GOVERNMENTAL REGULATION AND CONTROL OF BUSINESS IN A DEVELOPING ECONOMY
1.1 BACKGROUND OF THE STUDY
Before the independence of Nigeria, there was little or no manufacturing taking place. The role envisaged for the colonies by our colonial masters was that of producers of raw materials and consumers of finished products. Planned industrial development did not really commence until after Nigeria gained her sovereignty, there was change in economic activity due to the power shift from the colonial masters to the Nigerians (Indigenisation Policy of 1972). In order to consolidate her political positions, Nigeria government started to encourage individuals to establish industries mainly for import substitutions. Manufacturing firms were set –up by private individuals for production of goods and services such as food processing, agro-allied industry, chemical, pharmaceutical industry, based industry & petrochemical industry etc. Owing to the government encouragement on indigenization programmes in 1972 more business were established (as mentioned above). Also because of the vital roles business play in the economy, more manufacturing / multinational companies were established so as to stimulate economic activities and as a means to develop the economy as a whole. Although, ever before the independence, most manufacturing sector that were operating in Nigerian economy were largely owned by foreigners and due to the indigenization programme that encouraged private owned businesses, Nigeria took interest in the operation and establishment.Most of the business owners or manufacturers were profit conscious instead of the consumer protection. In fact, almost everybody wants to make it fast, and become a millionaire overnight. This ambition is what made most manufacturers to be producing low standard products which are detrimental to the health of the general public. Most products are below standard and do not at times achieving the objectives of their production. (Nnenna B. Ani, 1999: 9) Because of the values average Nigerians attached to money (wealth), no matter how the wealth is a acquired, they don’t care to know.This is why people go into swindling (419) where they dupe unsuspected business men or innocent members of the public.