A Study on the Effect of International Market Competition on Nigeria’s Domestic Industries
- Project Research
- 1-5 Chapters
- Abstract : Available
- Table of Content: Available
- Reference Style:
- Recommended for :
- NGN 5000
Background of the Study
International market competition has intensified in the wake of globalization, compelling domestic industries to continuously innovate and adapt. In Nigeria, where a large portion of the economy is dependent on domestic production, increased global competition has brought both opportunities and significant challenges. On the one hand, exposure to international markets can drive efficiency improvements, spur technological adoption, and enhance product quality. On the other hand, fierce competition from established global players may lead to market consolidation, reduced profit margins, and the eventual displacement of local firms that are unable to compete effectively (Babatunde, 2023).
Recent trade liberalization measures and the proliferation of digital technologies have accelerated the pace of global competition. Nigerian industries, ranging from manufacturing to agriculture, are now required to compete not only on price but also on quality and innovation. While this exposure can lead to enhanced productivity and modernization, it also demands significant investments in technology, skills, and infrastructure that many domestic enterprises find challenging to afford (Chukwu, 2024). Moreover, international competition may force local firms to operate on thin margins, thereby limiting their capacity for research and development and slowing overall industrial growth.
This study investigates the extent to which international market competition affects the performance and sustainability of Nigeria’s domestic industries. By analyzing industry-specific performance metrics alongside competitive dynamics in global markets, the research will assess how exposure to international competition influences productivity, innovation, and market survival. The analysis will incorporate both quantitative data and qualitative insights from industry stakeholders to provide a comprehensive picture of the challenges and opportunities posed by global competition. The ultimate aim is to propose policy recommendations that balance the need for competitive exposure with the support mechanisms required to sustain domestic industries (Chukwu, 2024).
Statement of the Problem
Despite efforts to modernize and liberalize the economy, Nigerian domestic industries continue to struggle against the pressures of international competition. The influx of imported goods and the aggressive strategies of multinational companies have eroded market share for local producers, resulting in diminished profitability and, in some cases, business closures (Babatunde, 2023). The problem is compounded by limited access to modern technology and financing, which prevents domestic firms from upgrading their production processes to meet international standards. Consequently, many industries face a dual challenge: they must innovate to survive in a competitive global market while also overcoming structural deficiencies inherent in the local business environment.
Furthermore, the regulatory framework in Nigeria often fails to provide sufficient protection or incentives for domestic industries, leaving them exposed to the full brunt of international competition. This has led to market distortions where local firms are either forced to adopt unsustainable cost-cutting measures or exit the market entirely. The competitive pressures also have broader implications for employment, income distribution, and overall industrial development. This study seeks to address these issues by providing an in-depth analysis of the impact of international market competition on Nigeria’s domestic industries, with the aim of identifying actionable strategies that can enhance their resilience and competitiveness (Chukwu, 2024).
Objectives of the Study
-
To assess the impact of international market competition on the productivity and sustainability of Nigerian domestic industries.
-
To identify the key challenges and opportunities faced by domestic firms in the face of global competition.
-
To propose strategic policy interventions that can strengthen the competitive position of local industries.
Research Questions
-
How does international market competition affect the performance of Nigeria’s domestic industries?
-
What are the primary challenges that local firms face in competing with global players?
-
What policy measures can improve the competitiveness of domestic industries?
Research Hypotheses
-
H₁: Increased international competition is negatively correlated with the profitability of Nigerian domestic industries.
-
H₂: Limited access to technology and finance significantly hampers the ability of local firms to compete internationally.
-
H₃: Strategic policy interventions can mitigate the adverse effects of global competition on domestic industries.
Scope and Limitations of the Study
This study focuses on selected domestic industries in Nigeria from 2015 to 2025, using a combination of industry performance data and stakeholder interviews. Limitations include potential biases in qualitative responses and difficulties in isolating competitive effects from other economic factors.
Definitions of Terms
-
International Market Competition: The rivalry between domestic and foreign firms in global markets.
-
Domestic Industries: Sectors of the economy that produce goods and services within Nigeria.
-
Productivity: The efficiency with which firms convert inputs into outputs.
Related Project Materials
An Investigation of the Role of Behavioral Biases in Investment Decisions Among Nigerian Investors
Background of the Study
Behavioral biases—systematic deviations from rational decision-making—play a significan...
An examination of the role of cultural institutions in promoting moral values in Abakaliki Local Government Area, Ebonyi State.
Background of the study
Cultural institutions in Abakaliki serve as custodians of traditional values and play a significan...
The impact of mobile social media advertising on consumer engagement: An evaluation of a digital platform in Port Harcourt.
Background of the study
Mobile social media advertising harnesses the power of social network...
The Influence of Political Advertisements in Print Media on Voting Behavior in Jos North Local Government, Plateau State
Chapter One: Introduction
1.1 Background of the Study
Political advertisements in print media have remained pivotal in shaping...
The effect of population growth on historical sites in Aba South Local Government Area, Abia State
Background of the Study
Population growth in Aba South Local Government Area, Abia State, has exerted increasing pressure...
An appraisal of product rebranding campaigns on consumer perception: A study of a legacy brand in Kaduna, Nigeria
Background of the study
Product rebranding campaigns are essential for legacy brands aiming to modernize their image and a...
An examination of mobile technology adoption in rural banking services: a case study of Accord Microfinance Bank
Background of the Study
Mobile technology adoption in rural banking services has emerged as a transformat...
The Impact of Geriatric Nursing on Fall Prevention in Elderly Patients in Kebbi State
Background of the Study
Falls among the elderly are a leading cause of morbidity and m...
An Appraisal of Housing Affordability Challenges in Kano State
Background of the Study
Housing affordability has emerged as a major challenge in urban areas across Nigeria, especially in...
The Impact of Seasonal Variations on Sales Revenue in Nigerian Markets: Evidence from Mile 12 Market, Lagos
Background of the Study
Seasonal variations significantly influence sales revenue in markets worldwide, especially in sectors where consu...
