IV Structural Reform and Macroeconomic Policy, 1986–90
Author:
International Monetary Fund
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Language:
English
Print Publication Date:
04 Apr 1997
Keywords:
OP; U.S. dollar; economy; savings-investment balance; reform effort; expansionary fiscal policy stance; demand equation; Agricultural commodities; Exports; Inflation; Exchange rates; Sub-Saharan Africa; West Africa; inflation objective; broad money; privatization program; State intervention; Tariffs

Abstract

It became clear to Nigeria’s economic policymakers that short-run stabilization measures and increased regulation were not appropriate responses to deep-seated impediments to growth. After considerable popular debate, the Babangida Government adopted in June 1996 a comprehensive structural adjustment program (SAP) that signaled a radical departure from previous adjustment efforts. It emphasized reliance on market forces and deregulation. The SAP was originally intended to last for two years, but was extended when it was realized that implementing many of the reforms required more time. However, toward the end of 1990, the Government began to retreat from the basic reforms of the initial program, and much of the momentum of the reform effort had been lost by then. Nigeria’s adjustment efforts were supported by three stand-by arrangements with the Fund, but the Government decided not to use the Fund’s resources (Box 3). The World Bank also supported the adjustment program through a US$450 million trade policy and export diversification loan.

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Cover Nigeria
Nigeria
Experience with Structural Adjustment
ISBN:
9781557756305
ISSN:
0251-6365
Publication Date:
04 Apr 1997
Publisher:
International Monetary Fund
DOI:
https://doi.org/10.5089/9781557756305.084
Pages:
114

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