Industry, the National Poverty Eradication Programme and the Subsidy Reinvestment and Empowerment Programme. Large sums have been spent over the decades, yet poverty persists. A common criticism is that these programmes lack continuity and tend to fade out with the administrations that introduced them, so a more lasting approach is needed.

Education is widely regarded as the foundation of development. Human capital theory explains why. It holds that investment in education and skills raises the productivity and earning power of individuals and, through them, of the economy (Schultz, 1961; Becker, 1964). Vocational education is especially relevant because it is concerned with employability. The National Policy on Education describes technical and vocational education as education that involves, in addition to general education, the study of technologies and related sciences and the acquisition of practical skills, attitudes, understanding and knowledge for occupations in various sectors of the economy and social life (Federal Republic of Nigeria, 2013). Recent studies support the link between skills and national development. Igberaharha (2021) argues that improving the quality of technical vocational education and training through professional manpower training is important for Nigeria's sustainable growth and development. Taiwo, Oluwole and Ayooluwa (2022) argue that practical entrepreneurship education that equips young people with skills for self-employment is a remedy for poverty and unemployment among Nigerian youths.

Business education is an integral part of vocational education. In the Nigerian literature it is generally understood as a programme of instruction with two broad parts. The first is office education, which prepares people for office occupations such as book-keeping, secretarial work, stenography, telephone and machine operation and related management roles. The second is general business education, which gives all learners the knowledge and competencies they need to manage their own business affairs and to use business services intelligently. Its primary aim is to prepare people for roles in enterprise, whether as employers, entrepreneurs, self-employed persons or employees. It also aims to develop human relations skills, to prepare people for work in local business and government organisations and for regional and national job opportunities, and to provide training that reflects technological change in business. Business education has three broad roles: to equip people to produce and distribute goods and services as workers, to use the products of the economy as informed consumers, and to make sound socio-economic decisions as citizens. Unlike general education, which is often theory-heavy, business education is practice-oriented and gives learners skills for occupations such as accounting, marketing and office work. It also gives learners and adults flexibility to make career choices, develops the abilities they need to manage their personal affairs and prepares them to assume citizenship responsibilities.

These features make business education a potentially powerful tool for economic development. Graduates who have acquired practical business skills can enter paid employment or start small enterprises that serve their communities, creating jobs and strengthening the local economy. In the process they reduce their dependence on outside assistance. Empirical work from Nigeria supports this view. A survey of business educators in North-West Nigeria concluded that business education can be an indispensable tool for poverty alleviation if it is adequately funded and given the necessary infrastructure and qualified staff. Evidence from entrepreneurial skills acquisition among business education students at a college of education also indicates a positive relationship between entrepreneurial skills and poverty alleviation.

Several constraints nevertheless limit what business education can achieve. The literature commonly identifies the poor public image of vocational education, inadequate funding, a shortage of qualified teaching staff, weak monitoring and evaluation, and weak cooperation between schools and industry. Funding in particular has been the subject of recent work on strategies for financing vocational business education in colleges of education (Ezeyi, Ikpeama, & Ene, 2020). Programmes in many institutions also still operate with obsolete equipment, so that graduates are poorly matched to the demands of the world of work. For business education to contribute effectively to wealth creation and economic development, it must be repositioned so that it produces graduates who are skilled, employable and capable of self-employment. This study therefore surveys the relevance of the business education programme to the economic development of Nigeria.

1.2 Statement of the Problem

Poverty is a problem in many countries, and its meaning varies with perspective. It is commonly understood as the deprivation of basic needs such as food, shelter, education and employment. It also includes a lack of power, choice and material resources, and poor people often lack access to information, knowledge and opportunities for skill development. Poverty is therefore broader than a shortage of money and can appear as unemployment, homelessness or lack of education. Poverty alleviation refers to the measures adopted to reduce the negative effects of poverty and to improve the living standards of the poor. Successive Nigerian governments have adopted many measures, but poverty and its effects remain widespread (NBS, 2022). The measures often lack continuity, which suggests that a more permanent approach is required.

Business education offers such an approach because it provides skills for self-employment and employment, but it appears to be underused as a tool for economic development. It is hindered by the constraints already outlined, including poor funding, weak facilities and a lack of up-to-date equipment. Graduates are therefore often not prepared for the labour market. The question that arises is how relevant the business education programme is to economic development in Nigeria, what prevents it from performing this role and in what ways it can help to reduce poverty. This study was designed to answer these questions.

1.3 Research Objectives

The study aims:

1. to ascertain how efficient the role of business education is in the economic development of Nigeria;
2. to determine the constraints to the effective achievement of economic development in Nigeria through business education; and
3. to determine the ways in which business education can contribute to poverty alleviation in Nigeria.

1.4 Research Questions

1. How efficient is the role of business education in the economic development of Nigeria?
2. What are the constraints to the effective achievement of economic development in Nigeria through business education?
3. In what ways can business education contribute to poverty alleviation in Nigeria?

1.5 Research Hypotheses

Two null hypotheses were formulated and tested at the 0.05 level of significance.

Hypothesis One
H₀₁: There is no significant difference between the mean responses of lecturers in universities and those in polytechnics and colleges of education on the contributions business education can make to economic development.
H₁₁: There is a significant difference between the mean responses of lecturers in universities and those in polytechnics and colleges of education on the contributions business education can make to economic development.

Hypothesis Two
H₀₂: There is no significant difference between the mean responses of lecturers in universities and those in polytechnics and colleges of education on the factors that hinder the use of business education as a tool for economic development in Nigeria.
H₁₂: There is a significant difference between the mean responses of lecturers in universities and those in polytechnics and colleges of education on the factors that hinder the use of business education as a tool for economic development in Nigeria.

1.6 Scope of the Study

The study covers the role of business education in economic development in Nigeria. It also examines the extent to which human development through education contributes to poverty reduction in the Nigerian context. It concentrates on business education as one variable that, if well developed, can improve overall poverty reduction strategies, using Enugu State as the case study.

1.7 Limitations of the Study

1. Time constraint. The time allotted to the research was insufficient.
2. Respondents' reluctance. Some respondents were unwilling to give full and valuable information.
3. Financial constraint. Limited funds restricted the study to Enugu State and made it impossible to collect data from other states. Inferences are therefore based on the available data and should be applied to other states with caution.

1.8 Significance of the Study

Government has a duty to ensure that every citizen can live above the poverty line. Nigeria has considerable physical and human resources, but its political and socio-economic conditions have been unstable for several decades, with adverse effects on the welfare of citizens. Human resources are the key asset that determines how well other resources are used. The development of business education, and the utilisation, protection and motivation of the human resources it produces, are therefore essential for economic growth. Human development through education aims at lasting improvement in the workforce's attitude to work, productivity and related behaviour, in line with human capital theory (Schultz, 1961; Becker, 1964). Every progressive nation requires well-developed human resources able to improve on existing systems and introduce better ways of working.

The study will benefit several groups.

1. It makes human development a priority among the strategies for poverty reduction and may help to reduce poverty in Nigeria if human development through business education increases.
2. It will help government institutions to adopt and select strategies for poverty reduction.
3. It will assist curriculum planners, business educators and school administrators in repositioning business education to meet labour market needs (Igberaharha, 2021).
4. It will serve as a resource for researchers working on similar topics.

1.9 Definition of Terms

Business education: A programme of instruction that prepares people for office and business occupations and for roles in enterprise, and that gives all learners the competencies they need to manage personal business affairs.

Vocational education: Education that, in addition to general education, develops the practical skills, attitudes, understanding and knowledge needed for occupations in the economy (Federal Republic of Nigeria, 2013).

Economic development: A sustained improvement in a nation's productive capacity, employment and living standards.

Poverty: The deprivation of basic needs such as food, shelter, education and employment, together with a lack of power, choice and material resources.

Poverty alleviation: Measures that reduce the negative effects of poverty and improve the living standard of the poor.

Human capital: The knowledge, skills and abilities of people that raise their productivity (Becker, 1964).

1.10 Organisation of the Study

Chapter One introduces the study. Chapter Two reviews related literature and the theoretical framework. Chapter Three describes the research methodology. Chapter Four presents and analyses the data. Chapter Five summarises the findings, draws conclusions and makes recommendations.

References

Becker, G. S. (1964). Human capital: A theoretical and empirical analysis, with special reference to education. National Bureau of Economic Research.

Ezeyi, V. N., Ikpeama, F. U., & Ene, N. N. S. (2020). Innovative strategies for funding vocational business education in colleges of education. Journal of Professional Secretaries and Office Administration, 21(1&2), 183–193.

Federal Republic of Nigeria. (2013). National policy on education (6th ed.). Nigerian Educational Research and Development Council.

Igberaharha, C. O. (2021). Improving the quality of technical vocational education and training (TVET) for sustainable growth and development of Nigeria. Journal of Education and e-Learning Research, 8(1), 109–115. https://doi.org/10.20448/journal.509.2021.81.109.115

National Bureau of Statistics. (2022, November 17). Nigeria launches its most extensive national measure of multidimensional poverty [Press release]. https://www.nigerianstat.gov.ng/news/78

Schultz, T. W. (1961). Investment in human capital. American Economic Review, 51(1), 1–17.

Taiwo, A. E., Oluwole, A. F., & Ayooluwa, A. O. (2022). A viable entrepreneurship education as an antidote for eradication of poverty and unemployment among youths in Nigeria. Journal of Business Management and Accounting, 12(1), 97–115. https://doi.org/10.32890/jbma2022.12.1.5