The Nigerian Enterprises Promotion Decree or NEPD 1972 as amended in 1977 was meant to effect changes in the ownership structure of businesses in Nigeria and to provide opportunity for indigenous capital to have assertive control of the economy.
[3] Prior to the end of colonial rule in 1960, Nigerian businessmen had been agitating for protection of indigenous capital from foreign competition, while a clamour to reduce expatriate quota resulted in Nigerianisation in many institutions.
[7] The military administration was more amenable to make the changes than their previous democratic counterpart partly because of their increasing distrust of foreign capital, an aftermath of their experience in relying on foreign governments and multinational corporations during the Nigerian Civil War and the lack of prompt response of oil companies to make payments exclusively to the Federal Government.
Some affected enterprises were alleged to have conspired with some Nigerians who will come in as a silent partner or front as chairman of the board of directors but the firm will be managed by line personnel expatriates in the backroom.
[6] The new amendment of 1977 limited the number of companies an individual could gain majority control and empowered the enterprises promotion board with the ability to seal the offices of non compliant firms.