THE DOUBLED-EDGE SWORD OF MULTINATIONAL ENTERPRISES IN NIGERIA: CHALLENGES, OPPORTUNITIES, AND POLICY IMPLICATIONS

Abstract

Multinational enterprises (MNEs) occupy a paradoxical position in Nigeria's political economy: simultaneously indispensable vehicles of capital, technology, and employment, and recurring sources of tension over foreign exchange exposure, regulatory compliance, and profit repatriation. This article critically examines the double-edged character of MNE participation in Nigeria using a qualitative, secondary-data research design, drawing on recent (2023-2026) empirical studies, regulatory reports, and industry data. The findings show that while MNEs have historically driven manufacturing capacity, technology transfer, and formal-sector employment, the 2023-2024 macroeconomic reforms, particularly naira devaluation and fuel subsidy removal, precipitated a wave of high-profile exits and downsizing among consumer goods and pharmaceutical multinationals, even as select technology, energy, and manufacturing firms cautiously re-entered by 2025. The article situates these dynamics within eclectic paradigm (OLI), dependency, and institutional theory frameworks, and argues that Nigeria's capacity to convert MNE presence into durable development gains is conditioned less by the volume of inflows than by institutional quality, exchange-rate stability, and policy consistency. The article concludes with policy implications for regulators, and recommendations for a more resilient, locally-anchored engagement model with multinational capital.