Globalization at A Crossroads: Balancing Economic Integration with National Sovereignty

Abstract

The question that this study seeks to answer is: How can Nigeria manage the interests of global economic integration and the defense of the state in view of her heavy reliance on the global oil markets? Based on a desk-based review of 50 peer-reviewed journal articles, policy reports, and theoretical models, we critically explore the potential of the opportunities and challenges posed by globalization to resource-intensive developing countries. The paper contributes to the literature by focusing on Nigeria and applies relevant theories—liberalism, dependency theory and embedded liberalism—to assess how the external economic environment influence the independence and the institutional capacity of national policies. The implication is that globalization allows a direct entry into technology as well as financial and trade markets to ensure wealth formation, but, at the same time, exposes developing world to structural vulnerabilities, market momentum, and limited degrees of choice-making. Nigeria's excessive dependence on oil revenues compounds these risks, so it is unable to shape a sustainable development course on its own, without vectors from outside (^15^). The results reveal three underlying strategies for managing the integration-sovereignty ‘paradox’: (a) economic diversification including in agriculture and technology-based activities (b) institutional reforms to improve quality of governance, transparency, and capacity of regulation; and (c) regional co-operation, including through instruments of the African Continental Free Trade Area (AfCFTA) to increase bargaining power and resilience. This study blends theoretical reflections with current empirical instances to provide policy prescriptions for Nigeria and economies at similar junctures. In the end, the results imply that constructive engagement with globalization - rather than retrenchment - is crucial for leveraging its advantages and protecting national interests. These are lessons that offer guidance for resource-rich countries that aim to obtain sustained and sovereign integration into the world economy.