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THE GROWTH OF INDIGENOUS FIRMS IN NIGERIA PROBLEMS AND PROSPECTS: (A CASE STUDY OF AJAOKUTA STEEL COMPANY LIMITED IN KOGI STATE)
1.1 GENERAL BACKGROUND TO THE SUBJECT MATTER
One of the major economic backwardness of the most third world countries like Nigeria is the over prolonged sojourn of private foreign divestment in them. The predatory exploitative orientation and activities of foreign monopoly capital, it inherent tendency to resist and hamper local industrialization and to perpetuate merchanitte capitalism and its determination and deliberate efforts to retard the growth of endogamous entrepreneurship all this have heavily influenced Nigeria economic history for well over a century.
This foreign dominance of commercial activities in Nigeria was made possible by restrictive practices employed by the established merchant firms. It is important to note that commercial banking is a major source of credit (capital) was solely owned and controlled by foreign elements. Their policies were made towards satisfying the needs of foreign enterprise, indigenous entrepreneurs merely subjected on the crumbs that fell on the gable.
(Ezeigwe .J. O) Nigerian government in the 1950s operated mainly an open door policy which attempted to live foreign investors into the country.
After the civil war, experiences showed that the issue of indigenous participation in the Nigerian economy once can be re-opened. The dubious role played by foreign investors at various stages of the civil war and the acute shortage of essential commodities at the same period and the spirally inflationary trend that followed post war reconstruction and rehabilitation programmes had contributed to inform the government that there was the necessity to allow the indigenes of Nigeria and government a hand in deciding their economic fortune. The government was further persuaded by radical agitation of the politician s and the masses to do something about their economic difficulties.
With these pressures and economic difficulties mounting higher and higher, the government decided to whittle down foreign dominance of the economy on 23rd February 1972, the military government promulgated the Nigeria enterprise promotion Decree No. 4 of 1977 popularly known as the indigenization decree the following were the objectives.
a) To create opportunity for our people
b) To raise the proportion of indigenous firms and ownership of the productive sectors of the economy.
c) To maximize local retention of profit
d) To involve more Nigerians in the management and decision making process of business enterprises. All in an effort to enhance indigenous growth of Nigeria firms.
1.2 PROBLEMS ASSOCIATED WITH THE SUBJECT MATTER
A number of problems have been identified as being responsible for the backwardness and retardation in the general growth of Nigeria indigenous firms the persistent set back in the growth of the indigenous firms have been assumed to center on the followings: Inadequacy of capital, poor technological manpower deficiency, mass illiteracy, management incapability and marketing in competency (National and internationally) etc there are many more that form the cove problems of the growth of our indigenous firms.
It is the intention of the researcher therefore to take a critical examination of the internal and external factors affecting the growth of our indigenous firms.
There is a general contention that the rate of growth of our indigenous firms, especially since the pushing aside of the aliens, has been sow. This statement in the growth of indigenous firms in Nigeria, problems and prospects will be investigated and possible recommendation given as to the solutions.
1.3 PROBLEMS THAT THE STUDY WILL BE CONCERNED WITH
A lot of obstacles and limitation were encountered by the researcher during the course of this work. Some of these problems are personal handicaps of the research such as time constraints and money, others are general or societal belief that the activities of their firms remain secret this is why respondents refused to give the researcher maximum co-operation on the question given and interview conducted.
On personal handicap, the problem of transport fore drastically reduced the sample size of the number of firms covered. However, some efforts were made to cover some reasonable number of firms. Time constraint did not allow me to cover all the places mapped out for study.
Lack of co-operation from respondents was a very serious problem and disturbing case in the study, the bureaucracy involved before an information could be supplied in some organization is cumbersome and costly that not every researcher can hold to the patience. Some of these respondents misplaced questionnaire given to them while others returned theirs unfilled.
Many of the literature fill short of the vital information as required especially as its currently the activities and growth of the Nigeria firms. These and many more others were the factors militated against this study.
1.4 THE IMPORTANCE OF STUDY THE AREA
The researcher will pinpoint the capital requirement of the growth vitiating factor which at times have been typically believe to be very small. Therefore the significance of this study is as follows:
1) To identify the problems that are being faced by indigenous firms in Nigeria.
2) To render possible solutions to the problems for use by the indigenous firms managers in Nigeria.
3) To examine the attains of some public establishments and the activities of their officers in terms of investment, capital formation and cost control.
4) To letter the future of Nigeria viesli export or self-reliance.
5) To existing firms were viable.
6) To economy of Nigeria was bitter managed in the hands of the foreigners than now that it is managed by Nigerian.
1.5 DEFINITIONS OF IMPORTANT TERMS
MONOPOLY: Means the sole right to trade on a particular goods or services.
CAPITAL: This means wealth or property that can be placed to produce more wealth.
INVESTORS: it means group of persons or organizations that invest a business venture.
ECONOMICS: The production principles and distribution of goods and services and the development of wealth.
INFLATIONARY: This means the persistent and continuous rise in prices and wages caused by increase in money supply and demand for goods and resulting in a fall in the value of money.
FIRMS: Means business company or an organization.
MERCHANT: Person involve in trade or commerce.
SECTORS: that parts or branch of a particular area of activity especially of a country’s economy.
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