Abstract
This article explores the need to balance the contending forces of protection and promotion of Nigeria’s local content and adherence to the World Trade Organization (WTO) trade liberalization policies in the areas of trade and commerce, labour and employment, manufacturing, technology exchange, monetary and expatriate policies. It argues that in modern times, no nation is self-sufficient, hence the need to intermingle especially on the plane of trade and investment amongst nations, Nigeria inclusive. It discusses the concepts of local content and trade liberalization and takes an excursion into the history and objectives of the WTO. It argues that since the era of Structural Adjustment Program (SAP) coupled with the drive to attract Foreign Direct Investment (FDI) as well as the International Monetary Fund (IMF) and World Bank (WB) loans conditions, Nigeria’s economy has been liberalized with a concomitant devaluation of the Naira, paralysis of local industries, and increased unemployment. It examines the anatomy of local content, the various local content protection and promotion efforts of the government. The article further argues that liberalization is only beneficial to a manufacturing and exporting economy; therefore, it recommends the revamping and diversification of Nigeria’s economy beyond oil, improvement on Small and Medium Scale Enterprises (SME), strengthening of the Naira as a legal tender, and introduction of viable fiscal policies. These measures would engender a balance between adherence to WTO trade liberalization policies and promotion of Nigeria’s local content.
Keywords: Economy, Nigeria, Naira, Trade, World Bank.