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Globalization and Industrialization in Nigeria

Ushie Joseph Agbo, Shammah Asu Kekung

Abstract

This paper view globalization as capitalist ideas that introduce structural inequalities in the global economic system with so much impact on Nigerian industrial development. The position of this essay is that, despite some of the advantages of globalization in Nigerian economy, the agents of globalization such as multinational corporations, benefit more from Nigeria industrial and trade system than what they offer to Nigeria. Because globalization grants developed nations access to cheap resources and cheap labor in Nigeria, the benefits of global integration accrue disproportionately to rich countries. In Nigeria, resources tend to flow outward while its domestic industries remain weak. This dynamic, the essay asserts, produces severe underdevelopment in the country rather than growth. The impact on Nigeria’s industrial sector is especially stark. Industrialized countries dominate the sector, keeping Nigeria in a state of dependency. Local industries struggle to survive because they cannot compete in a highly competitive global market dominated by better-capitalized foreign firms. The result is that globalization is gradually shutting down local industries. In a nutshell, the paper presents globalization as a system of unequal exchange and imposed policy that sustains dependency, deindustrialization, and underdevelopment in Nigeria, driven by capitalist interests of the Global North. Dependency theory and modernization theory is useful for a balanced theoretical argument and analysis in the paper. Channels of global penetration into Nigeria industry are discussed; and key concepts in the paper are defined for easy understanding of the discourse.

References

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