Abstract

The thesis is a comprehensive examination of the Nigerian Enterprises Promotion Decrees of 1972 and 1977, and more broadly of the process of indigenization in Nigeria. A brief introduction to the historical background of indigenization before 1970 is followed by an account of the timing of the Decrees in the context of the oil boom in the country's economy. An examination of the problems encountered in implementing the Decrees and their effects, and an analysis of the distribution of benefits, is informed by empirical research including interviews, carried out by the author in Nigeria between 1982 and 1985. The record shows that indigenization has led to the consolidation of an economy which accommodates the interests of ex-State personnel, the State as an institution, private indigenous businessmen and foreign capital, in an order which is far from certain to bring about the national economic independence which, in official terms, is the chief objective. Nigeria's commitment to capitalism and the promotion of Indigenous private enterprise, on the basis of resources generated initially by the agricultural economy, between the 1940s and 1960s, and then much more spectacularly and more significantly by oil revenues in the 1970s, provides an instructive example of the limits to what a post-colonial society in black Africa can achieve by trying to indigenize the ownership structure of its economy.

Introduction

In week five of this course we discussed the role of Government in business. Today we are going to discuss the purpose of the Nigeria Enterprise promotion decree and it effect on the business enterprise. The variety of approaches to the theoretical background of management have provided their own versions of what is meant by such key word as management. There is no generally accepted definition of management as an activity. Management has been defined by different authors. Frost G. (1966:13) defined management as the act of directing human activities in such a way as to achieve the greatest possible measure of conformity with company policy. Kast and Rosenzweig (1974:28) refer to management as the process whereby resources of men, machines and materials, time, money and space are converted into useful and effective enterprises.

Management is a process of organizing and employing resources to accomplish predetermined objective as well as planning the means of reaching them. Despite the differences in approach, the various authors have one thing in common and that is the planning and directing of resources towards the accomplishment of a set goal.

The Nigeria enterprises promotion decree which often refers to as indigenization policy was promulgated with effect from 1972. The paramount aim of the decree was to give Nigerians the desired involvement in the control, management and ownership of the country’s productive enterprises.

The decree at initial stage was having double schedule i.e. schedule 1 & 2. But as this went by, the decree was modified by Decree no 3 of 1977. The modification provides for triple schedules of enterprises for better participation of Nigerians instead of the former double schedule.

OBJECTIVES OF NIGERIA ENTERPRISES PROMOTION DEGREE

From the statement of the problem, the research work is meant to achieve the following objectives:

1.    To examine the nature and issues of public enterprise in Nigeria.

2.   To find out the problems facing pubic enterprises especially the Ezzamgbo building material industry.

3.   To create more employment for Nigerians.

4.   To enable Nigerians have greater control of their economy.

5.   To avoid foreign domination in order to prevent possible economic sabotage.

6.   To create greater opportunities for training indigenous personnel in the art of management.

7.   To maximize local retention of profits.

LITERATURE REVIEW

It is an obvious fact that when two men co-operate to roll a stone that either could have moved alone, the rudiments of management have appeared. The first ingredient of management is people because people have to be present before management can take place. Government like any other body operates businesses. The management of public enterprises, like Ezzamgbo building material industry is not an easy one, this stems from the fact that virtually all the strategic policies and programmes of the organization is strictly governed and regulated by the government in charge. The government first and foremost has to constitute board of directors and also enforce government programmes on the organization through the management offices. Ezzamgbo building materials is owned by Ebonyi state government and as a result owes its responsibilities to them. It has to act in accordance with the rules and laws guiding it and should not act outside its powers.

The brief history and information collected from the company under study shows that the Ezzamgbo building material industry Abakaliki was established on 30th March 1989 under the then Anambra State government.    However, the creation of the Ebonyi State in October 1st 1996, changed its ownership status as the company management was handed over to the Ebonyi State government. The Ezzamgbo building material first formed partnership with an Israelites firm called “Diezengorf West Africa Limited”.

BENEFITS OF THE NIGERIAN ENTERPRISES PROMOTION DECREE

     i.        More employment opportunities have been created for Nigerians in various levels.

   ii.        Nigerians now have a greater stake and thereby reducing possible foreign sabotage. Nations economic destiny and thereby reducing possible foreign sabotage.

  iii.        There has been increased local retention of profit.

  iv.        A pool of indigenous personnel with better technical and management skills have emerged.

SCOPE OF NIGERIA ENTERPRISES PROMOTION DEGREE

The study covers the issues of public enterprises: The basic problems with public enterprises in Nigeria and the problems associated specifically with the management of the Ezzamgbo building materials industry Abakaliki. For convenience sake the researcher has decided to use Ezzamgbo building material industry as a case study.

SIGNIFICANCE OF NIGERIA ENTERPRISES PROMOTION DEGREE

1.    The study will be of benefit to a whole lot of managers, policy formulators, policy makers and executors, all of those that run the affairs of government or public businesses and future researchers on the management of organizations, particularly government or state owned ones.

2.   The study would help to make public mangers or intending young public managers more knowledgeable and informed on how best to achieve high performance and sound management in public enterprises.

3.   The research work is important in that it would bring to lime light, the contributory factors to the problem of poor management in public enterprises and the general implications on the enterprises, the environment and the people that the enterprises are meant to serve.

4.   The work will also serve as a source of literature for students and researchers who may want to carry out further researches on similar or related issue or topic.

LIMITATIONS OF NIGERIA ENTERPRISES PROMOTION DEGREE

In the course of this study of public enterprises in Nigeria, the researcher encountered some unavoidable constraints. These constraints placed some limitations including time as the work should have taken at least one year to accomplish rather than few months within which the researcher worked.
Furthermore, the prevalent economic crunch and the attendant financial and mobility constraints played another devastating role in preventing the researcher to use certain approaches and methods in the course of this study.

The Effect of the Nigeria Enterprises Promotion Decree.

The effects of “Indigenization Policy” cannot be over-emphasized since measures were taken to address the flaws and shortcoming, these are:

§  Through the promulgation of the Indigenization decree: The lack of fund by local investors and the inability to raise loans from the foreign controlled financial institution were drastically alleviated by established of financial institutions specifically for this project.

§  The provision of the Decree: The essence of which is to give Nigerians increased involvement in the ownership control and management of the country’s productive enterprises, have brought a redistribution of income and increase in the employment of Nigerians in top and middle management positions.

§  The Nigerian enterprise Promotion Decrees promote indigenous participation in business undertakings and foster the growth of indigenous enterprises.

§  Through the capital issue commission sets up under the Decrees, prices of shares for companies were stabilized.

Reference

http://www.unesconigeriatve.org/teaching%20materials/bam/business%20administration%20&%20management/semester2/BAM%20121%20Intro%20to%20Business%202/week6.html