THE IMPACT OF TRADE LIBERALIZATION ON THE NIGERIAN ECONOMY

Abstract

This paper investigates how trade liberalization, under the World Trade Organization, has impacted on the Nigerian economy particularly the textile, manufacturing and the agricultural sectors.  It used data from the secondary sources. The dependency theory was used to argue that the aims and policies of WTO may not undermine economic development of Nigeria, but the developed countries have the tendency to use trade liberalization as a platform to put Nigeria and other developing nations in perpetual economic domination. The findings suggest that Nigeria’s membership of the WTO was meant to open up hidden opportunities through the movement of goods across borders. The problem with trade liberalization is not that it is harmful in itself but that increased risk comes with its benefits. The challenge is to realize these benefits without suffering losses. Its negative impacts are predominant because the Nigerian economy is not ready for full-scale trade liberalization. Therefore, it is among other things recommended that Nigeria should strategically look inward to assess the industrial capability of the economy so as to formulate economic policies that will encourage local industries in order to transform the country from consumer and import – oriented  to export  economy.