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The main focus of this research work is to examine the influence of multi-national co-operations in the 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 detest their existence because they are agents of exploitation of the people they came to develop. In this regard, the objectives of this work is to ascertain the extent of involvement of multi-national co-operations 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. All these were discussed in the chapter one. In chapter two, related literatures were reviewed. The literature encompasses people’s view on the activities of multi-national corporations. Chapter three consists of research design and methodology. The sources of data used were primary and secondary data. The primary sources include the use of oral interview and questionnaire while newspapers, journal, textbooks, symposia were sources of secondary sources. In chapter four, the information collected were presented and analyzed and the hypotheses were equally tested in which it was discovered that the MNC’s are not interested in Nigeria economic development but are interested in exploiting the Nigeria’s economy. In chapter five, the recommendation made, is that Nigeria should develop her own indigenous technology that will aid her in her search for economic development.



1.1 Background of the study

1.2 Statement of the Problem

1.3 Purpose of the study

1.4 Hypothesis/ Research Hypothesis

1.5 Significance of the study

1.6 Delimitation/ Scope of the Study

1.7 Limitations of the Study

1.8 Definition of Terms




2.1 Concept of Multi-National Corporation

2.2 School of thoughts about multinational

2.3 Economic Effect of Multinational Corporation

2.4 Impact of multinational Corporation in the Nigerian Economy

2.5 The Negative Effects

2.6 Political Implication of Multi-National



3.1 Population of the Study

3.2 Determination of Sample Size

3.3 Method of Data Collection

3.4 Data Presentation

3.5 Validity of the Instrument

3.6 Reliability of Instrument

3.7 Method of Data Analysis



4.1 Presentation, Analysis, and Interpretation

4.2 Test of Hypothesis


5.1 Summary of Findings

5.2 Conclusion

5.3 Recommendation

5.4 Implication of the study





In third world countries most people associated multinational companies with non-colonialism. While the Euro-American nations described multinationals as the engine of growth in the underdeveloped countries. These two opposing views about multinationals will help to examine what multinational corporations are all about.

To define multinational company Walshi L.S. made us to understand that a multinational company produces and sell at both home and abroad. In fact, the essence of multinational is international production. It involves a corporation in the establishment of subsidiaries. From the foregoing, it become clear that there are several approaches in defining a multinational co-operation.

This approach tries the definition by emphasizing structural criteria such as the number of countries in which a firm is doing business, ownership from many nations, composition of the top management being nationals etc. Another school of though in this approach defines it through stressing performance characteristics such as absolute control, relative earnings of shares, sales, assets, employees committed to foreign operation etc.

Different schools of though in this approach address the issue by suggesting an evolutionary process of international to multinational, transitional and supranational organization, which can be diagrammed as follows:

International: An organization is classified as international when the organization engages in foreign business but has made no direct investment.

Multinational: A multinational organization is one that allocates resources without regard to national frontiers. However, the organization is naturally based in terms of ownership and top management.

Transnational: This is a multinational organization managed and owned by persons of different nationalities.

Supranational: This is a transnational firm that is legally denationalized by becoming incorporated through an international agency.

Some of these multi-national co-operations are General Motors, Guinness Nig. Ltd, Nigerian Breweries, Oil Companies, Nigeria Bottling Company, Beecham, M & B, UAC, and a host of others. These above mentioned corporations have their headquarters in the United States of America and Europe with huge capital and assets based and technical skills extended to their respective countries where their branches are located.

The local branches are mere subsidiaries and are located mainly in under developed countries of the world. The impacts of these multi-nationals have contributed to the improvement of the economics of such countries where they have their subsidiaries. These corporations are believed to be facilitating the transfer of technology to the less developed countries, Nigeria in particular. Ake (1981) is of the view that “the multinational scarcely have the appropriate technology to transfer” while Offions (1980) admits that they are capable of contributing to development. He however argues that their malpractices wiped away any contributions that they have made. This is why we say in “management that the multinationals blessings in disguised.

Guinness Nigeria Plc is a brewery company with many branches nationwide and it’s headquarter office situated in Lagos. The company have a staff strength of over 15,000 workers and a large number of casual workers. They manufacture Guinness Stout, Harp Beer, Guinness Malta, and the rest of others. According to a research made to the company the major aim of Guinness is to impart knowledge to Nigerians, technology transfers and skill development that Nigerians can set up their own brewery industries to manufacture their own brands of beer. Above all, Guinness have contributed health wise by establishing an eye clinic in Anambra state with (250,000) and handed over to the Anambra State Government.

In addition to these contributions Guinness have helped in no small measure in solving the problem of unemployment by employing workers in their various disciplines.

The economic growth and development of any nations is traceable to so many factors among which investment is major. For an economy to developed, it must not be after profit like in capitalist system, it must focus on the betterment and economic development of the country.

Some of the MNCs that helps in the development of Nigeria economy are as follows: Sony, Toyota, Royal, Dutch, Shell, IBM, CIM, coca cola Mc Donald. Diameter – Benz, Bayer, Pfizer and Nestle to mention a few indeed the activities of these multinational corporation now vital roles in linking national economy and defining the nature of the emerging global economy. Their supportive and able recourse, tangible and intangible which the deploy across of national boundaries to pursue profit and blaster their competitive position augment domestic servicing and provide foreign exchange required for massive investment in infrastructures.

Thus the activities of Multinational Corporation are supportive to the growth and development of many countries including Nigeria.

Firstly, it is capable of contributing to the growth of real output direct investment in the production of tangible goods in the economy.

Secondly, multinational direct investment generates and expands business, stimulate employment, raise wages and replace declining market sectors.

Thirdly, parent companies of transactional corporation system, do support their overseas affiliates by ensuring that appropriate human and material resource are put in place.

Fourthly, when the crowding in effects of multinational direct investment supersedes, its crowding cut effects on domestic economy, growth is accumulated both in the upstream as well as in the down stream business. Fifthly, it reduces a country propensity to import and lends to increased competition in the host countries which promote efficient allocation of production resources.

In conclusion, turning to the growth and economic development implications of the multinational investments, some ancient and recent studies prove that MNC’s investment is positively correlated with growth and Economic Development. Researchers like Akinlo (2004), Aseidu (2003), Obinna (1983) and Ayanwale and Bamire (2001) found that multinational corporation investment have contributed positively to the growth and economic development of Nigerian economy. Specifically, Brown (1962) and Obinna (1983) carried out empirically studies on the activities of Multinational Corporation in Nigeria.

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