A History Of Multinational Corporations And Development In Nigeria

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A History Of Multinational Corporations And Development In Nigeria


This present study is aimed at examining the history of multinational corporations and development in Nigeria, with a focus on Nigeria Bottling Company, Ibadan and the developmental efforts of the company to its environs over the years. The study was also aimed at identifying the historical and economic impact of NBC to Ibadan.

The first chapter of this study examined a brief history of Nigerian Bottling Company which is the largest bottler of non-beverage in Nigeria.

The second chapter of this study focused on the historical analysis of Multination Corporations. It explained the Roman trade routes, Africa trade routes and the Vikings. The chapter further examined the history of multinational corporations in Nigeria.

The third chapter looked at the historical allusion of Ibadan and the growth of the town over the years. The chapter also looked into the governance system in Ibadan. The fourth chapter examined the history of Nigeria bottling company and its developmental efforts in Ibadan. According to Mr. Ojubanire R. Adedeji, the current production manager, the Nigeria Bottling Company Ltd. founded Ibadan Plant in the year 1961, ten years after the company was incorporated as a franchise bottler of product of Coca-Cola Company, Nigeria. The Coca-Cola company started her operation in Ibadan with Mr. Osunmakinde as the first manager of the company in 1961. Since then, the company have witnessed tremendous growth on all sides and have served the people of Ibadan and its environs effectively for more than 56 years. The Ibadan plant have major distribution outlets in Oyo State, some of which are situated in Ibadan, Shaki, Kishi and Lanlate.

The chapter further examined the developmental efforts of NBC; the social responsibility of NBC, Ibadan and their community development, disaster relief and recovery and the economic impact of NBC in Ibadan.

The concludes that in spite of multinational corporations meager benefits, they have impacted both positively and negatively on Nigeria economy as a whole. Their impacts cannot however be over-emphasized.

Ibadan and Oyo State at large can only benefit tremendously from the operations of Coca-Cola Bottling Company, Ibadan, if serious considerations are given to the environment in which they operate. Since these Coca-Cola Bottling Company, Ibadan is a vital component of the society, the company must continuously subject itself to the fair requirements of the society, for, their relationship is paramount and reciprocal (the corporation needs the society just as the society needs the corporation).

Chapter One

1.0 Introduction

Over the years, Multinational corporations (MNCs) have been a source of controversy ever since the East India Company developed the British taste for tea and a Chinese taste for opium.1 A typical multinational corporation (MNC) normally functions with a headquarters that is based in one country, while other facilities are based in locations in other countries. In some circles, a multinational corporation is referred to as a multinational enterprise (MNE) or a transnational corporation (TNC).2 They enter host countries in different ways and different strategies. Some enter by exporting their products to test the market and to find whether their existing products can gain sizeable market share. For such firms, they rely on export agents.

These foreign sales branches or assembly operations are established to save transport costs because there is a limit to what foreign exports can achieve for a firm owing mainly to tariff barriers and quotas and also owing to logistics or cost of transportation. Most of the firms are encouraged by the low wage rates and other environmental factors. To meet the growing demands in the foreign countries firm considers other options such as licensing or foreign direct investment which are critical steps. Some continue with export even when they have settled for the foreign direct investment option.

Every step takes strategic planning and is motivated by profit through sales growth. The idea of multinational corporations has been around for centuries but in the second half of the twentieth century multinational corporations have become very important enterprises. Multinationals operate in different structural models.3 The first and common model is for the multinational corporation positioning its executive headquarters in one nation, while production facilities are located in one or more other countries. This model often allows the company to take advantage of benefits of incorporating in a given locality, while also being able to produce goods and services in areas where production is lower.4 The second structural model is for a multinational corporation to base the parent company in one nation and operate subsidiaries in other countries around the world. With this model, just about all the functions of the parent are based in the country of origin. The subsidiaries more or less function independently, outside of a few basic ties to the parent.

A History Of Multinational Corporations And Development In Nigeria

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A History Of Multinational Corporations And Development In Nigeria


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