SECOND TERM SCHEME OF WORK ON ECONOMICS FOR SS1

WKS TOPIC/CONTENT

1. FIRMS AND INDUSTRY

Definition of firms and industry
Types and basic features of business enterprise/organisation.

2. FIRMS AND INDUSTRY

General and specific problems of business i.e inadequate capital, location,
inflation, government policy, seasonal changes, etc.

3. FIRMS AND INDUSTRY

Definition of private and public companies
Characteristics
Distinction between private and public company

4. FIRMS AND INDUSTRY

Definition of quoted and unquoted companies and distinctions between shares,
debentures and bonds.

5. POPULATION
Meaning of population in economics
Determinants and implications of population, size and growth.

6. POPULATION
Distribution of population – Geographical, Age, Sex and Occupation.

7. POPULATION
Importance and problems of census
Rural – Urban migration.

8. LABOUR MARKET
 Concept of labour force
Efficiency and mobility of labour force
Factors affecting the size of labour force particularly the population,
characteristics (Age, Sex, Occupation, Educational)

9. THE NATURE OF THE NIGERIAN ECONOMY

General overview and structure of Nigerian economy and its economic
potentials
Nature and structure of industries in Nigeria
Contributions of the primary, secondary and tertiary sectors.

10. AGRICULTURE
Meaning of Agriculture
Components of agriculture, crop production, livestock, foresting and fishing.
Systems of agriculture, culture, cultivation methods
Importance of Agriculture to Nigerian economy.

11. REVISION

12. EXAMINATION
 FIRMS AND INDUSTRY

DEFINITION FO TERMS

PLANT: This is the same as the Factory; it consists of the tools, equipment, machines, and
buildings of a business concern. It is a business establishment or the actual place where
production is organised e.g The Aladja Steel Plant, The Benue Cement Factory, etc.

FIRM: the firm is an independently administered business unit carrying out production,
construction and distribution activities. It is a unit of ownership and control and may consist
of one or more plants e.g Shoprite, Batashoe Company, Ekenedili Chukwu Bus Services, etc.

INDUSTRY: an industry consists of a group of firms producing broadly similar

commodities or offering similar services e.g Oil Industry, Transport Industry, Car
Manufacturing Industry, etc.

TYPES OF INDUSTRIES

1. MINING INDUSTRY: The mining industry consists of firms which extract mineral
resources form the earth’s crust. They include those that extract Petroleum, Coal, Iron,
Tin, Gold, Diamond, etc.
2. MANUFACTURING INDUSTRY: These are firms which are involved in the
making of goods or articles by hand or by machinery. They comprise of all forms of
production which deal with finished and semi – finished forms e.g Breweries, Textile
Firms, Cement, Detergents, Foot Wears, etc.
3. CONSTRUCTION INDUSTRY: Firms in construction industry build and form
(devise) structures by fitting parts systematically. They deal with the assembling of
components and the transformation of minerals to structures which are usually long
lasting e.g construction of houses, bridges, roads, air and sea ports, etc.
4. ELCTRICITY INDUSTRY: This consists of firms which generate electric power by
using various sources such as solar, coal, water, gasoline, etc.
5. TRANSPORT INDUSTRY: firms in this industry are involved in the movement of
goods, services and persons from one place to another. It includes the use of Aircrafts,
road vehicles, trains, boats and ships.
 BUSINESS ORGANISATION/ENTERPRISE

Business organisation or enterprise is an undertaken set up by an individual or group of

individuals, government or, its agencies for the main purpose of making profit and
providing goods and services for the satisfaction of human wants.

FORMS OR TYPES OF BUSINESS ORGANISATION/ENTERPRISE

1. The sole proprietorship (the one-man business)

2. The partnership (2 – 20)
3. The limited liability companies (private and public)
4. Co-operative association/societies.
5. Public enterprises Government Corporations, Welfare Service Boards or
Commissions, Marketing Boards, etc.
6. Joint enterprise (But individuals and government ownership)

BASIC FEATURES OF A BUSINESS ORGANISATION/ENTERPRISE

There are two major types or group of business organisations: - Private enterprises and
Public enterprises.

PRIVATE ENTERPRISE: these are private enterprises owned and managed by private
individuals. The major aim or objective of private enterprises is to maximise profits.

CHARACTERISTICS OR FEATURES OF PRIVATE ENTERPRISES

1. Private individuals provide the capital.

2. Private individuals own the business.
3. The objective is to make profit.
4. Owners manage the business themselves.
5. Accountability is to the owners.
6. Owners borne the risk of the business.

PUBLIC ENTERPRISE: these are the types of business organisations which are owned,
controlled and managed by the government. E.g N.E.P.A, NTA, NPA, etc. they are set up by
acts of legislation.
 CHARACTERISTICS OR FEATURES OF PUBLIC ENTERPRISE

1. Government provides the capital.

2. Ownership belongs to the government.
3. The objective is to provide social services/amenities to the people at reduced cost i.e
public welfare.
4. The risk of the business is borne by the government and tax payers who have provided
the capital for financing the business.
5. The business is controlled by a Board of directors appointed by the government.
6. The management of the business is accountable to the government that set up the
business.
7. A public enterprise is a legal entity or a corporate body.

DIFFERENCES BETWEEN PRIVATE AND PUBLIC ENTERPRISE

PRIVATE ENTERPRISE PUBLIC ENTERPRISE

1. This is owned by individuals Owned by the government or states.

Capital provided by the government
2. Capital provided by individuals
(e.g Local, State and Federal)
Objective is to provide social
3. Objective is to maximise profit
services to the people.
Controlled by the Board of Directors
4. They are controlled by the owners
appointed by the government.
5. They do not enjoy any monopoly Enjoy some of form of monopoly
They are established by ordinary registration
6. Established by acts of parliament
or by incorporation
Require huge amount of capital to
7. Require small amount of capital to set up
set up
 PROBLEMS OF BUSINESS ENTERPRISES

1. Inadequate capital.
2. Insufficient raw materials.
3. Poor infrastructural activities.
4. Unfavourable government policies.
5. Political instability.
6. Seasonal changes.
7. Inadequate government support.
8. High level of illiteracy.
9. Inadequate skilled labour or lack of specialization.
10.Market limitation or poor patronage.
11.Inadequate technical know – how or technology.
12.Inflation.

QUOTED AND UNQUOTED COMPANIES

COMPANY: This can be defined as a legal person or entity created by the association of a
number of people in accordance with the Law for the purpose of pooling their capital
together in order to set up a business venture. Examples of limited liability companies
include: Dunlop Nigeria Plc., Julius Berger Nigeria Plc., etc.

QUOTED COMPANIES: These are organisations whose shares are quoted on the Stock
Exchange Market. Example is the Nigerian Stock Exchange which was incorporated in 1960,
Dunlop Nigeria Plc., Access Bank, Guiness Nigeria Plc., etc.

INSTRUMENTS FOR BUSINESS FINANCING

1. SHARE CAPITAL: A share can be defined as a unit of ownership of a business

concern. It is usually expressed in terms of Money – Capital.
There are different types of shares:
a. Ordinary shares (Common Stock)
b. Preference Shares (Preferred Stock)
Shareholders are part owners of the company.
2. DEBENTURE: A debenture is a loan capital or corporate bond. It is an instrument for
a limited liability company to raise long-term capital. Debenture holders are not co-
owners of the business but creditors to the company. They do not share the risk of the
business like shareholders and have no say in the management of the business.
Debenture holders receive a fixed rate of interest on their capital at a maturity day.
3. BOND: This is a certificate issued by a government or company promising to payback
borrowed money at a fixed rate of interest at specified date. It is a tradable document
that shows evidence of debt. Tradable means it can be transferred or used as collateral.

UNQUOTED COMPANIES: this is a publicly traded company that previously traded

on stock exchange but no longer does. It is a company whose shares are not listed on the
stock exchange. It is a company with previously issued securities that are no longer
quoted or traded on formal exchanges such as NYSE, shares in these companies are
available in the over – the counter market but they trade in very low volume.
 POPULATION

Definition: population refers to the total number of people living within a geographical area
or country at a particular time. Nigeria's population is estimated to be 167 million as at 1 st
November, 2011.

DETERMINANTS OF POPULATION SIZE OR GROWTH

There are three major factors which determine the size and rate of growth of a country's
population. They are:

1. BIRTH RATE: This is the number of births that occur in a population in a given year.
It is determined by the following factors:
a. Marrying age.
b. Age distribution of population.
c. Attitudes towards children born outside marriage.
d. Number if females in the population.
e. Acceptance of birth control.
f. Polygamy.
g. Health condition of the people.

2. DEATH RATE: This refers to the number of deaths of the population recorded in a
given year. The factors that affect death rate are:
a. The health and medical facilities available in the country.
b. Standard of personal hygiene and environmental sanitation.
c. Standard of living.
d. Incidence of epidemics, war, famine and natural disaster such as floods, fire,
earthquakes, etc.
e. Age distribution i.e number of elderly people in the population.
f. Level ID development of the transport system.

The differences between the Birth Rate and Death Rate are referred to as the NATURAL
INCREASE OR GROWTH RATE of population. i.e NATURAL INCREASE = BIRTH
RATE - DEATH RATE.
 3. MIGRATION: This is the movement of people from one geographical location to
another. The two (2) types of Migration are:
i. EMIGRATION: This is the movement of people out of a country.
ii. IMMIGRATION: This is the movement of people into country.

Emigration decreases the population while immigration increases the population. The
difference between the number of Immigrants and Emigrants is called NET MIGRATION.

Growth Rate (r) = Birth Rate - Death Rate + Net Migration

REASONS OR FACTORS THAT LEAD TO MIGRATION

a. Migrants move to places of greater economic prosperity and better employment

opportunities.
b. Nationals abandon their home lands because of instability and political unrest.
c. Natural disasters such as earthquakes, volcanic eruptions, flood, landslides and gas
emissions cab induce Migration.
d. Scientists and experts in advance technologies may travel to places where their
knowledge and skills are required.
e. Government official move in response to posting or as national representations.
f. Private Citizens travel abroad for reasons including visiting distant relatives, holiday
making in foreign lands and attending external courses.

IMPLICATIONS - DISADVANTAGES OF POPULATION GROWTH

1. There will be higher demands for goods and services which would require an enlarged
market.
2. There would be strain on existing facilities e.g electricity, education, etc.
3. Increase in crime wave.
4. Unemployment/Under employment
5. Traffic congestion
6. Inadequate house.
7. Environment pollution.
8. Inadequate health services.
9. Reduction in standard of living.
10.High cost of living.
 IMPLICATIONS -ADVANTAGES OF POPULATION GROWTH

1. Large labour
2. Large market
3. Defence
4. Quick information dissemination (spread)
5. Attraction to investors.
6. Urbanization
7. Respect form international bodies.
8. Attraction of foreign aids

DISTRIBUTION OF POPULATION

This refers to what makes up the population in terms of into age, sex, geographical location
or occupation.

1. AGE DISTRIBUTION: This shows the breakdown of the population of a country

into age groups. The population of a country can be divided into three major age
groups:
i. 0-17 years (Dependent Population).
ii. 18-60 years (Active Population).
iii. 60 years and above (Dependent Population).

2. SEX DISTRIBUTION: This deals with the classification of the population according
to sex or gender i.e Male or Female.
3. GEOGRAPHICAL DISTRIBUTION: This shows the number of people living
within a particular area e.g densely populated area or not, urban or rural area, Igbos,
Yoruba's, etc. Culture and languages.
4. OCCUPATIONAL DISTRIBUTION: This is the distribution of population
according to the type of work each person does. Occupation can be grouped into 3:
a. Primary Occupation (Extractive Industry)
b. Secondary Occupation (Manufacturing, Construction, etc.)
c. Tertiary Occupation: (Service Occupation)
d.
 POPULATION CENSUS

This refers to the process of officially counting every individual in a country i.e head count
of people. People who are counted are classified according to sex, age group, occupational
group, religion, nationality, etc.

The body which conducts CENSUS in Nigeria is called National Population Commission.

IMPORTANCE OF POPULATION CENSUS

1. A census is used to determine the size and rate of growth of the population. It helps
the government to determine whether the existing facilities for education, housing,
transport, health, etc, are enough.
2. A population census enables the government to obtain adequate and relevant statistics
which will serve as a basis for economic planning.
3. It helps in the administration the country e.g the division of the country into States and
Local Government is largely based on population figures.
4. It provides relevant data which form an objective basis for the distribution of a
country's resources.
5. It influences the magnitude of the flow of grants, aid and investment into a country.
6. It forms the basis for the importation of goods and services.
7. It helps the formulation of certain Government policies.
8. It is used to determine the per-capital income of a country i.e dividing the national
income by the total population.
9. It helps demographers in their continuous research and study into matters relating to
population.

PROBLEMS OF POPULATION CENSUS

1. Beliefs i.e custom and traditions.

2. Remote areas i.e difficult to access.
3. Illiteracy i.e communication problem.
4. Cost - Inadequate capital.
5. Corruption.
6. Lack of qualified personnel.
 THE WORKING POPULATION

This is the Labour Force. The working populations are those people between the ages of 18
and 60 years, who are allowed by the law, custom or other factors to work and who made
themselves available for work.

CALCULATIONS

Assignments Example

1. If the number of births recorded per annum in a country 120, 000 and the population
of the country is40, 000, 000. What is the Birth Rate of the country?

Solution:
Birth Rate = Number of births X 1, 000(Formula)
Total Number of Population 1
No. of Births = 120, 000
Population = 40, 000, 000
Birth Rate = 120, 000 1, 000
40, 000, 000 1
Answer = 3%/ or 3.1
2. If the population of a country was 800, 000and the number of births during the census
was 10, 000. What is the Birth Rate of the country?
= 10, 000 1, 000
X
800, 000 1
= 12% or 12.5
3. Death rate - formula
Number of Deaths 1, 000
X = 400
Total Number of Population 1
If the number of deaths in a census for a year was 20, 000 and the total population was
50, 000. Calculate the death rate for that country in that year.
20, 000 1, 000
X = 400
50, 000 1
 4. NET MIGRATION CALCULATION
Let us assume that in Nigeria, the number of Immigrants is 3, 600 and that of
Emigrants is 3, 500 in a particular period Say 1960. Also that her number of
Immigrants is 61, 000 and Emigrants is 69, 000 in another particular period Say 1992.
The net Migration of the country (Nigeria) for the two years, (1990 and 1992), based
on the above assumption is calculated this:
Immigrants Emigrants Net Migration
1990 3, 600 3, 500 - 100 Positive
1992 61, 000 69, 000 - 8, 000 Negative

RURAL URBAN MIGRATION

This is the movement of people from rural area e.g village to urban Centres like Abuja.

SOLUTIONS TO RURAL-URBAN MIGRATION

1. Provision of social everywhere even villages.

2. Transformation of traditional agriculture to modern agriculture.
3. Establishment of industries.
4. Establishment of educational institutions in the rural areas.
5. Establishment of corporate branches e.g government departments, business firms and
financial institutions in the rural areas.
6. Provision of recreation facilities e.g Stadia, Amusement Parks, Cinema houses in the
rural areas.
 LABOUR MARKET

Labour market is an arrangement whereby the producers and potential workers are brought
into close contact with one another for the purposes of hiring and offering labour services for
productive purposes. The interactive forces of demand and supply in the labour market do
influence the wage or salary level.

LABOUR FORCE

Labour force refers to the working population. They are those between the ages of 18yrs and
60 years who are allowed by law, custom, religion and other factors to work and who make
themselves available for work.

FACTORS WHICH INFLUENCE OR DETERMINE THE SIZE OF THE LABOUR

FORCE.

1. The size of the population and its rate of growth.

2. The age distribution of the population.
3. The official - school leaving age.
4. The age of retirement.
5. The number of people who retire voluntarily before the official age.
6. The number of people who pursue full-time education beyond the normal school
leaving age.
7. The number of women who take up paid employment.
8. The number of disabled persons in the country.
9. The number of able bodied person who are not willing to work.

THE EFFICIENCY OF LABOUR

The efficiency of labour is the extent or degree to which labour can be combined with other
factors of production in the most productive way. This refers to the quality and skill of
labour.

Labour efficiency therefore implies increased productivity per work. There may also be an
improvement in the quality of whatever is produced.
 FACTORS WHICH DTERMINE THE EFFICIENCY OF LABOUR

1. Education and training.

2. General working condition.
3. Health of the worker.
4. The amount of incentives or remuneration given to worker.
5. Efficiency of other factors of production.
6. Degree of specialization and division of labour.
7. State of mind of the worker.
8. Weather condition.

MOBILITY OF LABOUR

This refers to the ease with which workers can move from one occupation to another or from
one geographical are to another.

TYPES OF MOBILITY OF LABOUR

1. INDUSTRIAL Mobility of Labour:

a. Vertical mobility of labour i.e promotion.
b. Horizontal mobility of labour i.e from one industry or job to another but the same
function.
2. OCCUPATIONAL Mobility of Labour:
Mostly unskilled labour e.g a cleaner to labourer.
3. GEOGRAPHICAL Mobility of Labour:
From one location to another even internationally.
IMPORTANCE OF MOBILITY OF LABOUR
1. It help to solve problem if unemployment.
2. It helps to increase the level of production i.e vertical mobility acts as an incentive
to hard work.

FACTORS WHICH INFLUENCE THE MOBILITY OF LABOUR

If these factors are Favourable, the mobility of labour will be increased but if they are not
favourable, labour movement will be hindered.
1. Availability of economic and social infrastructures, i.e Transportation, Housing,
Electricity, etc.
2. Immigration requirement and government policy.
3. Sociological Factors: the extent of attachment to the environment based on social,
family and cultural ties influence labour mobility.
4. Condition of service in one place of work.
5. Length and cost of training e.g Doctors.
6. Climatic condition.
7. Trade union activities and regulations.

HOW SHOULD GOVERNMENT ENCOURAGE THE MOBILITY OF LABOUR?

1. Develop existing infrastructures.

2. Up-to-day information about job opportunities should be set up with categories.
3. Incentives should be given to those who work in depressed rural areas.
4. Establishment of more vocational and technical institutions.
5. Help to make entry into certain occupation less difficult e.g making it easier to get
License.
 THE NATURE OF NIGERIAN ECONOMY

Nigerian economy is largely oil based.

The economy has stumbled for years due to political unrest, corruption and poor fiscal
policies. However, since the restoration of democracy and introduction of economic reforms,
the country is growing at a fast pace. Nigerian economy is one of the most developed
economy in West Africa. It has the second largest Stock Exchange in Africa and is the
World's 12 largest producer of petroleum products. Nigerian industry is rated 44 th in the
world and 3rd in Africa in factory output. The growth of the informal sector amounts to 75%
of the total economy.

Problems of Nigerian economy among others are poverty, lack of industrial resources, rise in
rural-urban migration, corruption, etc. Industry here refers to those forms of production
which uses machines and Power Tools in production. The 3 structures of industries:

 NATURE AND STRUCTURE OF INDUSTRIES IN NIGERIA

CONTRIBUTIONS OF THE 3 SECTORS OF NIGERIAN ECONOMY

1. PRIMARY SECTOR: This primary sector is concerned with the extraction of natural
resources to provide food and raw materials. The economy primarily depends in oil
extraction and refining which contributes up to 80% of the Gross Domestic Product
(GDP) and 90% of total exports. They include agriculture and mining.
2. SECONDARY SECTOR: This sector is concerned with the transformation of raw
materials provided by primary industries into finished goods. Thus entails
Manufacturing and Constructive work.
3. TERTIARY SECTOR: This is concerned with the provision of direct services such
as Transportation, Banking, Teaching, Medical Services, etc.
 AGRICULTURE

Agriculture can be defined as the occupation or science of cultivating land, producing crops
and raising livestock. It also includes forestry, fishing and hunting. Agriculture is a sector of
economic activities which provide human beings with some of their most basic needs.

The kind of agriculture practiced by a community or country is influenced by many factors

such as climate, soil topography, location of the market, farming equipment, capital,
technology, etc.

COMPONENTS OF AGRICULTURE

Agriculture is classified into five (5) components namely:

1. Crop Production or Crop Farming.

2. Livestock Farming.
3. Forestry.
4. Fishing.
5. Hinting.

1. CROP PRODUCTION: This involves the growing of both cash and crops and food
crops. Cash crops are crops that are produced for direct sale and not for personal
consumption such as Cocoa, Palm Kernel, Groundnuts, Cotton, Rubber, Raw
Tobacco, etc. Food crops are crops that are produced mainly for personal consumption
such as rice, cassava, beans, cocoyam, etc.
2. LIVESTOCK: This involves the rearing of animal and processing of animal products
for use by human and animals. These animals include cattle for beef, dairy products,
sheep, pig and goat for meat. In poultry farming, chicken, meat and eggs are the final
products, Horses may be for recreation. Animal products form an important source of
protein.
3. FORESTRY: This involves the planting and growing of trees and the use of their
resources for commercial gain such as timber, softwood, which provides pulp for
making paper, etc. Trees that could be planted could include Iroko, Mahogany, Sapele,
Obeche, etc.
4. FISHING: This involves the breeding and catching of fishes from rivers for human
consumption. Fish is an important source of protein.
5. HUNTING: Hunting is carried out in the forested area. Wild animals are caught
which also constitute a source of meat protein.

PROBLEMS ASSOCIATED WITH CROP PRODUCTION

1. Shifting cultivation is still practiced.

2. Lack of capital.
3. Land tenure system.
4. Limited farm labour.
5. Limited market
6. Lack of storage facilities.
PROBLEMS ASSOCIATED WITH LIVESTOCK KEEPING
1. Presence of tse-tse fly
2. Traditional and primitive production techniques are still the method.
3. Animal disease (.e.g. bird flu)
4. Lack of credit facilities.
5. Lack of qualified manpower or personnel.
6. Lack of adequate incentives’
7. Cattle tax payment ( Jan gal)
8. Inadequate market information system.
9. Inadequate supply of feed/ water during dry season.
FOREST RESOURCES ARE:
1. Sawn wood production.
2. Fuel wood production.
3. Pulp wood production.
4. Wild life.
5. Shea butter, oil palm, etc.
MAJOR PROBLEMS OF FOREST RESOURCES
1. Scarcity of fast growing species of trees that yield high quality timber and pulp
wood.
2. Acute shortage of technicians.
3. Environmental control e.g. Forest fire, Soil erosion, etc.
4. Waste of forest resources.
5. Indiscriminate killing of wild life.
TWO TYPES OF FISHING
1. INDUSTRIAL FISHING: This involves distant water fishing that is marina
in nature and capital intensive.
2. ARTISINAL FISHING: This is characterized by high labour intensity and
low productivity.
Four types of artisanal Fishing are
a. Coastal canoe fishery.
b. Brackish water canoe fishery.
c. Fresh water fishery.
d. Fish farming- e.g. fish pond.
MAJOR PROBLEMS OF FISHING
1. Inadequate capital.
2. Lack of adequate fishing terminals and others infrastructural facilities.
3. Shortage of trained man power.
4. Lack of adequate supply of input.
5. Poor communication network in the producing areas.
6. Lack of effective fisher men organization in the artisanal sector.