Former military President, Gen. Ibrahim Babangida, has reflected on Nigeria’s past economic policies, admitting that the country failed to maximize its oil boom years due to widespread profligacy and conspicuous consumption.
Babangida, whose administration oversaw the controversial $12.4bn oil windfall, defended the spending, stating that it was channeled into infrastructure projects rather than being hoarded.
Key Highlights from Babangida’s Autobiography
In his newly launched 400-page autobiography, ‘A Journey of Service,’ Babangida examined Nigeria’s oil boom era, the economic policies of past governments, and the controversial Structural Adjustment Programme (SAP) his administration implemented in response to Nigeria’s declining economy.
- Failure to Diversify: He criticized past governments for failing to use oil revenue to develop the non-oil sector, allowing Nigeria to become heavily reliant on oil earnings.
- Corruption and Waste: He noted that instead of investing in sustainable ventures, oil wealth led to lavish government spending, deepening import dependency, and economic mismanagement.
- Structural Adjustment Programme (SAP): He defended his economic reforms, arguing that reducing subsidies, adjusting exchange rates, and privatizing inefficient government enterprises were necessary steps.
- The $12.4bn Windfall: Addressing the controversial oil windfall under his regime, Babangida maintained that funds were used for national projects such as ports, bridges, and Ajaokuta Steel Company.
While his book attempts to justify his administration’s policies, critics continue to question the true impact of his economic decisions, especially the lasting effects of SAP and the alleged misuse of the oil windfall.