Globalisation and Transnational Corporations in the Petroleum Sector of the Nigerian Economy: A Historical Analysis

Abstract

The crucial ingredient in the development of the global economy or any economy for that matter is an investment. Transnational Corporations (TNCs) are the main purveyors of Foreign Direct Investment (FDI). The Nigerian situation is no exception to the above pattern where TNCs occupies a towering influence over strategic sectors of the economy, especially the Petroleum sector. This paper examines the nature, dynamics, and scope of the operations of Transnational Corporations such as the Anglo/Dutch Shell Development Company in Nigeria’s oil sector. The positive and negative impacts of such corporations on the Nigerian economy are also highlighted and weighed. It also analyses why the Nigerian state has found it more difficult to control the activities of such corporations. The research method adopted for the study is a historical approach that took cognisance of existing scholarly works and the use of simple descriptive analysis of available data on the study. The paper concluded by submitting that the corporations benefited more from the Nigerian economy than whatever they might have contributed, while certain suggestions are also proffered as a way forward.