Importance of indigenization in Nigeria will be discussed here. This is to bring to mind the level of impacts and benefits gotten from the internet.
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Indigenization became popular in Nigeria, sometime in 1972 when the Federal Government of Nigeria saw that there was a need to curb foreigners’ domination of citizens, and indigenes, decrees, and policies were made to give locals an edge over foreigners.
Indigenization is the partial or full transfer of ownership of enterprises and businesses to indigenes from foreigners to the end that more locals can be at the helm of affairs to manage, control, and even own businesses across the country.
Below are the Importance of indigenization in Nigeria:
1. Favorable environment for private initiative
More individuals are taking the initiative to venture into entrepreneurship and start small and medium businesses across the country because indigenization has created a favorable environment for them to thrive.
2. Creation of employment platforms
Indigenization repositions Nigerians for more employment opportunities. Since a certain part or fraction of the employees of any firm must be locals even when it is owned by foreigners, the room is created for Nigerians rather than bringing in expatriates from other countries to take up jobs that only need a couple of months’ training will make locals competent enough to fill in such offices.
3. Cheap labor and conversely lower management cost
The cost of hiring several expatriates and maintaining foreigners as an employer whose business is situated in Nigeria is higher compared to using local manpower.
Not much money is spent on labor if it is the locals and indigenes that provide it. This way, the cost of production or management is reduced and more profits are made.
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4. Harnessing the potential of indigenes
The potential in indigenes that would have remained untapped is harnessed with indigenization because firms are forced to train and employ locals or use their services. This way, indigenes get to know their potential and develop them in the process of rendering services.
5. Indigenization aims at making Nigeria a more self-reliant country
With the increasing cost of importation, a self-reliant country that imports little or nothing is rich. As the government through indigenization insists that Nigerians are involved in businesses, manufacturing, and production of the goods and services we consume, they are building a self-reliant nation.
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6. As it is with many cottage goods and services, Nigerians will purchase at a cheaper rate, goods, and services whose imported substitutes are very expensive and not easily afforded by a large fraction of the population who are poverty-stricken.