Former President Olusegun Obasanjo has criticized President Bola Tinubu’s policies on fuel subsidy removal and exchange rates, stating that they have negatively impacted the Nigerian economy. In a statement issued by his media aide, Kehinde Akinyemi, on Sunday, Obasanjo assessed the performance of the current government over the past year.
Obasanjo argued that these policies, which he claimed were “wrongly implemented,” are deterring foreign investors from Nigeria. He contended that the present administration has failed to handle the economy in a way that fosters confidence and trust among investors.
He elaborated, “Today, the government has taken three decisions, two of which are necessary but wrongly implemented and have led to the impoverishment of the economy and of Nigerians. These are the removal of the subsidy, closing the gap between the black market and official rates of exchange, and the third is dealing with a military coup in Niger Republic.”
Obasanjo emphasized that the path to economic progress lies in production and productivity, supported by trust in government leadership. He stated, “The economy does not obey orders, not even military orders. If we get it right, in two years, we will begin to see the light beyond the tunnel. It requires a change of characteristics, attributes, and attitude by the leadership at all levels to gain the confidence and trust of investors who have alternatives.”
He pointed out that Total Energy has chosen to invest $6 billion in Angola instead of Nigeria, highlighting a lack of confidence in the Nigerian economy. Obasanjo asserted that the current administration has not yet found the right approach to attract and retain investors, who are disinvesting and leaving the country.
Obasanjo called for a shift from transactional leadership to transformational and genuine servant leadership. He argued that with the right changes, investors would start to reconsider Nigeria. “With change by us, the investors will give us the benefit of the doubt, and security being taken care of on a sustainable long-term basis, they will start to test the water.”
He criticized the approach to exchange rate management, stating, “Tinkering with the exchange rate is not the answer” to the economic challenges. Instead, he advocated for consistent and continuous policies to ensure stability and predictability, which would incentivize both domestic and foreign investment.
Obasanjo concluded by emphasizing the need for honesty and transparency in government dealings. “When the government is seen as pursuing the right policy, the private sector will go for production and productivity. With the right economic policies, attributes of integrity, and honesty of purpose, all should be well with all hands on deck and the government becoming a catalyst for development, growth, and progress.”