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 .
|Country:||Sao Tome and Principe|
|Published (Last):||27 December 2012|
|PDF File Size:||16.4 Mb|
|ePub File Size:||8.69 Mb|
|Price:||Free* [*Free Regsitration Required]|
Many Nigerians were interested in acquiring the various business assets but were incapacitated by the lack of investment capital. Our aim is to provide daily living guide for Nigerians and her friends. In the occasion of foreigners actually disposing of nigefia assets, their interest in the Nigerian economy would be severely weakened and most often than not, indigeniwation distraught investors quickly moved all their capital back to their nations of origin.
Sale and distribution of technical goods and motor vehicles, banking, insurance, construction, manufacturing of rubber, paints, plastics and most industries. Email alerts New issue alert.
Views Read Edit View history. Sign In Forgot password? Your comment will be reviewed and published at the journal’s discretion. Status competition in Africa: As soon as the indigenisation decree was launched, several cunning foreigners who were about 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.
It is aimed at poliicy greater security of vital industries where foreign domination could lead to economic sabotage e. 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. The Policy required ln foreign owners affected to put indigenidation these firms for acquisition by the indigenes, hence the name indigenisation.
Business activities under this schedule were related to the retail and service sector, advertising, jn, commercial transportation and estate agencies.
The fine in question was very heavy, considering that the Naira still had much value back in the post-colonial days. The government lost much money in tax revenue as many indigenized firms fared worse under indigenous control, resulting in declining foreign exchange.
Nigerian Enterprises Promotion Decree
Most users should sign ln with their email address. Receive exclusive offers and updates from Oxford Academic. Their phones are usually Innjoo Fire Plus is the successor to the fire. However, it is still Following decolonization, aspirations of economic independence and self-determination became pronounced and began to earn broad base support.
Purchase Subscription prices and ordering Short-term Access To purchase short term access, please sign in to your Oxford Academic account above. Granted, the Indigenisation Policy was intended to bolster the economic and political nigdria 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. Any nigeira found guilty of sabotage would be required to pay a fine of N, or serve a jail term of five years.
The international law on foreign investments and host economies in Sub-Saharan Africa: I agree to the terms and conditions. The ideas expressed on this site are solely the opinions of the author s and nkgeria not necessarily represent the opinions of anyone else.
Financial Times, 29 Aug. The Nigerian Indigenisation Decree was established in the year and was a move by the Federal Government of Nigeria to end the perceived indigemisation domination of the economy and increase indigenous control of strategic sectors of the economy.
Unknown November 28, at 4: Problems and Prospects of Identity Management in Nigeria. The military administration was more amenable to make the changes than their previous democratic counterpart partly because of their indignisation distrust of foreign capital, an aftermath of their experience in relying on foreign governments and multinational corporations during the Nigerian Civil War and the lack of prompt response of oil companies to make payments exclusively to the Federal Government.
Get more stuff Subscribe to our mailing list and get interesting stuff and updates to your email inbox.
5 Problems of Indigenisation in Nigeria and 3 Possible Solutions
The Nigerian government identified the problems and challenges that were opposed to a full implementation of the Indigenisation Decree and employed several strategies to curtail them. Unknown to the authorities, these indigenous business owners would continually remit massive amounts of money to the original owners.
Industries were divided into two divisions called schedule 1 and schedule 2. Capitalism, socio-cultural change and fraud in Uganda.
Add comment Close comment form modal.
Businesses where divided into three schedules. Now, it is Mi-Fone; a new mobile phone company If you need a personal assistance on this topic, kindly contact us.
gco: INDIGENIZATION POLICY IN NIGERIA
Here we publish several helpful articles in various nigerria, such as how-to articles, where to find things, resources, business, interviews and reviews. A new bank, the Nigerian bank of Commerce nigsria Industry came indlgenisation existence to facilitate loans to Nigerians for the purpose of investing in foreign owned firms.
Along with the decree was the establishment of the Nigerian Enterprises Promotion Board to manage the implementation of the new law. And boasts of a range of amazing specs. Following the spirit of the new law, the government acquired nigerja in major expatriate led banks within the country including First Bank of Nigeria and Union Bank of Nigeria and mandated a compulsory percentage of loans be made to Nigerians.
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. Indigenization has become a recent, trend in West Africa as a way of solving the mounting unemployment problems.
Usually owner by a foreigner or foreigners. Don’t already have an Oxford Academic account? Quoting the Indigenisation Decree, Schedule I: