The Political Economy of Foreign Financial Inflows and Weak Capitalist Expansion in Nigeria

Onoho’Omhen Ebhohimhen

Abstract

This article examines some aspects of contemporary foreign inflows in Nigeria against the pertinent theoretical assumptions of technological and capital goods transfer. The characterisation of foreign capital transfers is founded on the general theoretic argument of aiding capitalist production. However, the reigning patterns of foreign financial inflows in Nigeria privileged funding expenditure obligations of social nature, on the one hand, and opportunistic moves, involving hedging and speculation in the capital market, on the other. The notion of foreign financial inflows to bridge resource gaps has been disingenuously applied. This has resulted in weak capitalist expansion and is increasingly leading the country into debt peonage. The contents and disposition of the contemporary foreign capital model exhibit sharp contradictions with progressive capitalist development. Therefore, foreign inflows into Nigeria need re-examination for selective industrialisation, structural change and real economic growth.

Keywords

economic growth; foreign inflows; industrialisation; structural change

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