THE IMPACT OF GLOBAL SUPPLY CHAINS ON ECONOMIES – A CASE STUDY OF NIGERIA

Abstract

Global Supply Chain Management is a complementary activity which entail the movement of goods, services and funds from countries that have sufficient of these resources to where they are needed in good time. Supply chain management is very vital in today’s business as it intends to bridge the gap between developing countries and the developed countries by the provision of the wants of both economies. Nigeria as one of Africa's largest economies has been deeply integrated into global supply chains across various industries, including oil and gas, agriculture, and manufacturing. However, the economic gain from the GSCM has been very low due to several factors such as unprocessed raw materials, unstable government policies, poor infrastructural amenities and poor workforce.

This paper seeks to measure the effect of SCM practices in the manufacturing sector, examine the impact of Global supply chain management (GSCM) practices on the economic development of Nigeria, as well as the constraints and benefits that global supply chains present to Nigeria’s business sectors. The quantitative research technique was used to analyse the primary data collection from manufacturing, marketing, transport and logistics sectors of the economy using random sampling technique where descriptive statistics (mean) and inferential statistics (correlation analysis) tools were applied. The Pearson Correlation indicating a strong positive linear relationship between Global Supply Chain Management (GSCM) practices and economic growth and productivity of the sectors. But the null hypothesis was rejected indicating that there isn't sufficient statistical evidence to conclude a significant effect of GSCM practices on the economic growth in Nigeria.

Developing countries, including Nigeria, face numerous challenges in effectively managing global supply chains. To enhance efficiency, competitiveness, and economic growth, it is essential to adopt strategic principles that address infrastructural deficits, regulatory bottlenecks, and technological gaps.