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European Journal of Management and Marketing Studies ISSN: 2501 - 9988 ISSN-L: 2501 - 9988 Available on-line at: http://www.oapub.org/soc Volume 2 │ Issue 3 │ 2017 doi: 10.5281/zenodo.1008825 PRODUCE BUYING AND MARKETING BOARDS IN NIGERIA: INTERROGATING THE FISCAL ROLE OF WESTERN NIGERIA MARKETING BOARD 1942-1962 Adeyinka Theresa Ajayi1, Ajibade Idowu Samuel2, Oladiti Abiodun Akeem3 PhD, Department of History and International Studies, 1 Ekiti State University, Ado-Ekiti, Ekiti State Nigeria PhD Student, Department of History, 2 University of Ibadan, Oyo State, Nigeria PhD, Department of General Studies, 3 Ladoke Akintola University of Technology, Ogbomoso, Oyo State, Nigeria Abstract: Marketing Board system was one of the mechanisms of British colonial policy in Nigeria. Primary products were channeled through the Boards to Europe at the expense of both the Nigerian state and the farmers, the producers of these commodities. This study examines produce buying via Marketing Boards in Nigeria and specifically interrogates the fiscal role of Western Nigeria Marketing Board. It argues that the Marketing Boards, in spite of their exploitative nature was beneficial to the regional governments. In the Western Region, the Western Nigeria Marketing Board (WNMB) became the fiscal arm of the regional governments. It became the major financier of development projects in the region through the region’s development corporations. The paper concludes that the process of development was circumscribed due to misappropriation and diversion of funds derived from the Western Region Marketing Board. JEL: Q13, E62, O13 Keywords: marketing boards, fiscal role, Nigeria Copyright © The Author(s). All Rights Reserved. © 2015 – 2017 Open Access Publishing Group 61 Adeyinka Theresa Ajayi, Ajibade Idowu Samuel, Oladiti Abiodun Akeem PRODUCE BUYING AND MARKETING BOARDS IN NIGERIA: INTERROGATING THE FISCAL ROLE OF WESTERN NIGERIA MARKETING BOARD 1942-1962 1. Introduction The British colonial economic policy was anchored on the belief that a colonial territory existed primarily for the benefit of the metropolitan country. The economic relationship between Britain, the metropolitan country and her colonies was expected to be governed by the principle of comparative advantage, implying that a country should specialise in the production of what she was best suited for. Consequently, a colony was expected to supply the raw materials needed by the industries in the metropolis. Nigeria as a colonized country was expected to provide not only the basic raw materials for the industries in Britain but also serve as market for the sale of European manufactured goods (Olubomehin, 2012, 37). This means colonies must be selfsupporting; that they must provide agricultural export crops for the imperial country and that they must buy its manufactured goods in return (Webster and Idowu, 1967, 278). Thus, colonial economic policies in Nigeria promoted export crop and mineral production to feed the British factories. The colonial territory of Nigeria served not only as ready source of cheap raw materials to feed the growing industries in Britain and European in general, but also as trading post for the British and European traders and merchants. By the same token, the policy encouraged large scale cultivation of agricultural produce especially in the three main regions; the West produced cocoa, and rubber; the Eastern produced palm produce and rubber while the North produced groundnuts and cotton among other agricultural produce and raw materials (Falola, 2004, 48). Nigeria was among the highest producers of major primary products, which were in high demand during the colonial era. Nigeria was the third producer of cocoa. Against this background, the British realised that to achieve their economic objective, a strategy for acquiring these needed agricultural produce from the various regions of Nigeria became expedient having encouraged the production of these crops in the various regions. However, given the fact that one major reason why Britain colonized Nigeria was to ensure a cheap and steady supply of raw materials to British industries, the colonial administration completely discouraged the cultivation of food crops while encouraging cash crops production the raw materials, which Britain needed included cotton for British textile factories, rubber for tyres and other products, palm oil and kernel for soap and margarine, groundnut for manufacturing oil, hides and skins for leather products, timber for furniture as well as tin, coal, amongst others (Onimode, 1981, 80-81). The strategies adopted by colonialists for buying and acquiring these commodities were exploitative in nature. Buying and exporting African agricultural European Journal of Management and Marketing Studies - Volume 2 │ Issue 3 │ 2017 62 Adeyinka Theresa Ajayi, Ajibade Idowu Samuel, Oladiti Abiodun Akeem PRODUCE BUYING AND MARKETING BOARDS IN NIGERIA: INTERROGATING THE FISCAL ROLE OF WESTERN NIGERIA MARKETING BOARD 1942-1962 produce from Nigeria and Africa in general dates back to the introduction of the legitimate trade, after the demise of the obnoxious slave trade and the advent of the Industrial Revolution. European traders had explored Africa in search of raw materials to feed their nascent industries and get market for their finished goods in the late 19 th century. Trading companies were established by these European merchants primarily for the export of primary products. Exports of farm crops including minerals were in the hands of a very few Europeans and American concerns. The United African Company UAC for example handled nearly half of West Africa’s overseas trade, and the Compagnie francaise de l’Afrique occidentale CFAO along with Societe commercial de l’aouest africain SCOA accounted for most of the rest. The Unilever dominated palm oil exports from Belgian Congo as well as from West Africa. Control of market behavior and taxation of long distance trade were also well established perquisites of traditional authorities long before European occupation (Jones, 1987, 376). After the Berlin Conference of 1884-85, which culminated in the scramble for and partitioning of Africa, and after the revocation of the charter of the Royal Niger Company in 1899, which had given the company a quasi-governmental function and made George Tubman Goldie and his European agents de facto colonial masters, the stage became set for the proper colonization of Nigeria. Indeed, the stage was set for effective and formal exploitation of Nigeria. Between 1900 and 1914, Britain succeeded in making herself the new paramount ruler of the entire Nigerian nation (Ayandele, 2006, 383). For viewing / downloading the full article, please access the following link: https://oapub.org/soc/index.php/EJMMS/article/view/226 European Journal of Management and Marketing Studies - Volume 2 │ Issue 3 │ 2017 63