International Journal of Business and Social Science

ISSN 2219-1933 (Print), 2219-6021 (Online) DOI: 10.30845/ijbss

Investigating the Impact of Globalization on the Performance of Small-Scale Industries in Nigeria
Ameena Umar Tafida (Corresponding Author); Umar Abbas Ibrahim, PhD

Most businesses in Nigeria are categorized under small scale industries owing to the country’s heavy reliance on imports. Known as the Giant of Africa and the 27th largest economy in the world, Nigeria is the world’s 50th largest importer with 41.5 million small businesses, whose survival greatly depends on the country’s ability to leverage protectionist policies. However, trade agreements are an international concern that have limited individual countries’ sovereignty in circumventing them for the betterment of their local industries. The impact of globalisation on small scale industries was evaluated using cross-sectional survey research design to source quantitative data from a sample population of 50 respondents operating small businesses within Nigeria. The findings of the study revealed that globalisation does have an effect on small Nigerian businesses with protectionist policies and multilateral agreements having (R2 = 0.18) and Import-Reliance (R2 = 0.28). Based on the findings, the researcher recommends the Central Bank of Nigeria to a) strengthen protectionist policies specifically in industries struggling to surviveb) and afford its development loan schemes to a wider range of small businesses to support local industry growth.

Full Text: PDF