Globalization and Its Impact on Poverty Reduction in Nigeria

Ukpong U. Ayatt

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Abstract

This paper examined the impact of globalisation on poverty reduction in developing countries with a focus on Nigeria. The increased interactions between different countries led to situations where the economy and development of most countries were no longer only in the hands of the ruling government but highly influenced by international organisations where international rules and legislation reign. This situation made globalisation to be perceived as a highly controversial process. It remains in the domain of academic exercise as to whether globalisation and its components can bring about a reduction in poverty in developing economies. The researcher gathered data from secondary sources to conduct a qualitative study based on documentary evidence. The findings of this study showed that despite the interactions of the Nigerian government with the global community which are evident in the flow of Foreign Direct Investments, trade liberalization, as well as the implementation of economic policies like deregulation and privatization, Nigerians have hardly felt the positive impact of these economic decisions especially as it concerns the reduction of poverty. It was recommended, amongst others, that the government should implement policies that encourage the diversification of the economy thereby expanding the production and manufacturing sectors to discourage the monoeconomy we are running. This is the only way that FDIs and other capital flows can be put into proper use.

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