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 .
In the occasion of foreigners actually disposing of their assets, their interest in the Nigerian economy would be severely weakened and most often than not, the distraught investors quickly moved all their capital back to their nations of origin.
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Now, it is Mi-Fone; a new mobile phone company Please check for further notifications by email. Usually owner by a foreigner or foreigners. Unknown to the authorities, these indigenous business owners would continually remit massive amounts of money to the original owners. It furthers the University’s objective of excellence in research, scholarship, and education by publishing worldwide. Till this day, many factories still stand vacant across the country.
In addition, while business were affected under the decree some had requested exemptions and not all were compliant by April Critics had felt the changes created a new bourgeois that purchased majority of the shares. Most users should sign in with their email address. Abdul Momoh October 4, at This is different from nationalization which means taking over the ownership of an organization.
Indigenization policy is a deliberate government policy aimed at replacing foreign investors and personnel in certain industries with indigenes or the natives of a indignisation that is, excluding foreign participation in certain productive activities.
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5 Problems of Indigenisation in Nigeria and 3 Possible Solutions
Already, nations like the United States of America have indigenisatiln laws in place, 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. The Indigenisation Policy was launched inbarely twelve years from independence, at a time when the bulk of the Nigerian labour market consisted mainly of unskilled and semi-skilled manpower, and agriculture was the main economic activity.
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5 Problems of Indigenization in Nigeria and 3 Possible Solutions
The decree was promulgated in February and was revised inrenamed as the Nigerian Enterprises Promotion Decree. Yet, as promising as the Nigerian Indigenisation Policy is — brilliant in concept, and unique in its implementation — the basic masterplan is not progressing never progressed as desired.
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. The author may or may not have a financial interest in any company or advertiser referenced.
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If you need a personal assistance on this topic, kindly contact us. Posted by ibrahim Sa’adu at 4: In order to tackle nigeeia problem of possible capital outflow, the Federal Government of Nigeria set up the Nigerian Bank for Commerce and Industry, to provide investment capital to the interested citizens, who had little or no funds to acquire the indigenised firms with. Businesses where divided into three schedules.