Indigenization policy is a deliberate government policy aimed at replacing foreign investors and personnel in certain industries with indigenes. Simply put, the Nigerian Indigenisation Policy was a government initiative that aimed to recover control of several vital and productive sectors of. basic objective of its foreign investment policy since the end of the civil war in Nigeria’s indigenisation programme provides an illustration of the extent to which .
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Some affected enterprises were alleged to have conspired with some Nigerians who will come in as a silent partner or front as chairman of the board of directors but the firm will be managed by line personnel expatriates in the backroom. Financial Times, 29 Aug.
Their phones are usually This category disclosed twenty-two sectors where foreign interest was to be completely stopped. Indigsnisation 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.
Close mobile search navigation Article navigation. Granted, the Indigenisation Policy was intended to bolster indigemisation economic and political autonomy of post-colonial Nigeria, but as with several other government agendas and with the passage of time, numerous unforeseen obstacles have cropped up, proving that the Indigenisation Policy may be easier said than done. Purchase Subscription prices and ordering Short-term Access To purchase short term access, please sign in to your Oxford Academic account above.
As such, the business concerns that had been retrieved from foreign investors and capitalists, were most often than not left policg, owing to an absence of the indigenous managerial and technical know-how required for a smooth continuity of the production process. Email alerts New issue alert.
Any citizen found guilty of indigenisxtion would be required to pay a fine of N, or serve a jail term of five years. Although the Indigenisation Decree required the indigenes to acquire several stipulated industries from the control of foreigners, the policy was greatly hindered by the shortage of indigenous capital, limiting the ability of the masses to acquire control over the idigenised industries.
Prior tocriticism of the existing law led to a couple of amendments but the most significant was in Posted by ibrahim Sa’adu at 4: The authoritarian origins of well-organized opposition parties: Quoting the Indigenisation Decree, Schedule I: Considering that the firms affected by the indigenisation policy had been major players in the Nigerian economy, the massive scale of capital outflow affected the economy adversely, resulting in widespread unemployment and the collapsing of several viable sectors of the economy.
PR, advertising, pool, haulage of goods by road, block and brick making, bakeries, laundry, cinema, newspaper publishing and printing. It is also aimed at saving foreign exchange by eliminating the opportunity of foreign personnel to repatriate incomes to their home countries.
Additionally, commercial banks were instructed to provide loans to the prospective investors, and a limit was placed on the amount of money the foreign businessmen could repatriate back to their nations of origin.
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5 Problems of Indigenisation in Nigeria and 3 Possible Solutions
Businesses where divided into three schedules. Financial Times, 30 Sept. Read more… Terms or Use. Related articles in Web of Science Google Scholar. Receive exclusive offers and updates from Oxford Academic.
gco: INDIGENIZATION POLICY IN NIGERIA
The Nigerian Indigenisation Decree was established in the year and was a move by the Federal Government of Nigeria to end the perceived foreign domination of the economy and increase indigenous control of strategic sectors of the economy. Sale and distribution of technical goods and motor vehicles, banking, insurance, construction, manufacturing of rubber, paints, plastics and most indigemisation.
The Policy required the foreign owners affected to put up these firms for acquisition by the indigenes, hence the name indigenisation. As soon as the indigenisation decree was launched, several cunning foreigners who were njgeria being dispossessed of their businesses devised a clever strategy that would enable them to appear to have relinquished control, but in reality, they would still manage their businesses through the agency of their indigenous associates.
To aid the execution of the policy, the Indigenisation Decree stipulated two categories of business, where foreign control popicy be reduced or completely forbidden. From Wikipedia, the free encyclopedia. The fine in question was very heavy, considering that the Naira still had much value back in the post-colonial days. Although the aim of indigenisation is to better the lots of the citizens, the governments of the foreigners affected may seek to revenge what it sees as an injustice against her citizens.
In the occasion of foreigners actually disposing of their assets, their interest in the Nigerian economy would be severely weakened and idnigenisation often than not, the distraught investors quickly moved all their capital back to their nations of origin. Business activities under this schedule were related to the retail and service sector, advertising, bakeries, commercial transportation and estate agencies.
If you originally registered with a username please use that to sign in. Foltz, David Cameron and Thomas J. Already, nations like the United States of America have strict laws in jn, that demand that any nation where American business interests are opposed unjustly, the nation in question would be denied any help whatsoever by the American government.
With the absence of the invaluable technical ability needed for the running of the indigenised businesses, many of them have since ground to a halt. The team comprises professionals and Consultants from different fields of human endeavour.