i. 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.
ii.
The operations of
foreign owned firms in the country became increasingly costly to Nigerian
economy.
iii.
The sectoral
investment preferences and dividend polices of these foreign firms were costly
to the Nigerian economy and inimical to her development.
iv.
Before the
indigenization policy in Nigeria foreigner dominated the ownership and
management of firms in the country.
OBJECTIVES OF THE NIGERIAN
INDIGENIZATION POLICY
i.
Fostering
widespread ownership of enterprises among Nigerian citizens
ii.
Fostering the
development of the Nigerian capital market.
iii.
To create
opportunities for Nigerian indigenous businessmen.
iv.
The transference
of ownership and control to Nigerians in respect of those enterprises formerly
wholly or mainly owned and controlled by the foreigners.
ACHIEVEMENT OF INDIGENIZATION
a. It
stimulated investment consciousness among Nigerian citizens association.
b. It
awakened the need for the “transfer of technology” in the form of technical,
managerial and entrepreneurial capability.
c. 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.
d. 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.
CHALLENGES
OF INDIGENIZATION
i.
Indigenization
could be misinterpreted by aliens as a creeping nationalization.
ii.
Reduction in
foreign may reduce the volume of funds for industrial investment.
iii.
Fear of further
indigenization in the future might determine foreign investors.