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Periodical article Periodical article Leiden University catalogue Leiden University catalogue WorldCat catalogue WorldCat
Title:Ownership and control of British joint ventures in Nigeria
Author:Soetan, R.O.
Periodical:Quarterly Journal of Administration
Geographic term:Nigeria
Subjects:multinational enterprises
joint ventures
Abstract:This article examines the effects of the Nigerian National Enterprises Promotion Decree (commonly known as the Indigenization Decree) of 1977 in reducing foreign shareholding in Nigeria, on the basis of a sample of fifteen subsidiaries of British multinational companies in Nigeria. While a reduction of about 60 percent shareholding by the parent multinational was quite common, the pattern of shareholding in the joint venture companies revealed a high concentration of shareholding, with a large percentage of the divested shares held by a few wealthy nationals. Moreover, in spite of the reduction in its shareholding, the parent multinational retains control of the joint ventures through the incorporation into the joint venture contract of management contracts and technical assistance and licensing agreements which leave the day-to-day running of the enterprise in the hands of the foreign partners, and through careful selection of members of the board of directors. Abstr., app., bibliogr., notes, ref.