IBB

By Muhammad Usman

Markets do not exist in isolation; they rely on trust, fair competition, and robust institutions. When corruption remains unchecked, the market becomes skewed in favour of a select few, and ordinary individuals bear the consequences. 

Over the decades, Nigeria has experienced corruption at different levels, from the military era to democratic governments. This article examines corruption under different administrations and how it has affected various sectors of the economy, benefiting elites like MKO Abiola, Aliko Dangote, Mike Adenuga, and other politically connected businessmen.

Under General Ibrahim Badamasi Babangida (IBB), Nigeria’s oil and gas industry, which should have been a national blessing, became a tool for personal enrichment. Instead of promoting a competitive and transparent market, Babangida awarded oil licenses to individuals and companies with close government ties.

A clear example is Mike Adenuga’s rise, who received an oil block from Babangida’s government. This preferential treatment enabled him to build a substantial business empire, including Conoil, while smaller enterprises lacking political connections were excluded. Likewise, Aliko Dangote, who later became Africa’s richest man, gained immensely from government-backed monopolies and exclusive importation rights.

During the first Gulf War (1990–1991), Nigeria earned an estimated $12.4 billion in oil revenue, which was never accounted for. The Pius Okigbo Panel (1994) revealed that these funds were squandered on questionable projects and private accounts instead of being used for national development. Ordinary Nigerians saw no benefit from this windfall, facing rising inflation and economic hardship, while a few became extraordinarily wealthy.

One of Babangida’s most significant economic policies was the 1986 Structural Adjustment Program (SAP). While it was meant to liberalize the economy, it favored those with government connections. Under SAP, state-owned enterprises were privatized, but instead of an open and competitive process, these businesses were sold at giveaway prices to Babangida’s allies.

For example, MKO Abiola, a wealthy businessman and close associate of the regime, gained immensely from these privatisation deals. Meanwhile, ordinary Nigerians suffered as the naira was massively devalued (that’s the beginning of the naira devaluation) that continues to haunt us to this day.

Babangida’s government also enabled massive corruption in public contracts. One infamous case was the $150 million Ajaokuta Steel project, which was riddled with mismanagement and corruption. Similarly, when Babangida moved Nigeria’s capital from Lagos to Abuja in 1991, many development contracts were inflated or abandoned, yet payments were made to political allies.

Furthermore, consider the power sector scandal during Olusegun Obasanjo’s administration, in which over $16 billion was allocated to electricity projects with little to show for it. Examine the Halliburton bribery case from that period, where Nigerian officials allegedly received $180 million in bribes from foreign contractors in exchange for lucrative government contracts. Despite the overwhelming evidence, many individuals implicated were never prosecuted.

During this period (Obasanjo), Aliko Dangote’s business empire expanded rapidly, as he received exclusive waivers and importation rights. While many businesses struggled with high tariffs, Dangote was given government-backed monopolies in cement, sugar, and flour, ensuring that competitors could not challenge his dominance. 

Muhammad Sani Usman writes from Zaria and can be contacted at muhdusman1999@gmail.com.

By Abdullahi Mukhtar Algasgaini

In his newly launched book, A Journey in Service, former military president Ibrahim Babangida has revealed that his close ally and colleague, General Sani Abacha, plotted a violent coup to remove him from office.

Babangida, who oversaw the country’s military regime from 1985 to 1993, disclosed the shocking details of Abacha’s intentions during a book launch event at the Transcorp Hilton Hotel in Abuja on Thursday.

Abacha, who later led the military junta that ousted the transitional government of Ernest Shonekan, opposed the process of handing over power to a civilian administration.

Babangida reflected on his interactions with Abacha, admitting that at various points, he feared for his own safety and the well-being of those around him.

He also questioned why Abacha was not retired earlier to prevent the issues that would later lead to his own downfall.

“There was no pact between Abacha and me,” Babangida clarified in his book, addressing speculation about a secret agreement between the two.

Despite his growing concerns, Babangida chose not to take drastic action against Abacha or other opposition forces in the military, fearing it could lead to bloodshed due to the deep divisions within the armed forces.

Babangida expressed regret over his decision to not neutralize the opposition earlier, especially the Abacha-backed ABC News (ABN), which he accused of disrupting the transition process.

Reflecting on his time in power, Babangida admitted that his instincts told him to take a stronger stand against Abacha, but the unstable political environment made such a move dangerous.

This revelation offers new insight into the tense relationship between the two military leaders and the challenges Babangida faced as he navigated the difficult road to civilian rule.