International Journal of Innovative Research and Advanced Studies (IJIRAS)

Volume 4 Issue 10, October 2017 ISSN: 2394-4404

Rural Development: A Panacea To Achieving Sustainable

Development Goal In Nigeria

Olupona Adeola MOROMOKE

Olalere Femi Kunle
Tella Afeez Taiwo
General Studies Department, The Polytechnic, Ibadan

Abstract: Various development plans by the Nigerian government as a tool to achieve sustainable poverty reduction
and rural transformation have not given much significant result. Hence the investigate if rural development is a panacea
to achieving sustainable development goal in Nigeria. The study reviewed the Rostow stages of growth and the
summarization of the economy, society, political power and values in each stages. Empirical findings on social and
institutional infrastructure and sustainable development were made. Correlation analysis and Granger Causality Test
were used in analysing the data collected. The study therefore found that Agricultural Credit Guarantee Scheme Fund
and Human Development Index hardly have any form of positive relationship. But there is positive relationship between
sustainable development and rural development. It was also found that there is bi-causal relationship between the
variables. The study recommends that there should be commitment from all stakeholders with the use of strategic policies
which will create more jobs hence improve the standard of living to as to achieve sustainable development.

Keywords: Rural development, sustainable development, human development index

I. INTRODUCTION as a low human development nations. The Human

Development Index (HDI) is a composite statistic of life
The Sustainable Development Goals (SDGs), officially expectancy, education, and per capita income indicators,
known as transforming our world: the 2030 Agenda for which are used to rank countries into four tiers of human
Sustainable Development is a set of 17 „Global Goals‟ with development. A country scores higher HDI when the lifespan
169 targets between them. It was spearheaded by the United is higher, the education level is higher, and the GDP per capita
Nations through a deliberative process involving its 193 is higher. The HDI was developed by the Pakistani economist
Member States, as well as global civil society. Sustainable Mahbub ul Haq, often framed in terms of whether people are
development can also be referred to as the use of natural able to "be" and "do" desirable things in their life, and was
resources and national infrastructure in a way that seeks to published by the United Nations Development Programme.
avoid the exhaustion of those resources. Some of the goals of Rural refers to areas with low population density, small
sustainable development include: No Poverty, Zero Hunger, size, relatively isolation, where the major economic activity is
Good Health and Well-being, Quality Education, Gender found in agricultural occupations and where the people are
Equality, Clean Water and Sanitation, Affordable and Clean relatively homogenous in their values, attitudes and behaviour.
Energy, Decent Work and Economic Growth, Reduced Rural development is the far – reaching transformation of the
Inequalities, Life on Land among others. social and economic structures, institutions, relationships and
One of the main measures of sustainable development is processes in any rural area. Rural development is a strategy
the use of human development index. According to Human designed to improve the economic and social life of a specific
Development Report (2016), Nigeria as a nation is classified group of people the rural area. It involves extending the

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 International Journal of Innovative Research and Advanced Studies (IJIRAS)
Volume 4 Issue 10, October 2017 ISSN: 2394-4404

benefits of development to the poorest among those who seek  TRADITIONAL SOCIETIES: Traditional societies are
a livelihood in the rural areas. Although the menace of marked by their pre-newtonian understanding and use of
ravaging poverty and poor condition of rural development is technology. These are societies which have pre-scientific
not peculiar to Nigeria and indeed, the developing nations, the understandings of gadgets and believe that gods or spirits
incidences have however, been more profound in this part of facilitate the procurement of goods, rather than man and
the world compared to other regions. his own ingenuity. The traditional society will be custom-
It is in view of this, that this study investigates if rural bound and tradition-oriented and there will be economic
development is a panacea to achieving sustainable backwardness. The poor Countries of today are good
development goal in Nigeria. Specifically, investigate the examples of traditional society. In short, the factors which
relationship between agricultural credit guarantee scheme and are essential for economic growth will be missing from
sustainable development. In addition, causal relationship will such a society.
be tested  PRECONDITIONS FOR TAKE-OFF (TRANSITIONAL
STAGE): In the transitional society, the conditions for
take-off stage will be established. During the stage, the
II. LITERATURE REVIEW force of customs and traditions will become less; there
will be economic motivation, and there will be
ROSTOW STAGES OF GROWTH: Out of the somewhat improvements in physical and social infrastructure.
sterile intellectual environment, fueled by the cold war politics According to Rostow, the preconditions to take-off are: to
of the 1950s and 1960s and the resulting competition for the enables a degree of capital mobilization, especially
allegiance of newly independent nations, came “the stages of through the establishment of banks and currency, that an
growth model”. The two prominent theories of stages of entrepreneurial class be formed, and that the secular
growth are Rostow‟s stages of growth and Harrod-Domar‟s concept of manufacturing develops, with only a few
growth model (Investopedia.com). The growth stages theory sectors developing at this point. This leads to a take-off in
most influential and outspoken advocates was the American ten to fifty years. When the economy attains the take-off
economic historian, Walt W. Rostow. According to him, the stage, there will be self-sustaining growth.
transition from underdevelopment to development can be  THE TAKE-OFF: This is the stage that occurs when
described in terms of a series of steps or stages through which sector led growth becomes common and society is driven
all countries must proceed (Adeniyi, 2009). more by economic processes than traditions. At this point,
According to Rostow (1960) in his historical approach to the norms of economic growth are well established and
the process of economic growth distinguishes five stages of there is transition from traditional to modern economy.
economic growth, these are: Traditional society, Pre- The take-off stage refers to a situation where an economy
conditions for take-off, Take-off stage, Drive to maturity and transforms itself from a predominantly agricultural to a
Age of high mass-consumption. Rostow also went further to predominantly industrial society. For an economy to
analyze that „the take-off stage‟ is „Great watershed‟ in the life attain the take-off stage, it must make an annual
of a society when growth becomes its normal condition. investment equal to 20-25 percent of GDP mobilized from
Forces of modernization contend against the habits and its own savings. The take-off stage was made possible in
institutions. The value and interest of the traditional society some Countries by leading sectors like railways and
make a decisive breakthrough and a compound interest gets defence.
built into the society structure. From his historical approach it  THE DRIVE TO MATURITY: When the economy attains
is said that agriculture plays an important role in the first three self sustaining growth, after the take-off stage, it enters
stages. (Traditional society, pre-conditions for take-off and the mature stage. The drive to maturity refers to the need
take-off stages). The agricultural sector has the potential to be for the economy itself to diversify. The sectors of the
the industrial and economic springboard from which a economy which led growth initially begin to level off
country‟s development can take off. Indeed, more often than while other sectors begin to take-off. This diversity leads
not, agricultural activities are usually concentrated in the less- to greatly reduced rates of poverty and rising standards of
developed rural areas where there is a critical need for rural living, as the society no longer needs to sacrifice its
transformation, redistribution, poverty alleviation and socio- comfort in order to strengthen certain sectors. During this
economic development (Stewart, 2000). stage, the government has to make some basic decisions.
Stage 5: High Mass Consumption
As there will be abundant resources and goods, it has to
Consumer Oriented, Durable Goods Flourish,
Service Sector becomes dominant
divide whether it has to use them for strengthening the
Stage 4: Drive to Maturity
Nation into a strong and powerful state militarily or to use
Diversification, Innovation, Less reliance on
Imports, and Investment
the resources for improving the welfare of the people.
Stage 3: Take Off
 AGE OF HIGH MASS CONSUMPTION: The age of high
Industrialisation, Growing Investment,
Regional Growth and Political Change mass consumption refers to the period of contemporary
Stage 2: Transitional Stage
comfort afforded many western Nations, where in
Specialization, Surpluses and Infrastructure
consumers concentrate on durable goods and hardly
Stage 1: Traditional Society
Subsistence, Barter and Agriculture
remember the subsistence concerns of previous stages. In
the age of high mass consumption, a society is able to
Sources: Adeniyi (2009); Todaro, M.P. and S.C. Smith (2009) choose between concentrating on military and security
Figure 1: Rostow„s Stages of Growth

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 International Journal of Innovative Research and Advanced Studies (IJIRAS)
Volume 4 Issue 10, October 2017 ISSN: 2394-4404

issues, on equality and welfare issues or on developing that no meaningful rural socio-economic transformation can
great luxuries for its upper class. take place without a significant modernization and
Characteristi Stage Stage Two: Stage Three: Stage Stage Five:
cs One: The Preconditions Take-off Four: Age of
acceleration of agricultural production. Effective agricultural
Tradition for Take-off Drive in Mass production is inevitable and must be provided in addition to
al Society Maturity Consumpti
on other factors mentioned above (Ayo, 1986) to accelerate and
Economy Largely
agricultura
Surplus of
agric and
Rapid
Expansion of
Technology
extends to
More use
and
sustain development growth in the country generally.
l (>75%), capital, industry, all sectors, production According to UNDP (1997), the greatest challenge
Limited expansion of surge of labour of durable
Productio trade and technology, saving goods, confronting growth within the context of human development
n. manufacturing. commercial
agric.
devices are
made.
service
sector
is the problem of mobilizing resources and this has to do with
dominates difficulty of priorities restructuring and steady mainstreaming
(>50%).
Society Hierarchic Beginning of a Increasingly Urbanisatio New middle of the priorities into new programs of pro-poor growth. This is
al social
structure
commercial
class with
dominant
entrepreneuri
n: Increase
in skilled
class, shift
to the
exactly the situation in Nigeria and is a precarious one. The
some al class and suburbs, rural transport need required to accelerate the socio-economic
urbanization professiona population
l workers growth growth of the rural areas in Nigeria is one of such challenges
stabilizes. (Olanrewaju, 1986) and the situation despite the low cost,
Political Regionall Centralized Powerful Industrial Social
Power y based in national factions leaders are welfare, cheap and environment compliant sufficiency required in the
the hands government encourage highly more
of the modernizatio influential. resources for modes of transportation at this level (Adenipekun, 1999),
landowner n military and mobility in the rural areas of Nigeria is still very poor. Rural
s security.
Values Resist Rising spirit of Increased Emphasis Increased infrastructure has over time suffered neglect in quality and
change, progress and investment of on acquisition
focus on openness capital for technology of consumer
quantity and its distribution is heavily skewed in favor of the
old profit. and goods. growing urban areas (Olowu, 1986). Government with a view
traditions expectation
of progress. to alleviating the imbalance took certain policy measures that
Sources: Adeniyi (2009) and Todaro, M.P. and S.C. Smith rather further accentuate the skewed and imbalanced situation.
(2009) Since from the mid-1960s the country‟s public finance and
Table 1: The nature of the economy, society, political power expenditure is centralized. Allocation and distribution of basic
and values in each stage is summarized below infrastructure is reserved in the Federal Government policies.
The advanced Countries, it was argued, had all passed the Local governments were revitalized nationally in 1976 with
stage of “take-off into self-sustaining growth”, and the the intention to use them as institutions to provide and
underdeveloped countries that were still in either the maintain rural infrastructure but the political scenario provided
traditional society or the “preconditions” stage had only to a very different result. Establishment of a rural development
follow a certain set of rules of development to take off in their agency, Directorate of Food, Roads and Rural Infrastructure
turn into self-sustaining economic growth (Adeniyi, 2009). (DFFRI) at the Federal level in 1986 further launched a
discriminatory provision of basic infrastructural facilities in
selected areas of the country. DFFRI charged with the
III. EMPIRICAL FINDINGS responsibility of implementing rural development activities
toward amelioration of the imbalance in social and economic
Olowu (1986) argued that infrastructure is regarded as the infrastructures between the urban and rural areas of Nigeria
basic underlying structures upon which other super-structures inadvertently further deepen the dichotomy between the two
are built, that is, economic and institutional infrastructures and areas than it was before it. The present political policy
are basically in the rural context to perform both economic measures have not in any way improved the situation.
and social functions.Infrastructure according to Olaseni and Adenipekun (2013) review sustainable rural
Alade (2012) is an umbrella term for many activities usually infrastructural development in Nigeria within the context of
referred to as „social overhead capital‟ by development Vision 20:2020. The Second National Development Plan
economists. Rural infrastructure is associated with the rural period 1970-74 marked the beginning of national and
environments and is grouped into three categories-economic, academic agitation for rural infrastructural development for
social and institutional infrastructures. Economic accelerated national economic development growth. Realizing
infrastructure constitutes „the preconditions for the gap between rural-urban sectors, successive governments
industrialization‟ such as roads, markets, rural agro-based in the country began to put various programs in place to meet
industries; farm input supplies, electricity, both the national and international goals of human and capital
telecommunications, water supply, sanitation and sewage, developments. Toward this goal, a study was recently carried
solid waste collection and disposal. Others include postal out to x-ray the position of the rural infrastructure in South-
services, dams and canal works for irrigation and drainage etc West, Nigeria with a view to proffering sustainable strategies
(Yusuf, 2007). Social infrastructure constitutes the basic social for rural development in the country. A survey method was
services such as basic health, education, water supplies, etc. used to articulate and affirm the inadequacy of basic
Institutional infrastructure are governmental institutions that infrastructure in Atakunmosa West Local Government Area
provide credits, farm input supplies, extension services etc. at (AWLGA) of Osun State. Responses from settlements
the local or community level. In summary, combination of although show similar patterns yet it exhibits the true
both the qualitative and quantitative improvement in the condition of the rural setting in the study area. Not all houses
conditions of living of rural population stands out the best where applicable in some settlements accommodates civil
description of rural development (Moise, 1970). It is observed servants. Respondents also find it difficult to give distance of

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 International Journal of Innovative Research and Advanced Studies (IJIRAS)
Volume 4 Issue 10, October 2017 ISSN: 2394-4404

nearest GSM service provider closest to their settlement but

rather were able to provide names of service providers.The
present state of the rural development in AWLGA of Osun
State, Nigeria testify to the fact that all denial of choices and
opportunities for living a tolerable life within the context of
Millenium Development Goals (MDGs) cannot be met in
Nigeria by the year 2015.
Iwala (2014) investigate the achieving sustainable poverty
reduction and rural development in Nigeria through local
economic development strategies. Embracing local economic
development strategies which focus on the local issues Source: Authors‟ computation from Microsoft Excel 2010
through interaction among the spectrum of local communities, Figure 2: Graphical Analysis Result
local businesses, government, labour, NGOs and the poor, Table 3 present the outcome of the correlation analysis. It
Nigeria and indeed other developing countries can achieve shows that HDI and ACGSF as a measure of rural
more coordinated and efficient economic growth and development are positively correlated. That is, there is positive
development that could significantly and sustainably reduce relationship between sustainable development and rural
poverty and fast-track rural development. That is, local development.
economic development strategies, a participating process in HDI ACGSF
which local people from all sectors work together to help HDI 1.000000 0.130808
create decent jobs and improve the quality of life for everyone,
ACGSF 0.130808 1.000000
including the poor and marginalized as the most potent tool
Source: Authors‟ computation from Eviews-8
for achieving sustainable poverty reduction and rural
Table 3: Correlation Analysis Result
transformation in Nigeria.
Since correlation only shows the nature of association and
magnitude of the association or relationship between the
variables but does not show the causal relationship that exist
IV. METHODOLOGY
between the variables. We will stress further in investigating
the nature of causal relationship that exist between the
CORRELATION ANALYSIS: The correlation is the
variables. The result of the pair-wise granger causality test
measure of the strength or degree of linear association
using eviews-8 is presented in table 4. The result shows that
between two variables. The type of correlation used in the
there is bi-causal relationship between the variables. That is,
study is partial in nature because the variables in the model are
there is one-way relationship between the variables.
more than two.
Specifically, the direction of the causal relationship is from
GRANGER CAUSALITY TEST: Granger Causality Test
human development index to agricultural credit guarantee
suggested by Granger (1969 and 1980) will be used to
scheme fund. This implies that sustainable development will
determine the direction of causality between the variable in the
lead to rural development.
model. To determine the causal relationship between the
variables, pairwise granger causality test developed by Enger F-
and Granger (1987) will be used. Null Hypothesis: Obs Statistic Prob.
Variabl Description Proxy using Measurem Source
es (according to the ent
source)
ACGSF_ does not Granger Cause
HDI Sustainable Human Development Percentage HDR, HDI_ 8 0.43991 0.7713
Development Index (%) 2016 HDI_ does not Granger Cause ACGSF_ 107.084 0.0709
ACGSF Agricultural Credit Value of Loans N' CBN,
Guarantee Scheme
Fund
Guaranteed under the
ACGSF Operations
Thousand 2016 Source: Authors‟ computation from Eviews-8
HDR: Human Development Reports and CBN: Central Bank Table 4: Granger Causality Test Result
of Nigeria Statistical Bulletin
Table 2: Definition, measures and source of data
VI. SUMMARY

V. RESULT This research work investigates if rural development is a

panacea to achieving sustainable development goal in Nigeria.
Figure 2 present the trend analytical result ranging 2005 In order to achieve the main objective, an in-depth
to 2016. The graphical analysis shows that agricultural credit investigation on the relationship between agricultural credit
guarantee scheme fund grow positively from 2006 to 2008 guarantee scheme and sustainable development; and causal
while the human development index follow the suite but drop relationship between the variables were not left out of the
the following year between 2007 to 2008. Within the time investigation. The theory of Rostow stages of growth by Walt
frame chosen, ACGSF and HDI hardly have any form of W. Rostow were explicitly discuss in the course of the study.
positive relationship except between 2012/2013 and Human Development Index was used as a perfect proxy
2015/2016. This could be as a result of for sustainable development. The value of HDI growth rate
was employed with data source from human development
report (2016) while the value of loans guaranteed under the

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 International Journal of Innovative Research and Advanced Studies (IJIRAS)
Volume 4 Issue 10, October 2017 ISSN: 2394-4404

ACGSF operations was employed as a proxy for rural the 2010 National Conference of the Department of Estate
development. According to Ogundele (2008), Adenipekun Management, Yaba College of Technology.
(2013) and Iwala (2014), rural development can be measure [5] Adeniyi, O. A. (2009), „Development Economics‟
using agricultural finance or output. The growth rate of department of economics, first edition, published by DLC,
ACGSF was measured and source from Central Bank of UI. Chp 2, 3, 4, 7.
Nigeria statistical bulletin (2016). [6] Akinbode, I.A. (1986), „A Perspective on Rural
Various methods were employed in order to achieve the Development in Nigeria‟, The Quarterly Journal of
set objectives. The methods include the graphical analysis, Administration, Vol. xx No. 3 and 4, pp. 127-8.
correlation analysis and pairwise granger causal test. The [7] Ayo, S.B. (1986), „Promoting Rural Development
graphical analysis shows that agricultural credit guarantee Through Small-Scale Industries in Kwara state‟, The
scheme fund grow positively from 2006 to 2008 while the Quarterly Journal of Administration, Vol. xx No. 3 and 4,
human development index follow the suite but drop the pp. 202-203.
following year between 2007 to 2008. Within the time frame [8] Engle, R. and GrangerW.J. (1987). Co-integration and
chosen, ACGSF and HDI hardly have any form of positive error correction: Representation, estimation and testing.
relationship except between 2012/2013 and 2015/2016. The Econometrica, 55: 251-276.
correlation analysis test shows that HDI and ACGSF as a [9] Granger, C.W.J. (1988)." Some recent developments in a
measure of rural development are positively correlated. That concept of causality". Journal of Econometrics, 39, 199–
is, there is positive relationship between sustainable 211.
development and rural development. While the pair-wise [10] Granger, C.W.J., 1969." Investigating causal relations by
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VII. RECOMMENDATION Contemporary Record, Annual Survey and Documents,
pp. 308-9.
The study therefore recommends that there should be full [13] Ogundele J. A. (2008), „Agricultural Development
commitment from all stakeholders using strategic policies. Projects (ADPs): An Imperative Approach to Sustainable
The government need to invest in infrastructural facilities so Rural Development in Nigeria‟. Research Journal of
that value can be added to locally produced goods. The small Applied Sciences 3 (5): 324-328.
business entreprises must be encouraged to achieve [14] Olaseni, M. and Alade, W. (2012), „Vision 20:2020 and
sustainable. This will create more jobs, hence improve quality the Challenges of Infrastructural Development in
of life to achieve sustainable development. Nigeria‟. Journal of Sustainable Development, Vol. 5 No.
2, pp. 63-66.
[15] Olowu, D. (1986), „Institutional Approach to Rural
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Volume 4 Issue 10, October 2017 ISSN: 2394-4404

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