The Role of Multinational Corporations in the Socio-Economic Development of Third World Countries in the 21st Century: A Case Study of Nigeria

Multinational Corporations (MNCs) have become dominant actors in the global economy, especially in developing nations. This paper examines the impact of MNCs on the socio-economic development of Third World countries with Nigeria as a focal point in the 21st century. Despite attracting Foreign Direct Investment (FDI), creating jobs, and transferring technology, MNCs have also been linked to exploitation, environmental degradation, capital flight, and weak linkages with local industries. Using a qualitative research approach, this study relies on secondary data from scholarly journals, government reports, World Bank and UNCTAD publications from 2021 to 2025. Thematic and content analysis was used to synthesize findings across economic contribution, employment generation, technology transfer, environmental effects, and policy deficiency themes. The study is anchored on Dependency Theory, which explains the unequal relationship between core and periphery nations. Findings reveal that while MNCs in sectors like telecoms, banking, and consumer goods have contributed to GDP growth and infrastructure, oil and gas MNCs in the Niger Delta have deepened poverty, unemployment, and environmental crises. The paper concludes that MNCs are a “double-edged sword” for Nigeria. It recommends stronger regulatory frameworks, enforcement of local content laws, corporate social responsibility accountability, and strategic partnerships that prioritize backward linkages and sustainable development goals.

Multinational Corporations, Socio-Economic Development, Third World Countries, Nigeria, Foreign Direct Investment, Dependency Theory

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