SS1 Commerce Lesson Note on History of Commerce

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TOPIC: HISTORY OF COMMERCE

CONTENT:

• (a) Historical background of Commerce
• (b) Factors affecting the growth of commerce in West Africa.
• (c)The barter system

SUB-TOPIC1: HISTORICAL BACKGROUND

In the olden days, people engaged in subsistence production. This means they were producing goods for themselves and their family. Later they started interacting with one another because it was difficult for them to meet their entire daily requirement. The system of exchanging goods for goods, called trade by barter then came into existence. This is the genesis of exchange and perhaps the beginning of commercial activities the world over. Trading activities were however limited to internal trade only.

The first form of foreign trade in Nigeria was the Trans Sahara trade in which camels were used as means of transportation. The development of caravan routes across the desert linked Nigeria with the North African Traders. The Arab merchants brought goods like salt, cowries, copper, cloth, books, etc which were exchanged for kola nuts, slaves, gold, hides, etc. Important town like Kano, Borno, Zaria, Kastina played crucial role during this period.

Afterwards, another contact was made with the Europeans and that actually boosted commercial activities in Nigeria. This started in the 15^th century when the missionary came to Africa. The European traders brought weapons, books, cloths etc and exchanged them for slaves and palm oil. The initial commercial towns that served as important trading routes to the sea were Badagry, Bonny, Opobo and calabar. King Jaja of Opobo played a great role in the development of commerce in Nigeria.

After the abolition of slave trade by the British Government, the first breakthrough in commercial activities in Nigeria was the establishment of United African Company (UAC) and Royal Niger Company. By 1960, Nigeria had become a force to be reckoned with in the export of palm oil, cocoa, groundnut and later crude oil.

Also, in 1960 the exploration of crude oil brought businessmen from all over the world to Nigeria. The process of exploration changed the face of commercial activities in Nigeria. Huge revenue was generated to develop the infrastructural facilities, e.g. communication system, roads, flyovers, railways airport, modern seaports, etc.

At present, commercial activities have reached a crucial stage in Nigeria with the introduction of sophisticated modern technology such as computer, e-mail, internet, etc to facilitate trade. Many commercial centers have developed in many cities and towns like Lagos, Ibadan, Kano, Port Harcourt, Warri, Kaduna, and IIorin among others.

EVALUATION

1. Trace the history of Commerce in Nigeria.
2. List towns that are commercial centers in Nigeria

SUB-TOPIC2: FACTORS AFFECTING THE GROWTH OF COMMERCE IN WEST AFRICA

Factors affecting the growth of commerce in West Africa can be divided into two:

1. Negative factors: these are factors that hindered the growth of commerce. They include;
2. Insufficient Capital: African countries lack sufficient capital to cope with the expanding nature of business activities, the level of capital formation is also low.
3. Political instability: constant change of government and war has hindered investment in West Africa. Foreign investors are afraid to invest in the sub-region.
4. Low saving: The culture of savings is very low in West Africa as a whole; hence there is no money for commercial transaction.
5. Low Per Capita Income: Per Capita Income is very low. Majority of people in this region are living below the poverty line. The low level of income leads to low purchasing power the people.
6. Lack of Adequate Commercial facilities: The various aids to trade. Such as banks, insurance, warehouse, tourism are not well developed and this has greatly hindered commerce.
7. Predominance of primary production: Majority of people in this region engage in primary agricultural production which does not favor speedy commercial growth.

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