(a) Differentiate between Nationalization and Indigenization. (b) State six reasons why a country would indigenize some industries.

(a) Difference between nationalization and indigenization

Nationalization is the taking over of the ownership and control of privately owned businesses (often foreign or local) by the government, so that such enterprises become owned and run by the state. Indigenization, on the other hand, is the transfer of the ownership and control of businesses from foreigners to the citizens (indigenes) of a country, so that nationals own all or a substantial part of the shares and management of those businesses.

In short, nationalization moves ownership from private hands to the government, while indigenization moves ownership from foreigners to the citizens of the country.

(b) Reasons a country would indigenize some industries

• To place the ownership and control of key businesses in the hands of the citizens of the country.
• To reduce the excessive dominance and control of the economy by foreigners.
• To retain profits within the country and check the repatriation of earnings by foreigners.
• To create more opportunities for citizens to participate in business and gain managerial and technical experience.
• To ensure that the wealth and natural resources of the country benefit the indigenes.
• To promote rapid economic growth and self-reliance by developing indigenous entrepreneurs.