HANNAFI BY PROF

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CHAPTER ONE:

INTRODUCTION

1.1 Background to the Study

The main players in a global knowledge-based economy are corporations. The Dutch East India

Company was the first multinational corporation (MNCs) in the world and the first company to

issue stock (Mondo and Visione, 2008). It was also arguably the world’s first mega corporation,

possessing quasi-governmental powers, including the ability to wage war, negotiate treaties, coin

money, and establish colonies, (Glenn, 2008). The history of multinational corporations in

developing multinational countries is marked by its origins in policies of imperialism and

Colonialism. Nigeria as a developing country has played host to MNCs long before

independence till date. The number and activities of these MNCs have grown over time as

Nigeria struggles to develop socio-economically as a nation (Onudogo, 2013).

Multinational corporations are those powerful conglomerates that came into being in Nigeria

after the abolition of slave trade (Aworom, 2013). As a result, the European countries needed a

market for surplus products and place to access cheap raw materials and labor, Africa especially

Nigeria became the obvious destination. They dominated the Nigerian economy after her

independence. Consequently, today, Multinational Corporations like the United African

Company (UAC), MTN, Toyota motors, Coca-Cola, Lever brothers, Mobil oil; Shell BP etc.

dominate the landscape of Nigerian economy. These 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 in 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

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process of Nigeria but unfortunately the reverse is the case. Most of these corporations have been

fingered on several occasions playing active roles in the under development of Nigeria. These

corporations are distinguished on the basis of their orientation into "ethnocentric" (home-country

oriented), "polycentric" (host-country oriented) or "geocentric" (world-oriented) (Bernadine,

2003). International business is the spur for multinationals and both are currently boosted by the

wave of globalization.

The concept of globalization has given impetus to multinational corporations/enterprises to

operate more easily in other parts of world other their home countries. The term ‘globalization

‘means integration of the world economies into one in a phenomenon aptly called global village’

(Onudogo, 2013). No one can deny the importance of MNCs in the current global business

environment-there is usually huge capital investment in major economic activities; the country

can enjoy varieties of products, services and facilities, brought to their doorsteps; there is

creation of more jobs for the populace; the nation's pool of skills are best utilized and put to use

effectively and efficiently; there is advancement in technology as these companies bring in state-

of-the-art technology for their businesses.

Most of the products we use are supplied by multinational corporations. Their presence and

significance in our lives are undeniable facts. They have developed distinct advantages which

can be put to the service of world development. Their ability to tap financial, physical and human

resources around the world and to combine them in economically feasible and commercially

profitable activities, their capacity to develop new technology and skills and their productive and

managerial ability to translate resources into specific outputs have proven to be outstanding

(Benadine, 2003). At the same time, the power concentrated in their hands and their actual or

potential use of it, their ability to shape demand patterns and values and to influence the lives of

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people and policies of governments, as well as their impact on the international division of labor,

have raised concern about their role in world affairs. This concern is probably heightened by the

fact that there is no systematic process of monitoring their activities and discussing them in an

appropriate forum. The relevance of the foreign private sector to the development of developing

countries was recognized in the International Development Strategy for the Second Development

Decade unanimously adopted by the United Nations General Assembly in 1970 (Onudugo,2013).

Countries such as Singapore, Malaysia, and Thailand have encouraged foreign direct investment

actively because of the tremendous positive impact which multinational corporations have

created on their economies.

The growth in China's coastal sector is indisputably linked to the massive Investments by

multinational corporations. However, historically, Japan and Korea have pursued more cautious

policies regarding investments by multinational corporations. Most economists believe that the

MNCs are exploitative as natural resources found in developing countries such as Nigeria meant

for its developmental goals are not productively utilized due to de-capitalization of the economy

in form of profit repatriation ( Osuagwu and Onyebuchi, 2013). Ozoigbo and Chukuezi (2011) in

full support of the above claim argued that the idea of investing in foreign land is not to better

the lot of the host nation but to exploit as much as possible in order to develop the home country.

Hence, they are often accused of destructive activities such as damaging of the environment,

complicity in human rights abuses, and involvement in corruption and stifling of infant industries

autonomy. Although, Bulu and Ango (2012:45) reported that; ‘many MNCs are now attempting

to manage these complex set, hence, they are often accused of destructive activities such as

damaging of the environment, complicity in human rights abuses, and involvement in corruption

and stifling of infant industries autonomy issues in the host countries by implementing corporate

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social responsibility (CSR) strategies; because such issues may risk the success of their

operations’. But it is not in the nature of the MNCs to solve social or economic problems of the

host countries. This is owing to the fact that the interaction between multinational corporations

and host country institutions is not well understood (Wiig and Kolstad, 2010). There is a risk that

multinational corporations facilitate patronage problems in resource rich countries, exacerbating

their resource base.

The world has become a global village with telecommunication being an indispensable tool in

the entire process of globalization. However, it is not in dispute that Telecommunication

industries play essential roles in this process. This is obviously why development in this vital

sector over the years has been phenomenal all over the world. This is why emerging trends in

socio - economic growth shows high premium being placed on Information and Communication

Technology (ICT), by nations, organizations and homes. Unlike in the past, governments

consider telecommunications service to be so vital to national interest and economic

development that it was placed directly under their control in most countries until fairly recently,

when deregulation and competition were introduced (Choongo, 2017).

MTN as a South African company was licensed to operate in Nigeria in February, 2001 and is

undoubtedly one of the leading telecommunication companies in Nigeria. With its presence in

over 21 countries of Africa and the Middle East, it has become a formidable global capital

operating in more than one continent. With over 54 million subscribers in Nigeria, MTN Nigeria

is unarguably the biggest GSM service provider in the country that keeps expanding its business

frontiers and recording unprecedented turnover in Nigeria and even beyond. Corporate Social

Responsibility (CSR) is a social responsibility expected to be discharged by a company that

operate in a particular environment (Eze, 2014).

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Since 1970s, the concept of Corporate Social Responsibility has been gaining increasing

attention in the world. It promotes business value and reputation consistency in the profit of an

organization; it also serves as a medium for saying thank you to the host community. The key

components of CSR includes but not limited to community involvement; socially responsible

investment; treatment of employee; social reporting and ethical consumerism. MTN Nigeria over

the years has created a foundation named MTN foundation which was incorporated in 2004

through which MTN reward the people in their environment. MTN Nigeria has dedicated 10% of

its profit after tax to fund the foundation to carryout corporate socially driven projects such as

granting micro credit, generating employment, skill acquisition and building capacity

(Muhammad et al, 2018).

The emergence of Telecommunication has brought a new era in communication industry. The

internet, mobile phone and computer, have brought about a fundamental shift in patterns of

communication and human relationships. Communication revolution has also brought about

amazing social, economic, cultural and psychological transformation. It has reduced the globe

into a village through reduction of time and space (John et al, 2015). Nigeria today has not been

left out of rapid development of telecommunication industry in the world. The nation’s

telecommunication industry was liberated with the return of democracy in 1999. This led to the

granting of Global System for Mobile Telecommunication (GSM) licenses by the Nigerian

Communication Commission (NCC) to three providers: Econet, MTN, and M-tel. This was

followed by the licensing of the Second National Operator (SNO), in 2003; that is, Globacom

and Universal Access Service licenses of 2006 which include fixed telephony, VSAT and

internet service providers. Also, in March 2008, the NCC gave license to another GSM operator

known as Etisalat (Muhammed et al, 2015). This study seeks to identify the impact of MNCs on

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socio-economic Development of Nigeria: A view from MTN activities in Niger Local

Government.

1.2 Statement of the Problem

In spite of the numerous ways in which MTN’s CSR impacted on socio-economic development

of Minna metropolis, a lot need to be done to fill the gap between where we are and where we

are going in term of socio-economic development. In Nigeria, the activities of multinational

companies especially MTN have been identified as questionable or even unethical because of the

harms they have caused on the society. Because of their formidable resource base, they dominate

the economy, straddle the indigenous entrepreneur and in the process create a monopoly. In the

oil sector which is the economic mainstay in Nigeria, these corporations perpetrate heinous

activities such as pollution of the environment, inadequate technology transfer, violation of

human rights, blunt refusal to discharge their social responsibilities, gas flaring which destroys

wildlife, seafood’s and farmland especially in the Niger-Delta region without adequate

compensation. Equally, the activities of these multinational corporations have led to increase in

anti-social activities like drug abuses, prostitution, kidnapping, armed robbery and murder etc.

On the effect of these kidnappings on the socio-economic development of Nigeria, Ajaero

(2009:76) submitted that; ‘Nigeria lost N2.46 trillion in 2006, N 2.69 trillion in 2007 and N2.97

trillion in 2008 through attacks on oil installations resulting in shut-downs and spillages. Nigeria

has also lost billions of Naira to foreign countries through act perpetrated by multinational

companies such as tax evasion, bribery, under-declaration of profit, over-invoicing, smuggling,

and racketeering’.

MTN is associated with many problems which distorted socio-economic development in Minna

metropolis and this problems are; exorbitant charges, high tariff, pending and undelivered

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massages, inaccessibility to customer care representatives, drop calls, unnecessary massages,

network issues, recharge issues, etc. The aforementioned problems which has to some extend

distorted sustainable development by lacking the adequate capital that supposed to be reinvested

in the host community, failure to meet the required service and the community needs which

many researchers believes that MTN is gaining more than its host communities (Eze, 2015).

It is a known fact that the MNCs are centrally controlled and that their head offices have central

control over all the departments in their operations. It is also known that the Multinational are

out to make profit, on one hand and to transfer much to their home countries on the other.

Multinational Corporations contribute immensely to the balance of payment problem to Third

World countries like Nigeria. This is done through foreign direct investment in less developed

countries. Multinationals repatriate huge amounts in the form of royalties, profits, interest,

dividend, capital etc. (Eze, 2015).

The sovereignty of a developing country like Nigeria has been called in the question and

Jeopardized, as a result of the intervention of these enterprises in the political arena and political

affairs of the country (Jhingan, 1997). Multinational Corporations exercise considerable adverse

influence on the political decisions of the host country at all levels, they may even at times

subvert any national policy and bribing the legislators not only directly but in directly. There is

much evidence to the effect that MNCs have become involved in illegitimate political

intervention in the internal affairs of the host countries which have resulted in grave

consequences in the case of developing countries (Offiong, 1980).

1.3 Objectives of the Study

The broad objective of this study is to examine the effect of multinational corporations on

socioeconomic development of Nigeria: A view from MTN activities in Minna metropolis.

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Multinational Corporations (MNCs) are pervasive in the Nigerian economy covering oil,

manufacturing, retail, agricultural sector, construction, communication and so on. For these

reasons the study will specifically undertakes to ascertain the following objectives;

i. To identify the negative as well as positive impact of MNCs on socioeconomic development

of Minna metropolis.

ii. To examine the extent in which MTN contributed to the development of Minna metropolis.

iii. To find out if MTN Nigeria has fulfilled its CSR in Minna metropolis

1.4 Research Questions

The research, the Impact of MNCs especially Mobile Telecommunication Network on socio-

economic development intends to answer the following questions:

i. What is the impact of MNCs on Minna metropolis` s Socio-economic development?

ii. To what extent did MTN contribute towards the development of Minna metropolis?

iii. Did MTN in Minna metropolis fulfill their Corporate Social Responsibilities (CSR)?

1.5 . Research Assumptions

In line with above-mentioned research questions and objectives, this research will be guided by

the following assumptions:

1. MNCs impact positively on Socio-economic development of Minna metropolis

2. MTN Nigeria has not fulfilled its corporate social responsibility in Minna metropolis

1.6 Scope and Limitation of the Study

This study is confined to the assessment of the impact of MNCs on socio-economic development

of Nigeria: A view from MTN’s activities in Minna metropolis, which is restricted to the eleven

wards in the Minna metropolis ; (identify and mention areas within the metropolis) For obvious

reasons, it will be difficult for a single researcher to study the activities of all the multinationals

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operating in Nigeria. This research therefore, covered some of the socio-economic and

technological contributions of MTN in Nigeria especially Minna metropolis of Niger State. It is

the intention of this researcher to arouse the interest of the future researchers, students and other

interest groups in the areas in question. This is because; the researcher may not be able to give

an exhaustive coverage the entire state or of this interesting and wide topic. An exhaustive and

more detailed research on this topic would have been possible but for some obvious constraints

of time, distance, finance and the like hence our disicion to limit the work`s coverage to Minna

metropolis only. Moreover, staff of these MNCs may be very uncooperative in respect of giving

out information. Either the information sought is in a file with the inscription “TOP SECRET” or

in the room with the inscription “OUT OF BOUNDS” as the case maybe.

1.7 Significance of the Study

This research work which investigate the positive and negative effect of MTN operations in

Minna metropolis, has both theoretical and practical forms of significance. The theoretical

component manifests in adding value and relevance to the existing body of literature on the

subject matter while the practical lies in the recommendations that are hoped to shape and

change the history and destiny of host communities in form of getting involved in formulation

and implementation of MTN`s CSR decisions/policies on one hand hand and the government in

strengthening requirements to be fulfilled by MNCS for them to be licensed to operate in the

country. In much the same way, the significance of this amplifies its practical manifestation in

the context of recommendations on how government can assist foreign investors in order for

them to perform efficiently in Nigeria.This bears a consequence on enforcement of compliance

and related frameworks where MNCS could be de-listed or sanctioned in the event of non-

compliance. By these, regulatory mechanisms would have been entrenched with eventual

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benefits affecting development propensity of the study area hence socially and economically

advantageous.

1.8 Operationalization of Words

The researcher deems it necessary to defined and clarified some basic words used in this research

for better understanding and appreciation of this discourse. These concepts are: Multinational

Corporations, Socio-economic Development, and Corporate Social Responsibility.

I. Multinational Corporations

Multinational Corporations (MNCs) are those having operations in more than one country. They

are subjects to changes in international exchange rates, tariffs, duties, and restrictions on trade.

II. Socio-Economic Development

Socio-economic development is the process of social and economic development in a society. It

is an improvement in the living condition of people.

II. Corporate Social Responsibility

Corporate social responsibility is the concept whereby companies integrate their social and

environmental concerns in their business operations and in their interaction with their

stakeholder on a voluntary basis.

1.9 Organization of Chapters

The entire work was organized into five (5) where chapter one contains introduction/ background

of the study, statement of research problem, research Questions, objectives of the study, research

proposition, significance of the study, scope and limitation of the study, research methodology,

operationalization of words and organization of chapters..

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The chapter two (2) contains literature review and theoretical framework. The chapter three (3)

contains brief historical background of the area of study and a general overview of MTN Nigeria.

The chapter four (4) contains data presentation and analyses of the assessment of the impact of

MNCs on socioeconomic development of Nigeria: A view from MTN’s activities in Minna

metropolis (2016-2020), while chapter five (5) contains summary, conclusion, and

recommendations.

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CHAPTER TWO

LITERATURE REVIEW AND THEORETICAL FRAME WORK

This segment presents the review of related literature on the subject area. Relevant literature

have been paraded and critically commented on in the light of their methodology, conclusions

and environmental variability. This was achieved by relying on the works of giants in

development economics, analysis and works of theoreticians in related areas of intellectual

enterprise. Journals, books, periodicals and other scholarly platforms provided intellectual

inspiration in building this work`s perspective and identifying literature gap which justified the

conduct of this study. The following have been subjected to review thus:

2.2 Conceptualizing Multinational Corporations

There are myriads of definitions in connection with multinational corporations; it is sufficient to

note a number of its characteristics. In the first place, multinational corporations make direct

investments in foreign countries. MNCs are characterized by a parent firm and a cluster of

subsidiaries or branches in various countries with a common pool of managerial, financial, and

technical resources. The parent firm operates the whole in terms of a coordinated global strategy.

Purchhasing, production, marketing, research, etc., are organized and managed by the parent in

order to achieve its long-term goal of corporate growth. Multinational Corporations have been

broadly defined as business firms that uphold value added-holdings overseas.

According to Spero and Hart (1999) a multinational corporation (MNC) is a business enterprise

that maintains direct investments overseas and that upholds value-added holdings in more than

one country. An enterprise is not truly multinational if it only operates in overseas or as a

contractor to foreign firms. A multinational firm sends abroad a package of capital, technology,

managerial talent, and marketing skills to carry out production in foreign countries. Dunning

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(2008) supports the same view and defined MNC as an enterprise that engages in foreign direct

investment (FDI) and owns or, in some way, controls value added holdings in more than one

country. Hennart (2008) defines MNC in a different way by envisaging it as a privately owned

institution devised to organize, through employment contracts, interdependencies between

individuals located in more than one country.

Multinational Corporations according to Kogut and Zander (2003) are economic organizations

that grow from its national origins to spanning across borders. Hill (2005) views Multinational

Enterprise as any business that has productive activities in two or more countries. According to

him; certain characteristics of Multinational Corporations should be identified at the start since

they serve, in part, as their defining features. Multinational Corporations are usually very large

corporate entities that while having their base of operations in one nation—the “home nation”—

carries out and conducts business in at least one other, but usually many nations, referred to as

“host nations.

Kim (2000) in agreement with this proposition envisages Multinational Corporations as very

large entities having a global presence and reach. Multinational corporations (MNCs) can spur

economic activities in developing countries and provide an opportunity to improve the qualities

of life, economic growth, and regional and global commons Litvin (2002). According to Gilpin

(1987) cited in Osugwa and Onyebuchi (2013) ‘the principal objective of multinational

corporations is to secure the least costly production of goods for world markets. This goal may

be achieved through acquiring the most efficient locations for production facilities or obtaining

taxation concession from host governments. This objective confirms the views of the Marxist

who see the MNCs as progressive agents of capitalism. Multinational company lies in the fact

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that its managerial headquarter is located in one country while the company carries out operation

in a number of other countries as well.

Okwandu and Jaja (2001) define it as a large enterprise with operations and divisions spread over

several countries but controlled by a central headquarters. Multinational corporation is an

enterprise which possesses at least one unit of production in a foreign country Meier and Schier,(

2001). MNC is an organization owing or controlling enterprises or physical and financial assets

in at least two countries of global economy and opting for a multi-domestic strategy founded on

social-economic differences of these countries as a reply to specific local demand. The

multinational corporation or enterprise generally consists of the parent company (the resident of

one country) and at least one affiliate (resident of another country). Andreff (2003) defines the

MNC in a more theoretical way as an enterprise whose capital is acquired in the process of

international accumulation. Porter (1990) defined Multinational Company (MNC) as a company

with operations in more than one country. It can also be referred to as an international

corporation. The international Labor Organization (ILO) has defined a MNC as a corporation

that has its management headquarters in one country, known as the home country, and operates

in several other countries, known as host countries. The operations outside the company's home

country may be linked to the parent by merger, operated as subsidiaries, or have considerable

autonomy.

2.2.1 Liberal Perspective

The liberals see Transnational Corporations activities to re-engineer the retarded

economy of developing countries. In his book, “International Economics” M.L Jhingan (1996)

postulated that it is not that MNCs are simply the agents of development by establishing

manufacturing plants, providing production, managerial, Technical, organizational and

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marketing skills and by Harnessing their resources. The MNCs have helped in augmenting the

GDP of Singapore, Hong Kong, Taiwan and Nigeria amongst others. Jhinga (1996) has it that,

among significant activities of MNCs are their extensions of opportunities for earning higher

incomes as well as consumption of improved quality goods and services to people in poorest

regions of the world. MTN has provided this opportunity that has reduced if not eliMinnate the

object poverty, as elaborated by Akanbi (2013);

“MTN has contributed to the economy in the area of GSM

recharge card printing. This has had the effect of saving

Nigeria of about $150 million monthly while providing

employment and new skills to the dealers. It has also

improved entertainment and networking among Nigerians,

using short message service, SMS, and the signal calls”.

(Akanbi, 2013:82)

He also has it that, instead firms have been miss-represented by ugly or fearful images by

Marxist and “Dependency theory” advocates. Because many of these firms originates in the

industrialized countries including the US, U.K, Canada, Germany and Italy; they have been

viewed as instruments for the imposition of western cultural values on their world countries

rather than allies in their economic development. In line with Alexander (2010), United Nations

postulates that, MNCs do not operate with immunity, they are heavily monitored both in the

united stated and abroad. From 1991 to 1998, there were 895 new foreign direct investment

regulations enacted by more than sixty countries. Furthermore, MNCs are not siphoning jobs

from high to low wage countries.

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However, according to UN when the Multinational Corporations make profits, this does

not mean that developing countries are being exploited both MNCs and domestic country are

better off. The developing countries receives jobs, and expanded tax based and new technologies,

if the investment do not do well, the MNCs may lose their investment and the developing

countries does not receive the aforementioned benefits, but the developing countries owes no

restitution. As a result the MNCs do not add to the external debt problem of development

countries. In the same vein, Blake and Walters in their book entitled “The Politics of Global

Economic Relations (1983:10)” “argued that;

“MNCs provides essential benefits for the host countries in

terms of mobilization and productive use of investment

capital to advanced industries that tap natural potentialities,

cater essential productive and generate more income,

balanced exchange and provide employment opportunities to

indigenous of the host sates, Blake and Walters goes on to

reckon that if MNCs were purely exploitative in their

activities they will be denied to have access to most

countries in the world”.

MTN have proven to invested billions of dollars in the Nigerian economy which invariably

reduced the high level of unemployment, this argument was supported by Alamutu et al

(2012:158);

“MTN has invested billions of dollars in telecoms equipment

and infrastructure providing base stations, and other

amenities. It has also created job for hundreds of thousands

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of Nigerians directly and indirectly. In the area of products

and services MTN offers various services like MTN happy

hour, MTN family and friends etc. It provides services like

internet browsing, international roaming, enterprise solutions

and airtime services. It also provides MTN blackberry

services, data bundle, MTN video calling, fast link, mobile

internet. Among all the mobile phone networks, MTN is the

most widely spread in terms of coverage and availability”.

However, Ige and Adeola (1988:35) observed that one principal reason as to TNCs is bridging

the disparity between savings, needs and expected growth rate at a particular points in time

another crucial reason is the employment generating capacity of the industries mostly established

by the TNCs through direct foreign investment. The prospects associated with technology

transfer accompany the input labor and machinery brought in by the investors. Similarly,

scholars like Thomas Parry for instance, asserted that;

“Multinational Corporations produce both efficiency and

equity in the host state. The efficiency effect being the

growth generated in terms of employment provision,

development of local firms, industries and injection of scarce

capital and technology to the economy where as the equity

effect is the joint benefits derived by the Multinationals and

the host stake from the firms operation through profit and

revenue accruing to both respectively” (Parry, 1993:97).

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Brown has also come in defense of the Multinational Corporations stressed that, MNCs have got

a lot to offer in terms of Nigerian economic and political development as long as there is

mutuality and understanding between both side MNCs and Nigeria. Brown (1980:53)

2.2.2 Radical Perspective

In his effect to outline the exploitative relationship between the third world countries and

the so called advanced industrialized countries of the North, Andre Gunder Frank regarded the

west as “Metropolis” and third world as “satellites”. Its perception was that, these metropolis

satellite relations are not limited to the imperial or international level but penetrates and

structures the country. Each of the satellite country is now underdeveloped, dependent and serve

as an instrument of transferring capital or economic surplus to the West. He further noted that is

as much as this discriMinnatory exploitative relationship the third world countries will remain

underdeveloped (Frank, 1970:7-8).

Nkrumah in his reference to the activities of MNCs stated in his thesis “Neo-colonialism

the last stage of imperialism” that;

“At the Centre of Neo-colonialism lies the multilateral

corporation, he disputed Euro-centric and Europe –

Americans perception that global corporations are or act as

the engine of growth and development of the economies of

the third world. Nkrumah looked at the analysis of the

working of the international monopoly capitalism in Africa

from the Marxian point of view. He concluded by

emphasizing that freedom is meaningless without economic

freedom” (Nkrumah, 1971:20)

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Multinational Corporations and their new pattern of investment fail to lead changes required for

economic development of developing countries. As Szentes noted;

“MNCs activities accentuate and impose hierarchical

economic structures in the world and national economy.

They tend to play through their transactions, interest by

keeping down branch plants in one state and transferring to

the other by exacerbating parallel capacities in neighboring

states, by growing down the expansion of production in one

state in favor of another etc. As they extend over many units

of national economy they can possibly escape political

regulations of any state in one unit” (Szentes, 1971:336-387)

In addition to that, Rodney postulates that;

“In the global south in general and particularly in African

MNCs such as Barclays Bank, Uniliver, etc. grew out of the

slave trade and colonialism, these MNCs have conveniently

outsmarted their host government and the undiscerning

public by using transfer pricing multiple accounting

procedure and other dubious manipulations in siphoning the

already dangerously improvised economies of the global

south to the advantages of their owners in the global north”

(Rodney, 1972:96).

More so, in his own analysis on multinational companies and Third World, Tuner argued that, “if

one looks at the inward and outward flow of foreign exchange, MNCs are merely expensive

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bargain, for the developing world. Tuner further contented that multinational enterprises take

away large flows of foreign exchange while the majority of their host states were struggling to

liquidate their huge foreign debts which are probably the major check on development of

developing countries” (Tuner, 1973:36). In the same vein in a paper presentation “Translational

Companies and national development” late Dr.Bala Usman sees MNCs as;

“An acceptance of western bourgeois; he further concluded

that to refer to such enterprises-Liver brothers, shell,

Uniliver, etc. “Multinationals” is to suggest that they are

companies made up of a multiplicity of nationalities. He

concluded that they are nothing rather than the agencies of

exploiting and under developing African economics, and are

wholly controlled by the western bourgeoisies but their

system of operation is geared to serve western interest”

(Usman, 1977.53-54).

Also, Adejumobi stressed that MNCs represent nothing other than the capitalist exploitation and

of course imperialism on a world scale. It is contended that the global corporations are

instrument of international class struggle supplanting the bourgeoisie’s nation-state because it is

the most important means by which the capitalist economies dominate and subjugates as well as

exploit the developing nations (Adejumobi, 1978:73). This can be seen especially in the

activities of MTN, and this argument was supported by the editorial comment in the Guardian

Newspaper;

“Even though the Nigerian Telecommunications sector has

grown significantly in the past ten years, yet customers still

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complain of poor customer service, drop calls, high call rate,

network blockage or congestion, and service quality

problems. Piqued by these falling standard of quality of

services the Nigerian Telecommunications Commission had

to slam a whopping sum of N1.17billion fine on all four (4)

GSM operators”. (The Guardians)

Solomon in the study conducted on MNCs and the emerging world order argued that MNCs

control their operation regardless of the interest of their host states. In other words, MNCs in

terms of their operation are thus basically pursuing the interest of the parent country even at the

expense of the host state (Solomon, 1978: 77 – 79). Daniel Offiong in his own analysis on the

MNCs argues that MNCs inflate the cost of raw materials and machinery by at least 200% and as

a matter of policy; trans-national companies try to import everything they demand including

those things that are locally or domestically present. They fake invoices for non-existent services

which they present to the government by using expatriate salaries repatriation MNCs inflict, the

foreign exchange of the cost country (Offiong, 1980:132).In addition to that, Adejumobi and

Offiong pointed out that multinationals are the root course of Nigerian economic dependency

and underdevelopment. The impetus behind under-development is the growth drive by the

developed economy, their systematic pursuit of economic gain through the control of raw

materials, cheap labor gain, tax concession, prices and a variety of financial gain (Offiong

1980:201). Also, MNCs has adversely indeed against all efforts by developing countries to attain

take-off into sustainable economic growth. As Arthus Nwankwo argued in his book titled “can

Nigeria survive”? That the contributions given by these enterprises are at best “illusory” by

virtue of the fact that the only service was to transfer technology and repatriate rather than

21
reinvest their staggering profit (Nwanko 1981:87). Muller has specifically examined the role of

MNCs in the third world countries. He argued that;

“MNCs do not bring their own finance capital from outside

the host country. Thus according to him, much greater part

of their financial capital is derived and generated from local

or host country in typifying this view, Muller goes on and

demonstrated that MNCs in Latin America between 1965

derived their huge financial capital from their host countries

within which they operated, very. Little and indeed merely

17 percent of Gross investment came from non-local source”

(Nwankwo 1981:40)

In their essay on the “political economy of the 19 th century, John and Robinson regards

MNCs as an instrument and agent of the new parasitic and discriminating form of the present

economic system “imperialism”. Which according to them;

“Is a function of integrating as well as cooperation of the

host state economy in to global capitalist economic system?

Their contention is however, that imperialism includes

monopolistic privilege and preferences, plunder of raw

materials and extracting of natural potentialities, seizure of

territorial or state’s sovereignty enslavement of the

indigenous population etc. indeed they relate all sorts and

means of subjugating exploiting and stagnating economic

development of the less developed countries with the adverse

22
effects from the activities of these global enterprises”(John

and Robinson, 1981:37).

Contrary to liberal perspective; Onimade pointed out that;

“MNCs have emerged as the powerful catalysts of

imperialism in Nigeria they are the Trojan Horses whose

monopoly capital advanced technology backed by enormous

political pressure from their home governments, constitute to

doMinnate mechanisms for integrating this and other third

world countries more closely, and perversely, in to the

international system of capitalist doMinnation. These

dependent countries are classified in the dependent status of

a neocolonial capitalist system”, (Onimode, 1983:37).

In many ways the activities of the MNCs epitomize the threat and new form of

imperialism as the analyst magazine says, MNCs in Nigeria monopolize the economy of the

country in general and also have monopoly over the existence of domestic industrial and

manufacturing sectors of the country. This control is concentrated in the hands of United African

Company (U.A.C) John Holt, Taylor, premier and other British, European and American firms.

Hence the possible development of the country as well as other development countries was thus

restricted and retarded by those enterprises (Usman, Y. etal 1986).

2.2.3 Benefits of MNCs to the Host Community

Meggimson, et al (1985:603), remarked that MNCs in their operations move capital, skill, know-

how goods and services and other resources to various nations. They are of the view that can

benefit the host country by providing the capital, technology and managerial skill needed to

23
produce economic development there. This is particularly true of a developing country like

Nigeria. As if to confirm this view, Hicks and gullet (1981) has this to say, “A number of

countries with under developed economies, wants foreign direct investment because of their

potential economic technological and management benefits” Hicks and Gullet (1981:145) are

very particular about technological advancement. To them, MNCs frequently acts as a change

agent through its ability to transfer advanced technological know-how to other countries.

The special strength of MNCs lies in their knowledge of sophisticated technology. This

technology is a major means of economic and social development in the host countries. It is

therefore, no surprise that part of multinational business, the world over is made up of industrial

product such as chemical, pharmaceuticals, petroleum, farm and construction machinery, types,

motor vehicles, electronics computers etc. Increased foreign investment of the MNCs can raise

the value of the local currency. It can also create employment for the unemployed in the host

Country.

In summary, people are of the view that in an ideal situation, the establishment of Multinational

Corporations in a place brings about a lot of benefits such as:

i. Rapid industrialization and technological advancement, provision of investment finance rapid

development of the place.

ii. Increase in per capital income thereby leading to increased standard of living

iii. Creation of employment in the host country, general improvement in enlightenment and

awareness

iv. Improved managerial skill through training.

2.2.4 Negative Effects of Multinational Corporations on Nigerian Economy

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Nigeria is very much affected by the negative activities of these multinational corporations

operating in Nigeria. Their obnoxious acts have affected our economy tremendously. They

include:

i). Environmental degradation: This is more conspicuous among the oil producing

companies/firms in

Nigeria. These companies have blatantly degrades our environment, farmlands, wildlife, rivers

through gas flaring, oil spillages Ibeanu (2009). At the same time, millions of naira have been

lost on these issues because they seriously impede economic growth and development of the

country. For instance, Nigerians lost 2.456 trillion in 2006, 2.69 in 2007 and 2.97 in 2008 as a

result of the activities of these multinationals.

ii). Technological backwardness: It is in this area that the MNCs are regarded as the worst

culprits because it is in this section that the MNCs play their greatest trick imaginable. The

MNCs by way of purporting to help industrialize Nigeria create a branch-plant economy of small

inefficient firms incapable of propelling overall development. The local subsidiaries exist only as

enclaves in the host economy rather than as engines of self-reliant growth. These corporations

intentionally and deceitfully introduce inappropriate types of technologies that hinder indigenous

technological developments. These MNCs employ capital intensive productive techniques that

cause unemployment. All these prevent the emergence of domestic technologies. Before the

advent of the MNCs, in Nigeria, there were so many assorted types of technologies all over the

country, though they were of low scale type. The MNCs rather than help them grow knocks them

off systematically through the introduction of more advanced technologies. The MNC both retain

the control of the most advanced technology and do not transfer it to Nigeria or the rest of the

developing economies at reasonable prices The negative impact of MNCs on Nigerian economy

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is most conspicuous in this area of technology transfer. Ozoigbo and Chukuezi (2011) noted that

there are four main reasons for this assertion;

a) Most of the imported technologies came under the industrial property system of restrictive

patterns and license. This is a very sensitive barrier for Nigeria. The implication of this is that

Nigerians cannot copy and internalize these technologies even if they have the capacity. Because

of this, Nigeria has to make do with dependent development, which has several deleterious

economic consequences.

b) The MNCs jealously guard the technological know-how of their technologies by way of

refusing to make use of competent staff. The MNCs instead use mere technicians who are at the

last rung of productive process and simply assemble together what they knew not how it was

produced. By implication Nigerians cannot learn from the technicians the intricacies involved in

the production of the material or product.

c) Another point of skillful deceit by the MNCs is the fact that where qualified and competent

indigenous staff are to be exposed to the technological know-how of a type of production.

Sometimes the type of technology they are exposed to is so sophisticated that they are

mesmerized by it. In some cases, the high capital that may be needed simply embarrasses the

nation in that they cannot afford it instead she prefers to forget about it.

d) The MNCs increase the mal-distribution of income in Nigeria and other less developed

countries. The case of oil workers earning in a month what some federal civil servants earn in a

year does not augur well with the development of the nation. This step creates a class-conscious

society, which does not help development as such. Therefore, the type of technology that the

MNCs imported into the country is the one that serves the few urban elite because only they have

the resources to get at it while the generality of the populace continue to face stark

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underdevelopment.

iii) Structural Distortion: The principle of industrialization in an open economy of the Nigerian

government in relation to the MNCs has given the MNCs the freedom to choose their line of

operations, the locations of their industry and other productive processes. The MNCs natural

base is usually in urban centers of the Nigerian society like Lagos, Kaduna, Enugu and Port-

Harcourt. The industries in these cities are mainly those of oil and consumer goods. This urban

concentration of MNCs distorted the structure of the society by enhancing an uneven

“development”.

iv) Political Instability: Because these corporations require a stable host government, which of

course is sympathetic to capitalism, they try as much as possible to directly protect the existing

government whenever a reactionary leader or group seems to take over the government. The

MNCs try to maintain the status quo that is, dependent development which encourages the

emergence of authoritarian regimes in the host country and go ahead to create alliances between

international capitalist and domestic capitalist elite. This exploitative alliance is sustained by the

intervention of the corporations’ home governments in the internal affairs of the less developed

countries. In this fashion, foreign investment tends to make the host country politically

dependent upon the metropolitan country, Gilpin (1987). It is on record that the MNCs kept

President Mobutu of Zaire in power for so long because he was tutelage to them and with MNCs

they sucked dry the economy of Zaire. The MNCs equally were responsible for the early exit and

assassination of Patrice Lumumba because he would not allow their exploitative activities. The

same story is true of Captain Thomas Sankara of Burkina Fasso and so many others. So the

multinationals in the third world in particular and Africa at large have gained much from the

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political instability that exists here and there. Africa now has the greatest number of countries

experiencing one kind of political crisis.

v) Profit Repatriation: These corporations have siphoned our economy by sending bulk of their

profits to their home countries which they could have invested to develop our country, thereby,

subjecting us to the whips and caprices of underdevelopment. Consequently, the royalties or

pittance paid to the government by these MNCs are so inconsequential that they cannot be

invested into heavy industrial projects. Today we are suffering from economic

underdevelopment because of capital flight.

vi) Bribery and corruption: These corporations are one of the agents of corruption in Nigeria.

They have influenced our leaders negatively through bribes to earn their ends meet. This is a

wrong signal to the international community and a big minus for Nigerians’ image and

reputation.

vii) Salary Discrimination: Multinational corporations adopt discriminatory salary policies.

Expatriates are highly paid while Nigerians are given peanuts when compared to what

expatriates are earning monthly or annually. For instance, I personally witnessed this scenario at

7-up Bottling Company and Ama Breweries

plc. located in Enugu. These companies not only pay fat salaries to these expatriates but also take

responsibility for their up-keep to the extent of feeding their dogs.

viii). Inadequate Provision of Social Responsibilities: Multinational corporations have not done

much in terms of social responsibilities. For instance, the largest oil producer in the country,

Royal Dutch/Shell has been repeatedly criticized. In the early 1990s, several ethnic groups in

Nigeria, which was ruled by a military dictatorship, protested against foreign oil companies for

28
causing widespread pollution and failing to invest in the communities from which they extracted

oil.

ix) Cultural Degradation: The adverse effects of the presence and operations of MNCs in

Nigeria are also felt in the area of our cherished cultural heritage. Indeed, there are negative

effects of foreign direct investment on the cultural and social well-being of Nigeria and other

fewer developing countries. The domineering presence of the MNCs in Nigeria is characterized

as constituting a form of “cultural imperialism or colonization of the society” (Gilpin, 1987),

through which Nigeria and indeed, the rest of the developing countries lose control over their

culture and social development. These multinationals undermine the traditional values of the

Nigerian society and introduce through its advertising and business practices, new values and

tastes inappropriate to the Nigeria nation. An instance of this is the introduction of foreign

violent and crime-laden films and videos as well as pornographic materials into Nigeria. It has

been rightly observed that these foreign values are not only bad in them but are detrimental to the

development of the country because they create demands for luxury and other goods that do not

meet the true needs of the common masses. In considering the issue of the transfer of

inappropriate technology, it has to be noted that Nigeria and other third world economies want

not only the most advanced technologies but also labor-intensive technology, which will serve as

appropriate technology, in order to maximize employment. Furthermore, the transfer of capital-

intensive technology by the MNCs is not beneficial to the less developing economies like

Nigeria. This is true because what would have taken a lot of time doing, machines do better in a

lesser time and thereby save costs. The charge of cultural imperialism, despite its veracity, has to

be stated at the same time that the very process of economic growth or development itself is

destructive of traditional values, since it necessarily involves the creation of new tastes and

29
unaccustomed desires. MNCs are inherently exploitative. Stopford(1998) states that advocacy

groups often portray multinationals as globetrotting sweatshop operators, indifferent polluters,

and systematic tax evaders. Exploitation remains a problem. But how much of this is a function

of business in general, rather than MNCs in particular? He claims that smaller, local firms often

can be much more exploitative than foreigners. Multinationals typically pay at or above the

going wage and provide superior training. But even if most MNCs are well intention(ed), they

suffer from a credibility gap. Perhaps unwittingly, MNCs can fuel public concern by being

culturally insensitive, not honoring promises made by their predecessors, and being inconsistent

in other aspects of their "social contract" with local society. With regard to the environment,

international big business is both the creator of pollution and the only resource available for its

cleanup. The MNCs' record on pollution pales in comparison with those of many local

businesses and state-owned enterprises. The issue of tax evasion continues to generate

acrimonious debate, despite guidelines produced by the Organization for Economic Cooperation

and Development. Multinational corporations protest that they pay their taxes responsibly. When

many MNCs conclude that the host government had abandoned its favorable investment climate.

They cut back on capital spending, closed some plants, and moved money offshore.

*Employment policies: These corporations are in the habit of employing expatriates to fill in the

key positions. That is why they adopt ethnocentric model of staff selection where expatriates are

given preference in terms of recruitment and selection. This is inimical to the economic growth

and development.

2.2.5 Management of Multinational Corporations in Nigeria

Managing multinational corporations require a different set of conceptual tools than in the case

of purely domestic firms. In particular, it is important to understand the Fundamental economic,

30
strategic, structural, organizational, and socio -political issues that have Impact on the process of

international expansion of the firms, on the linkages between foreign subsidiaries and corporate

headquarters in the home country, and on the relationship between the multinational firms and

interest groups in the foreign countries, including the government, labor unions, customers and

suppliers. Their employment modes such as polycentric, ethnocentric and geocentric should be

seriously taken into consideration in order to achieve effectiveness and efficiency in their

managerial process. Bernadine (2003:26) identifies four possible models. These models include:

Ethnocentric model: This model works within the assumption that management and human

resource practices are critical core competence to a firm’s competitive advantage and as such

should not be trifled with nor compromised (Bird et al, 1998). Under this model, the foreign

subsidiaries tend to have little autonomy and operations and decisions are typically centralized at

the headquarters. The bulk of the management staff is usually sent from the headquarters and

comprises mainly the Parent Company Nationals. Most Japanese and American organizations are

known to use this approach in recruiting and deploying their staff.

Polycentric Model: This model handles subsidiary as a distinct entity with some level of

decision making authority. Under this model both the management and the supporting staff are

usually selected competitively from the local labor market. The only challenge is that in most

cases, these local personnel are hardly ever promoted to work outside their local environment

either in other countries where the company has subsidiaries or in the headquarters. This model

is cheaper in addition to being more adaptable to local conditions.

Geocentric Model: This model tries to remove the boundaries and separating lines between the

parent company and the subsidiaries scattered all over the globe. It strives to integrate its

businesses with the relationships based on collaboration and mutual reciprocity Onodugo (2013).

31
Under this model, the organization begin to see itself as having a global workforce that can be

deployed and utilized in a variety of ways throughout the world. Key positions tend to be filled

by the most qualified individuals regardless of nationality, race or color. Staff remunerations in

companies that are geocentric are generally based on global market rates and standards. Payand

work considerations are solely based on individual contributions to the organization rather than

country of origin. It is important to note that within the contextual needs of developing countries

any model chosen must strike a balance between maximizing its huge labor potential and

providing opportunities for technology transfer. A critical look at the models enumerated above,

one can suggest that, for multinational corporations to thrive in Nigeria, polycentric and

geocentric Models or approaches to staff selection be adopted. They increase the chances of

technology transfer. The best strategy again is for developing countries like Nigeria to initiate

standard policies that will be binding on the operations of multinational corporations in Nigeria.

2.2.6 Ways of Minimizing Negative Effects of Multinational Corporations in Nigeria.

These negative effects of multinational corporations on Nigerian economy can be reduced

through the instrumentality of:

i). Government active intervention and honest participation: Although government herself is

guilty of unethical practices like bribery and corruption but she can still influence operations of

multinational corporations positively in order to reduce the magnitude of their nefarious

activities on Nigerian economy. Assistance from government can be planned and programmed as

a component in a national environment program. This can be achieved in three broad ways:

Inform, sensitize and engage businesses in dialogue and negotiations concerning voluntary

initiatives. Secondly, offering incentives and assistance to firms seeking to adopt more

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environmentally responsible business models. Thirdly, reinforcing monitoring environmental

conditions and enforces sanctions (Mazurkiewicz, 2003).

ii). Strict penalties and sanctions: These have the capacity to curb corrupt practices.

Government should impose more severe penalties on the directors of companies and threats of

corporate closure.

iii). Corporate Environmental Policy: Companies committed to reducing their environmental

impact usually create a set of environmental principles and standards, often including formal

goals. At minimum, most of such statements express a company’s intentions to respect the

environment in the design, production and distribution of its products and services; to commit

the company to be in full compliance with all laws and go beyond compliance whenever

possible; and establish an open-book policy whereby employees, community members and

others can be informed of any potentially adverse effects the company might have on the

environment.

iv). Environmental Scanning: Before a company attempts to reduce its impact on the

environment, it is essential that it first gains a full understanding of it. For most companies, this

usually involves some kind of environmental audit. The goal of audits is to understand the type

and amount of resources used by a company, product line or facility, and the types of waste and

emissions generated. Some companies also try to quantify this data in monetary terms to

understand the bottom-line impact. This also helps to set priorities as to how a company can get

the greatest return on its efforts, Onwuchekwa(2000).

v). Employee Training/ Involvement: Leadership of companies recognizes that to be effective,

an environmental policy needs to be embraced by employees throughout the organization, not

just those whose work is related to the environment. To do that, companies should engage in a

33
variety of activities, especially education, to help employees understand the environmental

impact of their jobs and to support their efforts to make positive changes. Some companies go

further, helping employees become more environmentally responsible throughout their daily

lives, helping them build a true environmental ethics. Besides education, many companies create

incentives, rewards and recognition programs for employees who demonstrate their

environmental commitment.

v). Green Procurement: To help ensure that their products and processes are environmentally

responsible; many companies seek to buy greener products and materials from their suppliers.

Some companies participate in buyers’ groups in which they leverage their collective buying

clout and power to push suppliers to consider alternative products or processes.

vi). Green Products: Products themselves may be made more environmentally friendly, with

regard to, for example, the control of emissions, noise, reduced health and safety risks, and

reduced energy requirements.

vii). Effective Regulatory Mechanism: investors must be thoroughly screened so that genuine

ones can be allowed to do business. This will ensure that the kind of investment that is welcomed

is one that can complement the developmental objective of the host country and equally ensure

that only multinationals that meet the developmental objectives are welcomed.

2.3 Concept of Socio-Economic Development

Socioeconomic development is the process by which the economic well-being and quality of life

of a nation, region, local community, or an individual are improved according to targeted goals

and objectives. The term has been used frequently in the 20th and 21st centuries, but the concept

has existed in the West for far longer. "Modernization", "Westernization", and especially

"industrialization" are other terms often used while discussing socioeconomic development

34
Historically, socioeconomic development policies focused on industrialization and infrastructure,

but since the 1960s, it has increasingly focused on poverty reduction (Taufiq 2017:90).

Whereas socioeconomic development is a policy intervention aiming to improve the well-being

of people, socio-economic growth is a phenomenon of market productivity and increases in

GDP. Economist Ade (1978:14) describes socioeconomic growth as "one aspect of the process

of economic development". The precise definition of Socio-economic development has been

perceived differently by different experts: while economists in the 20th century viewed

development primarily in terms of socioeconomic growth, sociologists instead emphasized

broader processes of change and modernization. Development and urban studies scholar, Ojo

(2015:3) summarized socioeconomic development as "a process of creating and utilizing

physical, human, financial, and social assets to generate improved and broadly shared economic

well-being and quality of life for a community or region".

Akanbi (2013:8) distinguishes socioeconomic development from economic growth on the basis

that socioeconomic development is a "broadly based and sustainable increase in the overall

standard of living for individuals within a community", and measures of growth such as per-

capita income do not necessarily correlate with improvements in quality of life. Socioconomic

development implies economic growth plus progressive changes in certain important variables

which determine well-being of the people, e.g: health, education. The University of Iowa's

Center for International Finance and Development states that: Socioeconomic development is a

term that practitioners, economists, politicians, and others have used frequently in the 20th

century. Socioeconomic development has a direct relationship with the environment. Though the

concept's origin is uncertain, some scholars argue that development is closely bound up with the

35
evolution of capitalism and the demise of feudalism. Others link it to the postcolonial state

(Akanbi, 2013).

Socioeconomic development has been understood by non-practitioners since the World War II to

involve economic growth, namely the increases in per capita income, and (if currently absent)

the attainment of a standard of living equivalent to that of industrialized countries (Akanbi,

2013:10). Socioeconomic development can also be considered as a static theory that documents

the state of an economy at a certain time. The development of a country has been associated

with different concepts but generally encompasses economic growth through higher productivity,

political systems that represent as accurately as possible the preferences of its citizens, the

extension of rights to all social groups and the opportunities to get them and the proper

functionality of institutions and organizations that are able to attend more technically and

logistically complex tasks (i.e. raise taxes and deliver public services).These processes describe

the State's capabilities to manage its economy, polity, society and public administration.

Generally, economic development policies attempt to solve issues in these topics (Akanbi, 2013).

With this in mind, socioeconomic development is typically associated with improvements in a

variety of areas or indicators (such as literacy rates, life expectancy, and poverty rates), that may

be causes of economic development rather than consequences of specific socioeconomic

development programs. For example, health and education improvements have been closely

related to economic growth, but the causality with socioeconomic development may not be

obvious. In any case, it is important to not expect that particular economic development

programs be able to fix many problems at once as that would be establishing insurmountable

goals for them that are highly unlikely they can achieve. Any development policy should set

limited goals and a gradual approach to avoid falling victim to something. Akanbi (2013:87) call

36
‘premature load bearing’. Socio-economic development is multidimensional which include

improvement in the well being of a society or improvement in the living standard of a society or

individual according targeted area over a period of time

Many times the socioeconomic development goals of specific countries cannot be reached

because they lack the State's capabilities to do so. For example, if a nation has little capacity to

carry out basic functions like security and policing or core service delivery it is unlikely that a

program that wants to foster a free-trade zone (special economic zones) or distribute vaccinations

to vulnerable populations can accomplish their goals. This has been overlooked by multiple

international organizations, aid programs and even participating governments who attempt to

carry out ‘best practices’ from other places in a carbon-copy manner with little success (Ojo,

2015). This isomorphic mimicry-adopting organizational forms that have been successful

elsewhere but that only hide institutional dysfunction without solving it on the home country –

can contribute to getting countries stuck in ‘capability traps’ where the country does not advance

in its development goals. An example of this can be seen through some of the criticisms of

foreign aid and its success rate at helping countries develop.

Beyond the incentive compatibility problems that can happen to foreign aid donations that

foreign aid granting countries continue to give it to countries with little results of economic

growth but with corrupt leaders that are aligned with the granting countries’ geopolitical interests

and agenda there are problems of fiscal fragility associated to receiving an important amount of

government revenues through foreign aid. Governments that can raise a significant amount of

revenue from this source are less accountable to their citizens (they are more autonomous) as

they have less pressure to legitimately use those resources (Brundtland, 2013). Just as it has been

documented for countries with an abundant supply of natural resources such as oil, countries

37
whose government budget consists largely of foreign aid donations and not regular taxes are less

likely to have incentives to develop effective public institutions. This in turn can undermine the

country's efforts to develop.

According to Tadaro (2015:4) socio-economic development “is the development that brings

about tremendous change in the social and economic life of the society, it meets the needs of the

present without compromising the ability of future generations to meet their own needs”. Socio-

economic development is a progressive movement from a state of lack to a state of having

abundant. It should have the capacity to bring about changes or improvement to the society or

individual presently and not having the ability to prevent or hinder future progress or

development. Brundtland (2013:87) further stressed that;

‘Socio-economic Development is a collection of methods to

create and sustain development and also require expending

both the breath of actors involved in creating and

implementing policy and the depth of their involvement

which seeks to relieve poverty, create equitable standards of

living, satisfy the basic needs of all people, produce

sustainable economic growth and establish sustainable

political practices all the while taking the steps necessary to

avoid irreversible damages to natural capital in the long term

in turn for short term and benefits by reconciling

development projects with the regenerative capacity of the

natural environment’.

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Socio-economic development is the process of social and economic development in a society.

Socioeconomic development is measured with indicators, such as, GDP, life expectancy, literacy

and levels of employment. It is the adoption of business strategies and tactics that meets the

needs of the enterprise and enhancing the human and natural resources that will be needed in the

future (Brikic and Douglas, 1997:5). Development should have the capacity to build a society

and also the ability not to hinder future generation from enjoying development. It should be

progressive bringing the desired changes needed by a society. In addition to that, Ian (2010:20)

also asserted that;

‘Socio-economic development is the bundle of technological,

subsistence, organizational, and cultural accomplishment

through which people feed, clothe, house, and reproduce

themselves, and explain the world around them, and resolve

disputes within their communities, and extend their powers

at the expense of other communities as well as defend

themselves against others’ attempt to extend power’.

From the above assertion by Ian, socio-economic development is the improvements in the

living condition of a people, having their basic necessities, security as well as independence or

sovereignty which allows them take decision independently.

2.3.1 Economic Development Policies

In its broadest sense, policies of socioeconomic development encompass three major areas:

Governments undertake to meet broad economic objectives such as price stability, high

employment, and sustainable growth. Such efforts include monetary and fiscal policies,

regulation of financial institutions, trade, and tax policies. Programs that provides infrastructure

39
and services such as highways, parks, affordable housing, crime prevention, and education, job

creation and retention through specific efforts in business finance, marketing, neighborhood

development, workforce development, small business development, business retention and

expansion, technology transfer, and real estate development. This third category is a primary

focus of socioeconomic development professionals (Akanbi, 2013:20).

Contractionary Monetary Policy is a tool used by central banks to slow down a country’s

socioeconomic growth. An example would be raising interest rates to decrease lending. In the

United States, the use of Contractionary Monetary Policy has increased women’s unemployment.

Ojo (2015) uses a panel data-set for each 50 states with unemployment, labor force participation

by race, and annual labor market statistics. In addition, for contractionary monetary policy they

utilize the federal funds rate, the short-term interest rates charged to banks. Ojo (2015) concludes

that the impact of a one percentage point increase in the federal funds rate relative to white and

black women’s unemployment is 0.015 and 0.043, respectively.

One growing understanding in socioeconomic development is the promotion of regional clusters

and a thriving metropolitan economy. In today's global landscape, location is vitally important

and becomes a key in competitive advantage. International trade and exchange rates are a key

issue in economic development. The last financial crisis had a huge effect on economies in

developing countries. Ian (2010:54) states that; “it is necessary to make financial markets in

developing countries more resilient by providing a variety of financial institutions. This could

also add to financial security for small-scale producers. Currencies are often either under-valued

or over-valued, resulting in trade surpluses or deficits. Furthermore, the growth of globalization

has linked economic development with trends on international trade and participation in global

value chains (GVCs) and international financial markets”.

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Socio-economic development has evolved into a professional industry of highly specialized

practitioners. The practitioners have two key roles: one is to provide leadership in policy-

making, and the other is to administer policy, programs, and projects. Economic development

practitioners generally work in public offices on the state, regional, or municipal level, or in

public–private partnerships organizations that may be partially funded by local, regional, state, or

federal tax money (Ojo, 2015). These socioeconomic development organizations function as

individual entities and in some cases as departments of local governments. Their role is to seek

out new economic opportunities and retain their existing business wealth.

There are numerous other organizations whose primary function is not socioeconomic

development that work in partnership with economic developers. They include the news media,

foundations, utilities, schools, health care providers, faith-based organizations, and colleges,

universities, and other education or research institutions.

2.4 Nigeria and the Activities of Multi-National Corporations

Multinational Corporations (MNC) also known as Transnational Corporations from the

liberal perspectives plays the role of re-engineering the retarded economy of developing

countries. Jhingan (1996:9) he opined that “MNCs are simply the agents of development by

establishing manufacturing plants, providing production, managerial, Technical, organizational

and marketing skills and by harnessing their resources. The MNCs have helped in augmenting

the GDP of Singapore, Hong Kong, Taiwan and Nigeria amongst others”. Among the significant

activities of MNCs are their extensions of opportunities for earning higher incomes as well as

consumption of improved quality goods and services to people in poorest regions of the world.

MTN has provided this opportunity that has reduced the object poverty, as elaborated by Akanbi

(2013:82),

41
‘MTN has contributed to the economy in the area of GSM

recharge card printing. This has had the effect of saving

Nigeria of about $150 million monthly while providing

employment and new skills to the dealers. It has also

improved entertainment and networking among Nigerians,

using short message service, SMS, and the signal calls.’

He also has it that, instead firms have been miss-represented by ugly or fearful images by

Marxist and “Dependency theory” advocates. Because many of these firms originates in the

industrialized countries including the United State, Unite Kingdom, Canada, Germany and Italy;

they have been viewed as instruments for the imposition of western cultural values on their

world countries rather than allies in their economic development. MNCs do not operate with

immunity, they are heavily monitored both in the united stated and abroad. From 1991 to 1998,

there were 895 new foreign direct investment regulations enacted by more than sixty countries.

Furthermore, MNCs are not siphoning jobs from high to low wage countries (Alexander, 2010).

MNCs are seen as agent of underdevelopment in many Third World countries because of their

mode of operation. Their main motive is maximization of profit with no effort to develop their

host community or state. All the profit made is sent to their home country living little or nothing

to develop the host community. They pay little salary to the citizens of host community

compared to what they pay their citizens domiciled in the host community or the headquarters.

However, according to Blake and Walters (1983:10) “when the Multinational

Corporations make profits, this does not mean that developing countries are being exploited both

MNCs and domestic country are better off. The developing countries receive jobs, and expanded

tax based and new technologies, if the investment does not do well, the MNCs may lose their

42
investment and the developing country does not receive the aforementioned benefits, but the

developing countries owe no restitution”. As a result the MNCs do not add to the external debt

problem of development countries. In the same vein, Blake and Walters (1983:12) argued that;

‘MNCs provides essential benefits for the host countries in

terms of mobilization and productive use of investment

capital to advanced industries that tap natural potentialities,

cater essential productive and generate more income,

balanced exchange and provide employment opportunities to

indigenous of the host sates, Blake and Walters goes on to

reckon that if MNCs were purely exploitative in their

activities they will be denied to have access to most

countries in the world’.

In view of all these argument, it is pertinent to consider the fact that MTN have proven to

invested billions of dollars in the Nigerian economy which invariably reduced the high level of

unemployment, this argument was supported by Alamutu et al (2012:158), where he posits that;

‘MTN has invested billions of dollars in telecom equipment

and infrastructure providing base stations, and other

amenities. It has also created job for hundreds of thousands

of Nigerians directly and indirectly. In the area of products

and services MTN offers various services like MTN happy

hour, MTN family and friends etc. It provides services like

internet browsing, international roaming, enterprise solutions

and airtime services. It also provides MTN blackberry

43
services, data bundle, MTN video calling, fast link, mobile

internet. Among all the mobile phone networks, MTN is the

most widely spread in terms of coverage and availability’.

MTN have no doubt invested billions of funds in telecom facilities and providing other basic

social amenities for many Nigerians directly or indirectly and provides various services to

customers. However, Ige and Adeola (1988:35) observed that; “one principal reason as to MNCs

is bridging the disparity between savings, needs and expected growth rate at a particular points is

the employment generating capacity of the industries mostly established by the MNCs through

direct foreign investment”. The prospects associated with technology transfer accompany the

input labor and machinery brought in by the investors. Similarly, scholars like Parry (1993:97)

concluded that;

‘Multinational Corporations produce both efficiency and

equity in the host state. The efficiency effect being the

growth generated in terms of employment provision,

development of local firms, industries and injection of scarce

capital and technology to the economy where as the equity

effect is the joint benefits derived by the Multinationals and

the host stake from the firms operation through profit and

revenue accruing to both respectively’.

MNCs as is being argued have a lot to offer in terms of Nigerian economic and political

development as long as there is mutuality and understanding between both side MNCs and

Nigeria (Brown, 1980).

44
From the radical perspectives, the relationship between The World countries and the so

called advanced industrialized countries of the North are exploitative. The west is regarded as

“Metropolis” and third world as “satellites”. Its perception was that, these metropolis satellite

relations are not limited to the imperial or international level but penetrates and structures the

country. Each of the satellite country is now underdeveloped, dependent and serves as an

instrument of transferring capital or economic surplus to the West, and as much as this

discriminatory exploitative relationship continues, the third world countries will remain

underdeveloped (Frank, 1970:221).

Nkrumah (1971:20) in his reference to the activities of MNCs stated that;

‘At the Centre of Neo-colonialism lies the multilateral

corporation, he disputed Euro-centric and Europe –

Americans perception that global corporations are or act as

the engine of growth and development of the economies of

the third world. Nkrumah looked at the analysis of the

working of the international monopoly capitalism in Africa

from the Marxian point of view. He concluded by

emphasizing that freedom is meaningless without economic

freedom’.

Multinational Corporations and their new pattern of investment fail to lead changes required for

economic development of developing countries. As Szentes (1971:336-387) noted that;

‘MNCs activities accentuate and impose hierarchical

economic structures in the world and national economy.

They tend to play through their transactions, interest by

45
keeping down branch plants in one state and transferring to

the other by exacerbating parallel capacities in neighbouring

states, by growing down the expansion of production in one

state in favor of another etc. As they extend over many units

of national economy they can possibly escape political

regulations of any state in one unit’.

MNCs are spread across different countries of the world; they keep growing and spreading to

different regions and state with the motives of maximizing profit to develop their countries. With

the enormous wealth at their disposal they are becoming stronger each day.

In addition to that, Rodney (1972:96) postulated that;

‘In the global south in general and particularly in African

MNCs such as Barclays Bank, Uniliver, etc. grew out of the

slave trade and colonialism, these MNCs have conveniently

outsmarted their host government and the undiscerning

public by using transfer pricing multiple accounting

procedure and other dubious manipulations in siphoning the

already dangerously improvised economies of the global

south to the advantages of their owners in the global north.’

MNCs in Nigeria and other African continent are nothing but a child of colonialism and now

neocolonialism, through which African resources are taken to the West thereby leaving Africa

poor and impoverished with little or no resources to fast-track development.

More so, in his own analysis on multinational companies and Third World, Tuner (1973:36)

argued that “if one looks at the inward and outward flow of foreign exchange, MNCs are merely

46
expensive bargain, for the developing world. Furthermore, multinational enterprises take away

large flows of foreign exchange while the majority of their host states were struggling to

liquidate their huge foreign debts which are probably the major check on development of

developing countries”. Nigeria and other African countries are beset with a lot of problem which

include debt crisis cum different other problems which are all as the result of the activities MNCs

and globalization that is presently bedeviling the country which is in dire need of development.

Usman (1977.53-54) in his argument stated that;

‘An acceptance of western bourgeois; he further concluded

that to refer to such enterprises-Liver brothers, shell,

Uniliver, etc. “Multinationals” is to suggest that they are

companies made up of a multiplicity of nationalities. He

concluded that they are nothing rather than the agencies of

exploiting and under developing African economics, and are

wholly controlled by the western bourgeoisie but their

system of operation is geared to serve western interest’.

The MNCs represent nothing other than the capitalist exploitation and of course imperialism on

a world scale. It is contended that the global corporations are instrument of international class

struggle supplanting the bourgeoisie’s nation-state because it is the most important means by

which the capitalist economies dominate and subjugates as well as exploit the developing nations

(Adejumobi, 1978). This can be seen especially in the activities of MTN, and this argument was

further buttressed supported by the editorial comment in the Guardian Newspaper (August,

2013) wrote in its editorial that;

47
‘Even though the Nigerian Telecommunications sector has

grown significantly in the past ten years, yet customers still

complain of poor customer service, drop calls, high call rate,

network blockage or congestion, and service quality

problems. Piqued by these falling standard of quality of

services the Nigerian Telecommunications Commission had

to slam a whopping sum of N1.17billion fine on all four (4)

GSM operators’.

Telecommunication companies has grown considerably in Nigeria with a lot of customers

generating a lot of profits, it still suffers major challenges in its operation and provision of

services such as; high calls charges , poor network and confusing tariffs which are problems for

their customers.

MNCs control their operation regardless of the interest of their host states. In other

words, MNCs in terms of their operation are thus basically pursuing the interest of the parent

country even at the expense of the host state (Solomon, 1978). The MNC in most cases inflates

the cost of raw materials and machinery by at least 200% and as a matter of policy; trans-

national companies try to import everything they demand including those things that are locally

or domestically present. It was also alleged that they fake invoices for non-existent services

which they present to the government by using expatriate salaries repatriation MNCs inflict, the

foreign exchange of the cost country (Offiong, 1980). The impetus behind under-development is

the growth drive by the developed economy, their systematic pursuit of economic gain through

the control of raw materials, cheap labor gain, tax concession, prices and a variety of financial

gain (Offiong 1980). Also, MNCs has adversely indeed against all efforts by developing

48
countries to attain take-off into sustainable economic growth. The contributions given by these

enterprises are at best “illusory” by virtue of the fact that the only service was to transfer

technology and repatriate rather than reinvest their staggering profits. Muller (1981:40) has

specifically examined the role of MNCs in the third world countries. He argued that;

‘MNCs do not bring their own finance capital from outside

the host country. Thus according to him, much greater part

of their financial capital is derived and generated from local

or host country derived their huge financial capital from their

host countries within which they operated. Very little and

indeed merely 17 percent of Gross investment came from

non-local source’.

MNCs usually generate a lot of profits from the host community and most or all these profits

generated are sent back to their respective home countries to promote development leaving the

host community poor and impoverished. John and Robinson (1981:37) regard MNCs as an

instrument and agent of the new parasitic and discriminating form of the present economic

system “imperialism”. Which according to them;

‘Is a function of integrating as well as cooperation of the host

state economy in to global capitalist economic system; their

contention is however, that imperialism includes

monopolistic privilege and preferences, plunder of raw

materials and extracting of natural potentialities, seizure of

territorial or state’s sovereignty enslavement of the

indigenous population etc. indeed they relate all sorts and

49
means of subjugating exploiting and stagnating economic

development of the less developed countries with the adverse

effects from the activities of these global enterprises’.

The MNCs in Nigeria and other African nations are agents of neocolonialism and

underdevelopment, the transfer the resources of the host community leaving them with little or

no resources to promote developmental project. They retard their process of development; these

are some of the reason why the host community’s economy seems to be backward and

underdeveloped. They exploit the workers in the host community giving them little wages for all

their works as compared to their own citizen located at the headquarters or in the host

communities thereby leaving the citizens of the host communities with little or no capital for

savings and investment. On a similar vein, Onimade (1983:37) further contributed that;

‘MNCs have emerged as the powerful catalysts of

imperialism in Nigeria they are the Trojan Horses whose

monopoly capital advanced technology backed by enormous

political pressure from their home governments, constitute to

dominate mechanisms for integrating this and other third

world countries more closely, and perversely, in to the

international system of capitalist domination. These

dependent countries are classified in the dependent status of

a neo-colonial capitalist system’.

In many ways the activities of the MNCs epitomize the threat and new form of

imperialism as the analyst magazine says, MNCs in Nigeria monopolize the economy of the

50
country in general and also have monopoly over the existence of domestic industrial and

manufacturing sectors of the country. This control is concentrated in the hands of United African

Company (U.A.C) John Holt, Taylor, premier and other British, European and American firms.

Hence the possible development of the country as well as other development countries was thus

restricted and retarded by those enterprises (Usman, etal 1986).

2.5 Identified Gaps in Knowledge

The issues of transfer of technology can be done in such a way that, the technology can be

integrated with out indigenous technology, thereby assisting the host country in facilitating the

development of the capital goods. Another point worth mentioning is the fact, both the liberal

and radical perspective did not acknowledge how the MNCs such as MTN simplify life and

make business more easier such that the MNCs are seen more of a blessings. For this reason,

such companies should be encouraged but should rather be indigenous in order to have more

impact on the economy of developing countries.

2.6 Theoretical Framework

Three theories were reviewed to explain the relationship between multinational corporations and

Nigerian Economy. They include New Trade Theory, Unequal Exchange and Dependency

theories. The research therefore, adopted the dependency development theory which was most

suitable to explain the topic.

New Trade Theory

New Trade Theory was propounded by Tejvannne and Pettinger(2013).It proposes that a critical

factor in determining international patterns of trade are the very substantial economies of scale

and network effects that can occur in key industries. These economies of scale and network of

51
effects can be so significant that they outweigh the more traditional theory of comparative

advantage. Economies of scale are factors that cause the average cost of producing something to

fall as the volume of its output increases. Economies of scale were the main drivers of corporate

gigantism in the 20th century. They were fundamental to Henry Ford’s assembly line and they

will continue to be the spur to many mergers and acquisitions today. New Trade theory is a

factor that explains the growth of globalization which multinational corporations serve as main

agents. It means that poorer, developing economies may struggle to ever develop certain

industries because they lag too far behind the economies of scale enjoyed in the developed

world. The theory suggests that government might have a role to play in promoting new

industries and supporting the growth of key industries. A developing economy may need tariff

protection and domestic subsidy to encourage the creation of capital intensive industries. If the

industries get support for few years, it will be able to exploit economies of scale and then be

competitive without government support. New Trade Theory is not primarily about advocating

government intervention in industry. It is more a recognition that economies of scale are a key

factor in influencing the development of trade. It also suggests that free trade and laissez-faire

government intervention may be much less desirable for developing economies who find

themselves unable to compete with established multinationals.

Unequal Exchange Theory

The Theory of equal exchange equally explains situation in Nigeria. According to Arghiri

(1972), underdeveloped countries are exploited through the process of unequal exchange. In the

realm of international trade, when the former sell their commodities below value and at the same

time buy commodities from the developed countries above the value; this provides a veritable

52
means of under development. In Nigeria, our crude oil is sold at a much reduced price to the

Multinational Corporations who refine it and sell to us at very exorbitant prices.

Dependency Theory

The dependency theory arose as a reaction to modernization theory an earlier theory of

development, it major proponents includes; Paul Baran (1953), Andre Gunder Frank (1967),

Walter Rodney (1972), Fernando Henrique Cardoso (1974), Samir Amir (1976), Dos Santos

(1989) and Claude Ake (1998) among others (Tadaro, 1994). Dependency theory differs from

most Western approaches to studying political development. One difference is that this approach

originated in the Third World (primarily Latin America), rather than among Western academics.

Third World dependency thinkers were concerned with explaining the unequal and unjust

situations in which they and their nations found themselves. Third World countries were poor

while developed countries were rich. Third World countries had bad health conditions, while

other countries had good health conditions Bade (1983).

However, this research is anchored on dependency theory developed by Boxborough (1974).

According to the theory” dependency implies a kind of parasitic relationship that exists between

the highly industrialized and the less developed ones in a manner that ensures the continuous

advancement of the former to the detriment of the later. The theory defines the relationship

between Nigeria and the multinational corporations, especially their owners. This theory

represents the complex politico-economic relationship that binds the advanced capitalist

countries of the Centre and the other countries in the periphery such that the movement and

structure of the former decisively determine those of the later in a fashion somehow detrimental

to the economic progress of the other societies. Countries, such as Ghana, that once

experimented with the dependency theory have achieved neither prosperity nor greater economic

53
independence. Rather they have experienced much poverty, misery and greater dependence on

international aid and (Ahiakpor, 1985).

Not only do dependency theorists present a conceptual framework for analyzing Third

World politics, they also suggest several "solutions" for the central problem of inequality. The

range of solutions is wide, for there is a great deal of variety among dependency theorists. At one

extreme are those we might call the moderates, including men such as Prebisch (1999). They

argue that Third World countries can take steps to improve their situation. One suggestion would

be the formation of common markets, trading blocs, or cartels. The idea is that Third World

countries share many common economic and trading problems in their relations with the

industrialized core. By joining together and presenting a common front to the core they will gain

leverage, and be able to secure greater advantages from their interactions with world core

countries. By forming groups or cartels the periphery nations will have more power than any

individual Third World country has in its relations with the core (Bade, 1983). So far this cartel

solution has proven elusive, due to technological innovations which replace natural products,

flexible demand at the core, and cartel cheaters.

A second suggestion for improving the situation is to force Third World country elites to

confront their country's condition of dependency, and take voluntary steps to alter it. Thus elites

in the capital might be convinced to use some of their wealth to invest in national construction

projects or literacy programs, rather than importing luxury auto mobiles or taking expensive

vacations abroad (Tadaro, 1994). The goal is for the elites to suspend their selfish habits of

conspicuous consumption, and to use their wealth for national development. The elites would be

encouraged to invest in their home countries, rather than abroad. Attempts to change elite

behavior have generally not been very successful.

54
More radical dependency theorists call for revolutionary solutions. They argue that it is

unrealistic to expect those currently in positions of power to take voluntary actions which would

be personally disadvantageous. Altruistic solutions are nice in the abstract, but are unlikely to be

implemented in reality (Szentes, 1971). The only realistic solution is revolutionary action to rid

the country of those leaders who have betrayed it, and to institute sweeping revolutionary change

to end inequality.

It should be noted in conclusion that the dependency position is fundamentally anti-status quo.

Dependency theorists argue that existing national and international economic and political

systems are the cause of their unjust situations. They call for systemic change to solve the

problems. They want abrupt, non-linear, fundamental change. Rather than endorsing and

embracing stability, they call for radical change (Tadaro, 1994). Their perceptions, analytical

approach, and solutions are vastly different from those of diffusion or order approach theorists.

Stability is the solution for order theorists; stability is the problem for dependency theorists.

The dependency theory has suffered from many criticism particularly the modernization

theorists notwithstanding, the theory is applicable to this study in the sense that, multinational

corporations specifically MTN had distorted socio-economic development in Niger metropolis

through the process of de-capitalization or profit repatriation, this is to say the profit that was

gain by MTN supposed to be reinvested in Niger metropolis, but rather it is taken to its mother

country South Africa, in fact this is what impacted the researcher to ask the question ‘who gain

more between MTN and the host community of Niger LGA?’ Moreover, one of the argument of

dependency theory is that the giant multinational corporations are killing the local industries (for

example MTN and other service providers replaced NITEL), because our local industries cannot

stand to compete with the multinationals because of their highly stratified technology. This

55
argument can be seen when president Obasanjo liberalize the economy and allows multinational

telecommunication companies to flourish such as MTN which led to the collapse of our

indigenous Nigerian telecommunication company (NITEL).

It is pertinent to note that with the control of Multinational Corporations over third world

economics, it has led to dependency relations among or between the advanced capitalist

countries of today and developing ones. MNCs are nothing more than the agents of exploitation

of developing countries and their activities could hardly bring about socioeconomic development

in the Third World Countries like Nigeria by virtue of their advice influence in the economic and

political development of such a country. Similarly, even where economic growth has actually

occurred in third world countries, they (MNCs) seem to generate new problems that will hinder

the development of the country (Taufiq 2017). Additionally, Multinational Corporations could

thus be understood from the dependency and imperialism perspective and that imperialism is the

development and direct perpetuation as well as expansion of basic features of capitalism. MNCs

undermine the sovereignty of the country as a result of their activities, which can be seen in the

flows of resources from the developing countries and repatriation of profits royalties etc. by

MNCs to the Centre; This resort to devaluation and increase in money supply thereby leading to

inflation with its result and adverse effects on the economy. Thus the less developed countries

like Nigeria are caught in the web of dependence structure and this makes it difficult for the

(LDCs) to have monopoly over them (MNCs). This theory is applicable in the sense that MNCs

particularly MTN has distorted socio-economic development and it has engage in an

unscrupulous activities like profit repatriation, the profits that was gain by MTN was supposed to

be reinvest in the host community of Niger LGA

56
CHAPTER THREE

METHODOLOGY

The research adopted descriptive survey design, According to Ajene (2002:16) “is the design

that helps in the collection of detailed description of existing phenomenon with the intent of

employing data to make more intelligent plan for improving them”. For the purpose of this study,

the research utilized both primary and secondary sources of data collection. Under, primary

sources of data; the research designed a structured questionnaire and conducted an oral in-depth

interview to obtain reliable information, ideas and opinions of the respondent relevant to the

study. Under secondary sources of data; the research obtained information mostly from

published and unpublished material i.e. library material: text-books, Journals, articles,

encyclopedia, speeches of political actors, magazines, Newspapers, Seminar paper presentations,

theses, electronic materials and other literature relevant to the study. The research adopted

simple random sampling to administer questionnaire to the respondents in the sample area. The

analysis of the data collected involved both quantitative and qualitative methods and was

presented using simple percentage tables.

To collect primary data, questionnaires were issued to the major wards of Minna metropolis,

which are located within the metropolitan. The collected data was analyzed using qualitative and

quantitative method of data analysis. However, numerical data, charts, and tables obtained from

other sources were properly presented, analyzed, and acknowledged.

3.2 Research Design

Research design according to Cohen and Marion (1980) “is simply a plan that specifies how data

should be collected and analyzed”. The research adopted the descriptive survey design,

57
According to Ajene (2002:16) “is the design that helps in the collection of detail description of

existing phenomenon with the intent of employing data to make more intelligent plan for

3.3 Area of Study

Minna is a city in Middle Belt Nigeria. It is the capital city of Niger State, one of Nigeria's 36

federal states. It consists of two major ethnic groups: the Gbagyi and the Nupe.

Archaeological evidence suggests settlement in the area dates back to about 47,000–37,000 years

ago. Muslim culture filtered into Minna by way of the ancient Saharan trade routes much later,

and the city contains many mosques including Minna Central Mosque and Muslim organizations

like the Islamic Education Trust, Minna, Muslim Students' Society of Nigeria - Minna Area

Council (MSSN-MNAC), Da'watu-Ilallahi-Wa-Rasulihi Association (DAWRA), etc. Sharia law

is practiced. Christianity is the second major population in Niger State, and institutions include

a Faith Church, a Grace Baptist Church, Nupe Kalvari Churches, Anglican Churches, ECWA

Churches, Baptist Churches, Victory Christian Church, the Apostolic Church and many others.

Minna is the home state of Nigeria's former military President Gen. Ibrahim B. Babangida, and

of former Head of State Gen. Abdulsalami Abubakar. Dr. Mu'azu Babangida Aliyu was the

former governor of Niger State, serving the maximum term of eight years (2007–

2015). Abubakar Sani Bello is also former governor of Niger state served from 2015 -

2023. Mohammed Umar Bago is the present governor of Niger state.

Climatically, Minna has a typical Middle Belt tropical savanna climate (Köppen Aw) with two

seasons: an arid, dusty, harmattan-dominate dry season from November to April and a humid,

oppressive wet season dominated by monsoonal air masses from May to October. Temperatures

are hot to sweltering year round, except at the height of the wet season when air temperatures are

merely very warm but the high humidity makes it equally or more uncomfortable than the hotter

58
dry season. Due to the monsoon, summer (June, July, August) is cooler than spring, fall and

winter.

Economically, Cotton, guinea corn (sorghum), Maize and ginger are the main agricultural

products of the city. Yam is also extensively cultivated throughout the city. The economy also

supports cattle trading, brewing, shea nut processing and gold mining. There are also MNCs

such as PZ Cussons that deal in toilet soaps, baby products, medicaments and so

on. [3] Traditional industries and crafts in Minna include leather work and metalworking.

3.4 Population of the Study

According to Joseph (1998:121); “population is the number of subjects or objects possessing

common characteristic that is the target of investigation”.The population of the study comprises a

number of wards in Minna metropolis limited to Chachanga local government because of

concentration of large number of beneficiaries of MTN corporate Social responsibility activities.

The population of the metropolis is predominantly urban and agricultural, about 80% of them is

still depending on farming although at subsistence level due to lack of funds for financing

agricultural activities. According to National Population Commission (2021), Minna metropolis

has a total population of 480,000 people constituting 11% of the entire people of the States. And

the major occupation of the metropolitan people is civil service and trading. Only few of the

people are engaged in farming while many combine farming with civil service. Moreover, it has

been assumed by the National Population Commission (2021), that Minna metropolis has the

total adult population of 268,000.

59
Table 1: Population Distribution of Selected Wards of Chachanga, Minna Metropolis

S/N Wards Population Percentage

1. Kpakungu 16002 5.9%

2. Soje 28363 10.6%

3. Tunga 22034 8.2%

4. Sabongari 29210 10.9%

5. Morris 19720 7.4%

6. Mandela 40476 15.1%

7. Barikinsale 34707 1.3%

8. Airport Quarters 11020 4.1%

9. Sauka Kahuta 15182 5.7%

10. Fadikpe 31179 11.6%

11. Shango 20104 7.5%

TOTAL 268000 100%

Source: Niger State Statistical Bureau (2021).

3.5 Sampling Techniques and Sample Size

Obasi (1999:67) describes a sample as selected groups which are a fair representation of the

entire population of interest. He observes that; “A sampling procedure as a systematic process

employed to select a required proportion of a target population”. A sampling technique is a

definite plan for obtaining a sample from a given population. It refers to the technique or the

procedure the researcher would adopt in selecting items for the sample. For the purpose of this

research, the study employed simple random sampling. Simple Random sampling refers to that

60
method of sample selection which gives each possible sample combination an equal opportunity

of being picked up and each item in the entire population to have an equal chance of being

included in the sample. The essence is that, it gives each element in the population an equal

opportunity of selected on the sample and all choices are independent of one another. It gives

each possible sample combination an equal probability of being chosen. Taro Yemeni’s Simple

Random Sample (SRS) formula was used to determine the sample size of the study. Taro

Yemani formula is as follow;

= N______

1+N (e)2

n = Sample size

N = Total Population =268,000

e = Limit of tolerance error = (0.05)2

n = 268,000

1+268,000(0.05)2

n = 268,000

1+268,000(0.0025)

n = 268,000

1+670

n = 268,000

671

n = 399.4

n. =399 approximately

61
The sample size will involve 399 respondents consisting of males and females. Therefore, a

total of 399 questionnaires were administered by the researcher to both literate and semi-literate

members of the sampled population. The questionnaire was designed in such a way that it gave

the respondents the opportunity to freely express their views on ‘An Assessment of the Impact of

MNCs on Socio-economic Development of Nigeria: A view from MTN”s activities in Minna

Metropolis (limited to most wards in Chachanga Local Government Area.

Table 2: Sample Size Distribution

S/N Wards Population Sample Size Percentage

1. Kpakungu 16002 6 5.9%

2. Soje 28363 11 10.6%

3. Tunga 22034 9 8.2%

4. Sabongari 29210 11 10.9%

5. Morris 19720 8 7.4%

6. Mandela 40476 16 15.1%

7. Barikinsale 34707 14 13%

8. Airport Quarters 11020 4 4.1%

9. Sauka kahuta 15182 6 5.7%

10. Fadikpe 31179 12 11.6%

11. Shango 20104 8 7.5%

TOTAL 268000 105 100%

Source: Niger State Statistical Bureau (2021).

62
3.6 Sources of Data Collection

This research relied on both primary and secondary data. Spiegel (1972:96) defined primary data

as “those collected first-hand information from original sources for the user’s express purpose.

Such data are usually obtained from the field through interviews, questionnaires, surveys,

planned experimental-observations or recording of official transaction”. Under, primary sources

of data; questionnaire and oral-depth interview were used to collect information, ideas and

opinions of the respondent, to obtain reliable information for the study. The researcher used

combine structured and unstructured questionnaire the questionnaires were divided into section

A and B, section “A” contains preliminary information relating to the respondent’s sex, age,

marital status, educational background, and occupation. While section “B”, alternative answers

were provided for the respondent to tick the better or appropriate answer of their choice. The

questionnaire was designed such that it afforded the respondents the opportunity to freely

express their views on the assessment of the impact of mobile telephone network on socio-

economic development of Minna Metropolis of Niger state.

On the other hand, secondary data are those obtained second hand information from published or

recorded sources and used for a purpose different from that of the agency that initially collected

from the field. It could be gotten quickly and cheap compared with data collected specially for

the problem at hand. Under secondary sources of data; the research obtained information mostly

from published and unpublished material i.e. library material: text-books, journals, articles,

thesaurus, encyclopedia, speeches of political actors, magazines, Newspapers, seminar paper

presentations, theses, electronic materials and other literature relevant to the study.

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3.7 Method of Data Presentation and Analysis

This research will used both quantitative and qualitative method of data analysis. The data

collected will be presented and analyzed using descriptive statistical technique by using simple

percentage tables and some statistical tools such as charts. Frequency tables will be used to

analyze the collection of raw data. The raw data were translated into percentage to enable the

researcher draw reasonable conclusion based on the information gathered. Based on the data

collected in the field in respect of this study; tables were constructed in relation to the questions

raised for detailed presentation in numerical units, interpretation and analysis. A percentage

method wass used to analyze the data collected.

3.8 Validity and Reliability of Measuring Instruments

In order to ensure the validity and reliability of the questionnaire in this study, the researcher

made sure that only these questions that would give relevant information were asked. Secondly,

the questions asked were 15 simple and straight forward that the respondents would find them

easy to respond to. Also, multiple choice options were provided as much as possible to answer to

virtually all the questions asked. This made it easier for them to respond to and ensured that all

the responses were valid. Moreover, the questions were objectively framed without any clue as to

which particular answers were needed. In addition, wherever possible, the researcher, used

interview technique to ensure that the questions were really understood by the respondents and

that the researcher got explanation of certain responses made for the respondent thereby making

the information more v3alid and reliable. Also to make sure that questionnaires were valid and

reliable, they were tested before the final copies were produced.

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CHAPTER FOUR

DATA PRESENTATION AND ANALYSIS

This chapter is focused on the presentation and analysis of data collected from the field.

through the administration of questionnaires and some secondary source to aid the study. The

questionnaire was designed in two sections one consisted of the respondent’s boo-data, while the

other section consist of 15 research questions divided into three components. The first five

questions addressed the impact of MNCs on Mina Metropolis’s socio-economic development;

the second five questions addressed the extent of MTN’s activities toward the development of

the Metropolis, while the third five questions addressed the extent to which MTN fulfils their

corporate social responsibilities in the Metropolis.

The study therefore, adopted Likert scale of measurement, which is often the most commonly

used and readily preferred by researchers in the social sciences. This is because the Likert scales

of multiple categories of five point scales rate them higher than the two categories of Yes or No

or Good or Bad in terms of reliability and validity.

In this study, the respondents were drawn from random selection, and the wards that

questionnaires were administered were systematically selected from the wards in the Local

Government. These wards are; Kpakungu, Soje, Tunga, Sabongari, Morris, Mandela,

Barikinsale, Sauka Kahuta Airport Quarters, Fadikpe and Shango found in Minna

Metropolis to represent the larger population of the study.

4.2 Analysis of Responses to Questionnaires


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A comprehensive questionnaire was prepared and administered to 399 respondents using

the Taro Yamani simple random sampling technique, in the eleven (11) wards in Minna

Metropolis. It was found that 15 copies were lost while 34 copies damaged due to multiple

responses. It means that the remaining 351 copies were used as valid for obtaining analyzable

data for this study. More so, the data collected were analyzed using descriptive statistical

technique through the use of simple percentage together with the use of simple tables and chart,

below is the analyses of data collected.

Table 4.1: Distribution of Questionnaires Administered and Retrieved

Items Frequency Percentage

Questionnaires Administered 399 100%

Questionnaires Retrieved 351 88%

Questionnaires Lost 20 5%

Questionnaires Invalid 28 7%

TOTAL 351 100%

Source: Fieldwork, 2024

Chart 4.1: Distribution of Questionnaires Administered and Retrieved

66
Source: Fieldwork 2024

As pointed out in the methodology, a sample size of three hundred and ninety nine was

determined and administered the questionnaire accordingly within the target population; all the

electoral wards were given equal preference. Similarly, three hundred and ninety nine (399)

questionnaires were administered representing hundred percent (100%), twenty (20)

questionnaires constituting five percent (5%) were lost, twenty eight (28) percent constituting

(7%) were invalid and three hundred and fifty one (351) questionnaires were retrieved

constituting eighty eight percent (88%). Thus, this percentage of questionnaire retrieved as valid

is significant and fairly a representative sample size of the study population.

4.3 Demographic Information of the Respondents

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This section represents the demographic information of the respondents which includes; their age

distribution, academic qualification, marital status, Gender, Religion, occupation and ethnic

nationality.

Table 4.1: Age Distribution of the Respondents

Ages Frequency Percentage

12-20 67 19%

21-30 152 43%

31-40 54 16%

41-50 43 12%

51-Above 35 10%

TOTAL 351 100%

Source: Fieldwork, 2024

Chart 4.1: Age Distribution of the Respondents

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Source: Fieldwork, 2024

Table 4.1 and Chart 4.1 above shows that numbers of respondent aged 12-20 were 67

representing19%, between age 21-30 were 152 representing 43%, respondents aged 31-40 were

54 representing 16%, respondents age 41-50 were forty three (43) representing 12% percent and

respondents aged 51 above were thirty five(35) representing 10% of the total returned

questionnaires. This implies that; the opinions people aged 21-30 were mostly represented

followed by people aged 12-20.

Deducing from the above information, most of the respondents are youths whose age ranges

from 21-30 representing 43%. The youths constitute majority of the population in the

Metropolis. They are more in number compared to the elderly people in the society between the

age of 41-50 and 51 above. We can conclude from the above data that the views of the youth

between that age that represent the largest percentage would be more representing than any age

category of the respondents.

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Table 4.2: Gender

Genders Frequency Percentage

Male 213 61%

Female 138 39%

TOTAL 351 100%

Source: Fieldwork, 2024

Chart 4.2: Gender

Source: Field work, 2024

Chart 4.2 above shows that; two hundred and thirteen (213) respondents were male

representing 61% of the sampled respondents, while female respondents were one hundred thirty

eight (138) constituting 39% of the sampled population. This means that the male gender is more

represented compared to the female gender.

Males are more represented than women from the above data, this because men generally more

than women in Minna Metropolis. Moreover, because of religious beliefs, majority of the

women in Minna Metropolis are kept in Purdah. Purdah is an Islamic practice which curtails the

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movement of women to some certain areas. Again, women mostly in Minna Metropolis are full

time house wives and the younger ones are encouraged to stay at home and learn alongside their

mothers and they are less in number compared to men in the society. The male folks are more

represented than women because of their numbers in Minna Local Government.

Table 4.3: Marital Status

Marital Status Frequency Percentage

Single 217 60%

Married 103 29%

Divorced 3 3%

Widowed 28 8%

TOTAL 304 100%

Source: Fieldwork 2024

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Chart 4.3: Marital Status

Source: Field work, 2024

Table 4.3 and Chart 4.3 above shows that; two hundred and seventeen (217) respondents

representing 60% of sampled population are singles, one hundred and three (103) respondents

representing (29% are married, three (3) respondents representing 3% are divorced, while twenty

eight (28) people representing 8% of respondents are widows/widowers, this mean that; the

opinions of people who are single is more represented.

Deducing from the above information, the opinion of people who are yet to be married is more

represented than those who are married, divorced or widowed. Majority of the respondents were

youths and most of these youths in the Metropolis are single, followed by the married ones, who

are the next majority respondents after the singles. The single form the larger part of the

population today in the Metropolis that is why their opinion is more represented. The married

also constitute the largest after the single. From these data, we can safely conclude that the

opinion of the singles and married is more represented than that of the divorced and widowed.

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Table 4.4: Educational Qualification

Qualification Frequency Percentage

Secondary 164 47%

Tertiary 118 34%

Others 69 19%

TOTAL 351 100%

Source: Fieldwork, 2024

Chart 4.5: Educational Qualification

Source: Field work, 2024

Table 4.4 and Chart 4.4 above shows that; one hundred and ninety four (164) respondents

representing47% of the sampled population only attended secondary school, one hundred and

twelve (118) respondents representing 34% attended tertiary institutions, forty five (69)

respondents representing19%does not have neither secondary nor tertiary school certificates.

This implies that; the highest opinions of people represented are those that attended tertiary

schools followed by people with secondary school.


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From the above information, the opinion of those who attended tertiary institution; Universities,

Polytechnics or Colleges of Education, etc, are more represented than those who attended

secondary or primary schools. This means that most of the respondents are people who attended

other schools after graduating from secondary schools. There are many agile youths who are

singles and also graduates from various institutions, the responses were mostly from them. The

next is those who only attended secondary schools and could not further afterward and they

halted due to one challenge or the other.

Table 4.5: Occupation

Occupations Frequency Percentage

Students 195 55%

Farmers 48 14%

Traders 84 24%

Public/Civil Servants 24 7%

TOTAL 351 100%

Source: Fieldwork 2024

Chart 4.5: Occupation

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Source: Field work, 2024

Table 4.65 and Chart 4.5 above shows that; one hundred ninety five (195) respondents

representing 55% of the sampled population are students; forty eight(48) respondents

representing 14% are farmers, eighty four (84) respondents representing 24% are traders and

twenty four (24) people representing 7% are civil/public servants. This means that; the most

represented opinions of the sampled populations are Students followed by traders.

As earlier stated in the work, most of the respondents were youths; from the data above we can

see that most these youths are still students who are studying so that could have good morals and

intellectual capability, they are known in the society to be students. There major occupation is

studying. These student views are more represented as cleared seen above, followed by traders.

The major occupation of people in the Metropolis is trading, that is why they view is more

represented than farmers and civil servant but less than students. There are many farmers and

civil servants but there number is less compared to the traders and students in the Metropolis. In

a nutshell, the students and traders views are most represented and they have the highest

frequency and percentage compared to the farmers and civil servants.

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4.3 Discussion and Analysis of Findings: What is the impact of MNCs on Minna Metropolis’s

Socio-economic development?

4.3.1 Research Objective One: To Identify the Negative as well as Positive Impact of MNCs

on Socioeconomic Development of Minna Metropolis.

Positive Impacts

MTN as a Multinational organization engages in a lot services to the host community which have

positive impacts on it, this includes;

i. Creation of Employment: Multinational Corporations are socially desirable in Least

Developed Countries (LDCS) because they lead to the creation of employment

opportunities to the indigenes of their area of operation (Host state). A research

conducted on MNCs by the U.S commerce department in 1977 revealed that

American owned Multinational employed approximately 7.3 million people in their

foreign operations. According to the liberalist, Multinational Corporations provide

employment opportunities to the Nigerians and their subsidiaries like shell, Mobile,

Chevron, and Coca cola etc. as noted by Onyewuchi and Obumneke (2013:367) noted

that; Multinational corporations also acquire raw materials with ease from any

overseas source at competitive prices and can easily export components and finished

goods for assembly or distribution in foreign markets.

ii. Transfer of Technology: Multinational Corporations transfer superior technology which leads

to new domestic industries and the discovery of new processes and new differentiated products

in LDCs which tend to raise the standard of living of people in LDCs. Technology transfer by

MNCs is one of the requirements that have been advanced for encouraging foreign investment in

LDCs by bourgeoisie scholars. The liberal scholars argued that, Multinational Corporations

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controls within their organizations technology which developing countries cannot obtain from

any other sources. They import machines which assist the host country in developing capital

goods by their industries. According to them, Multinational Corporations assist in the

development of a local base technology (Offiong, 2015).

iii. Generation of Revenue to the Government: Multinational Corporations have been praised by

paying high rates of taxes thereby contributing to government revenue required for the provision

of social amenities and infrastructures for socio-economic development. Studies revealed that by

the year 1999 and 2000, lever brothers Nigeria plc, pc industries and city Bank Nigeria have paid

the sum of N1,930,336,000 in the year 2000 as tax to the government (Alexander, 2010:27).

iv. Staff Development: The subsidiaries of Multinational Corporations that operate in Nigeria

were said to provide job opportunities and training of manpower to Nigerian staff working in

their subsidiaries. As argued by Arthur Nwanko, some of these subsidiaries are almost fully

Nigerians and many others have 80-90% of their management cadre Nigerians. On the man

power training, it was reported that one subsidiary firm has its training institution with an intake

of 150-200 trainees per annum and that it trains up to 600 employees in a course for some

specific duration (Nwanko, 2011:27).

v. Encourage Competition: MNCs brings in new techniques of marketing in LDCs through

market research at their headquarters they adopt novel advising and promotional methods which

impact motion to buyers and create demand for particular brands and products. This encourages

competition (Jhingan 1977:484).

vi. Positive Balance of Payment: Positively MNCs have great impact in the development of

Nigeria in the sense that, it brought facing investment and increased export, income improves,

and the country’s balance of payment. However, it has been observed that MNCs and Foreign

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Direct Investment have played a vital role in revitalizing the economy of Nigeria. It is concluded

by modernization scholar that it is only through incorporation of Nigerian economy with that of

Western imperialist economy by allowing Foreign Direct Investment that the economy of the

Third World will improve. In line with this argument ( Jin, 2017).

Negative Impacts

Multinationals position in Nigeria and other Third World countries are often in controversy and

conflict rather cooperation and accommodation. The American MNCs are pervasive in the

Nigerian economy covering oil, manufacturing retail, agricultural sector, communications etc.

The economy of Nigeria is solely dependent on the economy of the Western imperialist since

flag independent in 1960, which the giant Multinational Corporations (MNCs) hence emerge as

the powerful catalysts of multilateral imperialism in Nigeria, since the relationship between

Nigerian economy and the capitalist economy has been that of complementary and dependence.

Below are some of the identified negative impacts of MNCs on Nigeria’s Economic

Development.

i. Exploitation: MNCs have come to be regarded as agents of exploitation in LDCs like Nigeria

because of their dubious operations which are highlighted in their modus operandi i.e. their

method of working. The most important reason for their emergence in third world countries is

their potential interest to exploit. Their exploitative tendencies range from raw material

exploitation, labor exploitation and consumer exploitation to capital exploitation. In Nigeria, for

example, the MNCs exploit labor cheaply. It has been reported that “while the payment per hour

for manufacturing workers in the US is higher than corresponding hourly payments to workers in

their subsidiaries of these MNCs is fat lower. Worst still the product of this extra ordinary cheap

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labor are sold to the indigenes of Nigeria at cut throat price. Thus, they earn higher rate of return

for their parent companies in the advanced countries. As noted by Hellstrom (2016:22)

“To the benefit of the mother country, some multinational

companies transfer some projects that will waste resource and

pollute environment to other regions and countries. Thus, it will

cause environmental pollution and ecological destruction in these

regions and countries. These problems have attracted the attention

of the international community, the world economic organization

and some developing countries, and some measures will be taken

to deal with it”.

ii. Discouraging Local Entrepreneurship: - The MNCs are pre-empting local savings by over

pricing the imports and underpricing export of LDCs. In cases where there is competition from

local entrepreneurs, the MNCs under cut them by charging low price for their products. As a

result, local firms are squeezed out of business. But when there are few local firms that can

compete with the MNCs, their either buy majority shares or exercise control over them, this

therefore stifles the growth of local industries and subsequently affects the economic

development of Nigeria (Jhingan, 97:485).

iii. Transfer of Funds: It is a known fact that the MNCs are centrally controlled and that their

head offices have central control over all the departments in their operations. It is also known

that the Multinational are out to make profit, on one hand and to transfer much to their home

countries. This transfer constitute one fundamental sources of recapitalization of Nigerian

economy the capital outflow from the host country exceeds the corresponding. Inflow it also

shows that no record of analysis of this fund transfers is kept, instance the value of their sales are

paid to their respecting bank accounts and subsequently the many are therefore transferred to

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their head offices. Therefore one can deduce that MNCs can do but little to economic

development of Nigeria because all generated revenues is transferred abroad. (Jin, 2017:7)

iv. Balance of Payment difficulties: - Multinational Corporations contribute immensely to the

balance of payment problem to Third World countries like Nigeria. This is done through foreign

direct investment in less developed countries. Multinationals repatriate huge amounts in the form

of royalties, profits, interest, dividend, capital etc. (Awolusi, 2012)

v. Undermine the Sovereignty of the Host Country: - The sovereignty of a developing country

like Nigeria has been called in the question and Jeopardized, as a result of the intervention of

these enterprises in the political arena and political affairs of the country. Multinational

Corporations exercise considerable adverse influence on the political decisions of the host

country at all levels, they may even at times subvert any national policy and bribing the

legislators not only directly but in directly. There is much evidence to the effect that MNCs have

become involved in illegitimate political intervention in the internal affairs of the host countries

which have resulted in grave consequences in the case of developing countries which have

resulted in grave consequences in the case of developing countries (Offiong, 1980:271).

vi. Inferior Technology:- The MNCs transfer second rate and over prices technology to LDCs

more often, they try to minimize the transfer of technology to such countries by neglecting the

training of local personnel and holding closely the technology itself. They limit the transfer of

patents, industrial secrets and other technical knowledge to local subsidiary more over the

technology which the MNCs transfer into third world countries is capital intensive and hence

unsuited to their capital scarce and labor surplus economic.

vii. Drain of Resources: The key players in the banking sector of Nigerian economy from the

early 1980s to date have always been Union Bank, First Bank and United Bank for Africa

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(UBA). These banking MNCs have continued to control the commanding heights of the Nigerian

economy by way of concerning high-level profits in investments. Unfortunately, the banking

MNCs of the EDCs have become conduit pipes through which Nigeria corrupt leaders and other

conscienceless looters in conspiracy with their MNCs have continued to drained the resources of

Nigeria (Akanegbu, 2014). To validate this stand point, from the qualitative data above, it is

important to synergies it with qualitative responses as indicated below:

Table 4.6: MTN positively impacts Minna Metropolis Socioeconomic development

Response Scale Frequency Percentage

Strongly Agreed 67 19%

Agreed 59 17%

Undecided 45 13%

Disagreed 81 23%

Strongly Disagreed 98 28%

TOTAL 351 100%

Source: Field Work, 2024

Chart 4.6: MTN Positively Impact Minna Metropolis`s Socioeconomic development

81
Source: Field work, 2024

As shown in Table 4.6 and Chart 4.6above, the strongly agreed scale has a valid frequency of

sixty seven (67) representing 19%, while the strongly disagreed frequency scale has a valid of

ninety eight (98) representing 28% of the respondents. These indices as indicated on the table

above affirm that, the negative impacts of MTN on Minna Metropolis`s socioeconomic

development as far out weight the positive impacts. In the same vein, looking at the other scales,

the disagreed frequency distribution is 81 times representing a valid percentage of about 23%

which eventually goes in agreement with the fifth scale as indicated above. On the other hand,

the agreed scale is rather marginal with about 59 frequency distributions, which equally has

similar level of significance with the strongly agreed with a little difference of just 8 frequencies.

However, the agreed scale is represented by a valid percentage of 17. While those who neither

agreed nor disagreed i.e undecided, it frequency indicate that about 45 respondents representing

g 13% could not make up their mind as to whether MTN has positively or negatively impacted

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the Metropolis`s socioeconomic development. This shows that majority of the respondents

believes that MTN has negatively impacted Minna Metropolis`s socioeconomic development.

Table 4.7: MTN Generates Revenue

Response Scale Frequency Percentage

Strongly Agreed 43 12%

Agreed 30 9%

Undecided 27 8%

Disagreed 116 33%

Strongly Disagreed 135 38%

TOTAL 351 100%

Source: Field Work, 2024

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Chart 4.7: MTN Generate Revenue to the Government

Source: Field Work, 2024

From the first question, which asked if MTN has impacted positively or negatively on

Metropolis’s socioeconomic development, the study further ask, whether MTN generates

revenue to Government. Among those who validly agreed in favor of the question, as indicated

on the table above, the strongly disagreed scale is grossly marginal which had only 43

frequencies representing 12% of the total responses. On the extreme of the scale, i.e the strongly

disagreed had 135 frequencies representing 38%. Against this background, one would be right to

say that MTN does not generate revenue to government.

Therefore, the cumulative frequencies and percentages further broadened the level of

significance between the agreeable and disagreeable scale. For instance the disagreeable scales

reveal that about 251 respondents cumulatively are in affirmation with a valid of 71% much

more than half of the responses. On the other hand, the agreeable scales indicate a frequency

distribution of 73 equivalents to 21% a reasonably below quarter of the responses. Moreover, the

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undecided scale notwithstanding accounts for 27frequencies that neither agreed nor disagreed

with what the question raised its valid9%. Similarly, one of the interview respondents argued that

MTN does not generate any revenue to Government. His words, “… the case of whether MTN

generates revenue to the Government is indeed a straightforward issue. MTN effort in generating

revenue in Minna Metropolis is insignificant; we cannot entirely discard their effort in a bit to

generate revenue for the state, but considering the kind of huge profits they make every year, it is

indeed below expectation. If you look at what they are doing in states like, Lagos, Rivers and

Bayelsa, etc, are far not comparable with what is obtainable in the Metropolis.

Table 4.8: MTN Serve as a Source of Income to the Indigenes of Minna Metropolis

Response Scale Frequency Percentage

Strongly Agreed 53 15%

Agreed 41 12%

Undecided 51 14%

Disagreed 91 26%

Strongly Disagreed 115 33%

TOTAL 351 100%

Source: Field Work, 2024

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Chart 4.8: MTN Serve as a Source of Income to the Indigenes of the Metropolis

Source: Field Work, 2024

As significant responses indicated, the opposing appears higher in against the statement in

question. A rider to that ask, as to validate the controversial phenomenon as to whether MTN

serve as a source of income to the indigenes of Minna Metropolis. On this note, there is

significance as the frequency of the respondents indicates.

Cumulatively, the scale of strongly disagreed and disagreed accounts for about 226which

represents 33% and 26% respectively and cumulatively account for 59%. The number of

respondents significantly agreed that MTN does not serve as a source of income to the indigenes

of Minna Metropolis. While the scale that strongly agreed and agreed representing 53 and 41

frequencies distribution, which equals to 15% and 12% respectively with a total of 27%. Those

who neither agreed nor disagreed (undecided) the frequency is 51 with 14%.

Deducing from the above information, majority of the respondents believe that MTN in Minna

Metropolis does not serve as a source of income, this is because what they are paying the

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workers is nothing to write home about. They under the workers and only give them meager

amount which is barely enough to carter for neither themselves nor their families. Many consider

their (MTN) job when they could not find one elsewhere. We cannot completely divorce the fact

that MTN serve as a source of income to some indigenes in Minna Metropolis , but the amount

these workers are paid is not substantial for them to save and even invest. Similarly one of our

interview respondent argued that MTN does not serve as a source income to the indigenes of

Minna Metropolis. His words, “… MTN is a source of income to so many indigenes, there is no

doubt about it. Considering the workers, what they are paid is nothing compared to what MTN is

paying its citizen in their home country. The amount is so little compared to the work they do for

MTN” (Interview, 2021).

Table 4.9: MTN Enhances Economic Productivity in Minna Metropolis

Response Scale Frequency Percentage

Strongly Agreed 61 17%

Agreed 63 18%

Undecided 18 5%

Disagreed 139 40%

Strongly Disagreed 70 20%

TOTAL 351 100%

Source: Field work, 2024

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Chart 4.9: MTN Enhances Economic Productivity in Minna Metropolis

Source: Field Work, 2024

From the Table 4.10 and Chart 4.10 above, we can see that, out of the 351 questionnaires

analyzed about 139 disagreed that MTN enhances economic productivity, which represents 40%.

Similarly, on the strongly disagreed frequency its record is 70 representing 20%. Therefore,

cumulatively, the disagreed and strongly disagreed account for 209 and their valid percentage put

together is 60%. This reveals that, more than half of the respondents have the feelings that MTN

does not enhance economic productivity in Minna Metropolis.

Therefore, looking at the other side of the scale, those who strongly agreed and agreed

with the question analyzed cumulatively reveal that the two scales account for 124 frequencies

representing 35% respectively. This is evidently significant though with margins compared to the

139disagreed scale with a valid percentage of 40%. Moreover, in-between this extreme scenario,

the undecided scale indicates that about 18 respondents neither agreed nor disagreed which

accounts for 5%. MTN does not enhance any form of economic productivity in Minna

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Metropolis; their major concern is maximization of profit by any means without any effort to

develop the host community. Majority of the respondent from the table and chart above strongly

disagreed that MTN enhance economic productivity in Minna Metropolis

Table 4.10: MTN creates Employment Opportunities in Minna Metropolis

Response Scale Frequency Percentage

Strongly Agreed 35 10%

Agreed 29 8%

Undecided 13 4%

Disagreed 108 31%

Strongly Disagreed 166 47%

TOTAL 351 100%

Source: Field Work, 2024

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Chart 4.10: MTN creates Employment Opportunities in Minna Metropolis

Source: Field Work, 2024

To further validate the question about whether MTN contribution to development of Minna

Metropolis, we raised the question whether or not MTN creates job opportunities in the

metropolis.

A significant number of the respondents do not agree with the question. For instance, out

of the 351 questionnaires analyzed about 166 strongly disagreed which represents 47%.

Similarly, on the disagreed frequency its record is 108 representing 31%. Therefore,

cumulatively, the disagreed and strongly disagreed account for 284 and their valid percentage put

together is 78%. This reveals that, more than half of the respondents have the feelings that MTN

does not create employment opportunities in Minna Metropolis.

Therefore, looking at the other side of the scale, those who strongly agreed and agreed

with the question analyzed cumulatively reveal that the two scales account for 64 frequencies

representing 18% all together. This is evidently significant though with margins compared to the

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166 strongly disagreed scale with a valid percentage of 47%. Moreover, in-between this scenario,

the undecided scale indicates that about 13 respondents neither agreed nor disagreed which

accounts for 4%. Deducing from the above data, majority of the respondents did not concur that

MTN creates employment opportunities in Minna Metropolis, this is because majority of the

workers are not indigenes of Minna Metropolis, and most of them came from different states.

Only a few indigenes benefits, then how can we say that MTN creates job opportunity for the

indigenes. In a similarly vein, one of our interview respondents believes that, MTN doesn’t

create employment opportunities. His words, “…they say that MTN creates employment

opportunities in Minna Metropolis but these are not visible to me. I am a graduate and an

indigene of this state, I applied several times but I was never considered and I believe I have

satisfied all the conditions to employ even when I am not an indigene. I can not name any person

I know from Minna Metropolis who works with MTN; I am not saying there is none at all”

(Interview, 2024).

4.4 To what extent did MTN contribute to the development of Minna Metropolis?

Under this main theme, the following analyses were generated thus:

4.4.1 Research objective Two: To Examine Whether MTN contributed to development of

Minna metropolis’s socioeconomic development

Development is the process by which the economic well-being and quality of life of a nation,

region, local community, or an individual are improved according to targeted goals and

objectives. The term has been used frequently in the 20th and 21st centuries, but the concept has

existed in the West for far longer. "Modernization", "Westernization", and especially

"industrialization" are other terms often used while discussing economic development.

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Historically, economic development policies focused on industrialization and infrastructure, but

since the 1960s, it has increasingly focused on poverty reduction (Offiong, 2015).

Development is a policy intervention aiming to improve the well-being of people, socio-

economic growth is a phenomenon of market productivity and increases in GDP; economist Ade

(1978) describes economic growth as but "one aspect of the process of economic development".

Economists primarily focus on the growth aspect and the economy at large, whereas researchers

of community economic development concern themselves with socioeconomic development as

well Economists in the 20th century viewed development primarily in terms of economic growth,

sociologists instead emphasized broader processes of change and modernization. Development

and urban studies scholar, Ojo (2015:23), summarized economic development as; "a process of

creating and utilizing physical, human, financial, and social assets to generate improved and

broadly shared economic well-being and quality of life for a community or region". Akanbi

(2013:112) distinguished development from economic growth on the basis that development is a;

"broadly based and sustainable increase in the overall standard of living for individuals within a

community", and measures of growth such as per capita income do not necessarily correlate with

improvements in quality of life. Economic development is a wider concept and has qualitative

dimensions. Economic development implies economic growth plus progressive changes in

certain important variables which determine well-being of the people, e.g.: health, education.

Modernization, westernization and especially industrialization are other terms people have used

while discussing development. Development has a direct relationship with the environment.

Though the concept's origin is uncertain, some scholars argue that development is closely bound

up with the evolution of capitalism and the demise of feudalism others link it to the post-colonial

state (Nwankwo, 2011).

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Development has been understood by non-practitioners since the World War II to involve

economic growth, namely the increases in per capita income, and (if currently absent) the

attainment of a standard of living equivalent to that of industrialized countries (Akanbi, 2013).

Development can also be considered as a static theory that documents the state of an economy at

a certain time. According to Schumpeter and Backhaus (2003:14), the changes in this

equilibrium state to document in economic theory can only be caused by intervening factors

coming from the outside. Development is a multidimensional concept meaning different thing to

different people from various discipline, but all of them agreed that it is a positive change or

improvement in the life of a people, state or an idea.

What come close to the qualitative discussion above is the questionnaire responses as

shown on the tables below in quantitative form and equally as basis for the validation and

reliability of the study, thus; the contribution of MTN on development of Minna metropolis

Table 4.11: MTN Programmes Improves the Living Standard of the Indigenes of Minna

Metropolis

Response Scale Frequency Percentage

Strongly Agreed 31 9%

Agreed 29 8%

Undecided 20 6%

Disagreed 158 45%

Strongly Disagreed 113 32%

TOTAL 351 100%

Source: Field Work, 2024

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Chart 4.11: MTN Programmes Improves the Living Standard of the Indigenes of Minna

Metropolis

Source: Field Work, 2024

To validate whether MTN programmes improves the living condition of the people or indigenes

of Minna Metropolis, there is significance as the frequency of the respondents indicates.

Cumulatively, the scale of disagreed and strongly disagreed accounts for about 271 which

represents in valid percentage of 45% and 32% respectively and cumulatively account for 77%.

The number of respondents significantly disagreed that MTN improves the living condition or

standard of the people of Minna Metropolis. While the scale that strongly agreed and agreed

accounts for 31 and 29 frequencies distribution respectively, which equals to 9% and 8%

respectively with a total of 17%. Those who neither agreed nor disagreed (undecided) the

frequency is 20 with a valid percentage of 6%. Deducing from the data above, we can safely

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concludes that MTN does not improve the living conditions of the indigenes of Minna

Metropolis.

MTN’s primary aim is to maximize a lot of profits and carry such profits to their home country

that is thousands of miles away, with any concern whatsoever, to develop their host communities

nor improve the living conditions of the host communities where they maximize a lot of profits.

One of our respondents believes that MTN in Minna Metropolis improves the living standards

of the people, his words, “…MTN in Minna Metropolis improves the living standard of the

people of so many youths by giving them jobs and also providing certain basic and social

amenities to them. I know of a borehole constructed by MTN in Shango this is a good effort by

them. I personally was given a motorcycle by them, because their mask fell on my land and my

elder brother was employed by them to secure the place and is paid every month. So to me, MTN

in Minna metropolis improves the living standard of their indigenes” (Interview, 2024).

Table 4.12: MTN Programmes Reduces Poverty among Indigenes of Minna Metropolis

Response Scale Frequency Percentage

Strongly Agreed 37 10%

Agreed 30 9%

Undecided 15 4%

Disagreed 74 21%

Strongly Disagreed 195 56%

TOTAL 351 100%

Source: Field Work, 2024

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Chart 4.12: MTN programmes reduces Poverty among the Indigenes of Minna Metropolis

Source: Field Work, 2024

To be able to appropriately examine the contribution of MTN programmes on the

development of Minna Metropolis, we asked whether MTN reduces poverty among the

indigenes of Minna Metropolis. The respondent’s scale indicates as follows; about 195

respondents strongly disagreed that MTN reduces poverty among citizens. The strongly

disagreed scale has 63%. While the strongly agreed scale reveal a fraction of 37 frequencies

which represents about 10%. These indices as indicated on the table above confirm that MTN

does not reduce poverty among the indigenes of Minna Metropolis. This means that the question

validly is in favor of the fact that, MTN has negatively impacted Minna metropolis’s

socioeconomic development

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In the same vein, looking at the other scales, the disagreed frequency distribution is 74

times representing a valid percentage of about 21% which eventually goes in agreement with the

fifth scale as indicated above. On the other hand, the agreed scale is rather marginal with about

30 frequency distribution, which equally has similar level of significance with the strongly

agreed with differences of 7 frequencies. However, the agreed scale is represented by a valid

percentage of 9%. While those who neither agreed nor disagreed i.e undecided, it frequency

indicate that about 15 respondents could not made up their mind as to whether MTN reduces

poverty in Minna Metropolis, constituting 3%. Majority of the respondents did not agree that

MTN reduces poverty in the metropolis, this is because there programmes are not visible to so

many people considering how they amplifies it on media and everywhere. So many people are

still in poverty; MTN is doing nothing to salvage them. The employment they promise the host

community is not visible, the roads they promise to construct is not visible, nothing is working.

Their major goal is maximization of profits in the host community and nothing more. If they, can

employ most of the indigenes, then so many would be lifted out of poverty.

Table 4.13: MTN Increases the GDP of Minna Metropolis

Response Scale Frequency Percentage

Strongly Agreed 47 13%

Agreed 42 12%

Undecided 17 5%

Disagreed 116 33%

Strongly Disagreed 129 37%

TOTAL 351 100%

Source: Field Work, 2024

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Chart 4.13: MTN Increases the GDP of Minna Metropolis

Source: Field Work, 2024

From the responses in Table 4.14 and Chart 4.14 above, the strongly disagreed recorded

the highest frequency of 129 with valid percentage of 37% significant indices in affirmation

believing that MTN does not increase the GDP of Minna Metropolis. Similarly, on the other

scale i.e the strongly agreed has a marginal frequency distribution of 47 as against the former. It

percentage value is accounts for 13% indicators of the fact that a few of the respondents agreed

with the perception that MTN increase the GDP of Minna Metropolis.

Therefore, the cumulative frequency of the percentages further broadened the level of

significant between the agreeable and disagreeable scales. For instance, the opposing scale

reveals that 245 respondents cumulative were not in support with a valid percentage of 70%

much more than half of all responses. On the other hand, the supporting scale indicates a

frequency distribution of 89equivalents of 25% a little between quarters of the responses.

Moreover, the undecided scale notwithstanding accounts for 17 frequencies distribution that

neither agreed nor disagreed with what the question rose. Its valid percentage is 5%. MTN does

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not increase the GDP of Minna Metropolis, from the information above. What they give the

government is nothing substantial that is why most of the respondents do not agree that MTN

increase the GDP of the metropolis.

Table 4.14: MTN Encourage Sustainable Development in Minna Metropolis

Response Scale Frequency Percentage

Strongly Agreed 59 17%

Agreed 20 6%

Undecided 12 3%

Disagreed 79 22%

Strongly Disagreed 181 52%

TOTAL 351 100%

Source: Field work, 2024

Chart 4.14: MTN Promotes Sustainable Development of Minna Metropolis

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Source: Field Work, 2024

In view of the above Table 4.14 and Chart 4.14, this particular question as indicated revealed that

majority of the respondents strongly disagreed with the fact that MTN promotes sustainable

development in Minna Metropolis. The strongly disagreed scale accounts for about 181

frequencies distribution which represents 52% of the total, which means virtually a half.

However, from the other extreme i.e the strongly agreed accounts for 59 frequency distributions

representing a valid percentage of 17%. In addition to that, the disagreed scale on the other hand

indicates that 79 respondents seem to disagree with the question representing 22%. While the

agree account for 20 frequencies equivalent to 6%. The undecided scale on the other hand has a

frequency of 12 which represents about 3%.

MTN in Minna Metropolis does not contribute to the sustainable development of the host

community. There is nothing tangible that is done by them to develop the area. Sustainable

development is kind of development should benefit even the future generation. Apart from the

medical Van that they gave Niger state MTN has done anything visible that is developmental in

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nature. One of our interview respondents believes that MTN in Minna Metropolis does not

contribute to sustainable development. In her words “…there is nothing sustainable or

developmental that is done by MTN known by me. Looking at what other network operators are

doing like 9mobile, there is no comparison between them, and MTN is the one having more

customers than 9mobile. 9mobile, gave many people scholarships to further their studies,

construction of boreholes and maternities etc. To me MTN is performing below expectations”

(Interview, 2021). Some people believed that MTN has contributed a lot to development of

Minna Metropolis, but couldn’t point out one visible projected executed by them from the year

of it inception in Minna Metropolis. Majority of the respondent also disagreed with the state

about their contribution to the socioeconomic development of Minna Metropolis.

Table 4.15: MTN provides Good Communication Network in Minna Metropolis

Response Scale Frequency Percentage

Strongly Agreed 103 29%

Agreed 46 13%

Undecided 20 6%

Disagreed 84 24%

Strongly Disagreed 98 28%

TOTAL 351 100%

Source: Field Work, 2024

Chart 4.16: MTN provides Good Communication Network in Minna Metropolis

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Source: Field Work, 2024

From Table 4.15 and Chart 4.15 above, Significant responses indicate, the opposing appears

higher in rejection of the statement in question. On this note, there is significance as the

frequency of the respondents indicates. The scale of the strongly disagreed and disagreed

cumulatively accounts for about 182 which represents in valid percentage of 28% and 24%

respectively and cumulatively represents 52%. The number of respondents largely disagreed that

MTN provides good communication network in the metropolis.

While the scale that strongly agreed and agreed accounts for 103 and 46 frequencies

distribution, which equals to 19% and 13% respectively with a total of 32%. Those who neither

agreed nor disagreed (undecided) the frequency is 20 with a valid percentage of 46%. MTN does

not provide good communication network to the people of Minna Metropolis. A lot of complain

has been giving about MTN’s poor network, high charges and complicated tariff plans. Even

though MTN is having majority customers compared to other networks, they are supposed to be

providing good network for people to use. Other respondents said that MTN is nothing providing

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good network to the people and yet they charge higher in spite of the poor network. If you look

other network providers, their network is very good, that is why people have different network as

an alternative to MTN.

4.5 Did MTN in Minna metropolis fulfill its Corporative Social Responsibilities?

On this thematic section, the following analyses were obtained

4.5.1 Research objectives three: To find out if MTN Nigeria has fulfilled their Corporate

Social Responsibilities in Minna Metropolis

i. MTN Universities Connect Project: This is an innovative project designed to provide digital

access to information and infrastructure to Federal Universities in Nigeria. This project facilitates

access to a collection of digital resources from over 5,500 libraries to assist university students

and lecturers with research work. The project is implemented in partnership with Net Library

Nigeria Limited. The beneficiary schools of the Universities Connect project are for

approximately 600 students and 120 lecturers: For Phase 1- University of Lagos, Akoka, Lagos

State For Phase 2- Ahmadu Bello University, Zaria, Kaduna State For Phase 3- University of

Nigeria Nsukka, Enugu State For phase 4- University of Benin, Benin City, Edo State “ABU UC

Students and Lecturers Awareness Workshop: Cross-section of participants at the workshop”

The scope of the project is as follows;

i. 28 networked computers, 3 servers, 2 high capacity printers and 100KVA generator

ii. VSAT equipment and internet connectivity bandwidth with 2 years subscription

iii. 2 years subscription to electronic resources through the Net Library network (Journals,

Books, etc.)

iv. Conducive study environment through space renovation, provision of adequate lighting,

Furniture and alternative power supply

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v. Technical training for 12 members of existing library staff to work with Net Library over 2

years to build capacity

vi. One-week library awareness to be held annually for students and lecturers

vii. One-week awareness workshops to be held annually lecturers

viii. Initiate a 5–year maintenance contract with the University to ensure a conducive

environment with a clear sustainability strategy

ix. Two years comprehensive insurance cover to take care of theft and fire 10. An interactive

student’s website – “www.universitiesconnect.com”

(MTN foundation, 2009:24)

ii.MTN Foundation/UNICEF Child Friendly School Initiative (CFSI): The CFSI is aimed at

improving infrastructures in primary schools and strengthening the school management

mechanisms and the quality of education. This project is implemented in partnership with

UNICEF. The phase 1 beneficiary states are Lagos, Bauchi and Delta states. (Olanrewaju,

2012:30)

iii.MTN Foundation supports this project by providing funds to cover the following

a. Up-grade of the physical infrastructure and provision of essential furniture

b. Provide/rehabilitate water and sanitation facilities in each school

c. Provide basic teaching and learning materials

d. Teacher training in key subjects using primers for English Language, Mathematics and

Science Highlights:

• Teacher training in key subjects English Language, Mathematics and Science conducted for

selected teachers in the 3 states.

• Project implementation completed in Bauchi and Delta states.

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• Implementation of the extra work by Ravega Constructions Limited at the Lagos school site

is ongoing. (MTN foundation, 2009:29)

iv. The MTNF Children’s Development Centre (CDC): “Disability and U Road Show and

Seminar” The MTNF-CDC ‘Disability and U’ Road Show and Seminar started in 2006 and since

then MTNF has been the sole sponsor of the annual event. The road show is in its fourth year.

The objectives of the program:

a. To create public awareness on disabilities.

b. To continuously remind Nigerian communities of the importance of accepting and respecting

people living with disabilities.

c. Assess how CDC could partner with other related organizations across the country and provide

assistance

d. Meet with families, interested partners and people with disabilities Disability and U Roadshow

along Major Street in Lagos State, Nigeria. The Disability and U programme is highly successful

and has received several commendations and endorsements from various quarters including

Lagos State Commissioner for Education, the Special Olympics of Nigeria, The Lions Club and

Women’s Optimal Development Foundation (WODEF). In all, a total of 20 states within the six

geo-political zones plus FCT have been covered by the program. (MTN foundation, 2009:25-26)

vi. MTNF Partners Against AIDS and Malaria in the Community (MTNFPAMAC)

The MTN Foundation has over the past four years contributed immensely to reducing the spread

of HIV and mitigating its impact through its flagship project titled “MTNF Partners against

AIDS in the Community” but which is now known as “MTNF Partners Against Malaria and

AIDS in the Community” (MTNFPAMAC). Now in its fourth phase, over N800m has been

committed to the project since commencement in 2005. This initiative is being implemented in

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partnership with Hope Worldwide Nigeria to provide comprehensive HIV/AIDS awareness

campaign, Prevention, voluntary counselling & testing (VCT), prevention of mother to child

Transmission among others in six states, located in each geopolitical zone of Nigeria. The project

is designed to:

a. Reach millions of Nigerians with information through the mass media, interpersonal

communication and the self-instructional HIV/AIDS touch screens installed in strategic places.

b. Provide confidential voluntary counseling and testing and PMTCT

(Prevention of Mother to Child Transmission) services through the fully established six

voluntary counseling centers.

c. Provide thousands of people with HIV/AIDS counseling and testing, as well as provide 3 Slow

Cytometer Machines (or CD4 count machines). This analyses the progression of HIV and

determines whether a person needs Anti-Retroviral drugs to facilitate testing.

d. Assist 700 positive pregnant mothers with PMTCT services and build the capacity of 300

health care workers and 3000 in-school youth through refresher training.

e. To provide user-friendly services and to install 12 HIV/AIDS interactive information touch

screens at strategic locations across the country. This has since been achieved (MTN foundation,

2009)

f. MTNF – Junior Achievement Nigeria Company Program, this is an initiative that enables

students to learn how to set up a company by selling shares of stock and other business related

activities with the aid of their teacher and two volunteer business consultants. Implementation of

the program is in partnership with JA Nigeria The program runs from thirteen to fifteen weeks

and gives students hands-on experience of owning and running a real company. The program

provides students the opportunity to: Develop skills needed for working in small and large group

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situations Apply thinking and decision-making processes through activities that call for

analyzing and evaluating business and economic issues Develop attitudes and behavior

supportive of the market economic system Develop an appreciation for the economic and

personal value of staying in school to acquire a diploma

Highlights:

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Table 4.16: MTN provides Scholarship to the Indigenes of Minna Metropolis

Response Scale Frequency Percentage

Strongly Agreed 78 22%

Agreed 24 7%

Undecided 22 6%

Disagreed 118 34%

Strongly Disagreed 109 31%

TOTAL 351 100%

Source: Fieldwork 2024

Chart 4.17: MTN provides Scholarship to the Indigenes of Minna Metropolis

Source: Field Work, 2014

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The study turns its searchlight to the question as to whether MTN provides scholarship to the

indigenes of Minna Metropolis. This question was raised to articulate more on the question of

corporate social responsibility in Minna Metropolis.

Be that as it may, the responses would be the basis upon which one fully understands the

said question. For instance, the disagreed scale account for about 118 frequencies with a valid

percentage of 34%.While the strongly agreed on the other extreme has a marginal frequency of

73 distributions and an equivalent of 22% compared to the former. Therefore, cumulatively the

disagreed scale and strongly disagreed accounts for a whooping sum of 227 frequency

distribution which equals to 64%, significant indices in the respondents didn’t believe with the

statement that MTN provides scholarship to the indigenes. In comparison to the affirmative

scale, the cumulative percentage indicates a 29% while frequency equivalent is 102 distributions.

What this implies is that a very less similarly, on the neutral scale (undecided), it indicates that

only 22 respondents neither agreed nor disagreed, rather undecided on the said question which

constitute 6%.

Table 4.17: MTN provides Health Care Facilities in Minna Metropolis

Response Scale Frequency Percentage

Strongly Agreed 51 15%

Agreed 37 11%

Undecided 12 3%

Disagreed 99 28%

Strongly Disagreed 152 43%

TOTAL 351 100%

Source: Fieldwork 2024

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Chart 4.17: MTN provides Health Care Facilities in Minna Metropolis

Source: Field Work, 2024

Cueing from the question above, which interrogates if MTN in Minna Metropolis has fulfilled

their corporate social responsibilities, the study further ask whether MTN provides health care

facilities in Minna Metropolis. Among those who validly disagreed about the question, as

indicated on the table above, the strongly disagreed scale is 152 frequencies accounting for 43%

of the total responses amounting to almost half of them. On the other part of the scale, i.e the

strongly agreed is grossly marginal which had only 51 frequencies representing 15%. Against

this background, one would be right to say MTN does not provide health care facilities in the

metropolis.

Therefore, the cumulative frequencies and percentages further broadened the level of

significance between the agreeable and disagreeable scale. For instance the opposing scales

reveal that about 251 respondents cumulatively are not in affirmation with a valid percentage of

71% much more than half of the responses. On the other hand, the opposing scales indicate a

cumulative frequency distribution of 88 equivalents to 26% a reasonable quarter of the

responses. Moreover, the undecided scale notwithstanding accounts for 12 frequencies

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distribution that neither agreed nor disagreed with what question raised, its valid percentage is

3%.

Table 4.18: MTN Construct Roads to the Indigenes of Minna Metropolis

Response Scale Frequency Percentage

Strongly Agreed 7 2%

Agreed 10 3%

Undecided 2 1%

Disagreed 131 37%

Strongly Disagreed 201 57%

TOTAL 351 100%

Source: Fieldwork 2024

Chart 4.18: MTN Construct Road in Minna Metropolis

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Source: Field Work, 2024

Haven come this far in seeking to know the impact of MTN on socioeconomic

development of Minna Metropolis, i.e from the preceding question which ask whether MTN

construct roads in Minna Metropolis.

From the table above, the strongly disagreed scale has a frequency distribution of 201 with a

valid percentage of 57%. While on the other hand, the strongly agreed scale accounts for 7

frequency distribution representing 2%. Therefore, cumulatively the negative scale account for

332 frequencies with a valid percentage of 94% that indicates more than 50% agreed to the fact

that MTN constructed roads in Minna Metropolis. While the former affirming scale revealed a

frequency distribution of 17 with a cumulative percentage of 5%. In comparison therefore, even

though the affirmative is substantially above half of all the responses, the opposing scale is

equally significant having those who believe that MTN in Minna metropolis construct road a

percentage recording less than a quarter of the responses. Consequently, on the undecided scale,

the respondents’ frequencies account for 2 distribution representing about 1%.

Table 4.19: MTN build schools in Minna Metropolis

Response Scale Frequency Percentage

Strongly Agreed 27 8%

Agreed 21 6%

Undecided 65 19%

Disagreed 96 27%

Strongly Disagreed 142 40%

TOTAL 351 100%

Source: Fieldwork, 2024

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Chart 4.19: MTN Builds Schools in Minna Metropolis

Source: Field Work, 2024

As revealed on the table above, there seems to be more disagreement than agreement on the

responses. The respondents significantly disagreed with the fact that MTN in Minna Metropolis

constructs schools. For instance, disagreed scale cumulatively account for 238 frequencies

constituting 67% which is equivalent to the responses as it were. The agreement scales

cumulative frequency accounts for 48 distributions with an equivalent percentage of 14%.

Similarly, the neutral scale has it that those that neither agreed nor disagreed account for 22

frequency distribution with a valid percentage of 19%.There is no single school that is

constructed by MTN in Minna Metropolis. May be this projected is executed in other states but

not Niger state. Some our respondents said that, MTN has not constructed any schools but they

know of a school renovated by them in Airport Quarters. Apart from that they never heard about

any school constructed by them.

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Table 4.20: MTN Provide Electricity to the Indigenes of Minna Metropolis

Response Scale Frequency Percentage

Strongly Agreed 49 14%

Agreed 44 13%

Undecided 33 9%

Disagreed 104 30%

Strongly Disagreed 121 34%

TOTAL 351 100%

Source: Field work, 2024

pChart 4.20: MTN provide Electricity to the Indigenes of Minna Metropolis

Source: Field Work, 2024

Deducing from the Table 4.21 and Chart 4.21 above, the respondents significantly disagreed

with the fact that MTN in Minna Metropolis provide electricity to the indigenes. For instance,

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disagreed scale cumulatively account for 225 frequencies constituting 74%. The agreement

scales cumulative frequency accounts for 93 distributions with an equivalent percentage of 27%.

Similarly, the neutral scale has it that those that neither agreed nor disagreed account for 33

frequency distribution with a valid percentage of 9%.

MTN has not provided any form electricity to the people of Minna Metropolis. The power supply

in the state is done by the government. They are not doing anything developmental to the host

community. All our respondents have confirmed to us that MTN has not provided any form

electricity to them. From the data above, most of them strongly disagreed that MTN provide

electricity in Minna Metropolis. If MTN has done something related to electricity it would have

known to everyone, it is not going to be done in secrecy, and even when it is done in secrecy buy

now it would have been clear to everyone. From the inception of this network (MTN), there is no

good project that executed by them. Apart from the poor network they provide to the people,

they have not fulfill any of their corporate social responsibility

4.7 Discussion of Major Findings

Based on the information gathered, the existence of Multinational Corporations in Nigeria has

done more harm than good to the socio-economic development and distorted socioeconomic and

sustainable development of the country. So many scholars and respondents believe that

Multinational Corporations invest in a country for their own selfish interest of going from that

country by any means the essence of coming of Multinational Companies to the Third World

was not to develop it, but rather to seek the resources of that country which will further leads to

the keeping of the economy of their country and diminishing that of the host community or state.

Up till today, there is no visible project put in place by these corporations for the benefits of the

country, the money invested in Nigeria use to generate profit which is taken back to their home

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country at the expense of the host country. No wonder today, all the imperialist countries owning

Multinational Corporations have developed while the Third World host countries are under

developed and still un-developing.

Therefore based on the above evaluating data we can reject the positive hypothesis and accept

that MTN impact negatively on socioeconomic development of Minna Metropolis from the

research respondents, one will conclude that MTN contribute negatively to the Nigeria’s

economy and they are not ready in any way to contribute positively to the development of Minna

Metropolis and Nigeria at large. In terms of transfer of technology to the country, only highly

sophisticated and capital intensive project for the industries have been implemented, such

projects will take Nigerians decades to master the process. Nigeria will have to depend on the

countries that are supplying the technology for spare parts, the repairs and experts to train the

manpower. The major role of MNCs in the country is to foster economic dependence which will

go in line blocking the process of development.

Also, the researcher discovered that more than half of the people with G.S.M handsets use MTN

line in Minna Metropolis. This makes MTN company one of the leading mobile communications

company Minna Metropolis and in the entire country. Even with that, the company has not done

many projects for the development of Minna Metropolis and of the country in general. The

researcher however found that the MTN tariff is exploitative. Despite the fact that the price is

high, majority of the population use their line. The company generates profit at an exploitative

rate. Both the profit realization in Minna Metropolis left alone Nigeria in general.

The researcher also found out that the employment given to the people of Minna Metropolis by

MTN Company is exploitative one. This is son because the salary given to them is far less than

what they are supposed to earn in a month. They give them only peanuts to survive in order to

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generate more profits for them. They pay the indigenes of their country i.e MTN higher amount

either working in their home country or in any other country even with less qualification, this

amount to exploitation, at the end of the month the citizens or employee from the host

communalities are left with little or no capital to save and invest.

It also evident that MTN in Minna Metropolis has failed to fulfill their corporate social

responsibilities, such responsibilities as; provision of social amenities to the host community

like, water, electricity, construction of roads, provision of health care facilities and construction

of hospitals, employment of the indigenes as well as providing or granting scholarship to the

members of the community. From the response of the respondent majority disagreed that MTN

has failed in fulfilling their corporate social responsibility from Table 4.16 and Chart 4.16 above.

Their presence in Minna Metropolis is not to develop it but to exploit it, to generate or make

huge profits which they will send to their country to foster development while leaving the host

communities poor and impoverished.

As revealed on the table 4.19 above, there seems to be more disagreement than agreement on the

responses. The respondents significantly disagreed with the fact that MTN in Minna Metropolis

constructs schools. For instance, disagreed scale cumulatively account for 238 frequencies

constituting 67% which is equivalent to the responses as it were. The agreement scales

cumulative frequency accounts for 48 distributions with an equivalent percentage of 14%.

Similarly, the neutral scale has it that those that neither agreed nor disagreed account for 22

frequency distribution with a valid percentage of 19%.There is no single school that is

constructed by MTN in Minna Metropolis. May be this project was executed in other states but

not Niger state. Some our respondents said that, MTN has not constructed any schools.

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It was also discovered that, most or all these profits are not invested in the host community or

Nigeria but are transferred to their home country. If huge profits like are not invested in Nigeria.

How can we attain development which MTN claimed to be promoting? This further affirms that

MTN has affected Minna Metropolis negatively more than its positive impacts.

The activities of multinational corporations specifically MTN has manifested into many

important issues which include provision of employment opportunities, fastest means of

communication, quick means of business transactions, transfer of capital, Scholarship,

technology, culture of entrepreneurship, as well as improve more tax and revenue to the

government. Despite the aforementioned positive impacts of MTN, studies have shown that it

has been associated with many problems which distorted socioeconomic development in Minna

Metropolis and this problems are; profit repatriation, exorbitant charges, high tariff, pending and

undelivered massages, inaccessibility to customer care representatives, drop calls, voice in

clarity, unnecessary massages, network issues, recharge issues, etc. The afore mentioned

problems which has to some extend distorted socioeconomic development by lacking the

adequate capital that supposed to be reinvest in the host community, failure to meet the required

service and the community needs which many researchers believes that MTN is gaining more

than the host community.

MTN has not been able to provide good communication services to the people, Table 4.15 and

Chart 4.15 above, significant responses indicate the opposing appears higher in rejection of the

statement in question. On this note, there is significance as the frequency of the respondents

indicates. The scale of the strongly disagreed and disagreed cumulatively accounts for about 182

which represents in valid percentage of 28% and 24% respectively and cumulatively represents

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52%. The number of respondents largely disagreed that MTN provides good communication

network in Minna Metropolis.

While the scale that strongly agreed and agreed accounts for 103 and 46 frequencies

distribution, which equals to 19% and 13% respectively with a total of 32%. Those who neither

agreed nor disagreed (undecided) the frequency is 20 with a valid percentage of 46%. MTN does

not provide good communication network to the people of Minna Metropolis. A lot of complain

has been giving about MTN’s poor network, high charges and complicated tariff plans. Even

though MTN is having majority customers compared to other networks, they are supposed to be

providing good network for people to use. Other respondents said that MTN is nothing providing

good network to the people and yet they charge higher in spite of the poor network. If you look

other network providers, their network is very good, that is why people have different network as

an alternative to MTN.

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CHAPTER FIVE

SUMMARY, CONCLUSION AND RECOMMENDATIONS

This chapter is an attempt to vividly discuss the summary of the findings and offer a general

conclusion of the whole research work as well as providing recommendations to Niger state and

Federal Government of Nigeria, Multinational Corporations (MNC) and other individual’s

citizens.

5.2 Summary of the Findings

We discovered during the course of this study from literature review, interviews and

questionnaires the following:

i). Multinational corporations have done more harm than good on Nigerian economy in terms of

profit repatriation, environmental degradation, human rights violation, non-technology transfer,

bribery and corruption etc. That most of these corporations are imperialist and parasitic in nature.

ii). That it is only through active government participation and honest intervention in operations

of these multinationals that will minimize their nefarious activities on Nigerian economy.

iii). That adoption of ethnocentric approach of staff selection will not only favor a developing

economy like Nigeria but also the polycentric approach that encourages filling the key positions

from home country nationals should be entrenched and encouraged

iv). That MTN Nigeria has the highest number of subscribers in Minna Metropolis of Niger

state. As presented in the table above. Deducing from the responses presented above, majority of

the respondents use MTN line. This is not unconnected with the fact that, MTN as telecom giants

in Nigeria has the highest number of GSM subscribers in Nigeria. The National Communication

Commission (NCC), in its (2018) 1st quarter report indicated that MTN has the highest number

of GSM subscribers in Nigeria with over fifty four (54,000,000) million subscribers out of the

120
154.52 million GSM Subscribers in Nigeria. Similarly, the cosmopolitan nature of Minna ,

coupled with the fact that Minna state is one of the most populous states in the north and

correspondingly, it is natural to have the majority of the GSM subscribers using MTN as network

provider. No doubt, MTN enjoys wide range of coverage and have capitalized on its customers’

loyalty to expand its business and provide the corporate social responsibility services within

Minna Metropolis as seen in the information generated and presented in table 4.9.

vi). Multinational Corporations like MTN aim is to recapitalize the economies of the country

through investing to ensure that their profits are always on the increase. They go to any extent to

prevent any hindrance to the achievement of their aim. Opinion people have argued in the past

they collide with their home government and become second visible government in the country.

They also inspire social unrest as well as guiding coup plotters. MNCS have been directly

implicated in subversive activities in Nigeria. One of those was the assassination of General

Murtala Muhammed in February 1976.

vii) That MTN corporate social responsibility in Minna Metropolis did not contribute to the

socioeconomic development in Minna Metropolis. Table above presented the result of whether

MTN CSR has contributed to the socioeconomic development in Minna Metropolis. The result

indicated that only few of the respondents strongly agree that MTN CSR has contributed to the

socioeconomic development in Minna Metropolis while 15 of the respondents with 13 % agree

that MTN CSR has contributed to the socioeconomic development in Minna Metropolis.

Similarly, 40 of the respondents with 36.0% reported that they disagree that MTN CSR has

contributed to the socioeconomic development in Minna Metropolis, while 27 with 24%

strongly disagree that MTN CSR has contributed to the socioeconomic development in Minna

Metropolis and 6 with 5% were undecided. Deducing from the information on table 4.16,

121
majority of the respondents does not believe that MTN CSR has contributed to the

socioeconomic development in Minna Metropolis. Therefore, the implication of the above result

is that, majority of people in Minna Metropolis are of the view that MTN CSR has not

contributed to the socioeconomic development in Minna Metropolis. Similarly, one of the

interview respondents argued that MTN does not contribute to the socioeconomic development

in Minna i Metropolis. His words, ‟...the case of MTN as to whether they have contributed to

the socioeconomic development of Minna are indeed a straightforward issue. Though MTN’s

effort is commendable, but it is insignificant when compared to the population of the metropolis

and one cannot attribute the effort of MTN and the socioeconomic development in Minna

Metropolis” (Interview 2024).

viii). The MNCs are pre-empting local savings by over pricing the imports and under pricing

export of LDCs. In cases where there is competition from local entrepreneurs, the MNCs under

cut them by charging low price for their products. As a result, local firms are squeezed out of

business. But when there are few local firms that can compete with the MNCs, their either buy

majority shares or exercise control over them, this therefore stifles the growth of local industries

and subsequently affects the economic development of Nigeria

ix. Finally, the pattern of investment in Nigerian economies reinforced the complementarily

relationship between Nigeria economy and the western economies and the structural dependence

of the former on the later. In the sense, Nigeria depends solely on finished goods from the

imperialist countries while the country remains the source of raw materials for advance countries

through unequal exchange system. Thus, a fall in demand for these raw materials means problem

for Nigeria economy. Nigeria is a monoculture economy which solely depends on the one

commodity for 9% of her foreign exchange earnings.

122
5.3 Conclusion

Multinational corporations are the major vehicles by which globalization is affecting businesses

in different parts of the world. Globalization further makes the influence of multinational

enterprises more pervasive and impacting. These corporations in spite of their meager benefits

have impacted negatively on our economy. Nigeria as a developing country can only benefit

tremendously from operations of these multinationals if serious considerations are given to the

environment in which they operate. Since these corporations are component of the society, they

must subject themselves to the fair requirements of the society, for, their relationship is

paramount and reciprocal (the corporation needs the society just as the society needs the

corporation). “Business is not divorced from the rest of the society. How these corporations

behave affect many people, not just shareholders Ango (2012). A strong tie must exist between

government and various multinationals operating in Nigeria to ensure maximum co-operation

and peaceful coexistence.

Based on the data generated, presented thus far, it has become clear that MTN has not been

carrying out the corporate social responsibility program mainly in the area of granting

scholarship to students especially in the tertiary institutions within the metropolis . It has also

become apparent that the MTN Corporate Social Responsibilities does not automatically

transcend into socioeconomic development in Minna Metropolis within the period studied, more

than half of the people with G.S.M handsets users’ uses MTN line in Minna Metropolis. This

makes MTN company one of the leading mobile communications company Minna and in the

entire country. Even with that, the company has not done many projects for the development of

metropolis and the country in general.

123
5.4 Recommendations

In view of the fact that the topic of this research is macro-economic in nature, the

recommendations shall therefore, be made to individual economic agents, individual firms as

well as government. The recommendations will cover areas which when giving due attention will

reduce heavy dependence of Nigerian economy on the developed world economies with MNCs.

i. Representative of all stakeholders-employees, customers, society, government should be

appointed as members of the Board of Directors of various corporations, for direct representation

and participation in the decision- making process.

ii. There should be interactive sessions on regular basis between the Multinational corporations

and leaders of our country to proliferate understanding and enhance harmonious business

relationship especially on moral and Ethical ground. Such interactions would impact positively

on the ethical performance of both the companies in particular and the various corporations at

large. The government should ensure consumer protection through enforcement of existing law;

this would go a long way in providing good service to the people. The Government should also

ensure compliance with social corporate responsibilities so that the social well-being of the

citizens will be improved.

iii. Government should encourage research and citizen involvement in the area to further create

job opportunities and gradual control of the market. It should also come up with a policy of share

control by indigenes so that the process can be domesticated to boost economic growth in the

country and minimize repatriation of profits.

iv. The polycentric model of staff selection should be imposed by government on these

corporations which will be enshrined under her terms of agreement with the multinational

124
corporations operating in Nigeria. This will enhance skill acquisition and ensure adequate

transfer of technology. An individual/employee should see his/her employment in these

corporations as a means of contributing to growth of the economy. This by extension it means

that any employee that happens to be in any of the corporations should see his/her employment

as a responsibility of meeting their obligations.

v. He/She should also endeavor and develop time in attending seminars and lectures organized

by these corporations as that may improve the skill of such worker. This experience might have

used in transforming his local economy for the betterment of national development.

vi. Government should ensure and provide conducive political and economic environment that

will instantly facilitates the flow of foreign private investment into the country.

vii. Also government should re-consider the indigenization policy which was initiated by

former Head of State Gen. Murtala Mohammed. There should be mandating of

“Nigerianization” of Multinational Companies, in which Nigeria should own certain percent of

Multinational Companies.

viii Discrimination in employment policies and salaries of workers should be ruled out and

adoption of polycentric and geocentric approach to staff selection should be encouraged to

benefit our citizenry. A technology policy transfer should be formulated which will be binding

on any company wishing to do business in Nigeria. This policy will boost our image and prestige

thereby ensuring sustained economic growth and development which is ours.

ix. Civil society organizations should sensitize the public and monitor the MNC‟s activities to

ensure acquiescence with the global best practices of socially friendly investment and operations.

This will help in minimizing the negative impacts of their operations on environment and ensure

cordiality between the MNC‟s and their host communities. Multinational Corporations

125
especially the MTN should be encouraged to invest more in their effort to discharge their

corporate social responsibility.

126
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APPENDIX i

Department of Public Administration,


Ibrahim Badamasi Babangida University,
Lapai.
21ST April, 2024

Dear Respondents,

I am a student of the above-named institution conducting a research work on “An Assessment of

The Corporate Social Responsibility Activities of The Mobile Telephone Network’s (Mtn’s)

Human Capacity Development Interventions In Niger State, Nigeria.”.

I shall be grateful if relevant information can be made available to assist the conduct of this

academic exercise. All information given is purely for academic purpose.

Yours Faithfully,

HANAFI MOHAMMED
PHD/22/FMS/PAD/021

137
APPENDIX ii

QUESTIONNAIRE

SECTION A: Demographic Information

1. Gender:

o Male

o Female
2. Age:

o 18-25 years

o 26-35 years

o 36-45 years

o 46-55 years

o 56 years and above


3. Marital Status:

o Single

o Married

o Divorced

o Widowed
4. Educational Level:

o No formal education

o Primary education

138
o Secondary education

o Tertiary education
5. Occupation:

o Civil Servant

o Trader

o Farmer

o Student

o Unemployed

o Others (please specify) ______________________

SECTION B: Impact of MNCs (MTN) on Socio-Economic Development

6. To what extent do you believe MTN has contributed to the socio-economic development
of Minna Metropolis?

 Very High

 High

 Moderate

 Low

 Very Low

7. In what areas do you think MTN's presence has contributed most to the development of
Minna Metropolis? (Select all that apply)

139
 Employment opportunities

 Corporate Social Responsibility (CSR) initiatives

 Infrastructure development

 Education and scholarships

 Health services

 Other (please specify) ______________________

8. How would you rate MTN's fulfillment of its Corporate Social Responsibility (CSR) in
Minna Metropolis?

 Excellent

 Good

 Average

 Poor

 Very Poor

9. Which specific CSR projects by MTN have you benefited from or are aware of in Minna
Metropolis?

 Educational projects (e.g., scholarships, school supplies)

 Health initiatives (e.g., free medical services)

 Infrastructure projects (e.g., roads, boreholes)

 Employment and training opportunities

140
 Other (please specify) ______________________

10. Do you think MTN has created employment opportunities for residents of Minna
Metropolis?

 Yes

 No

 Not sure

11. If yes, in what capacity has MTN provided employment opportunities? (Select all that
apply)

 Direct employment in MTN offices

 Subcontracting jobs (e.g., network maintenance)

 Vendor opportunities (e.g., MTN product sales)

 Other (please specify) ______________________

12. How has the presence of MTN influenced the standard of living in Minna Metropolis?

 Significantly improved

 Slightly improved

 No improvement

 Slightly worsened

 Significantly worsened

13. Do you think MTN's activities have had any negative effects on the community?

141
 Yes

 No

 Not sure

14. If yes, please specify the negative effects:

 Environmental pollution (e.g., waste from towers)

 Increase in traffic

 Others (please specify) ______________________

15. What suggestions do you have for MTN to further improve its contribution to the socio-
economic development of Minna Metropolis?

Thank you for your time and participation!

142

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