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1986: President Ibrahim Babangida annuonced a plan to devalue the Naira
On this day 29th of June 1986, President Ibrahim Babangida annuonced a plan to devalue the Naira.
When General Ibrahim Badamosi Babangida (rtd) took over the reins of leadership of the country from General Buhari, some public analysts then initially believe better days were ahead for the economy of the country not until IBB took Nigeria to the wrong direction by introducing the Structural Adjustment Programme (SAP) which was the brain-child of the Paris club led by the International Monetary Fund (IMF) and the World Bank (WB).
The Minister of Finance then, Chief Olu Falae was the one that championed the SAP on behalf of Babangida’s government which Nigerians had to willingly and unwillingly accept. The idea behind SAP was to first weaken the Naira against the Dollar and thereafter introduce different austerity measures in which the citizens especially the suffering masses bore the brunt. After Babangida’s regime agreed to the terms of these capitalist institutions, they offered Nigeria loan. When some economic experts realised that the loan was more of an economic bondage, they dissuaded Babangida from collecting the loan. Babangida went ahead to collect the loan and since then Nigeria’s economic fortunes started plummeting. The rest they say is history. Babangida met the exchange rate at one Naira to a Dollar but left it as N22 to one Dollar after introducing the SAP and other unfavourable economic policies.