Arguably, globalization has influenced the world in various ways. As a matter of fact, the multinational corporations are one of the bodies whose existence in a nation influences negatively and positively. In Nigeria, there are multinational corporations whose activities affect various aspects namely political, economic, and social. Political economists in Nigeria assert that Multinational Corporations in Nigeria (MNCs) are the cause of Nigeria’s economic backwardness. In this case, Multinational Corporations in Nigeria are remarkably exploitative in nature. In general perspective, Multinational Corporations in Nigeria have negative effects to the nation.
It is evident that MNCs activities in Nigeria have negative effects on various components of the economy. It entrenches high level of unemployment, class divide, inequality, as well as poverty. Research shows that MNCs is not in a position to absorb intellectual into the labor markets. The conditions of their jobs provided by MNCs are not favorable for an average Nigerian. For example, they use capital intensive technology. Such jobs include operation of advanced machines. Chevron company is one of the company that employs capital intensive in production. The company employs some Nigerias but on contact. Moreover, another negative effect of MNCs arises because of its avoidance of corporate responsibility. MNCs undertake their activities in Nigeria, yet they do not help the communities in various issues (Ozoigbo & Chukuezi, 2011).
MNCs presence in Nigeria has negatively influenced various issues pertaining economic development. This implies that the economy of Nigeria has been exploited by MNCs. The nature of MNCs is to maximize profits at the minimum cost possible. Therefore, they do not focus on improving the lives of Nigerians. Another negative disadvantage is that MNCs cases decapitalization in Nigeria. This is because the capital that is supposed to be invested in Nigeria’s economy is taken abroad. In every economy, technology is particularly crucial, but the presence of MNCs in Nigeria leads to technological backwardness (Ozoigbo & Chukuezi, 2011). The MNCs comes with technologies that will negatively affect indigenous technological advancement.
The MNCs incorporates sophisticated and capital intensive techniques of production, which leads to increased rates of unemployment (Esidene & Hafsat, 2012). Another negative effect is cultural degradation and promotes cultural imperialism. For example, the youth in Nigeria are more attached to Coca-Cola products than the products of the nation. In general perspective, MNCS has negative impacts on various aspects of the economy and culture.
References
Esidene, C., & Hafsat, K. (2012). Globalization, Multinational Corporation and the Nigerian
Economy. International Journal of Social Science Tomorrow 1(2)
Ozoigbo, B., & Chukuezi, C. (2011). The Impact of Multicultural Corporations on the Nigerian
Economy. European Journal of Social Sciences 19 (3)
