Even
the foregoing, there were also contentions and arguments by concerned
Nigerians. Ejiofor (19876) capture the arguments thus:
the foregoing, there were also contentions and arguments by concerned
Nigerians. Ejiofor (19876) capture the arguments thus:
‘the
essential differences between the indigenization Acts of 1972 and 1977 is not
necessarily, as is often claimed, that all business organization operating in
Nigeria
essential differences between the indigenization Acts of 1972 and 1977 is not
necessarily, as is often claimed, that all business organization operating in
Nigeria
were classified into three in 1977, but into two in 1972. Certainly the
1977 Act classified all enterprises into three:
Ø 40 enterprises exclusively reserved for Nigerian
Ø 57 enterprises in respect of which Nigerians must
have majority interest of at least a 60% and
have majority interest of at least a 60% and
Ø 39 enterprises in respect of which Nigerians must
have at least a 40% interest
have at least a 40% interest
It
is argued here, however, that the indigenous exercise of 1972 defacto and de
jure also grouped all businesses operating in Nigeria into three:
is argued here, however, that the indigenous exercise of 1972 defacto and de
jure also grouped all businesses operating in Nigeria into three:
Ø 22 enterprises exclusively reserved for Nigerians
Ø 33 enterprises barred to aliens unless Nigerians
have proprietary interest of at least 40%
have proprietary interest of at least 40%
Ø The Act was silent on other enterprises. By
implication, aliens may still own all the proprietary interest in those
enterprises
implication, aliens may still own all the proprietary interest in those
enterprises
Differences
in the Acts.
in the Acts.
The
alleged difference in grouping is unreal. The fundamental differences between
the two exercises are clear.
alleged difference in grouping is unreal. The fundamental differences between
the two exercises are clear.
Ø First, under the 1972 Act, it was possible for a
alien to have 100% proprietary interest in some classes of business operating
in Nigeria, whereas under the 1977 Act, he must at best share the proprietary
interest with Nigerians
alien to have 100% proprietary interest in some classes of business operating
in Nigeria, whereas under the 1977 Act, he must at best share the proprietary
interest with Nigerians
Ø Secondly, Nigerians have a ‘majority interest’ in
more business enterprises under the 1977 Act than under the 1972 Act
more business enterprises under the 1977 Act than under the 1972 Act
Ø Thirdly, by not only decreeing a change of
ownership and management as in 1972, but also insisting, in the 1977-78
exercise, that the ownership base of the indigenized business be
widened(socialized), the government is pursuing three policies at the same
time: these are
ownership and management as in 1972, but also insisting, in the 1977-78
exercise, that the ownership base of the indigenized business be
widened(socialized), the government is pursuing three policies at the same
time: these are
·
Nigerianization of the economy
Nigerianization of the economy
·
Nigerianization of the key posts in the private sector, both of these as
in 1972, and
Nigerianization of the key posts in the private sector, both of these as
in 1972, and
·
Socialization of the ownership base of the product sectors of the
economy – this is an important improvement of the 1977-78 exercise on that of
1972-74
Socialization of the ownership base of the product sectors of the
economy – this is an important improvement of the 1977-78 exercise on that of
1972-74
He
concluded that ‘the impact of this socialization policy on effectiveness and
efficiency is of major interest to us’
concluded that ‘the impact of this socialization policy on effectiveness and
efficiency is of major interest to us’
Objectives
of the indigenization programme
of the indigenization programme
Ejiofor
(1987) gives the following as basic objectives why the government as at that
time embarked on the indigenization exercise. He says, ‘if we superimpose this
correction function on the fundamental goals of indigenization, we easily
extract five primary and derivative objectives of the Acts. These are:
(1987) gives the following as basic objectives why the government as at that
time embarked on the indigenization exercise. He says, ‘if we superimpose this
correction function on the fundamental goals of indigenization, we easily
extract five primary and derivative objectives of the Acts. These are:
·
Effecting the managerial function of control – through rectification of
errors in the implementation in 1972
Effecting the managerial function of control – through rectification of
errors in the implementation in 1972
·
Economic self government – through controlling the commanding heights of
the economy
Economic self government – through controlling the commanding heights of
the economy
·
Wealth transfer function – transferring more wealth to Nigerians
Wealth transfer function – transferring more wealth to Nigerians
·
Socialization function – ensuring that more Nigerians share in the expanding
resources of nation and
Socialization function – ensuring that more Nigerians share in the expanding
resources of nation and
·
Motivational function – securing the cooperation of employees towards
greater productivity by encouraging employee participation in the equity
ownership of their employer institutions.
Motivational function – securing the cooperation of employees towards
greater productivity by encouraging employee participation in the equity
ownership of their employer institutions.
However,
satisfactory performance of the correction function should not give the
impression that the NEPB of 1977 did not have its own share of problems. Its
problems were multifarious. We shall now outline them under these broad
headings without discussing them
satisfactory performance of the correction function should not give the
impression that the NEPB of 1977 did not have its own share of problems. Its
problems were multifarious. We shall now outline them under these broad
headings without discussing them
·
Infrastructural inadequacy
Infrastructural inadequacy
·
Internal jurisdictional inherent in the Act
Internal jurisdictional inherent in the Act
·
Interpretational problems and
Interpretational problems and
·
Problems of policing indigenization
Problems of policing indigenization
Today
the euphoria of indigenization has gone. The changes are now history. Have
Nigerians effectively displaced foreigners in the ownership of the wealth of
their country? Have the intentions of the architects of the indigenization acts
been archived?
the euphoria of indigenization has gone. The changes are now history. Have
Nigerians effectively displaced foreigners in the ownership of the wealth of
their country? Have the intentions of the architects of the indigenization acts
been archived?
