Act 1, Scene 1: SAP (Structural Adjustment Program Nigeria)
Main Actors: Nigeria and World Bank
The Structural Adjustment Program (SAP) was a set of economic reforms implemented in Nigeria in the late 1980s. The program was a response to an economic crisis caused by falling oil revenues and increasing foreign debt. The goals of the SAP were to:
#1- Diversify the economy away from oil ,
#2- Reduce dependence on imports,
#3- Improve the efficiency of the public sector,
#4- Increase the growth potential of the private sector.
Epilogue: The SAP was not able to achieve its goals; it scored 0.5%. The SAP destroyed Nigeria’s manufacturing, from Aba to Kano, from Maiduguri to Aba, and more. However, SAP achieved one thing: it financialized Nigeria, unleashing an era where banking and broad financial services (hello, finance houses) rule. More than 90% of Nigeria’s new generation banks were created within 1989 and 1992, as a result of the SAP playbook, even as companies faded.
You can argue that we got banks but lost factories (that was the 0.5% score). Unfortunately, because of that, item #2 was not realized as import dependence scaled. Of course, the public sector degraded in efficiency even as the private sector faded.
Commentary: Yes, the World Bank has endorsed Nigeria’s recent reforms. And so what? I call the national economic team to think for Nigeria and not be blindfolded to think the World Bank has the magic formula to fix Nigeria. Simply, the government should explore a government of national unity where it revamps the executive council with even some opposition team members. Nigeria needs indigenous ideas because this moment is unique.
https://lnkd.in/dyrQB-ZU
Having 4.3 years of experience as a SAP Functional Consultant Support project/S4 Hana implementation/ Data Migration project. Ex. infosysian
8moUse ful information