Project Description

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)………

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.
1.4 RESEARCH QUESTION
The following research questions were made and answered for the purpose of the study and they are:
• What are the various roles these multinational corporations have played in Nigeria, since entering into the country as a business entity?
• To what extent has multinational corporations impacted on the development of Nigeria.
• What are the socio-economic and political implications of the existence of multinational corporations in Nigeria?

1.5 SIGNIFICANCE OF STUDY
• The Nigerian economy has remained under-developed quite unlike that of the Asian Tigers like India, Indonesia, and Malaysia whose economics were worse-off than that of Nigeria few years ago. This has happened inspite of the oil-producing status of the Nigeria recognized worldwide and largely controlled by Multinational corporations. This study will help espouse the contributions of these conglomerates to her development/under-development.
• Recently, there has been embarrassing revelations of tax evasion, smuggling, bribery, etc, involving Multinational Corporations. This paper will reveal the economic effects of such scandalous activities on the Nigeria economic development.
• The final recommendations will add to the growing literature on the Nigeria development and encourage further research.
1.6 SCOPE OF THE STUDY
This research work will focus its attention on the activities of MNCs in Nigeria in relation to their impact on it‟s on the development/underdevelopment of Nigeria and its economy at large. The scope of the issues that will be examined is limited to the overall objectives of the research. The causes, effect and solutions to any anomalies shall be comprehensively addressed. However the time coverage for this research work is 1960 to 2015.
1.7 METHODOLOGY
Qualitative methodology will be employed for the purpose of this study in which the use of secondary data will also be employed for the purpose of this study.

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