BACKGROUND TO THE INTRODUCTION OF S.A.P IN NIGERIA
There was a decline in revenue due to a fall in the demand for oil
between 1980 and 1982; this led to a fall in the country's GDP.
1.
The fall in the main export led to the fall of
acute shortage of industries.
2.
The contradiction caused by the incorporation of
Nigeria into the global economy.
3.
Where Nigeria began to produce raw materials they
don't require consumer goods they don't produce, depends on western technology
import western values etc. Through these problems experience in developed
(industrialized) countries were gradually transmitted into Nigeria.
4.
The Naira was overvalued than the dollar and
other currency.
5.
There was low saving propensity due to extravagant
expenditure, wasteful spending caused by high taste.
6.
Dominance of petroleum sectors while agriculture
and industrial sectors were neglected.
7.
In efficiency of state to function properly
despite subsidy.
8.
High level of corruption and management.
9.
High level of unemployment.
When Gen.
Babangida came into power in 1985, he collected the IMF loan as an attempt to
revive to vandalized economy of the country; Structural Adjustment Programme
was then introduced as one of the basic conditionality. In complain with
the conditionality of S.A.P government expenditure of social services to
citizens was reduced, the fuel sector was deregulated leading to reduction of
subsidy of petroleum products, the Naira was devalued, some government
institutions were privatized, trade barriers were removed etc.
EFFECTS OF STRUCTURAL ADJUSTMENT PROGRAMME
1.
Decline in living standard.
2.
Retrenchment of workers furthering further
compounding problems of unemployment.
3.
Removal of subsidies.
4.
High inflation of economy.
5.
Decline in industrial productivity.
6.
Increase in burden of debts that government has
to bear.
ACHIEVEMENTS OF STRUCTURAL ADJUSTMENT PROGRAMME
1.
Increase maintenance culture.
2.
Provision of infrastructures like roads and
health care services.
3.
Privatization of public enterprises.
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