INDIGENIZATION ERA Sample Clauses

INDIGENIZATION ERA. The solid minerals mining landscape remained largely unchanged even after independence in 1960 and for the next decade mining was still firmly in the hands of foreign companies and individuals. The major reasons for this continued dominance were the capital intensiveness of the sector and its long gestation period30. The heavy financial investments needed encouraged players in the sub sector to concentrate their energies on the mining of minerals that possessed export potentials and relegated those meant for local consumption and industries. Prior to 1971, British companies completely dominated the mining landscape with up to 120 of them operating at the height of tin mining.31However, this dominance was to be seriously jolted with the coming into force of the indigenization policies of the Government in 1972. The sum effect of these policies was that it became mandatory for Nigerians to part own shares in strategic areas of the economy including mining.32 The coming into effect of the indigenization policies served the purpose of ensuring the involvement of Nigerians in critical areas of the economy. For the solid minerals sub sector however, the policies ushered in an ironic situation whereby Government had to compulsorily become involved in it despite its prevailing policy of non – participation. It has been submitted33 that was largely due to two major reasons: - Firstly, the outbreak of the civil war came with it the vagaries and dislocations of warfare. The period of 1967 – 1970 saw an abrupt departure of foreign companies and individuals who were engaged in mining around the country especially in Eastern Nigeria. The conflict generated by the war did not endear a conducive mining atmosphere. Xxxxxxxxx troops took over mining camps arbitrarily and commandeered earth moving equipment at will. Secondly, the natural resistance to change in mankind also had its toll. The “nationalistic” implementation of the indigenization policies was not received kindly by most foreign corporations and individuals who perceived it as a form of “creeping nationalism”.34 These foreign companies and individuals saw in the indigenization efforts an attempt to allow the Nigerians reap where they did not sow. They argued that the new entrants, courtesy of the indigenization policies lacked both the financial wherewithal and the technical expertise to contribute anything of value to the hitherto existing mining activities, and should not be allowed to “own a piece of the pie”...