Where Did The Money Go?” – Babangida Justifies Spending Of $12.4bn Oil Windfall, Blames Reckless Governance For Nigeria’s Woes

Former military president Ibrahim Badamosi Babangida (IBB) has defended his administration’s handling of the $12.4 billion oil windfall, asserting that the funds were allocated to national development projects rather than being mismanaged, as widely claimed.....KINDLY READ THE FULL STORY HERE▶

Babangida made this assertion in his newly released autobiography, A Journey of Service, where he detailed how his government utilized the surge in crude oil revenue between 1988 and 1994.

He argued that Nigeria’s failure to capitalize on its oil wealth stemmed from excessive government spending, corruption, and a consumer-driven economy that neglected industrial growth.

Nigeria’s Oil Wealth and Economic Mismanagement

In Chapter 7 of the book, titled “Reforming the Economy: Privatisation, IMF, SAP, and Other Matters,” Babangida traced the misuse of oil revenues back to the early years of crude oil exploration.

He cited the 1972 Indigenisation Decree under General Yakubu Gowon’s administration, stating that it created economic distortions that benefited a select elite while weakening Nigeria’s non-oil sectors.

“The heady days of our nation’s oil boom were overshadowed by accusations of corruption,” Babangida wrote, noting that reckless spending continued into the Second Republic (1979–1983).

“The profligacy of the Second Republic is now common knowledge. Outside the oil sector, real production was falling, import dependency intensified, and domestic food security declined as the internal terms of trade turned against agriculture and rural activities.”

He further criticized past administrations for prioritizing short-term spending over long-term sustainability.

“Instead of using oil gains to diversify the economy, funds were borrowed heavily from abroad and spent not on profitable ventures but on luxury consumption, prestige projects, or were outrightly siphoned out of the country.”

Babangida Defends $12.4bn Oil Windfall Expenditure

Responding to criticisms over his administration’s handling of the 1991 oil windfall, Babangida maintained that the funds were wisely spent on critical infrastructure such as ports, bridges, and industrial projects.

“What I did was not unusual in this country. Others before me did the same, but I won’t mention names. We invested in ports and various infrastructure projects.”

He also dismissed claims that the funds were diverted, stating:

“That money could have gone into the Federation Account, yes, but whatever foreign exchange we earned, we monetized it, and state and local governments received their share accordingly.”