ABSTRACT
The
main focus of this research work is to examine the impact of multinational
corporations on indigenous industries in Nigeria and economic development of
Nigeria. MNC‟s are agent of development in the sense that they constitute the
source of capital investment, employment for the people, technological transfer
etc. However, many critical of their existence, they are agents of
“exploitation”. In this regard, the objective of this work is to ascertain the
extent of involvement of multinational corporations in the economic development
of Nigeria using indices like employment provision, transfer of technology and
to determine the political, socio-economic implications of their existence in
Nigeria and also to examine their impact on indigenous industries , in which we
will be focusing on key areas of the economy . The materials gathered will be
presented and analysed to ascertain if the MNC‟s operations and activities in
Nigeria has an impact on the indigenous industries in Nigeria.
CHAPTER ONE
1.0
INTRODUCTION
1.1
BACKGROUND OF THE STUDY
Multinational corporations are those
powerful mega conglomerates that came into being in Nigeria after the abolition
of slave trade. They became more prominent during the heydays colonialism and
have even dominated the Nigerian economy after her independence. In his
contributions towards the emergence of Multinational Corporation in Africa,
Rodney (1972), reasoned that: “after the abolition of the slave trade. The
European countries needed a market for surplus products and place to access
cheap raw material and labour, Africa thus became the obvious destination”. Consequently,
today, Multinational corporations like the United African Company (UAC),
Paterson and Zachonis (pz), Lever Brother, Coca-Cola Company, Mobil oil, Shell
B P, Total Elfina, Schlumberger, to mention but few adorn the landscape of the
Nigerian economy. On the strength of these corporations Okereke and Ekpe
(2002), submit that: “these corporations are powerful conglomerates whose
resources base are so formidable to the point of weakening and challenge and
competition from indigenous entrepreneur. They straddle their host economies
like colossus and their domination is hardly challenged”.
These multinational corporations are
very rich in all ramifications because of the profit they make in Nigeria. For
instance, Nigeria is one of the largest producers of oil the world which
accounts for over 80% of her income. Since this sector of the economy is
effectively controlled by Multinational corporations, who make enormous profit
from the industry, one expects that they should spearhead the developmental
process of Nigerian. But unfortunately, the reverse has been the case. Most
multinational companies have been fingered on several occasions playing active
roles in the under development of Nigeria. The Halliburton scandal of bribery
and tax evasion and the Siemens bribery scandal are example of Multinational
Corporations consciously under developing Nigeria. However, certain scholars
hold a contrary view to this position.
This paper therefore aims at espousing
critically, the contributions of Multinational corporations towards the
development of Nigeria and its impact on the indigenous industries.
1.2 STATEMENT OF PROBLEM
Multinational companies like United
Africa Company, PZ, Unilever, Mobil, Shell, EIF Oil Companies, etc, exists
everywhere in Nigeria. Because of their formidable resources base, they
dominate the economy, straddle the indigenous entrepreneur and in the process
create a monopoly and accumulate unimaginable profits. Then question may now
arise: How much is their contributions to the socio-economic cum political
development of our country given their enormous, economic resources. According
to Mansbach (1976), Multinational Corporations create and sustain a clientele
(domestic elite) whose attention is far from the benefit of the host countries.
Rather, they are content with the status quo and their primary energies focused
on the foreign firms abroad.
Also according to Okereke and Ekpe:“rather
than re-invest their profits in the economy of the host countries, in to
generate other economic activities and hence expand the economy, the
Multinational corporations repatriate profits to their home countries in what
is often referred to as capital-Flight” (2004:112). 11
They equally contend that the
domination of the economy of underdeveloped countries like Nigeria by
multinational corporations, hinder the development of an independent nation
bourgeoisie capable of internally generated and initiated development, thus
retarding in these societies. In the oil sector which is the economic mainstay
in Nigeria, the multinational corporation perpetrate heinous activities,
especially in the Niger-Delta region, such as environmental degradation without
adequate compensation, gas flaring which destroys wildlife, seafood‟s and
farmland and discriminatory employment and remuneration policies. Socially, the
activities of multinational corporations have led to an increase in anti-social
activities like drug – abuses, prostitution, kidnapping and murder, (Cole
2009). On the effect of these kidnappings on the socio-economic development of
Nigeria, Ajaero submits that Nigeria lost N2.456 trillion in 2006, N 2.69
trillion in 2007 and N2.97 trillion in 2008 through attacks on oil
installations resulting in shutdowns and spillages (New swatch 4.5:2oo9).
Equally, Nigeria has lost billions of Naira to foreign countries through act
perpetrate by multi-national companies such tax evasion, bribery (Halliburton
case) under-declaration of profit, over-in voicing, smuggling, racketeering,
etc (Ibeanu 2009).
The question now is, what
contributions have these multinational corporations made towards the
developments of Nigeria? If the negative contributions outweigh the positive
ones, what can be done to redress the imbalance? Also what has the government
of Nigeria done either by legislation or other means to act against the all the
allegations levied against these multinationals? These and many more questions
will be answered in the course of paper.
1.3 OBJECTIVE OF STUDY
This study seeks to examine the
activities of MNCs in Nigeria, because there have been allegations against
these MNCs on whether their intentions of investing in foreign land is good or
not, so the major aims of these work in relation to Nigeria are as follows:
• To examine the activities of major
multinational corporations in Nigeria, and the main focus will be on: Shell BP,
UAC, UBA Bank
• To examine the impact of
multinational corporations on the development of Nigeria using indices like
bribery and corruption, tax evasion, employment policy transfer of technology
etc.
• To examine the socio-economic and
political implications of their existence in Nigeria.
TOPIC: THE IMPACT OF MULTINATIONAL CORPORATIONS ON NIGERIA’S INDIGENOUS INDUSTRIES
Chapters: 1 - 5
Delivery: Email
Delivery: Email
Number of Pages: 70
Price: 3000 NGN
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