INDIGENIZATION POLICY IN NIGERIA

INDIGENIZATION POLICY IN NIGERIA

Indigenization policy is a deliberate government policy aimed at replacing foreign investors and personnel in certain industries with indigenes or the natives of a country that is, excluding foreign participation in certain productive activities. This is different from nationalization which means taking over the ownership of an organization. Usually owner by a foreigner or foreigners., with nationalization foreigners could still be employed in the firm involved but with indigenization, the natives become the only personnel both in administrative and subordinate capacities, that is, indigenes becomes the only participants in certain economic ventures.

AIMS

1.     Indigenization has become a recent, trend in West Africa as a way of solving the mounting unemployment problems.

2.     It is also aimed at saving foreign exchange by eliminating the opportunity of foreign personnel to repatriate incomes to their home countries.

3.     It is aimed at ensuring greater security of vital industries where foreign domination could lead to economic sabotage e.g. iron and steel.

4.     It is also a way of improving local resources as mush as possible in our industries so as to make them more indigenous and less foreign.