CHAPTER ONE

INTRODUCTION

1.1 BACKGROUND OF THE STUDY

Over the past two decades, world output has been expanding and many countries
are benefiting from increased cross-border trade and investments. Many others
suffer because economic regimes are inefficiently managed, and this weakness
reduces their capacity to successfully compete globally (Schneider & Enste, 2002).
As globalization engulfs all corners of third world countries, and Nigeria in
particular, what are the claims of the exponents of globalization towards the
economic development of this country? Has globalization as an international
economic force really improved the economy of Nigeria? In this regard some of
the principal challenges of Africa – Nigeria development in globalizing world are
related to the development of global village as facilitated by international
communication structures and processes, unification of global economy through
global market and institutions with in the international financial system; continuing
subordination of Africa – Nigeria in International political economic relation,
arising from unequal exchange and development, high rate of urbanization in
Nigeria and social particularism arising from class, ethnicity, gender, racism and
religious segregation.

The events in the last decade in the global economy suggest a challenge; the
utilization of the opportunity engineered by globalization while at the same time
managing the problem and tension it poses, for developing countries particularly
Nigeria. While some individuals such as Dani (1999) David (1997) and Salimono
(1999) opine that globalization opens opportunities, others such as Awake (2002)
and Garry (1998) express fear about globalization. Probably it is fear anticipated

1
by the people of the world that in December 1999, a meeting of the World Treaty
Organization, held in Seattle, U.S.A was interrupted by riot. The demonstrators
feared the effects of globalization on the people and on the planet. Since that time,
anti-globalization movements have spread across the globe. It is however observed
that advocates of globalization hail it has the panacea for the most world problems.
Globalisation is also seen as the process of international integration arising from
the interchange of worldviews, products, ideas, and other aspects of culture.
Advances in transportation and telecommunications infrastructure, including the
rise of the telegraph and its posterity the Internet, are major factors in
globalization, generating further interdependence of economic and cultural
activities.

Though several scholars place the origins of globalization in modern times, others
trace its history long before the European age of discovery and voyages to the New
World. Some even trace the origins to the third millennium BCE. In the late 19th
century and early 20th century, the connectedness of the world's economies and
cultures grew very quickly. The phenomenon of globalization is a multi-
dimensional and multifaceted process that encompasses political, economic, social
and cultural dimensions that have been variously explained in different terms and
contexts. Viewed from a general perspective, the notion of globalization is broad
and diverse. Our analysis in this paper is focused on its challenge for Nigeria’s
development in the 21st century. It is considered germane however to consider first
the multi- dimensionality of its conceptual usages.

Due to its multivariate nature, globalization does not lend itself to easy
conceptualization; and like other concepts in social sciences, it is not amenable to a
single, simple and straightjacket definition, which perhaps explains its various

2
connotations by scholars of different persuasions as internalization,
universalization, liberalization, westernization etc. As Jibrin Ibrahim, drawing
from James Mittleman, insists, globalization is not a single unified phenomenon
but rather “a syndrome of processes and activities, which embody a set of ideas
and a policy framework organized around the global division of labour and power”
(Ibrahim, 2002:3). In a similar vein Tade Aina forcefully submits that: any
meaningful and relevant understanding of globalization in Africa must go beyond
the myths and ideologies of globalization to the confrontation with the diverse but
actual processes, how they unfold, their relationships with themselves and other
social and economic relations and dynamics. Such an understanding must also
recognize not only the complex but varied history of the processes being studied
but it must reject a monolithic or homogenized under- standing such as that found
in the currently neo-liberal confrontation of the subject. (Quoted in Dauda
Abubakar, 2001: 16).

There is therefore no unanimity of opinion on what constitutes globalization;

neither is there a consensus concerning the extent of its advancement as a concept.
For a thorough understanding of the concept however, there is the need to reflect
briefly on the thrust of the discourse which in literature has been classified into
three main clusters – globalization as implying global culture; globalization as the
expression of the global political order; and globalization as depicting global
economy. Hence, as Symonides perceptively submits, globalization is generally
“the process of growing interconnection and interdependence in the modern world.
It is generated by growing economic, cultural and political cooperation and links,
as well as by the need to respond together to global problems which can be solved
only on a planetary scale” (Symonides, 1998:28).

3
Dauda Abubakar pungently argues that globalization “entails universalization
whereby the object, practices or even values transcends geo-political boundaries,
penetrating the hitherto sovereign nation state and impacting the orientation and
value system of the people” (Abubakar, Op.cit). In a broader perspective, Tade
Aina posits that globalization depicts “ the transformation of the relations between
states, institutions, groups and individuals, the universalization of certain practices,
identities and structures, and perhaps more significantly, the expression of the
global restructuring that has occurred in recent decades in the structure of modern
capitalist relations (Aina, 1996).

In its most generic and broadest sense, Mike Kwanashie sees globalization as a
part of the movement of history as evident in certain forces that appear to push for
increasing integration of human activities with emphasis in contemporary world
focused more on the economic aspect of the process. It is a process of increased
integration of national economies of states with the rest of the international system
in order to create a more coherent global economy (Kwanashie, 1999:17). The
process has been increasingly propelled by the revolutionary trend in information
technology that combines advancement in computing, electronics, and
telecommunications which has brought up “a highly dynamic process of storing,
processing, transmitting and presenting information” (Ibid:20). As Nuhu Yaqub
copiously observes, globalization “refers to the tremendous revolutionary changes
that have affected our planet as a result of changes that have also taken place in
information and communication technologies - processes that have, cumulatively,
led to the villagization of the globe” (Yaqub, 2003:45).

Broadly speaking and from the perspective of the UNDP National Human
Development: Globalization can be defined as a multidimensional process of
4
unprecedented rapid and revolutionary growth in the extensiveness and intensity of
interconnections on a truly global scale” (UNDP: National Human Development
Report, 2000/2001).

From the foregoing, a fundamental feature of globalization is that the economies of

modern nation states have been highly integrated to the extent that the
internationalization of trade and economic activities has become imperative. The
interdependency is profoundly informed, as Mufana Lipalile observes, by
enhanced international trade, sustained financial flows, increased inter-country
mobility as well as improved communication arising from the innovative existence
of cellular telephones, electronic mail, the internet and digital satellite television
(Lipalile, 2001:296).

1.2 STATEMENT OF THE PROBLEM

The effects posed by globalization for Nigeria are multifarious. These are
considered in the same manner that we articulated the forces that propel it. First,
for the country to be fully integrated into the world economy and in order to
harness the benefits of such integration, it must embark on serious technological
revolution. As Shamsudden Usman pungently remarks, “the pervasiveness of
technology is such that a country ignores it at its own peril” (Usman, Op cit: 56).
In order to ensure technological revolution, the country’s technological base must
be developed. Science and technology should be made a formidable part of the key
strategic area of its developmental effort. The need to fundamentally transform the
nation’s educational, health, agriculture and industrial development has therefore
become an imperative demand. Globalization has imperialistic tendencies where
by the developing countries like Nigeria live at the mercy of super powers in terms
of military and economic manipulations. This implies that the Western world

5
developed the concept of globalization to tie the aprons of the developing countries
to themselves. This is true as the concept discredit indigenous cultures, values,
knowledge and experience. It undermines national economic and political
independence and creates worse international disparities.

1.3 OBJECTIVES OF THE STUDY

The following are the objectives of this research work are as follows:
 To examine the effects of globalization with particular emphasis on Nigeria,
Businesses
 To determine the extent at which Nigeria business benefited in the global
world
 To examine the forces of globalization and its effects on Nigeria Business
1.4 RESEARCH QUESTIONS
The research questions are follows:
 Does globalization have any effect on Nigeria business
 Are there benefits accrue to Nigeria business through globalization.
 Does globalization have positive forces and effects on Nigeria businesses
1.5 SIGNIFICANCE OF THE STUDY
The study of this nature is importance since its purpose is to decipher how
emergence of globalization as a business concept has brought about unprecedented
transformation and innovative strategies in Nigeria Businesses. Information
Communication Technology (ICT) which is one of the dominant elements of the
present day is as a result of globalization. Many companies of today now take
advantage of this multi-facet aspect of globalization by adopting it in various units
level of their organization. As a result this has brought about a tremendous positive
changes in the way and manner which they now operate. The most dominant of

6
this ICP is computer. Computer has brought about operation efficiency and
effectiveness of company especially Globacom Nigeria Ltd.
1.6 SCOPE OF THE STUDY
This study is centered around globalization and its intending positive and negative
effects, the roles it plays in Nigeria business organization with special emphasis on
Glo Nigeria Ltd.

In embarking on research of any sort a lot of constraints are bound to impose

towards its successful accomplishment. This research work is not an exception in
this regards. Some of the constraints to be encountered are: easy accessibility to
right and relevant information, time constraints and financial constraints.

7
 CHAPTER TWO

LITERATURE REVIEW

2.1 HISTORY F GLOBALISATION

The globalisation phenomenon is said to have a history dated to the 15th century
and in particular, from the 17th century. Between 1642 and 1914, there was a break
up of empires in Europe, which gave birth to the emergence of nation states with
separate sovereignties. The relationship between these state s were unsatisfactory
and led to the two world wars. The end of the second war saw the emergence of
two superpowers, the United State of America and the Soviet Union with each of
the powers creating spheres of influence with their capitalist and communist
ideologies respectively. The cold war that existed between these superpowers
divided nation states, groups and individuals into capitalist and communists.
Nation states particularly in Africa exploited the cold war situation by playing off
the United states and the Soviet Union against one another. The cold war continued
until the early 1990s when the Soviet collapsed leading to the revision of
communist economic ideology. Thus it was the collapsed of the Soviet Union that
provides background for the New World Order and the current globalisation
agenda.

New World Order and indeed globalisation as it has been observed earlier is not
only economic and political, but socio-cultural in the sense that the pursuit of its
goals is a comprehensive endeavour. The manifestation of the present globalisation
agenda started with the Gulf War of 1991as there was no Soviet union to counter
the spread of western values and beliefs as spearheaded by the united state of
America. Other countries that joined the United States of America to form the
industrial capitalist race include Russia, Japan, Belgium, Italy, France and

8
Germany. For the third world countries, Adejoh (2003) has charged that western
capitalist penetration was not designed to benefit the third World countries but to
disrupt the indigenous order and to guarantee external Prim-mover to take charge
of the entire society, although the action began with a popular slogan ‘‘developing
the underdeveloped countries’
2.2 CONCEPT OF GLOBALIZATION
Conceptually, globalization could be seen as internationalization, which means the
intensification of cross – border links between nations, liberalization (a process by
which government imposed restrictions and barriers are removed to create an open
international economy). Universalization which means spreading of various
cultural values and
experiences around the different corners of the world (Baylis and Smith 2001).
Adejo (2003) also defines globalization as “the integration of economies
worldwide through trade, finance flows and widespread adoption of information
technologies and inter-networking. Globalisation is an increasing interconnected
and inter dependent world in international trade management, administration,
communication, investment and finance
(Wolfensohn 2001).

This can also be seen as the process of international integration arising from the
interchange of world views, products, ideas, and other aspects of culture. Advances
in transportation and telecommunications infrastructure, including the rise of the
telegraph and its posterity the Internet, are major factors in globalization,
generating further interdependence of economic and cultural activities.
Though several scholars place the origins of globalization in modern times, others
trace its history long before the European age of discovery and voyages to the New
World. Some even trace the origins to the third millennium BCE. In the late 19th
9
century and early 20th century, the connectedness of the world's economies and
cultures grew very quickly.

The phenomenon of globalization is a multi-dimensional and multifaceted process

that encompasses political, economic, social and cultural dimensions that have
been variously explained in different terms and contexts. Viewed from a general
perspective, the notion of globalization is broad and diverse. Our analysis in this
paper is focused on its challenge for Nigeria’s development in the 21st century. It
is considered germane however to consider first the multi- dimensionality of its
conceptual usages. Due to its multivariate nature, globalization does not lend itself
to easy conceptualization; and like other concepts in social sciences, it is not
amenable to a single, simple and straight jacket definition, which perhaps explains
its various connotations by scholars of different persuasions as internalization,
universalization, liberalization, westernization etc. As Jibrin Ibrahim, drawing
from James Mittleman, insists, globalization is not a single unified phenomenon
but rather “a syndrome of processes and activities, which embody a set of ideas
and a policy framework organized around the global division of labour and power”
(Ibrahim, 2002:3). In a similar vein Tade Aina forcefully submits that: any
meaningful and relevant understanding of globalization in Africa must go beyond
the myths and ideologies of globalization to the confrontation with the diverse but
actual processes, how they unfold, their relationships with themselves and other
social and economic relations and dynamics. Such an understanding must also
recognize not only the complex but varied history of the processes being studied
but it must reject a monolithic or homogenized under- standing such as that found
in the currently neo-liberal confrontation of the subject. (Quoted in Dauda
Abubakar, 2001: 16).

10
There is therefore no unanimity of opinion on what constitutes globalization;
neither is there a consensus concerning the extent of its advancement as a concept.
For a thorough understanding of the concept however, there is the need to reflect
briefly on the thrust of the discourse which in literature has been classified into
three main clusters – globalization as implying global culture; globalization as the
expression of the global political order; and globalization as depicting global
economy. Hence, as Symonides perceptively submits, globalization is generally
“the process of growing interconnection and interdependence in the modern world.
It is generated by growing economic, cultural and political cooperation and links,
as well as by the need to respond together to global problems which can be solved
only on a planetary scale” (Symonides, 1998:28).

Dauda Abubakar pungently argues that globalization “entails universalization

whereby the object, practices or even values transcends geo-political boundaries,
penetrating the hitherto sovereign nation state and impacting the orientation and
value system of the people” (Abubakar, Op.cit). In a broader perspective, Tade
Aina posits that globalization depicts “ the transformation of the relations between
states, institutions, groups and individuals, the universalization of certain practices,
identities and structures, and perhaps more significantly, the expression of the
global restructuring that has occurred in recent decades in the structure of modern
capitalist relations (Aina, 1996).

In its most generic and broadest sense, Mike Kwanashie sees globalization as a
part of the movement of history as evident in certain forces that appear to push for
increasing integration of human activities with emphasis in contemporary world
focused more on the economic aspect of the process. It is a process of increased
integration of national economies of states with the rest of the international system
11
in order to create a more coherent global economy (Kwanashie, 1999:17). The
process has been increasingly propelled by the revolutionary trend in information
technology that combines advancement in computing, electronics, and
telecommunications which has brought up “a highly dynamic process of storing,
processing, transmitting and presenting information” (Ibid:20). As Nuhu Yaqub
copiously observes, globalization “refers to the tremendous revolutionary changes
that have affected our planet as a result of changes that have also taken place in
information and communication technologies - processes that have, cumulatively,
led to the villagization of the globe” (Yaqub, 2003:45).

Broadly speaking and from the perspective of the UNDP National Human
Development:
Globalization can be defined as a multidimensional process of unprecedented rapid
and revolutionary growth in the extensiveness and intensity of interconnections on
a truly global scale” (UNDP: National Human Development Report, 2000/2001).

From the foregoing, a fundamental feature of globalization is that the economies of

modern nation states have been highly integrated to the extent that the
internationalization of trade and economic activities has become imperative. The
interdependency is profoundly informed, as Mufana Lipalile observes, by
enhanced international trade, sustained financial flows, increased inter-country
mobility as well as improved communication arising from the innovative existence
of cellular telephones, electronic mail, the internet and digital satellite television
(Lipalile, 2001:296).

12
2.3 EFFECTS OF GLOBALIZATION ON THE NIGERIA ECONOMY
It can also be refers to a number of elements as the broadening and depending
linkages of national economies into a worldwide market for goods and services and
especially, capital due to developments in media technology and communication.
Globalization brings with it a growing tendency towards the universal
homogenization of ideas, cultures, values and even lifestyles. Globalization
connotes the liking of the world to become a single entity through the development
of strategies /systems to turn the whole world into one global village. It indicates
the modernization of the world through trade, banking, communication etc. The
North and South see globalization as the process whereby commercial enterprises
increase their activities across national boundaries, utilizing the opportunities for
the international trade and simultaneously spreading their cultural and societal
values. The new communication technologies and media are spreading the existing
structures and values which are dominant globally and emphasize the free market
economy and a capitalist liberal democracy thus the climate of privatization,
deregulation and communication which exist in United States in actively being
replicated across the world, Nigeria inclusive, in order to facilitate international
commercial ventures. This process is being further augmented by the development
of direct broadcasting satellite technology that virtually undermines national
boundaries and other barriers to international radio and Television broadcasting
organization like British Broadcasting cooperation (BBC), Cable News Network
(CNN) that are prominent examples of these services.

Generally, globalization aims at the following:-

- Promotion of hyper growth and unrestricted exploitation of environmental
resources to fuel the growth.
- Privatization and modification of public services
13
 - Global cultural and economic homogenization.
- Integration and conversion of national economies to environmentally and
socially harmful export oriented production.
- Corporate deregulation and unrestricted movement of capital across borders.
- Replacement of traditional powers of democratic national, state and local
communities by global corporate bureaucracies.
2.4 FEATURES OF GLOBALIZATION
- Increased relevance of intercontinental and international bodies and processes
like ECOWAS, AU, UN, EU, NEPAD, African peer review mechanism and many
other trade, social and political blocs and bodies
- Increased democracy and globalization of the good governance concept
- National boundaries are not too relevant because of regional blocs.
- Technological advancement especially in internet technology, microchips, mobile
telephony, cyber products, space time are now compressed. Far away Australia is
now a computer mouse click away.
- Crime such as cyber terrorism, computer hacking bank frauds are also faster and
globalize for fraud from the comfort of his home a cyber criminal can hack,
infiltrate or infect any computer system even countries away.
- Privatization is increasing while government involvement in business ventures is
becoming obsolete.
- A free flow of trade across borders. Trade restrictions are becoming outdated.
- Information for business/economic decision is now more accessible through the
intranet, internet and extranet.
- Business competition is fierce, for example, First Bank Nigeria is also competing
against foreign banks because Nigerians can easily bank abroad.
- Increased technology, productivity and largely unrestricted trade have made
many products more accessible and cheaper.
14
- Through the World Bank, ILO and IMF many countries now have common
economic, business and labour policies.
2.5 POSITIVE EFFECTS OF GLOBALIZATION ON NIGERIAN
ECONOMY
Globalisation increased specialisation and efficiency, better quality products at
reduced price, economies of scale in production, competitiveness and increased
output, technological improvement and increased managerial capabilities. Trade
and investment can aid efforts at restructuring an economy to make it more
competitive and better able to contribute to the globalisation process.
Communication and mass media have the traditional function of multiplying
mobility and facilitating exchange of information about goods and services.
Exhibition, trade fair and media advertising, for example, help in the marketing of
goods and services and provide a multiplicity of choices to consumers even if they
also trigger unhealthy commercialization.
2.6 NEGATIVE EFFECTS OF GLOBALIZATION ON NIGERIAN
ECONOMY
A major barrier to the progress of the poorer developing countries remain the trade
regime in advanced economies which generally discriminate against the goods that
poor countries produce in particular, food, textile and clothing. African – Nigerians
underdevelopment and century impoverishment is
the direct precipitate of European colonization, global capitalist exploitation and
ruthless extraction of resources especially in the name of debt servicing by
international finance houses – IMF and World Bank.
In Nigeria the average life expectancy is a mean of 51 years and this is increasingly
being reduced with low caloric intakes, poverty, uncertainty, hardship, tribe wars,
armed robbery, boko haram, flood and other violent crimes, drug abuse,
prostitution and other avoidable ills. It is indicated that half of the world refugees
15
fleeing from wars, famine, drought and repressive leaders are from developing
countries where Nigeria is directly or indirectly involved. These are the aftermaths
of European and American manipulation and geopolitics in the region including
longstanding support for VIPs – Nigeria as a component part of the world
experiences global warming resulting from emission of gases from exhausts,
chimneys which depletes the diatomic mole cule – Ozone subjecting man and other
living things to the scorch of the sun. Policies of deregulation, privatization and
commercialization, which have been packaged by the International Monetary
Fund, the World Bank and the World Trade Organization, do not take into account
the socio-economic peculiarities of Nigeria, and therefore cannot lead to
industrialization. The process of privatization, for example, was marred by
corruption, insincerity and politicking by the political class. Foreign participation
cannot lead to industrialization. Rodney (1972) suggested that all forms of
development must start within a country and not from outside.

Globalization does not seem to be giving us much even in terms of technological

transfer, industrialization and economic development in general. The mass
importation of electronic communication and military gadgets without
commensurate exportation of Nigerian goods as compensation has left Nigeria in
unfavourable terms of trade and deficit balance of payment making her a debtor
nation (Dumping of good s as part of economic liberalization).

16
 CHAPTER THREE
METHODOLOGY OF THE STUDY
3.1 RESEARCH DESIGN
The methodology use in this study is descriptive analysis. Since no hypothesis is
formulated or tested, it is best to adopt descriptive analysis. The focus of this
research is the recognition of the existence of a global environment that is deeply
embedded in interdependency and the necessity for Nigeria to minimize the
adverse effects of globalization while harnessing whatever its benefits for national
development. Following the introduction, the research examines the phenomenon
of globalization and the multidimensionality of its conceptual usages. It then
provides an overview of the two major contrasting paradigms that underpin
discussions on globalization. This is followed by the analysis of the powerful
forces that propel globalization in contemporary world environment. It also
discusses the challenges that the current globalization poses for Nigeria.

17
 CHAPTER FOUR

SUMMARY, CONLUTION AND RECOMMENDATION

4.1 SUMMARY
The main feature of the current economic situations in the contemporary world
system is globalisation which is lead by a new age of information technology that
is contrary to the History of human kind. Countries have continually intensified
various efforts towards engaging in business across country’s borders and
distributing networks and production on a global scale. Therefore, with these
trends of political, economic, social and technological forces the world is
becoming a ‘global village’. Based on the above the paper recognizes the existence
of a global environment that is deeply embedded in interdependency and the
necessity for Nigeria to minimize the negative effects of globalization. In this study
work globalization was extensively looked at with various views of many
authorities a and scholars. This study also looked at the impact of globalization on
Nigeria business with special emphasis on Glo Nigeria Ltd also the positive and
negative impact of globalization.
4.2 CONCLUSION
In conclusion, despite the rosy picture that has been painted of a globalizing world
of converging economies and the growth of internet communication technology
(ICT) Nigeria remains at best on the periphery. In economic and trade terms
Nigeria economies can hardly compete international due to infrastructural,
technological and managerial inadequacy. There is also the logic of international
market which has largely been historically shaped and virtually consolidated
between the haves and the have not. This situation will not change as long as the
land lacks electricity and other basic infrastructures. From communication
perspective, there is a correlation between wealth, information and awareness.

18
Western domination of the media, long established has been reinforced in the era
of globalization. Africa – Nigeria needs to have a view in the global media.
Globalization was supposed to present opportunities to less well off countries such
as those in Africa – Nigeria inclusive, but rather than openings are being made for
more media organization a few multinational companies have become more
dominant in the media business. They have spread their wings to almost every
corner of the world.

Globalization is yet to develop the economy of Nigeria. The economy is still

underdeveloped, as evidence by high levels of unemployment and poverty.
Improvements information in technology, trade and communication systems
occurring in the superstructure do not amount to real development. In order for
Nigeria to benefit from globalisation, effort should be made to develop human
capital and decode the multimedia super-corridor for relevant information. Thus
information technology should progress in line with the global trend. Above all
good governance transparency and accountability are desirable for a strong and
competitive economy.
4.3 RECOMMENDATIONS
The following are the recommendations of this research work:
i. That Nigerians or Nigerian companies should have a balance view of
globalization as a concepts i.e look critical the bad side of it not only the
good side only
ii. The new democracy must go beyond party politics to include civil society
grassroots initiatives.
iii. That Subsidiary or decentralization through globalization should be
encouraged i.e. local ownership and control of resources.

19
iv. Ecological sustainability i.e. exploiting natural resources for present
generation without damaging, the environment thereby preserving resources
for future generation.

20
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21