HANNAFI BY PROF
HANNAFI BY PROF
HANNAFI BY PROF
INTRODUCTION
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
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
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
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
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
2003). International business is the spur for multinationals and both are currently boosted by the
wave of globalization.
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-
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
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
The world has become a global village with telecommunication being an indispensable tool in
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
development that it was placed directly under their control in most countries until fairly recently,
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
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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
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.
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
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
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.
(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
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.
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,
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
The broad objective of this study is to examine the effect of multinational corporations on
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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;
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
The research, the Impact of MNCs especially Mobile Telecommunication Network on socio-
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)?
In line with above-mentioned research questions and objectives, this research will be guided by
2. MTN Nigeria has not fulfilled its corporate social responsibility in Minna metropolis
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
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.
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
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
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.
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
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.
Corporate social responsibility is the concept whereby companies integrate their social and
environmental concerns in their business operations and in their interaction with their
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,
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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
metropolis (2016-2020), while chapter five (5) contains summary, conclusion, and
recommendations.
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CHAPTER TWO
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
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:
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
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
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
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
Okwandu and Jaja (2001) define it as a large enterprise with operations and divisions spread over
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
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
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.
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
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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
(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
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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
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);
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of Nigerians directly and indirectly. In the area of products
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,
the host stake from the firms operation through profit and
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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)
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
Nkrumah in his reference to the activities of MNCs stated in his thesis “Neo-colonialism
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Multinational Corporations and their new pattern of investment fail to lead changes required for
(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;
(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
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;
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complain of poor customer service, drop calls, high call rate,
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
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reinvest their staggering profit (Nwanko 1981:87). Muller has specifically examined the role of
(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
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effects from the activities of these global enterprises”(John
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
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
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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
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
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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
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
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
c) Another point of skillful deceit by the MNCs is the fact that where qualified and competent
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
“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
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,
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
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.
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
plc. located in Enugu. These companies not only pay fat salaries to these expatriates but also take
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
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
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
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.
Managing multinational corporations require a different set of conceptual tools than in the case
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
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
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.
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
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
32
environmentally responsible business models. Thirdly, reinforcing monitoring environmental
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.
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
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
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
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.
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).
GDP. Economist Ade (1978:14) describes socioeconomic growth as "one aspect of the process
perceived differently by different experts: while economists in the 20th century viewed
broader processes of change and modernization. Development and urban studies scholar, Ojo
physical, human, financial, and social assets to generate improved and broadly shared economic
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)
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).
variety of areas or indicators (such as literacy rates, life expectancy, and poverty rates), that may
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
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
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
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-
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
natural environment’.
38
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)
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
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
expansion, technology transfer, and real estate development. This third category is a primary
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
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
has linked economic development with trends on international trade and participation in global
40
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,
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
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
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.
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;
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;
43
services, data bundle, MTN video calling, fast link, mobile
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;
the host stake from the firms operation through profit and
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
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
freedom’.
Multinational Corporations and their new pattern of investment fail to lead changes required for
45
keeping down branch plants in one state and transferring to
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.
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
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.
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,
47
‘Even though the Nigerian Telecommunications sector has
GSM operators’.
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;
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
49
means of subjugating exploiting and stagnating economic
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;
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
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
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
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
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
Dependency Theory
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
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
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,
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
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
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
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
unscrupulous activities like profit repatriation, the profits that was gain by MTN was supposed to
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,
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
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
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
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
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 -
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.
common characteristic that is the target of investigation”.The population of the study comprises a
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
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
59
Table 1: Population Distribution of Selected Wards of Chachanga, Minna Metropolis
Obasi (1999:67) describes a sample as selected groups which are a fair representation of the
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
= N______
1+N (e)2
n = Sample size
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
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,
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-
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,
presentations, theses, electronic materials and other literature relevant to the study.
63
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
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.
64
CHAPTER FOUR
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
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
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
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
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,
Questionnaires Lost 20 5%
Questionnaires Invalid 28 7%
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 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
67
This section represents the demographic information of the respondents which includes; their age
distribution, academic qualification, marital status, Gender, Religion, occupation and ethnic
nationality.
12-20 67 19%
31-40 54 16%
41-50 43 12%
51-Above 35 10%
68
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
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
69
Table 4.2: Gender
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
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
70
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
Divorced 3 3%
Widowed 28 8%
71
Chart 4.3: Marital Status
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
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.
72
Table 4.4: Educational Qualification
Others 69 19%
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
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
Farmers 48 14%
Traders 84 24%
Public/Civil Servants 24 7%
74
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
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
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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
Positive Impacts
MTN as a Multinational organization engages in a lot services to the host community which have
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
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
76
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
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
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
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
77
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)
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
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
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
79
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)
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
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
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
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
80
(UBA). These banking MNCs have continued to control the commanding heights of the Nigerian
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
Agreed 59 17%
Undecided 45 13%
Disagreed 81 23%
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
82
the Metropolis`s socioeconomic development. This shows that majority of the respondents
believes that MTN has negatively impacted Minna Metropolis`s socioeconomic development.
Agreed 30 9%
Undecided 27 8%
83
Chart 4.7: MTN Generate Revenue to the Government
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
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
84
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
Agreed 41 12%
Undecided 51 14%
Disagreed 91 26%
85
Chart 4.8: MTN Serve as a Source of Income to the Indigenes of the Metropolis
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
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
86
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
Agreed 63 18%
Undecided 18 5%
87
Chart 4.9: MTN Enhances Economic Productivity in Minna Metropolis
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
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
88
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
Agreed 29 8%
Undecided 13 4%
89
Chart 4.10: MTN creates Employment Opportunities in Minna Metropolis
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
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
90
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:
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).
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
well Economists in the 20th century viewed development primarily in terms of economic growth,
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
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
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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
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
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
Strongly Agreed 31 9%
Agreed 29 8%
Undecided 20 6%
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Chart 4.11: MTN Programmes Improves the Living Standard of the Indigenes of Minna
Metropolis
To validate whether MTN programmes improves the living condition of the people or indigenes
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
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
Agreed 30 9%
Undecided 15 4%
Disagreed 74 21%
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Chart 4.12: MTN programmes reduces Poverty among the Indigenes of Minna Metropolis
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.
Agreed 42 12%
Undecided 17 5%
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Chart 4.13: MTN Increases the GDP of Minna Metropolis
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
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
Agreed 20 6%
Undecided 12 3%
Disagreed 79 22%
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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
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
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,
(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
Agreed 46 13%
Undecided 20 6%
Disagreed 84 24%
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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
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?
4.5.1 Research objectives three: To find out if MTN Nigeria has fulfilled their Corporate
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
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,
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v. Technical training for 12 members of existing library staff to work with Net Library over 2
vi. One-week library awareness to be held annually for students and lecturers
viii. Initiate a 5–year maintenance contract with the University to ensure a conducive
ix. Two years comprehensive insurance cover to take care of theft and fire 10. An interactive
ii.MTN Foundation/UNICEF Child Friendly School Initiative (CFSI): The CFSI is aimed at
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
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
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• Implementation of the extra work by Ravega Constructions Limited at the Lagos school site
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.
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.
(Prevention of Mother to Child Transmission) services through the fully established six
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
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.
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
Highlights:
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Table 4.16: MTN provides Scholarship to the Indigenes of Minna Metropolis
Agreed 24 7%
Undecided 22 6%
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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
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%.
Agreed 37 11%
Undecided 12 3%
Disagreed 99 28%
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Chart 4.17: MTN provides Health Care Facilities in Minna Metropolis
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
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distribution that neither agreed nor disagreed with what question raised, its valid percentage is
3%.
Strongly Agreed 7 2%
Agreed 10 3%
Undecided 2 1%
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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
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
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,
Strongly Agreed 27 8%
Agreed 21 6%
Undecided 65 19%
Disagreed 96 27%
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Chart 4.19: MTN Builds Schools in Minna Metropolis
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
Similarly, the neutral scale has it that those that neither agreed nor disagreed account for 22
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
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Table 4.20: MTN Provide Electricity to the Indigenes of Minna Metropolis
Agreed 44 13%
Undecided 33 9%
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
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,
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
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
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
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
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
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
Similarly, the neutral scale has it that those that neither agreed nor disagreed account for 22
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
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
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
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
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
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
citizens.
We discovered during the course of this study from literature review, interviews and
i). Multinational corporations have done more harm than good on Nigerian economy in terms of
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
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
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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
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
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
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,
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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
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
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
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
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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
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
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5.4 Recommendations
In view of the fact that the topic of this research is macro-economic in nature, the
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.
appointed as members of the Board of Directors of various corporations, for direct representation
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
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
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
that any employee that happens to be in any of the corporations should see his/her employment
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
Multinational Companies.
viii Discrimination in employment policies and salaries of workers should be ruled out and
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
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
126
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APPENDIX i
Dear Respondents,
The Corporate Social Responsibility Activities of The Mobile Telephone Network’s (Mtn’s)
I shall be grateful if relevant information can be made available to assist the conduct of this
Yours Faithfully,
HANAFI MOHAMMED
PHD/22/FMS/PAD/021
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APPENDIX ii
QUESTIONNAIRE
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 Single
o Married
o Divorced
o Widowed
4. Educational Level:
o No formal education
o Primary education
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o Secondary education
o Tertiary education
5. Occupation:
o Civil Servant
o Trader
o Farmer
o Student
o Unemployed
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)
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Employment opportunities
Infrastructure development
Health services
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?
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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)
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
Increase in traffic
15. What suggestions do you have for MTN to further improve its contribution to the socio-
economic development of Minna Metropolis?
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