INDIGENISATION POLICY IN NIGERIA PDF

As in the rest of the developing world, most national states have increasingly taken on regulative, welfare and planning functions, and the state has become a major if not the major economic actor in many countries [1]. At the same time, policies of economic nationalism nationalisation and indigenisation have become widespread in Africa and most host-countries have levied increasingly stringent regulations on the operations of foreign firms [2]. This process is experimental and the keywords may be updated as the learning algorithm improves. This is a preview of subscription content, log in to check access.

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Those foreign firms proved irresponsive to many years of moral suasion by successive government of the country for employment of qualified Nigerians, for the moderation of their pricing and wage polices, for managerial and technical training and technical training and the development of their Nigerian employees.

The operations of foreign owned firms in the country became increasingly costly to Nigerian economy. The sectoral investment preferences and dividend polices of these foreign firms were costly to the Nigerian economy and inimical to her development.

Before the indigenization policy in Nigeria foreigner dominated the ownership and management of firms in the country. Fostering widespread ownership of enterprises among Nigerian citizens ii.

Fostering the development of the Nigerian capital market. To create opportunities for Nigerian indigenous businessmen. The transference of ownership and control to Nigerians in respect of those enterprises formerly wholly or mainly owned and controlled by the foreigners. It stimulated investment consciousness among Nigerian citizens association.

The objective of fostering the development of the Nigerian capital market has been achieved to some extent since many industries and firms had quoted their shares on the Nigerian stock exchange. The objectives of transferring ownership and control of enterprises to Nigerians has been largely achieved since major enterprises concerned have complied with the indigenization requirement. Indigenization could be misinterpreted by aliens as a creeping nationalization. Reduction in foreign may reduce the volume of funds for industrial investment.

Fear of further indigenization in the future might determine foreign investors.

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5 Problems of Indigenisation in Nigeria and 3 Possible Solutions

Simply put, the Nigerian Indigenisation Policy was a government initiative that aimed to recover control of several vital and productive sectors of the economy from alien control. The Policy required the foreign owners affected to put up these firms for acquisition by the indigenes, hence the name indigenisation. To aid the execution of the policy, the Indigenisation Decree stipulated two categories of business, where foreign control would be reduced or completely forbidden. Schedule I This category disclosed twenty-two sectors where foreign interest was to be completely stopped. These include rice milling, jewellery production, etc. The decree also forbade the establishment of such exclusive businesses by foreigners, after 23 February The industries affected include chemical manufacture, cement manufacture, etc.

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Indigenization and Economic Development: The Nigerian Experience

Those foreign firms proved irresponsive to many years of moral suasion by successive government of the country for employment of qualified Nigerians, for the moderation of their pricing and wage polices, for managerial and technical training and technical training and the development of their Nigerian employees. The operations of foreign owned firms in the country became increasingly costly to Nigerian economy. The sectoral investment preferences and dividend polices of these foreign firms were costly to the Nigerian economy and inimical to her development. Before the indigenization policy in Nigeria foreigner dominated the ownership and management of firms in the country. Fostering widespread ownership of enterprises among Nigerian citizens ii. Fostering the development of the Nigerian capital market. To create opportunities for Nigerian indigenous businessmen.

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WHAT LED TO INDIGENEIZATION? WHAT ARE THE OBJECTIVES | ACHIEVEMENT | CHALLENGES

Disadvantages of Nationalisation Meaning of Indigenisation Indigenization can be defined as the transfer of ownership and control of business enterprises from foreigners to the indigenes. It is a policy designed to ensure greater participation of indigenes in the ownership, control and management of business enterprise. It is the fact of making something more native; transformation of some service, idea, etc. Advantages of Indigenisation indigenization program in Nigeria is that oil is a very strong export good, leading to a stronger economy. Ensure self reliance: indigenization eliminates the problem of dependence on foreign goods by ensuring self reliance. Development of private initiatives: Encouraging indigenes to participate in business enterprise, private initiative will develop with indigenization.

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