Post by rufai oluwaseun oseni (@ruffydfire)

During the 1970s, Nigeria collected very minimal to zero net foreign aid, because the country’s massive oil boom transformed it from an aid recipient into an international lender. Total Net Official Development Assistance (ODA) dropped to its lowest historical level by 1979, with Nigeria collecting just $70.9 million that year.Rather than relying on external assistance, Nigeria’s financial reality during this decade was defined by several notable shifts:1. The "Oil Boom" WealthFollowing the 1973 global oil crisis, crude oil prices skyrocketed. Petroleum rapidly grew to account for over 95% of Nigeria’s export earnings and 80% of federal revenue. Flush with petrodollars, the military government led by General Yakubu Gowon famously declared that Nigeria’s problem was "not money, but how to spend it." As a result, the state actively rejected external development aid for post-civil war reconstruction.2. Nigeria Becomes a Global LenderBecause the country was exceptionally wealthy in the early-to-mid 1970s, the roles reversed: the international community borrowed from Nigeria.Loans to the World Bank: In 1971, Nigeria loaned the World Bank $324 million. By 1974, it extended an additional $240 million loan to the institution.Loans to the IMF: Nigeria provided over $120 million to the International Monetary Fund (IMF) to help fund its global oil credit facilities.Geopolitical Aid Distribution: Nigeria established the Nigeria Trust Fund (NTF) via the African Development Bank and granted millions of dollars in direct aid and low-interest loans to the Caribbean Development Bank and struggling newly-independent African nations.

During the 1970s, Nigeria collected very minimal to zero net foreign aid, because the country’s mass...

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Comments

Solomon: How can we get back to the right track now as a nation?
Mobisson Chukwudi Joseph: This is an eye-opener.How did we find ourselves where we currently are?What went wrong?Is it that we had offended some gods or could it be that the gods have simply refused to remove their hands from our affairs?
Danny Angbashim: With the possible exception of few leaders like Pa Awo, whose developmental footprints are still visible long after his exit Nigeria never really had leaders with vision. What did we do with the oil windfall of the 70s and the Gulf war? Either stolen or we paid salaries of workers in other countries...
King George: So where did we get it wrong??? How do we reverse back to the 1970s?

How can we go back to being the Giant of Africa again? 😭😭😭😭
Matthew Olajide: In 1970, four Lagos officials travelled to Sweden and paid £68,000 for 98 used buses to serve as city buses in central Lagos.

Four months later, the deal became a media scandal in Sweden after reports revealed that the buses were already 17 years old and had been marked for demolition because they...
Matthew Olajide: Corruption has been there since the 70s you are talking about
Zinabari Neetam: Yes that is true