3.2.1 Background to Pre-independent Trade and Commerce
The significant feature of the indigenous economy of Nigeria was that it operates above subsistence level. All the sections of the economy were able to generate excesses that could be disposed off. This explains why external trade formed integral part of Nigerian traditional economy. The structure of division of labour and interdependence among professionals encouraged the need for market and trading. A market in the sense of traditional economy was a demarcated area where traders and consumers met to exchange products. The trading was carried out both at local (internal) and external level. Trading was exclusively in the hands of long distance traders who organized themselves into small and large caravans with associated difficulties of travelling such as harsh weather and robbery. The indigenous Nigerian economy was a dynamic one which actively engaged in diversified commercial activities and essentially dealing in agricultural products and mineral resources.
3.2.2 The Trans Sahara Trade
The Trans-Saharan trade was regarded as the earliest branch of external trade of about 3,000 years ago. It began as early as 1,000B.C at a time when desert was crossed through the use of oxen and horses. The introduction of camel revolutionarised the Trans Saharan trade as it provided a convenient link between Northern Nigeria and North Africa because camel by nature can better survive desert conditions due to ability to take an average of 227.3 litres of water at once with a load of 5.1grammes and could survive twelve days without water. The Saharan journey took two to twelve months; items transported include: gold, leather goods, dyed textile materials etc.
these were exchanged for salt cowries, guns and gunpowder, Arab dresses, silks, glasses, beads, mirrors and other fancy goods.
Over time, the Trans Saharan trade witnessed the development of an efficient distributive system through specialised and experienced personnel. This included guard for security purpose, merchant who provided capital, guarantee of route safety by traditional rulers, stop overs where camels can obtain water and travelers can obtain their needs.
Implications
Trans-Saharan trade had both positive and negative impacts on Nigeria. It takes Nigeria out of isolation from the rest of the world; it also promotes the growth of the desert ports. On the other hand the Trans Saharan trade is concentrated in the hands of few royal, noble and rich families only at the neglect of the poor downtroading in the society. Also, it later involved slave trading, thus, leading to socioeconomic dislocation. By 1870, Trans-Saharan trade fell due to political and economic reasons.
This caused a re-orientation of routes towards the coast and the advent of Trans-Atlantic trade.
3.2.3 The Atlantic Slave Trade
The Atlantic slave trade according to Phillip Curtin was the largest known force of intercontinental migration in the world history. It was the darkest chapter in the history of black race as it led to the dispersal of African all over the world. Portugal’s lasting legacy for Nigeria was the initiation of Trans-Atlantic Slave Trade by 1471.
The Atlantic Slave Trade developed after Europeans began exploring and establishing trading ports on the Atlantic coast of West Africa in the mid-15th century. The predisposing factor for this trade was the demand for labour on plantations (such as sugar cane plantation) especially in the tropics of Western Hemisphere. The Atlantic Slave Trade became part of a prospering cycle known as ‘Triangular Trade’. In the first leg of the triangle, European merchants purchased African slaves with
commodities manufactured in Europe or imported from European colonies in Asia.
They then sold the slaves in the Caribbean and purchased such easily transportable commodity such as sugar, cotton and tobacco. Finally, the merchants would sell these goods in Europe and North America. They would use the profits from these sales to purchase more goods to trade in Africa, continuing the cycle. Britain and United States outlawed the trade in 1807 and 1808 respectively due to changing economic circumstances and rising humanitarian concerns.
Implications
Although the slave trade led to expansion of some kingdoms, the Nigerian pre-colonial traders had greatly enhanced income. However, it broadened the gap of inequality in income distribution and robbed Nigerian communities of able- bodied men and women of productive age.
3.2.4 Colonial Legitimate Trade
This period of trade began after the industrial revolution in England and abolition of colonial slave trade. Britain was eager to develop industrially and saw Africa as a cheap source of raw materials and a market for its finished products based on her exploration during Atlantic slave trade. Nigeria was rich in the production of palm oil, groundnut, cotton etc. that Britain and other European countries needed for production of soap, lubricants and candles. The production of cash crops for export spear-headed the incorporation of Nigeria into colonial economy. It enabled small scale farmers and traders to play an important role in the overseas exchange economy for the first time, though with little income. The legitimate trade in commodities attracted a number of rough-hewn British merchants to the Niger River, as well as some men who had been formally engaged in the slave trade. The colonial economy made raw materials from Nigeria to enter a wide range of manufacturing processes but the price paid for them and volume required were dictated by the imperialist. There was also an attempt to dominate the Nigerian economy through the introduction of currency, marketing boards and Research Institutes.
Implications
It is worthy of mentioning that the colonial legitimate trade promoted major agricultural goods for export of cash crops but it created problems in some areas of the economy. Infact the concentration on cash crops led to the neglect of food crops with later consequence of food insecurity.
SELF-ASSESMENT EXERCISE 2
What are the advantages and disadvantages of the three types of independence trade?
3.3 Trade and Commerce Sector after Independence