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SS2: ECONOMICS - 2ND TERM

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Definition of Indigenisation

Indigenisation policy is the process where indigenes of a country are allowed to own, control, supervise, and manage the country’s productive enterprises.

Indigenisation policy in Nigeria allows Nigerians to participate, control, and grant Nigerians more ownership of the business enterprise. The Nigerian decree for indigenisation was established in 1972 under the Nigeria enterprise promotion decree and came into force in 1974.

Objectives of Indigenisation

1. To create a room for the citizens to participate in the prosperity of the country

2. To plough back the profit realized for expansion

3. To create more employment opportunities

4. For protection of industries in the country

5. To protect foreign exchange earnings

6. To ensure that ownership are by the Nigerians

7. To promote the country capital market

8. To retain and spend all the profit realized in Nigeria

Problems Facing Indigenisation 

1. Inadequate capital to set up business

2. Lack of managerial manpower

3. Lack of adequate personnel in the area of technical skills

4. Wide gaps between the majority and the minority

5. Inadequate income of the people 

6. Inappropriate social amenities

Solutions to Indigenisation

1. Provisions of adequate capital to up business

2. The government board should monitor the policy for proper           implementation

3. Board should promote training and research

4. Provide short, medium and long term loans to the people

5. Embrace political stability in the country

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