✊✊what was the Economic Impact of Colonialism on Nigeria: 1861 Up till 1960?
Many Nigerians and indeed Africans are aware that colonialism happened at some point in the history of the country but only few knew the extent of the damages it caused and how it impacted the economy. Some are in doubt of the actual cause and origin of many economic challenges in Africa particularly Nigeria where there are abundant human and natural resources, yet the country is ranked highest in the World Poverty Index of 2020.
In this post, the aim is to bridge the knowledge gap as millions of young people in Nigeria do not have access to quality education and those privileged to be educated pay little or no attention to history, coupled with the ineptitude of government toward historical studies. It is on this backdrop therefore, that this publication is designed to critically explore the historical events that changed the trajectory of Nigeria’s economic development in the period under review.
And also, it will examine the nature and scope of Nigeria’s economy before colonialism and how colonial activities underpins the changes that occurred. A two-level analysis will be adopted here, on one hand, it x-rays the negative impact of colonialism on Nigeria’s economy, while on the other, an appraisal of the positive contributions of colonialism will be attempted. Analysis will start from 1861 when Britain first made contact with Nigeria and terminate in 1960, the year colonialization ended in Nigeria. The idea is to present an objective view of colonialism which will foster a new perspective - different from the popular narrative that sees corruption and bad governance on the part of leaders as the only reason for Nigeria’s present economic underdevelopment.
Prior to the arrival of Britain to the “Niger Area” in 1861, the territory today referred to as Nigeria lived in kingdoms, empires, emirates and princedoms with strong and well-structured traditional political system. The king, emir or oba appointed their chiefs or cabinets and responsibilities were signed to their capabilities and skill. In fact, the pre-colonial Nigerian society was organized and progressive. Systems of governance in the pre-colonial Nigeria varied from one region to another. For instance, before the coming of European colonial powers, kingdoms such as Oyo empire, Benin, Nupe, Hausa states, Kanem-Bornu and Jukun had already established viable political systems, which made rulers and his appointees to important personnel in the political structure.
In the pre-colonial Nigerian economy, agriculture (subsistence farming), indigenous crafts, industry, trade and services dominated economic activities of the time. Specialization on crop production, goods or services were determined by ecology and culture of the area. People in the south specialized in palm oil production, cocoa, spice etc. while in the north, they produced groundnut and other cash crops. These were tropical crops produced easily in different regions of the country due to abundance of rain fall and land fertility. Major implements of farming at that time were crude namely hoes, cutlass, sickles etc. These implements obliquely limited productivity; however, they were sufficiently helpful in producing the raw materials needed by the colonial powers for production in their home countries and served the local needs.
It has been argued that colonialism is a continuation of European encounter with, and penetration of Africa after the era of slave trade, and what was described as ‘legitimate trade’. The major motivation for colonialism was economic. The motivation was orchestrated by the industrial revolution which encouraged Europeans to engage in imperialistic adventure, seeking cheap raw materials and markets for finished goods. Africa in many wise provided both, which was the attraction for European colonialists. With this, one may argue that the aim of colonization was purely economic, hence the exploitation, dominance and dependency culture it created in Nigeria’s economy.
Impacts of Colonialism on Nigeria’s Economy
From the beginning of history, no other event has changed the socio-structure and economic life of Africans like colonialism. In fact, colonialism was a ‘major phenomenon in Africa’. Studies however, indicate that the primary aim of colonialism was “economic but the (dual mandate) system was deceptively proclaimed to convey the notion that exploitation involved a sacred duty towards the exploited peoples. It is said that the colonial subjects must serve the colonial interest, but in return, they must be civilized, and protected”.
Colonial impacts on Nigeria’s economy are enormous and to an extent damaging and extremely exploitative. Scholarly works of authors such as Walter Rodney, Kwame Nkrumah, Ambrose Chinedu Igwubor to mention but a few supports the view that colonialism was disruptive and as well destructive in that colonial policies of Britain were designed only for their economic benefit. A typical example was demonstrated in the British colonial agricultural and industrial policies, which discouraged indigenous industrialization that was already present in Nigeria before British invasion, but promoted export crop and mineral production that served the British factories. The implication is that Nigeria has remained economically dependent on Britain and other western nations and have made little or no effort to industrialize since independence. Today, Nigeria exports cocoa and in return import chocolate, coffee, including other beverages produced from cocoa. Minerals such as crude oil, lead, zinc etc. are exported in raw form, but pays heavily to import petroleum, chips, and batteries that would have ordinarily been produced in Nigeria if Britain established factories in the country.
one of the major economic impacts of Colonialism on Nigeria was the introduction of Money as a means of exchange in 1912. prior to this period, barter trade was the most common type of business which entailed the exchange of goods for other goods, a system fraught with difficulties. hence the colonialists created money currencies, which simplified commerce and business transactions. in 1912, the first silver coins was released and also, the West African Currency Board was also established. in addition to the money currency, the British brought Nigeria to the banking system, which streamlined commerce eve further. Nigeria's adoption of paper currency improved economic and trade relations with other African countries, contributing to the country's economic prosperity at that time.
European economic policies during the colonial times were strategically designed to perpetuate Africa’s dependency on the West. Technologies and production techniques of the colonial powers were hidden from Africans and up until now, countries like Nigeria still struggles with industrialization and development. This have contributed in deepening economic hardship in the country as employment opportunities are limited, living condition is declining on daily basis, thereby putting Nigeria at a disadvantaged position.
Another impact of colonialism was that indigenous Nigerians were mentally destroyed when the treaty of cessesion was signed in 1861 to give away Lagos island to the British Government. this was one of the negative effects on Nigeria's economy. when the colonists arrived in 1861, they took territories from the natives by force. As a result, the majority of natives in colonial Nigeria had little or no land , both individually and communally which gave rise to issues such as hunger and bad living conditions which arose as a result of the loss of land , thereby, weakening the economic growth of the Nation within the period under review. furthermore, Nigerians had views themselves as tribes not as a Nation, hence, there was no way a nation would prosper without peace within themselves.They were made to understand that they were not good enough to compete with the West due to long years of racism and discrimination against Nigerians by the colonial masters. This inflicted a mental injury on the local people. Especially as they were forced to labour tirelessly under deplorable conditions on colonial plantations at a very minimal wage. Many were denied access to their land, which was the only means of survival. Not only that colonialism dehumanized African labour force, it also introduced a mono-cultural economy that helped to destroy economic diversification, innovation and competitiveness.
The foregoing therefore indicates that colonialism was by definition a system of economic exploitation. Although there are some benefits accruing from colonial activities, however, the damages it inflicted on African economies far outweighs any advantage. For instance, the enactment of chieftaincy and mineral ordinances, and the encouragement of the production of cash crop contributed to improve the income of local communities where these crops are produced, but the beneficiary were Britain, because they controlled labour and determined the cost of the raw materials. The British officials fixed the prices of finished goods, which were shipped back to Africa but unfortunately, many of the African labourers could not earn enough money at planation so as to enable them afford the British products.
Historically, Nigeria's first health- care facility was a dispensary founded by the Church Missionary Society in Obosi in 1880, followed by others in Onithsa and Ibadan in 1886. The Sacred Heart Hospital in Abeokuta, built by the Roman Catholic mission in 1885 was Nigeria's first hospital. Nigeria had extremely high mortality rates prior to the arrival of the British in the country. the reasons for this were due to weak healthcare systems. some of the ailments could not be identified by the time, making it difficult to find a cure. when the British arrived, the situation improved as literacy and knowledge increased. Because citizens became aware of the causes and remedies for various diseases, infant mortality was lowered and boasted the economy of Nigeria in the sense that no-health, no wealth.
Similarly, the selective construction of railways, hospitals and schools which are often regarded as some of the benefits of colonialism were originally meant to support the actualization of colonial goals. Most of the roads only connected the hinterlands with the coast for easy transportation of goods. The hospitals and schools were to serve the health and educational needs of colonial staff. Kwame Nkrumah’s publication of 1947, outlined some of the British strategies utilized in achieving their colonial economic goals: the first strategy adopted by Britain was that colonies were economically subjugated and positioned as non-manufacturing dependencies. Secondly, Nigerians were intentionally prevented from obtaining mechanized process of farming, the knowledge of modern methods of developing their industries. Third, in Nigeria’s colonial economy, Nigerians were not allowed to trade directly with other nations.
In fact, both native and expatriate traders contributed money through tax to the British colonial government, but loans were only granted to European traders and companies, and denied Nigerian traders the same service in the banks. Jobs were offered to Europeans even when they were qualified Nigerians who could play the role. The highest job a Nigerian was allowed to do was to serve as a ‘clerical officer’. This resulted to Nigerian professionals who had gained western education in London to establish their own businesses instead of seeking employment at the civil service of the colonial government. It was this injustices, economic discrimination and exclusion meted on Nigerian elites that aroused the nationalist spirit that led to the actualization of independence in 1960. Nationalists such as Nnamdi Azukiwe, Herbert Macaulay, Obafemi Awolowo etc. played a prominent role in the nationalist struggle that ended colonialism in Nigeria.
Colonial Economic Legacies
Without any doubt, colonialism undermined the development of Nigeria and the consequences transcends the period colonial rule lasted in the country. As some scholars would argue, those consequences and impacts are so deep and eroding on every facet of the Nigerian system that it is now convenient to call certain factors a “colonial legacy or heritage”. The truth is that colonialism did not completely transform Nigerian society and its people as many Eurocentric scholars would argue, but it did not leave the country exactly the way it was before colonialism.
Today, an average Nigerian holds strongly the perception that foreign culture, goods or services are better than indigenous products because of the inferiority complex the British colonial regime introduced in the Nigerian society. They did that through forced labour, racism and discrimination. Many years after independence, people still see themselves as second-class humans. This inferiority complex has resulted to ‘brain drain’. Professional such as doctors, engineers, lawyers etc. prefer to work in Western countries rather than contribute in developing their own countries. Recent reports indicate that about 24,000 Nigerian doctors are presently working in the United States alone, while hundreds of them leave Nigeria for greener pastors annually. Too, Nigerians patronize foreign products more than the local equivalents, this has great economic implication. Local companies cannot grow without patronage of the people in the country. This is so because Nigerian companies even with the help of globalization cannot compete with their foreign counterparts under a global capitalist system that favored the West.
Another important colonial legacy was the transformation of the African Traditional System of governance that was in place before 1861, which was replaced with democracy. Empires, kingdoms, villages and traditional societies are now being replaced with state system or federalism which are alien to the people of Nigeria. Scholars sometimes attribute the economic and political challenges in Nigeria to the amalgamation of southern and northern Nigeria in 1914 by Sir Frederick Lord Lugard, who was the Governor General of Nigeria. One of the major reasons for the amalgamation was to fulfil the economic interest of the British. Northern Nigeria was economically barren, and depended on London for financial support, whereas, the south was self-reliant. Now, the amalgamation of the separate colonies was to use the resources of the south to fund the north – an arrangement that saved Britain millions of pounds. Amalgamation also created artificial boundaries, hence the costly civil war that broke out in 1967 and lasted till 1970, followed by several communal wars and insecurity in the country. Insecurity have hampered economic growth and development in many parts of the country.
On the other hand, colonialism improved the literacy level of Nigerians, but took away native languages. Presently, English is the official language in the country. In all levels of education in Nigeria, English is the primary language of instruction, including religious institutions such as churches and mosques. Majority of the economic activities in the country are conducted and carried out with English. Court rooms, government programs and businesses adopt the use of English in their day-to-day transactions. This was not so prior to 1861, the local people found in the territory now known as Nigeria had their native language and culture, but were dominated by Western culture following the establishment of colonial regime. Schools and religious institutions were channel through which the British colonial rule taught the natives how to speak, read and write in English. While this act improved the literacy level of the native people, however, the British colonial regimes aimed at making communication easier to enable them carry out their exploitative economic activities.
So many changes characterized British rule: aside Western education and new language, the British introduced Christianity during the colonial period. Christianity has spread virtually all parts of the country; it is now one of the landmark legacies of the British colonial rule. They introduced new forms of money which replaced barter trading. New methods of transportation and communication were developed to facilitate economic activities. The fact that the British provided modern technologies and discouraged the development of indigenous factories, made Nigerian immensely dependent on the West for their needs. Virtually everything is imported into Nigeria, ranging from food, clothes, to cars. The consequence for this, is a vicious circle of poverty, dependency and economic backwardness.
Conclusion
It has been argued that colonialism was rooted in economic interest of European powers. These accounts to why Nigeria since the colonial times remained an exporter of cash crop, while Britain continue to advance in technology, which positioned it as a global leader at the world stage. As Onimode in his article published in 1981 would argue, colonial powers never included the development of Nigeria in their economic policies but rather they created a dual economy that are not connected in any form. He added that, the British maintained two economic systems that co-existed in the society, each of which are conceptually and economically disconnected: ‘the village subsistence economy which served local needs and the modern economy which supports international commerce’.
Aluko corroborated the above assertion when he argued that the resultant effect of colonialism in contemporary African economy is the existence of ‘an inconsistent combination of circumstances’ of African societies, they do not produce what they consume and not consuming what they produce’.
Colonial powers left Nigeria since 1960, but the legacies they left are still visible in every sector of the economy. The entire population is dominated with colonial or foreign orientation. Cash crop, mono-economic system, instabilities characterize the national economy. Onimode asserts that the loss of production to the developed world, the external orientation that dominates the former colonies and the continuous manipulations of the international economic systems has contributed to the destruction of Africa’s pre-colonial self-reliance.
In addition, the mercantilism ethic that formed the essential part of colonialism also encouraged the emergence of money economy and commercialization. The colonial powers introduced trade with the motive of profit, wealth creation and dominance, “which is the basic goal of the capitalist system, encouraged the idea of competition, which fostered individualism but destroyed the classless nature of African society”.
Economic activities of the colonial era were contrived in deceit, just as the purpose for colonialism was covered with lies. One of such lies was and is the insistence of the colonial powers that the major aim for acquiring colonies was to educate, train and bring civilization to the discovered territories. In the real sense, colonialism ‘represented the fulfilment of the imperial ambitions of Europeans after slavery was abolished as an economic ideology’. In fact, colonialism itself would not have succeeded without the conscious effort of the West to rationalize colonial ideologies. When the deceit and exploitation could no longer be tolerated, Africans began to deliberately work towards emancipation. The struggle for economic and political freedom of the people led to the collapse of colonial rule. Unfortunately, Nigeria and indeed African nations are yet to fully recover from the negative effects of colonialism and with neo-colonial activities in place, Nigeria may never attain economic freedom.
Truly Nigeria may never attain economic freedom.
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