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Impact of the emergence of Multinational 
Companies on Nigeria’s Economy 
 
 

 
 
 

BY
 
 
 

OPASANYA OLUWATONI 
(9531787) 
 
COURSE OF STUDY & DEPARTMENT HERE 
UNIVERSITY OF MANCHESTER 
 
 
 
 
 
 
 
 
 
 

HAS THE EMERGENCE OF MULTINATIONAL COMPANIES IN NIGERIA HAD A
POSITIVE IMPACT ON THEIR ECONOMY?

In this essay, I have presented my understanding of companies grouped as multinationals
and their impact on the nation’s economy
...
Generally, they contribute positively in the areas of people development,
skills transfer, economic empowerment, technological development and country
integration with the global market
...

There is no single agreed- upon definition of the multinational enterprise which can also
be called transnational enterprise
...
576)
...
At that point, it will consist of a parent country, its producing and marketing
affiliates in other countries and the flow of products, services, capital, technology,
management and funds among them (See Root 1994:p
...

Nigeria is a country in West Africa and is known as the Federal Republic of Nigeria
...
Nigeria gained her independence on the 1st October 1960
after being colonized by the British
...
Nigeria is ranked as the 26th economy in the world
(National Bureau of Statistics)
...
Nigeria receives aid from the
developed countries around the world
...
The population of Nigeria is estimated
at 160m representing one in every 6 Africans
...
This explains the presence of a lot of multinational
and foreign companies in the country
...
This is
now closely followed by telecommunication services represented by MTN, Airtel and
Etisalat
...
Some examples are Unilever Plc, Diageo, PZ Cussons and
Heinekens in the manufacturing industry
...
In recent times,
Chinese and American companies such as Huawei and Google now have offices in
Nigeria
...

They have introduced all forms of technology
...

Today, the average city dweller can pick up the phone and speak with their relatives in
the village which in the past would have taken days of travelling
...
The Nigerian
government and local entrepreneurs may not have been able to acquire these

technological know how by themselves
...
This also explains why the country
relies on multinationals to stand as an economically strong country
...
By end 2013, telecommunications sector which is
mainly dominated by multinational companies grew by 12% and contributed about 8% of
the GDP (National Bureau of Statistics publication on rebasing the economy Q2 2014)
...
Most local entrepreneurs especially those in the local
communities evade taxes
...
The multinational companies aim to surpass
the nation-state and even transform it
...

It is a known fact that Nigerian local companies do not really measure up to these
companies in terms of production and implementation of quality technology and capital
goods (See Aribasala 2013)
...
This also applies to
“made in Nigeria” goods which are now being distributed across Africa as they are
certified in line with global standards
...


Most of the well-known Nigerian entrepreneurs started by working for the multinational
corporations, where they acquired relevant skills and knowledge that gave them the
impetus to launch out (Osuagwu & Ezie 2013)
...
Some of them have retired
to start their own companies and were sometimes even exposed to such opportunities by
their former employers
...

Multinationals are the biggest providers of post graduation skills acquisition
...
They expose the citizens to new
knowledge, skills through on the job training
...
All these help to
improve knowledge and sharpen skills which are made useful to the larger society
...

Above and beyond paying taxes to the government as well as paying salaries to their staff,
multinationals initiate programmes to give back to their host communities
...
Unilever donated a faculty building to the University of Lagos,
while MTN, the African telecommunication giant, has donated a lot of cancer screening
machines to the university teaching hospitals
...
Some of these are explained
below
...
This term refers to the use of economic, political, cultural or
other pressures to control or influence other countries, especially former dependencies
...
2011)
...

In addition, the operation of multinationals has led to some cultural degradation
...
Different companies have brought in their western lifestyle and
made it known to the Nigerian population in the form of advertisements which has caused
the people to start demanding for luxuries which may not be needed leading to wastage of
resources
...

From the literature I have studied and the several discussions I had with people working
in the country, the gains of having multinational companies in the country are enormous
and their positive impact is very glaring, there are economic improvements and strong

contributions to people welfare, individual and national wellbeing
...
In the 60s, the growth of the economy was fully dependent on agriculture
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References
1
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2011
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African
Journal of Culture, Philosophy & Society 1(1)
2
...
2013
...
(Originally Published in Financial
Nigeria magazine 2013 Edition)
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3
...
S
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Multinational Direct Investment & Economic Growth in Nigeria: An
Empirical Study
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171-176
4
...
1994 (Seventh Edition)
...
Ohio
...

5
...
2013
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International Journal of Academic Research in Business and Social Sciences
...
Nigeria Bureau of Statistics GDP Rebasing Q2 2014



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