From reform to neo‐regulation: An assessment of recent political/economic developments in Nigeria

Abstract

AbstractThe Nigerian political economy was placed on the path of economic and political liberalization from the mid‐1980s. About a decade later, both processes had experienced great reversals. This article examines the social forces that are arrayed against the reform processes. It focuses on recent political and economic developments in Nigeria with a view to understanding the nature of the emerging business environment for the purpose of potential investors, international managers, aid agencies, and donor countries in Africa's most populous country. While noting the inevitability of a modicum of regulation in the nation's economic adjustment program, this study contends that the regulatory measures contained in the 1994 budget prepared by the new military junta in Nigeria is stifling investment, and can neither lay the basis for the recovery of, nor engender sustainable development in the nation's economy. A more appropriate management of the exchange and interest rate regimes, and the democratization of the political processes as the minimum prerequisite for stability, growth, and development in the Nigerian political economy is recommended. © 1995 John Wiley & Sons, Inc.