Poor implementation of fuel subsidy removal impoverishing Nigerians, Obasanjo berates Tinubu

Former President Olusegun Obasanjo has criticised President Bola Tinubu’s administration for its handling of the fuel subsidy removal and the unification of the exchange rate. Speaking at the Paul Aje Colloquium in Abuja on Saturday, Obasanjo asserted that although these measures are necessary, their flawed implementation has exacerbated economic hardship for Nigerians.

In a statement delivered through his spokesman Kehinde Akinyemi, Obasanjo expressed his concerns: “The government has made three key decisions—removal of the subsidy, closing the gap between black market and official exchange rates, and addressing the military coup in Niger Republic. Two of these are necessary but have been implemented poorly, resulting in economic impoverishment.”

Emphasising the need for productivity and public trust in government leadership to drive economic progress, Obasanjo stated, “There is no shortcut to economic development; it requires hard work and trust in leadership.”

The former president also criticised those opposing his stance on the refurbished Port Harcourt refinery, describing them as “sycophants and spin doctors.” He recalled the 2007 attempt to privatise the refineries, which he supported after thorough evaluation, only to see it reversed by his successor.

Reflecting on President Tinubu’s first year in office, Obasanjo proposed a 25-year development agenda to steer the country out of its current predicament. He argued that economic stability cannot be commanded and stressed the importance of investor confidence. “If we get it right, in two years, we will begin to see light beyond the tunnel,” he said, calling for a transformation in leadership to attract and retain investors.

Highlighting Total Energy’s decision to invest $6 billion in Angola rather than Nigeria, Obasanjo criticised the administration’s failure to inspire investor confidence. “We need to shift from transactional to transformational leadership,” he advised.

He also emphasised the importance of consistent policies to ensure economic stability and predictability. “Tinkering with the exchange rate is not the answer. Stability and transparency in government dealings are crucial for incentivising investment,” he stated.

Obasanjo concluded with a call for honest governance and sustainable security measures to foster economic growth. “With the right policies and leadership, change is possible. The government must act as a catalyst for development,” he said.

Addressing the nation’s path forward, he urged a reflection on past and present challenges to devise effective solutions. “To navigate out of these crises, we need a multifaceted approach addressing the root causes,” he said.

Obasanjo reiterated his stance on the refinery issue, recalling the backlash he faced for predicting the refinery’s operational challenges. He underscored the need for evidence-based decisions and lamented the reversal of his 2007 privatisation efforts, which had been made after careful consideration.

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