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INTERNATIONAL BANK FOR RECONSTRUCTION AND DEVELOPMENT
REPORT
of
EXPLORATORY MISSION
to
NIGERIA
June 3, 1953
Technical Assistance and Liaison Staff


CONFIDENTIAL
SLC/0/573
June 4, 1953
STAFF LOAN COY11TTEE
Memorandum from Department of
Operations-Europe, Africa and Australasia
Report of the Exploratory Iission to Nigeria
1.     The attached report of the Bankts exploratory mission to Nigeria
is circulated for your consideration. The purpose of this mission was
to examine the desirability of organizing a general survey mission for
Nigeria and it concludes that such a survey could be of great assistance
to the country in its present stage of development.
2.     It does  not appear that there is any new point of principle
involved in a decision on this matter and, therefore, unless members of
the Committee desire to discuss the report specifically, I would suggest
that a formal meeting is not necessary.
3.     I recommend therefore thct the Nigerian Government and the British
Colonial Office be informed of the Bank's readiness to organize a general
survey mission along the lines suggested in this report.
4.     If members of the Committee agree to this procedure, or if they
wish to roise any points for discussion, would they please inform me by
the close of business on Tuesday, June 9.
A. S. G. Hoar
Director


June 3, 1953
REPORT OF EXPLORATORY MISSION TO NIGERIA
Origin of the Mission
In October 1952, the United Kingdom Colonial Office informed the Bank
that the Government of Nigeria was considering a request to the Bank for a
general survey mission. In November 1952, Mr. B. B. King discussed this
request with officials at the Colonial Office and in Nigeria. Mr. King's
report was considered by the Staff Loan Committee in January 1953, and it
was agreed that a small preparatory mission would be sent to Nigeria, if
requested, to discuss plans for a possible survey mission. A request for
such a preparatory mission was received from the Government of Nigeria in
March.
Activities of the Mission
A mission, consisting of Messrs. Patterson H. French (Technical
Assistance and Liaison Staff), John H. Adler (Economic Staff), Walter J.
Armstrong (Department of Technical Operations), and Professor John F. V.
Phillips (Consultant on Agriculture), was in Nigeria from May 3 to May 16.
On the way to and from Nigeria the Bank members of the mission talked with
officials of the Colonial Office and the Nigeria Office in London. Profes-
sor Phillips joined the group in Nigeria; the present report embodies his
recommendations made to the mission there.
In addition to their work in Lagos, members of the mission visited
the three regional capitals and Kano, principal city of the northern
region. They conferred at some length with the Governor, the three
regional Lieutenant Governors, and ministers, senior officials, political
leaders, and members of the business community both in Lagos and in the
regional capitals.


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General Background
Nigeria, officially called the Colony and Protectorate of Nigeria and
the Trust Territory of the Cameroons, is, with an area of 370s000 square
miles, by far the largest British colonial possession and, with a popula-
tion of over 30 million, the most populous political entity in Africa. The
population is entirely African with the exception of about 12,500 people,
mainly British, of whom around 4,000 are in government service.
The native population is divided into tribes or tribal groups with a
variety of languages and dialects. These groups are important in relation
to local government and they present various problems in connection with
such matters as land tenure and government on a central or regional scale.
The northern part of the country with more than two thirds of the area and
60% of the population is almost entirely Moslem, while tribal religions,
on which Christianity has been superimposed to some extent, prevail in the
south. The country's economy is primarily agricultural, the principal
exports being cocoa, palm oil and palm kernels, groundnuts, and cotton.
Political Background
By natural endowment, tribal patterns and political organization,
Nigeria is divided into three regions. The Western Region, covering the
southwestern part of the country, is the most densely populated area and
is economically and politically farthest advanced. The Eastern Region,
embracing the southeastern part of the country from the eastern part of
the Niger delta to the southern part of the Cameroons, consists largely of
swamp land, dense forests, and areas of humid tropical vegetation. It is
populated by a large number of different tribes and is backward in native
political organization. The Northern Region, larger than the two others


combined, has a more arid climate and light, sandy soils which contribute
to the prevailing low living standards. It is subdivided into numerous
Emirates where the Moslem local authorities enjoy a high degree of admini-
strative autonomy.
The Nigerians obtained a considerable measure of self-government
under the constitution promulgated in 1950. All adult taxpayers - in the
north, male only - can vote. Regional legislatures are chosen through an
indirect electoral system and these legislatures send a number of their
members to form the central House of Representatives. In the Western and
Northern Regions there are also Houses of Chiefs consisting of tribal
chiefs in the west and emirs and other dignitaries in the north.
There is a central Council of Ministers composed of the Governor, the
Chief Secretary, the Lieutenant Governors of the three regions, the
Attorney-General, the Financial Secretary, and twelve ministers (four from
each region) chosen by the central House of Representatives. There are
also regional Executive Councils made up of a majority of ministers chosen
by the regional legislatures but including the Lieutenant Governor and the
principal British administrative officials. Ministers serve as heads of
the various government departments, supported by permanent administrative
officials who are, almost without exception, European in the higher and
intermediate brackets.
Local government is handled through Native Administrations, most
highly developed in the north and comparatively primitive in the east.
Governmental powers and functions are distributed among these units
according to a pattern that is complex and not altogether clear. The cen-
tral legislature has powers of legislation on all subjects, while regional


legislatures can deal with a prescribed range of subjects. The.-central
Council of Ministers can give directions on any subject to regional execu-
tive councils and must assent to bills passed by regional legislatures.
The Native Administrations deal with a variety of local services..
The present "constitutional crisis," the term applied officially and
in the press to the political tension of recent months, came to a head at
the last meeting of the central House of Representatives when the politi-
cal leaders of the Northern Region refused to endorse the demands of the
other two regions for "self-government in 1956," the year when the present
constitution was to be reviewed. The north's reason for refusal was a
fear of control by southern political leaders; in fact, they probably pre-
fer partition of the country or British rule with its benign self-
restraint and its hands-off attitude in local affairs to the rule of im-
patient innovators of the south. This attitude is the issue underlying
the recent riots in Kano in the Northern Region where Moslems from the
north clashed with new immigrant settlers from the south.
In the Western Region, also, strong tendencies toward regional rather
than national advancement prevail, but for reasons other than those opera-
tive in the north, Western political leaders argue that the economic and
political advancement of their-region must not be held back by the lack of
political organization education and progressive leadership in the north
and the east. The majority party of the Eastern Region, although com-
mitted to a policy of national unity and national self-government, like-
wise is forced to emphasize regional interests by the very fact that its
political strength .is concentrated in the east.


In connection with the movement to obtain complete self-government in
1956, the ministers representing the Western Region and the majority party
of the west, the Action Party, resigned several weeks ago. The status of
the ministers from the Eastern Region is somewhat uncertain, since as a
result of political complications there the regional legislature was dis-
solved and new elections were ordered, to be held this summer.
The probable result of the present political situation will be a re-
vision of the constitution, under which the regions will probably obtain
much more independence of the central authorities. The regional differ-
ences and the increased independence of the regions will present special
problems to the proposed survey mission since any program, to be politi-
cally acceptable, will have to take account of specific regional interests
and spell out in some detail recommendations regarding the division of
authority in developmental matters between the central and regional
authorities.
The present political tendencies should not present, however, a major
obstacle to the mission's success. The invitation of the Nigerian Govern-
ment to send a survey mission from the Bank has the full support of all
Nigerian political parties as well as that of the British officials. It
was extended after a unanimous vote of the central House of Representatives
with the encouragement of the colonial officials. From the point of view
of the African political leaders and of colonial officials, a survey of the
developmental possibilities of Nigeria and assistance in the drawing up of
a development program by a disinterested group of experts appears eminently
desirable, since -it is generally conceded that reorganization and improve-
ment of the developmental activities of the government and its agencies are
necessary.


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The State of Economic Development Planning
A ten-year "development program" was prepared to implement the Colonial
Development and Welfare Act of 1945 and was brought up to date in 1950.. It
was actually not a development program at all but was rather a conglomera-
tion of proposals for expanded government activities involving heavy
expenditures on education and health with some funds allocated for such
fields as research, transportation and technical training. Even this pro-
gram has lagged, partly because of the difficulty of obtaining competent
European and Nigerian personnel.
For the time being, financial resources for development activities
appear ample. In the last few years, appropriations from tax revenues and
from grants from the United Kingdom have not been fully used with the
result that local, regional and central authorities hold substantial cash
balances although the need for a major development effort has been
generally recognized. In addition, the marketing boards which control the
exports of all important agricultural commodities (cocoa, palm oil, palm
kernels, groundnuts and cotton) have acquired large cash surpluses, part
of which are available to finance development activities. In turn, the
marketing boards have financed regional production development boards
Aich have so far disbursed only a small proportion of their resources al-
though most of their funds have been allocated for development projects;
these allocations might be subject to reconsideration in line with the re-
commendations of a Bank mission.
A decline in export earnings, if prices of the export commodities
should fall, would cause a drop in tax revenues and would adversely affect
the financial position of the marketing boards which would no longer be in


a position to support the activities of the regional production development
boards. On the other hand, Nigeria has secured an understanding from the
Capital Issue Committee in London that access may be obtained to the London
capital market for issues totalling Wh3 million.
Nevertheless, an investigation of the fiscal system and proposals for
its improvement appear advisable and necessary. One fiscal problem in need
of special attention is the distribution of revenues between the central
and regional authorities. This problem was the subject of a previous in-
vestigation and an elaborate report is available. The mission was informed,
however, that the recommendations of the report proved impracticable and
that a reconsideration of the present scheme is considered necessary.
Principal Areas of Mission Study
In addition to broad economic and financial problems, the mission be-
lieves that the proposed survey should cover all major sectors of the eco-
nomy with the main emphasis on transportation, agriculture, and the
development of industries. As the following paragraphs will show, substan-
tial steps toward development can and should be made along many lines, and
a mission report could be a useful instrument in bringing about appropri-
ate action.
1. Transportation
It is generally recognized, and it was immediately obvious to the
mission, that deficiencies in transport now constitute one of the major ob-
stacles to development. The railroad, owned by the government and operated
by an autonomous government agency, provides inadequate services. For in-
stance, much of the groundnut crop piles up each year in the form of pictur-
esque peanut pyramids at various railheads in the northern region, the


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carry-over being reduced only in years of poor crops. While some attempt
has been made to improve and expand the road network, the road construction
program is lagging badly and needs a thorough review. Inland water trans-
port appears to have received inadequate attention as a possibly important
supplement to roads and railroads. Some progress has been made in the im-
provement of port facilities at Lagos and at other ocean ports, but the
expansion of port facilities in conjunction with railroad and road improve-
ments appears necessary.
It is recommended that the survey mission include a broadly competent
transport expert to study over-all transport needs and ways of meeting them.
In addition, consultants should be employed, if needed, for shorter periods
of time, probably one to two months, to advise on technical problems of
railroad equipment and management, inland waterways, and road construction.
2. Agriculture
At least 90% of the population of Nigeria is engaged in agriculture.
In the two southern regions the main agricultural products for domestic con-
sumption are yams and cassava which form the main diet of the native popula-
tion, while cocoa, palm oil and palm kernels are the most important export
crops. In some areas, the production of rubber, tobacco, rice and citrus
fruit has begun in recent years. In the north the main food crops are sor-
ghum and millet; the major export crops are peanuts and cotton. Cattle
raising is confined to the northern region since most areas in the south
are infested with the tsetse fly.
Throughout the country, production methods are primitive and hoe culti-
vation is prevalent. Tribal practices of land tenure result in uniformly
small land holdings and create special problems in connection with large-
scale cultivation, settlement, mechanization, and cooperative farming.


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Under the Colonial Development and Welfare Act agricultural experimentation has
been greatly expanded but so far the results of research and experimenta-
tion have not made any significant impact on agricultural production methods.
Attention should be given to all of the major aspects of agricultural develop-
ment including: agricultural research, education and extension; credit aid
marketing; improvement of crops and farming methods; irrigation and water
supplies; land tenure; land use and conservation; livestock and pasture manage-
ment; storage and processing; forest products; and fisheries.
It is recommended that the mission include an expert on agricultural
production and an agricultural economist, supplemented by shorter-term con-
sultants as may be necessary in special fields. The mission's industrial
engineer would be called upon for assistance on such problems as mechanization,
storage and processing.
In preparation for the mission's work, studies should be made by the
Bank of the long-term economic prospects of palm oils, groundnuts, cocoa,
cotton, wood pulp, and hardboard products.
3. Industries
Industrialization has become a matter of great public and political
interest in Nigeria. Indeed, the government's original approach to the
Bank was for a mission to advise on industrialization of the country. There
is no clear idea, however, of what "industrialization" means or how to plan
for it.
Aside from a plywood factory operated by the United Africa Company and
a cigarette factory owned by the British American Tobacco Company, there
are no large-scale manufacturing enterprises in Nigeria. The development


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boards have started operating cotton gins, oil presses and rice mills, but
these have not gone beyond pilot schemes for the most part. There have been
discussions of setting up plants for cement and textiles, but final deci-
sions have not yet been made. The various political and government authori-
ties are most anxious to secure an objective appraisal of these possibilities
and it is therefore recommended that the survey mission include an industrial
engineer.
4. Mineral Resources
While mineral resources may not represent a major factor in the Nigerian
econony, there are several items that need to be studied. There is suffi-
cient coal at least to take care of local needs and tin is mined for ship-
ment abroad. The Shell Oil Company is now making exploratory drillings for
oil. The American Smelting and Refining Company explored the feasibility of
opening up lead and zinc deposits but discontinued its operations last year.
The Geological Survey of the government has located deposits of coal, lig-
nite, iron ore, columbite and limestone in commercially attractive quanti-
ties and grades. The exploitation of these deposits has been impeded by
various factors, including technical problems and inadequate transportation,
and an expert on the utilization of mineral resources would therefore be
desirable on the survey mission. It would be desirable, if possible, to
select an expert who would be qualified to deal also with underground water
supplies.
In preparation for the mission's work, studies should be made by the
Bank of the long-term economic prospects of tin, lead, and zinc.


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5. Education, Public Health, and Social Services
While the literacy rate is still low, probably less than 5%, the most
important result of the Colonial Development and Welfare Scheme is a sub-
stantial increase in primary education in the western and eastern regions.
Most of this education is given by mission schools, which receive govern-
ment subsidies. The northern region is backward, with only 110,000 children
out of a population of 18 million enrolled in schools. The amount of secon-
dary and college education is quite small. Technical education and training
in the trades has been neglected.
In the field of medical care, the availability of Colonial Development
and Welfare grants has made it possible to extend hospital and clinic
facilities and to undertake programs in such fields as preventive health
measures and sanitation.
Little or nothing has been done in the field of housing and government
officials do not consider it high in relative importance.
Specialized technical advice in these areas is probably not needed. The
government needs advice, however, on the size and emphasis of its programs
and on how to organize and coordinate its activities. An expert trained in
the planning and administration of such programs would. be desirable on the
survey mission.
6. Other Related Fields
There are various subjects which are part of, or related to, the preced-
ing fields that will need attention by a survey mission. In some cases, one
of the regular mission members will be able to cover one or more of these
subjects; in other cases. it is recommended that specialists be included for


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whatever amount of time, probably one to two months, may prove to be neces-
sary. Several possible fields for such short-time assistance are found in
agriculture and transportation.. Another subject that may well need specialized
attention is that of organization and administration of a coordinated develop-
ment program, with particular reference to the general pattern of decentrali-
zation within which the Nigerian program will have to function. An expert
with a broad background of public administration may be needed for this
assignment.
Terms of Reference and Composition
of the Survey Mission
The preliminary mission discussed in some detail the scope, terms of
reference and composition of a survey mission with officials of the Nigerian
Government. It submitted to the Minister of Commerce and Industry a memoran-
dum in which it presented its views on the terms of reference which the
mission should have and the fields which would be covered by it. The
memorandum was discussed at a meeting of the Nigerian Cabinet to which the
mission was invited. The Cabinet expressed its agreement with the suggested
terms of reference and decided to formalize its request for a general survey
mission as soon as the Bank indicated its willingness to send a mission to
Nigeria.
The tentative plan was also discussed with officials of the Colonial
Office in London. They expressed their general approval of those arrange-
ments and promised their full cooperation.
It is recommended that the general survey mission have the following
terms of- reference:


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The purpose of the mission would be:
(i) To assess the internal and external 'resources, natural, human and
financial, available for future economic development;
(ii) To study the possibilities for development in the major sectors
of the economy, including among others, industry, agriculture,
transport and communications, fuel and power, mineral resources,
water resources, banking and credit, and education and other
social services;
(iii) In the light of the conclusions reached under items (i) and (ii),
to make recommendations as to practical steps to be taken for
economic development. These would include recommendations as to
the amounts of available resources, public and private, to be
apportioned to each of the principal sectors of the economy and
the timing and coordination of developmental activities.
It is further recommended that the composition of the mission be as fol-
lows:
One mission chief
One general assistant to the mission chief
Two economists
One industrial engineer
One expert on transportation
One expert on mineral resources
Two agricultural experts
One expert in education, public health and social services
One secretary
In addition to these members, it is recommended that consultants be em-
ployed for shorter periods as discussed earlier in this report. These con-
sultants would not come to Washington for briefing, but would go direct to
Nigeria at such time as would be most useful to the mission. They would


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make their recommendations, and if possible their reports, before leaving
Nigeria and would not return to Washington with the mission for the report-
writing stage.
The particular fields in which these supplementary experts will be
needed will depend somewhat on the qualifications of the regular mission
members and perhaps even on special needs that develop after the mission
reaches Nigeria. It might be expected that four to six experts would be
needed from the following list:
Railroad management and railroad equipment
Inland waterways
Highway engineering
Irrigation and drainage
Soil conservation
Fisheries
Forestry and forest products
Vocational and technical training
Public administration
As mentioned in the sections on agriculture and mineral resources
above, it would be helpful to the mission if Bank staff could make a re-
view, in advance of the mission's work, of the long-range economic pro-
spects for palm oils, groundnuts, cocoa, cotton, wood pulp, hardboard
products, tin, lead, and zinc.
Administrative Arrangements
The survey mission would need to spend about three months in Nigeria
after the usual briefing period in Washington. It is recommended that
they assemble in Washington as early as possible in September and spend
the period from middle or late September until shortly before Christmas
in Nigeria, reconvening in Washington in January for report writing.
As to the administration and financial arrangements of the mission,


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the Nigerian Government expressed its willingness to accept our standard
pattern whereby it will pay half the salaries of consultants recruited
outside the Bank, plus all local expenses. Arrangements for the housing,
office space and local transportation, and for the payment of local expenses
were discussed with Nigerian officials and do not appear to present any
special problems.
Conclusion
The exploratory mission believes that it would be useful for the Bank
to send a general survey mission to Nigeria, organized along the lines
described above.
Patterson H. French
John H. Adler
Walter J. Armstrong