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Question

Difficulty: HardDevelopment Planning and Economic Reform Programs

Fill in the blanks to complete the statement regarding Nigeria's major macroeconomic reform policies.

Answer:Adopted in 1986 to mitigate severe fiscal deficits and economic distortion, Nigeria's 【Structural Adjustment Programme】 shifted policy emphasis from direct state control toward market-driven allocation, placing significant priority on trade liberalization and the privatization of 【public enterprises】.

Answer

The first blank requires 'Structural Adjustment Programme' (or 'SAP'), and the second blank requires 'public enterprises' (or 'state-owned enterprises').
The Structural Adjustment Programme (SAP), introduced in 1986, represented a structural shift in Nigeria's macroeconomic management away from state regulation toward market deregulation, trade liberalization, exchange rate floatation, and the privatization of inefficient public enterprises.

Step-by-Step Solution

1
Identify the core reform framework introduced in Nigeria in 1986.
The reform package introduced in July 1986 under the Babangida administration was the Structural Adjustment Programme (SAP).
SAP was enacted to reverse Nigeria's dependency on crude oil exports and address balance of payments crises caused by falling oil revenues.
2
Identify the specific institutional entities targeted for market transfer under SAP.
The policy targeted public enterprises (state-owned enterprises) for privatization and commercialization.
State-owned corporations were considered inefficient, fiscally unsustainable, and dependent on state subsidies, prompting state divestment to enhance productivity.

Key Concept

Structural Adjustment Programme (SAP) and Privatization in Nigeria
Estimated Time:1m 30s
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Topics

Development Planning and Economic Reform Programs