Question

Demerits of indeginization policy in Nigeria

Answer 1

Answer:

The advantage of the indigenization program in Nigeria is that oil is a very strong export good, leading to a stronger economy. The disadvantage is that the economy is only based upon one exporting product, and should that product not sell, the economy will get weaker.

Disadvantages of Indigenization

It can lead to capital flight; indigenization can lead to capital flight as foreign investors will be forced to relocate to other country. Indigenization policy can also lead to new breed of rich Nigerians who uses this means to exploit Nigerians.