TRADE LIBERALISATION AND NIGERIA’S ECONOMIC DEVELOPMENT (2015-2020): AN APPRAISAL

Abstract

This study examines the impact of trade liberalisation on Nigeria’s economic

development from 2015 to 2020. It elucidates the extent to which increased competition, resulting

from trade openness, has impacted Nigeria’s economic development and examines how

institutional weaknesses have hindered Nigeria’s economic development in recent times. The

study adopted the comparative advantage theory as its major theoretical framework of analysis and

the liberal theory as it supporting theory. It benefited from a qualitative research design, which

helped to gather insights from policymakers, business leaders, and experts on the impact of trade

liberalisation on Nigeria’s economic development. Data were collected through secondary

methods, i.e., from published books, existing literature, articles, journals, newspaper reports,

documentaries, and research works, in relation to the “case study”. The collected data were

analysed using thematic analysis. Based on the presentation and analysis of the study, it was

revealed that increased competition has both positive and negative impacts on Nigeria's economic

development. While competition can drive innovation and productivity, it can also lead to market

dominance by foreign firms, job losses, and reduced domestic production. Institutional

weaknesses, such as corruption and inadequate regulatory frameworks, can hinder economic

development in Nigeria. The study recommended that the Nigerian government should prioritise

institutional reforms to address corruption, improve regulatory frameworks, and enhance the

business environment. This could include establishing specialised courts for commercial disputes,

improving transparency in public procurement, and enhancing the regulatory agencies' capacity.