Austerity, border closures, and import restrictions bite

In 1984, Major General Muhammadu Buhari's military government implemented severe economic measures to address Nigeria's mounting financial crisis. The administration imposed strict import restrictions, temporarily closed Nigeria's borders to prevent smuggling, and launched an aggressive austerity program that cut government spending across ministries. These policies were part of Buhari's broader "War Against Indiscipline" campaign, which aimed to restore economic stability and combat corruption that had flourished during the Second Republic.

Nigeria faced its worst economic crisis since independence, triggered by the collapse of global oil prices in the early 1980s. The country's oil-dependent economy, which had enjoyed boom years in the 1970s, suddenly confronted massive budget deficits and foreign exchange shortages. The previous civilian government under Shehu Shagari had accumulated enormous debts through ambitious infrastructure projects and import-heavy policies, leaving the military government with limited options when it took power in December 1983.