CONCLUSION

As a result of the aforementioned reasons and objectives, the Nigerian Enterprises promotion Decree (now Act) was promulgated in 1972. In 1977, the 1972 Act (then a Decree) together with its amendments were repealed and replaced by the Nigerian Enterprises promotion Act, 1977. This followed the recommendation of the industrial enterprises panel headed by Chief A. Adeosun. The 1977 Act contained provisions for the implementation of the second phase of the scheme as well as the creation of three schedules of enterprises instead of two schedules as contained in the 1972 Act.

Schedule I of the 1977 Act contained 40 enterprises while schedule II contained 57 enterprises and schedule III contained 39 enterprises. However, the enterprises contained in the three schedule were revised in 1981 (June 15) such that schedule I had 36 enterprises schedule II-576 enterprises, and schedule III-456 enterprises.

SCHEDULE I:

Schedule I of the 1981 revision contain 36 enterprises exclusively reserved (100%) for Nigerian citizens and associations. The 1977 defined a Nigerian citizen or association as:

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(i) A person who is citizen of Nigeria by virtue of the constitution of the federation;

(ii) Any person of African descent, not being a citizen of Nigeria, who is a national of any country in African unity, and who continues to reside and carry on business in Nigeria, if the country of which he is a national also permit citizens of Nigeria and operate businesses or enterprises in the country on the basis of reciprocity; and

(iii) Any company registered under the companies Act 1968, partnership, association or body (whether corporate), and except as otherwise prescribed under the Act. The entire capital or other financial interest of which is owned wholly and exclusively by citizens of Nigeria.

Thus, no foreigner was allowed to establish or continue to operate such enterprises in this schedule in the country after December, 1978. Enterprises included are ; advertising and public relations business; all aspect of pool betting business and lotteries: assembly of radios, radiograms, record changers, television sets, tape recorders and other electrical domestic appliances not combined with manufacture of components; blending and bottling of alcoholic drinks; blocks and ordinary tile manufacture for building and construction works; bread and cake making; candle manufacture; casinos and gaming centres; cinemas and other places of entertainment;

commercial transportation (wet and dry cargo and fuel); commission agents;

departmental stores and supermarkets having an annual turnover of less than N2 million; distribution agencies excluding motor vehicles, machinery and equipment and spare parts; electrical repair shops other than repair shop associated with distribution of electrical goods; estate agency; film distribution (including cinema films); hairdressing; ice-cream making when not associated with the manufacture of other dairy products; indenting and confirming; laundry and dry-cleaning, manufacturer’s representative; manufacture of suitcases, brief cases, hand bags, purses, wallets, portfolios and shopping bags; municipal bus services and taxis;

newspaper publishing and printing ; office cleaning; passenger bus services of any kind; poultry farming; printing of stationery (when not associated with printing of books) protective agencies; radio and television broadcasting; retail trade (except by or within departmental stores or supermarkets); singlet manufacture; stevedoring and shorehandling; tyre retreading; travel agencies; and wholesale distribution of local manufactured and other locally produced goods. Any foreigner who engages in any of the above enterprises and any person who acts as a front for the purpose of assisting a foreigner to operate the business whether as an owner or part-owner is guilt of an offence under sections 17 and 18 of the Act. Penalties, sealing up of business premises, disposal of enterprises, and N15, 000 fine or five year’s jail term for people acting as fronts.

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SCHEDULE II:

Schedule II involves 57 enterprises which must have a minimum Nigerian equity participation of 60% subject to approval by the Nigerian Enterprises promotion Board (NEPB) and the former Capital Issues Commission (now the Nigerian Securities and Exchange Commission, NSEC). Some of the enterprises under this schedule are:

Banking (commercial, merchant and development banking); basic iron and steel manufacture; beer brewing; boat building; bottling of soft drinks; business services (other than machinery and equipment rental and leasing) such as business management and consulting services; fashion designing; clearing and forwarding agencies; coastal and inland waterways shipping; departmental stores and supermarkets having annual turnover of not less than N2m; distribution and servicing of motor vehicles tractors and spare parts thereof or similar objects; establishments specializing in the repair of watches, clocks and independence thus complementing political independence.

SCHEDULE III:

Schedule III covers 45 enterprises under the 1981 revision in which at least 40%

equity participation of Nigerians is required. Some of the enterprises hereby include:

distilling, rectifying and blending of spirits such as ethyl alcohol, whisky, brandy, gin and the likes; fertilizer production; manufacture of drugs and medicines; manufacture of poultry, China clay products and earthenwares, manufacture of glass products;

manufacture of structural metal products components of bridges, tanks, metal doors and screen and windows frames manufacture of radios, television and communication equipment and apparatus; manufacture of aircrafts; manufacture of motor vehicles and motorcycles; shipbuilding and repairing (excluding boat building); agricultural plantation for tree crops, grains and other cash corps; ocean transport/shipping; oil servicing companies, data processing and tabulating services (on a fee or contract basis): sugar plantation and processing; etc.

To implement the provisions of the Act, the Nigeria Enterprises Promotion board (NEPB) was established by Decree no. 4 of 23 February 1972. It was to be assisted by Nigeria enterprises promotion Committees in the states.

SELF ASSESMENT EXERCISE 1

How reasonable is the provision of Indigenisation Policy in Nigeria?

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