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Question

Difficulty: EasyIndigenization, Privatization, and Commercialization Policies

Which Nigerian government economic policy was primarily designed to transfer ownership, control, and equity participation of foreign-dominated business enterprises to indigenous citizens?

  1. IndigenizationAnswer
  2. B
    Privatization
  3. C
    Commercialization
  4. D
    Export promotion

Answer

Indigenization is the economic policy aimed at transferring ownership, management, and control of foreign enterprises to indigenous citizens.
Indigenization policy (promulgated through the Nigerian Enterprises Promotion Decrees) aimed to foster indigenous participation and economic sovereignty by transferring equity interest and operational control of foreign-owned enterprises to Nigerian citizens.

Step-by-Step Solution

1
Identify the primary objective specified in the question stem
The policy targets transferring foreign equity ownership and business control to local citizens.
This policy was enacted in Nigeria during the 1970s to reduce foreign dominance in key commercial sectors.
2
Distinguish between Nigerian public enterprise and industrial reform policies
Indigenization regulates foreign enterprise ownership, whereas privatization transfers government assets to private hands, and commercialization forces government entities to operate for profit.
Matching the definition to the economic term confirms that Indigenization is the correct policy.

Key Concept

Indigenization Policy
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Topics

Indigenization, Privatization, and Commercialization Policies