Economy

10 Problems Of Globalization In Nigeria And Possible Solutions

Right from the beginning of known civilization,man has always tried to conquer distances and bring the peoples of different cultures, countries and continents into closer interaction and economic co-operation.

History pages are full of European discovery voyages that have changed the way the world is run drastically and what today’s world is for that matter.

Today the main feature of the current economic situations in the contemporary world system is globalization which is lead by a new age of information technology that is contrary to the history of human kind.

Read Also: 10 Problems Of Globalization In Nigeria And Possible Solutions

10 Problems Of Globalization In Nigeria And Possible Solutions
Globalization In Nigeria – Photo Source: https://www.linkedin.com

The world today is a global village;news travel in seconds.Business policies in one country can affect many economies worldwide within a shocking short time interval.

This brings us to the much anticipated question;what is globalization?
As the saying goes; no man is an island of knowledge,so according to the English dictionary, Globalization is the process of becoming a more interconnected world.

Economically, this implies a process of the world economy becoming dominated by capitalist models. (World System Theory by I.Wallerstein ).

It is said that money makes the world go round hence,it is thus necessary to consider the economy as powered by capitalism when discussing globalization.

Politically,capitalism is a socio-economic system based on private ownership of resources or capital. Economically, capitalism is an economic system based on private ownership of the means of production and their operation for profit.

But who gains most of this profit?The answer to this golden question will unfold as you read further.
This socio-economic system (capitalism) which enables globalization is based on private property rights, including private ownership of resources or capital, with economic decisions made largely through the operation of a market unregulated by the state.

Read Also: 10 Causes Of Underdevelopment In Nigeria

The problems thus posed to Nigeria by this international organization of globalization are thus:

1. The growing gap between the haves and have-nots in the country which has left a growing mass in poverty and living with less than a dollar a day points to the failure of globalization to reduce poverty and ensure stability.

A large chunk of our wealth goes to the rich moguls of the Western world and the political class and wealthy big business men of Nigeria.

2. Due to our over-dependence on these foreign economies,we will be severely affected if any economic crisis occurs in those countries.

For example,in 2008, when the United States passed through an economic crisis,it negatively impacted almost all world countries.What else could this be but a demerit of globalization.

3. The Federal Government of Nigeria like most,if not all African Governments have lost control of the policy making process,and are under pressure to accept dictation from creditor nations and financial institutions.

As a result,the Nigerian government now tend to discuss development issues less with our own nationals,and more with donors and creditors, about debt repayment,debt relief and rescheduling,and paradoxically about more development assistance.

All these attempts,rather than develop Nigeria further our underdevelopment and dependent on the foreign economies.

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4. In reference to the number 1 problem aforementioned, there is increment in crime rate as many have-nots desperately and illegally acquire cash and other means of resources to fix their pressing needs.

5. No doubt the inflation rate in our dear country is nerve rending as we daily wake up to realize the purchasing power of our Naira seems to be further diminishing.

This could be linked to the adverse effect of globalization because our inflation control agencies are helpless in the face of overwhelming policies of foreign financial agencies especially due to huge debts accrued from following some detrimental financial advice from the same financial agencies such as IMF, World Bank, World Trade Organization etc.

As it is said ,the lender is the master of the borrower. This adversely affects us because we are far more a consumer economy than a producing one.

6. Globalization as encouraged by the Western nations will not favour Nigeria as our local producers are exposed to economic predators.Let me use the following to butress my point:

There was a time when the United States and Western European countries were struggling economies.Their governments took some drastic and vicious steps.

At such times the governments of virtually all developed nations gave their agricultural and industrial producers some level of protection at crucial stages of their economic development.

But today’s Western leaders conveniently forget economic history by pressing the poor nations to open their doors to the free market thus advocating policies they did not follow.

Read Also: Role of Industry In Nigeria Economic Development

7. Why is it that after the much celebrated Nigeria debt cancellation during the tenure of the Obasanjo led administration, at a time when the World bank financial guru, Mrs Okonjo Iweala facilitated this landmark achievement, the country today is again heavily indebted to the Westerners?

Of course,these globalization capitalists possess a genius maneuver of luring our government into further loans and debts to keep their tight grip of economic dominance intact as well as keep the status quo of reaping humongous profits off us.

The United States President,Donald Trump was worried on why African countries still owed much debts after recent debt cancellations. (Facebook).

8. Given the nature and character of the Nigerian state with its inherent weak domestic base,globalization has its adverse implications on the nation’s economy. The capitalists of globalization continue to easily prey on us as a nation.

9. The government is quite helpless even if it means well because globalization as powered by capitalism creates an economic system based on the abstraction of resources into the form of privately owned capital,with economic decisions made largely through the operation of a market unregulated by the state.

10. Though not entirely the fault of globalization but partly due to negligence and error on the part of our economic managers and the government especially, the oil boom era which made Nigeria awash with abundant dollars because of the high demand for crudeoil to fuel the rapidly growing globalization, our country shifted attention from agricultural exploits to crudeoil. The glaring effect of this cannot be overemphasised.Now the present government is working to diversify the economy.

Globalization is here to stay.The question is how to make it work through global public institutions who will help set the rules and for the Nigerian authorities to do the needful in order for citizens to fully benefit from this global machinery.

Read Also: Industrial Development In Nigeria; Pattern, Problems and Prospect

Below are some possible solutions to the problems of globalization:

1. Nigeria should confront the challenge of globalization by liberalizing its economy,embracing internationalization of capital and opening new markets across the length and breadth of the world just like Thailand did.

Even though Thailand embraced industrialization,that country still held on to its agricultural origin and revolutionized it,becoming a major exporter of many commodities thus,harnessing globalization to favour her citizens.

2. One fundamental instrument of globalization is the fast advancing information technology,particularly computer technology; therefore it will be to our economic advantage if the Federal Government will hugely invest in providing widespread but deep-rooted computer education as well as provide laptops, tabs or personal computers for the less privileged.

An example is the provision of tabs for N-Power volunteers by the Buhari/Osinbajo administration.More citizens need such equipment and empowerment for the overall benefit of Nigeria.

Furthermore,an enabling environment for the use of computer technology should be created hence,the need for adequate infrastructures such as regular and uninterrupted power supply and telecommunications.

3. Encouragement of the technically inclined and creative people such as the Easterners by pushing political bias completely under and invest massively in the technical creative talents of the Igbo experts and other technically inclined people.

This will in the long run shift the overdependence of Nigeria on the Western world and the Asian Tigers (China,Japan,Thailand,the Koreans etc.) for technology,as well as create massive employment and income for our people.

Please note that it is necessary we also import technology experts to help train our citizens as well. Whatever the price,it is worth it.

4. Our country managers need to adopt globalization on our own terms and at our own pace just like the Asian Tigers did.This will result in enormous benefits.Today,China is the leading economic power.We can still get there too if we act rightly.

Read Also: 7 Problems Of Nigerian National Development Industry And The Possible Solutions

5. Globalization and international economic institutions need to be redesigned so as to fulfil their originally intended purpose;i.e,improving the lives of all;by re-steering from its capitalism tendencies.

It is therefore important for our Federal government and other stakeholders to join other developing nations to participate, speak out,create relevant policies and implement them.

6.More Nigerians should patronize our local producers so as to encourage a sustained economic growth and stability.

Through this our manufacturers can thrive and be well positioned to successfully compete with foreign competitors further leading to bold moves to export more Nigerian finished products overseas.Such a development will definitely strengthen our Naira among other benefits.

I think by applying the above solution suggestions,Nigeria can counter the problems posed by globalization and attain true independence.

The main goal of globalization is to raise the living standards of people across all divides,thus we need a more humane globalization that aims to benefit everyone,poor,average or rich.

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Awolesi Victor

Awolesi Victor, is a Content Developer at InfoGuideNIgeria.com. InfoGuide Nigeria is a team of Resource Persons and Consultants led by Ifiokobong Ibanga. Page maintained by Ifiokobong Ibanga. If you need a personal assistance on this topic, kindly contact us.

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