According to Ejiofor (1987) ‘the indigenization Act
of 1972 ushered in a new dimension to the struggle for true economic
independence.’ The quest for Nigerian control of the ownership of the means of production
and distribution and distribution became a matter that occupied the front
burners of national
of 1972 ushered in a new dimension to the struggle for true economic
independence.’ The quest for Nigerian control of the ownership of the means of production
and distribution and distribution became a matter that occupied the front
burners of national
economic policy discus and contention
The Nigeria indigenization decree of 1972 came into
effect to put Nigerian economy in the hands of Nigerians. It was the first
attempt to indigenize the ownership of private sector establishment in the
Nigerian economy. Under the ownership of
private sector establishment in the Nigerian and their alien owner were
required to have completed the sale of their business pin this schedule by
March 3rd 1974
effect to put Nigerian economy in the hands of Nigerians. It was the first
attempt to indigenize the ownership of private sector establishment in the
Nigerian economy. Under the ownership of
private sector establishment in the Nigerian and their alien owner were
required to have completed the sale of their business pin this schedule by
March 3rd 1974
Those enterprises in Schedule Two have to become
40% Nigeria owned. Their alien owners were equally required to have completed
the sale of these 40% of equity by the same date
40% Nigeria owned. Their alien owners were equally required to have completed
the sale of these 40% of equity by the same date
Criticism of the indigenization decree of 1972
The indigenization decree of 1972 was criticized on
many grounds
many grounds
i.
Some expatriates required to sell off all or part of heir equity
ownership in he affected enterprises regarded the exercise as outright
expropriation
Some expatriates required to sell off all or part of heir equity
ownership in he affected enterprises regarded the exercise as outright
expropriation
ii.
The exercise benefited only very few people. This is far from the
intension of those who conceived and executed the programme and contrary to the
National objective of securing a just and egalitarian society
The exercise benefited only very few people. This is far from the
intension of those who conceived and executed the programme and contrary to the
National objective of securing a just and egalitarian society
iii.
Many Nigerians felt the exercise merely resulted in the change of
business names and that the purported sales were faked and alien owners
continued to run and share ownership interest n business under Schedule One
after the march 1974 deadline
Many Nigerians felt the exercise merely resulted in the change of
business names and that the purported sales were faked and alien owners
continued to run and share ownership interest n business under Schedule One
after the march 1974 deadline
iv.
A more serious criticism was that the exercise did not go far enough.
Many Nigerian believed that there was massive over substitution of the share
and as such more business should have come under Schedule One
A more serious criticism was that the exercise did not go far enough.
Many Nigerian believed that there was massive over substitution of the share
and as such more business should have come under Schedule One
v.
In case of Schedule Two businesses, critics charged that expatriates
owners did not make enough of the business available to Nigerians outside their
employees. It was argued that these employees appeared to have ‘cooperated’
with the foreigners to defect the main purpose of the exercise, which was to
transfer ownership and control of their business to Nigerians
In case of Schedule Two businesses, critics charged that expatriates
owners did not make enough of the business available to Nigerians outside their
employees. It was argued that these employees appeared to have ‘cooperated’
with the foreigners to defect the main purpose of the exercise, which was to
transfer ownership and control of their business to Nigerians