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Why Nigeria’s Economy Fell Apart in 1986 — Falae
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HRM Oluyemi Falae (CFR), former Secretary to the Government of the Federation and ex-Minister of Finance, has defended his involvement in Nigeria’s Structural Adjustment Programme (SAP), describing it as the least damaging solution available to rescue the country from a crushing debt burden in the mid-1980s.
Speaking in an interview with ARISE News on Thursday, Falae pushed back against claims that he authored or introduced SAP, clarifying that the policy was already adopted before he assumed office under General Ibrahim Babangida’s regime.
“I was appointed Secretary to the Federal Government on January 29, 1986. Six weeks earlier, Babangida had already announced the adoption of a domestic structural adjustment program. It was a standing government policy before I came in. I neither initiated it nor recommended it,” he said.
Falae explained that SAP was a reaction to Nigeria’s rapidly deteriorating economy, which he attributed to excessive import licensing and poor foreign exchange management during President Shehu Shagari’s tenure. According to him, the administration left behind trade arrears estimated at $30 billion.
“We were heavily indebted and couldn’t dictate terms to the international creditors. They had us by the throat. If we didn’t reach a deal, Nigeria would have been cut off from global trade,” he added. “So yes, it wasn’t ideal — but it was the least harmful of all bad choices.”
Responding to criticisms that SAP ushered in long-term hardship, Falae maintained that during his time in government, the program produced initial economic stability and reforms.
“When I left government in 1990, the naira was at ₦5.50 to the dollar — a stable rate after three years of SAP. It was only after my exit that the naira began its freefall to ₦32, ₦48, ₦100 and beyond,” he said.
He highlighted some key benefits of the SAP era, including agricultural marketing reform and the creation of domiciliary accounts, which he claimed now hold an estimated $35 billion in Nigerian banks.
“The reforms helped farmers by liberalizing marketing boards, and the domiciliary account system allowed Nigerians to keep foreign exchange legally and securely.”
Asked about how SAP compares to the current economic reforms under President Bola Tinubu, such as forex liberalization and subsidy removal, Falae stressed the importance of balanced economic management.
“Our problem has always been abuse. You can’t let blind market forces run the economy, but you also can’t shut them out completely. The wise approach is a balance between market mechanisms and government regulation.”
He concluded by noting that the SAP during his tenure was cautiously implemented, avoiding the rampant inflation and devaluation that followed in later years.
“When I was in government, we tried to strike that balance. It worked, in my opinion. But I can’t speak for what happened after I left.”
Troops of Operation ENDURING PEACE, OPEP, in collaboration with the Civilian Joint Task Force, CJTF, have arrested a suspected kidnapper linked to the abduction of a resident in Kauru Local Government Area of Kaduna State.
This was contained in a statement posted on X by the Nigerian Army.
The post identified the suspect as Buba Ali, 30, adding that he was arrested at about 12:45 pm on Sunday, August 9, at Binawa village in Kauru Local Government Area.
According to post, the suspect was arrested during a joint operation conducted by troops of Sector 7 OPEP and members of the CJTF.
It said the suspect was reportedly linked to the kidnapping of Alhaji Tasi, who was abducted in the village.
“Following his arrest, Ali was taken into custody and is currently being interrogated by security personnel.
“The ongoing investigation is focused on obtaining information that could lead to the identification and arrest of other members of the suspected kidnapping gang,” the Army said.
Nigerian ambassador to South Africa, Femi Fani-Kayode, has rejected claims by an Islamic scholar, Sheikh Yahaya Jingir, that Nigeria is a Muslim country.
In a viral video, Sheikh Jingir, who was preaching to Muslims at an event, said “if you don’t want to accept a Muslim-Muslim ticket, you should leave Nigeria because it belongs to us”.
The comment has continued to generate backlash online as Christians rejected the claim.
Reacting, Fani-kayode in a statement posted on his official X handle on Sunday night, said the cleric’s remark is unhelpful and untrue.
“Worse of all is the fact that it is highly provocative,” the former aviation minister said.
“Kindly take note that it is a very slippery and dangerous slope to take and is best avoided. Nigeria is NOT a Muslim country and neither is she a Christian country.
“She is a SECULAR and MULTI-RELIGIOUS state comprising BOTH Christians and Muslims in equal numbers and that is our strength,” FFK added.
He further stated that President Bola Tinubu’s Muslim/Muslim ticket for 2027 is gaining acceptance “only because of the calibre, ability, sincerity of purpose, character, utility and electoral strength of our Presidential and Vice Presidential candidates and their ability to deliver and not because they are Muslims”.
“One day we may have a Christian/Christian ticket too because with God all things are possible,” he added.
The Osun State Police Command has confirmed the release of the state Commissioner for Environment and Sanitation, Moyowa Adejoorin, who was arrested in connection with a shooting incident at an All Progressives Congress, APC, rally in Ilesa.
The incident occurred on Saturday and reportedly left four people injured, including a teenager identified as Tobi Ilesanmi.
The command’s spokesperson, DSP Abiodun Ojelabi, said Adejoorin was taken into custody after police officers arrived at the scene, secured the area and began collecting evidence.
According to Ojelabi, the commissioner’s vehicle was stopped at the location, where an Amotekun operative allegedly linked to the shooting was also found.
“Immediately the incident was reported, our personnel moved to the scene and cordoned off the area before some exhibits were recovered, which included expended cartridges and Amotekun personnel caps.
“Also, Mr Adejoorin was arrested at the scene and taken to the command for questioning as part of the investigation process,” Ojelabi said.
The development came amid heightened attention to the incident after a video circulated on social media on Sunday showing Adejoorin leaving the police command.
Confirming the development, Ojelabi told Vanguard that the commissioner had been released on bail but said he was still awaiting clarification on the status of the Amotekun operative who was arrested alongside him.
“It is true that the commissioner has been released on bail today, but I am yet to clear the situation with the Amotekun personnel arrested with him,” he said.
Police investigations into the circumstances surrounding the shooting are ongoing.
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