Ibrahim Babangida

General Ibrahim Badamosi Babangida (born August 17 1941), popularly known as IBB, was the military ruler of Nigeria from August 1985 until his departure from office under heavy popular pressure in 1993, after his annulment of elections held that year which were widely held to have been the freest and fairest in Nigeria's post-independence history.

Babangida's economic policies

Babangida issued a referendum to garner support for austerity measures suggested by the IMF and the World Bank, and subsequently launched his "Structural Adjustment Program" (SAP) in 1986. The policies entailed under the SAP were the deregulation of the agricultural sector by abolishing marketing boards and the elimination of price controls, the privatisation of public enterprises, the devaluation of the Naira to aid the competitiveness of the export sector, and the relaxation of restraints on foreign investment put in place by the Gowon and Obasanjo governments during the 1970s. Between 1986 and 1988, when these policies were executed as intended by the IMF, the Nigerian economy actually did grow as had been hoped, with the export sector performing especially well, but the falling real wages in the public sector and amongst the urban classes, along with a drastic reduction in expenditure on public services, set off waves of rioting and other manifestations of discontent that made sustained commitment to the SAP difficult to maintain. Babangida subsequently returned to an inflationary economic policy and partially reversed the deregulatory initiatives he had set in motion during the heyday of the SAP, and economic growth slowed correspondingly, as capital flight resumed apace under the influence of negative real interest rates.

Related Topics:
IMF - World Bank - Structural Adjustment Program - 1986 - Naira - Gowon - Obasanjo - 1988

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