Multinational Corporate Strategies: The Case of Nigeria

Privatisation, trade union strength and bargaining power in Nigeria's finance and petroleum sectors

“…Government exclusively owned 14 companies, was involved in 27 joint ventures, owned about 60 per cent equity in financial institutions, 55 per cent in the oil sector, and about 49 per cent in insurance companies. Total government investment was estimated at $1,275 million (Nambudiri and Iyanda, 1986 in Damachi and Siebel, 1986: 94). It was not surprising, therefore, that the TUs saw privatisation as a serious threat to their membership size and finances.…”

The development of international business in Africa (1947–1997)

“…More importantly, African countries encouraged the inflow of foreign investments by giving incentives to foreign investors: adoption of policies discouraging nationalization and encouragement of free movement of goods and services, easy repatriation of profit and capital, tax reliefs, accelerated depreciation of capital assets, indefinite carrying forward of unabsorbed depreciation balances, import duty relief, anti-dumping act to prevent infant industries being smothered by systematic dumping, customs draw-back regulations, industrial research centres and government advances of loans to business etc. (Nambudiri and Iyanda, 1986) Regarding colonization, it should be underscored that the development of international business started long before the beginning of the colonial era, when many businessmen were commuting between West Africa and Europe through the Sahara Desert, trading in Morrocan leather, beads, gold spices, and other merchandise (Bovill, 1955). Although this profitable trade relationship soon gave way to a discredited and dehumanizing slave trade, the resumption of normal business, which later grew in leaps and bounds, also paved the way for the struggle for raw materials and markets in Africa.…”