(a) Distinguish between Nationalization and Indigenisation
(b) State any five advantages of nationalization and two objectives of indigenisation.
Explanation
(a) Nationalization; is the act of bringing an industry or part of it under exclusive state ownership and control. In this case, the government is the only shareholder. However, indigenization is a policy initiative designed to accelerate the greater participation of Nigerians in the ownership and management of business enterprises in Nigeria. Here, individuals hold majority shares or are the only shareholders.
(b) Advantages of Nationalization are:
(i) It ensures the provision of social services at affordable cost.
(ii) It may lead to rationalization and elimination of waste.
(iii) Nationalization is an effective instrument for checking exploitation by foreigners.
(iv) It gives the government the opportunity to control strategic industries.
(v) It ensures the steady supply of essential services.
Objectives of Indigenization are:
(i) To promote industrialization through the use of indigenes and indigenous means.
(ii) To reduce foreign dominance of the economy.
(iii) To ensure greater participation of indigenes in the ownership and control of business enterprises.