Title: The impact of multinational corporations (MNCs) on the Nigerian economy.
Authors: Uthman Mufutahu Oluwaseyi,
Volume: 10
Issue: 1
Pages: 126-134
Publication Date: 2026/01/28
Abstract:
This study examines the multifaceted impact of multinational corporations (MNCs) on the Nigerian economy. MNCs have been integral to Nigeria's economic landscape, contributing significantly to growth through foreign direct investment and job creation. However, their operations have also been marred by negative consequences, including environmental degradation and profit repatriation. The oil and gas sector, in particular, has faced criticism for environmental damage such as oil spills and gas flaring, which have severe ecological an health impacts on local communities. Theoretical frameworks such as dependency theory and unequal exchange theory provide insights into the exploitative nature of MNC operations in developing economies. Despite technological advancements and increased efficiency, MNCs often prioritize profit over social responsibility, leading to human rights violations and inadequate reinvestment in the local economy. This study uses a qualitative approach, analyzing secondary data to assess the documented evidence of MNC activities in Nigeria. The findings highlight the need for balanced policies that maximize economic benefits while mitigating adverse effects. Recommendations include strengthening regulatory frameworks to prevent exploitation, promoting local entrepreneurship to reduce dependency on MNCs, and encouraging corporate social responsibility initiatives. Ultimately, this research underscores the importance of effective governance in ensuring that the presence of MNCs contributes positively to Nigeria's economic development and social welfare. By addressing these challenges, Nigeria can leverage MNCs to achieve sustainable economic growth and improve living standards for its citizens.