The effects of global powers on the performance of Nigerian economy

This paper investigates the impact of global powers on the performance of the Nigerian economy ‘between’ 1970-2014 through the application of simple Annual Average Growth Rate (AAGR) technique. The comparative analysis of growth of key sectors of the Nigerian economy (agriculture, petroleum, manufacturing, solid minerals, transport and communication sectors) between Pre-globalization (Pre-SAP;1962-1985) and Post-globalization periods (Post-SAP;1986-2014). The study reveals that ‘‘global powers’’ had had positive impact on some sectors of the economy especially, agriculture, transportation and communication; while negative impact on some sectors especially petroleum, manufacturing, and solid minerals. Global powers had had negative impact on the overall performance of the economy which is measured by GDP. This implies that despite its positive impact on some sectors of the economy; still is restriction to the growth of the economy. This paper therefore, recommends that concerted effort need to be taken by government and policy makers to boost the performance of the sectors negatively impacted by global powers of the industrialized economies especially in the areas of petroleum which is the largest contributor to GDP in recent time in the country, followed by manufacturing and solid minerals with the view to diversifying the economy. The paper also recommends that crude petroleum should be refined before exporting in order to benefit more from globalization. Another policy implication of this study is that inflation and unemployment may be successfully control if the rate at which Nigerian economy is globalized reduces to some level (i.e. openness of the economy be reduce).