Former President Olusegun Obasanjo has criticised President Bola Tinubu’s economic reforms, arguing that the sharp depreciation of the naira and the removal of the petrol subsidy have worsened the financial hardship facing Nigerians.
Obasanjo made the remarks on Thursday at the Financial Times Africa Summit 2026 in London, United Kingdom, where he questioned the impact of the economic policies introduced by the Tinubu administration in 2023.
The former president argued that the rapid fall in the value of the naira had weakened Nigerians’ purchasing power, increased the cost of living and made it more difficult for households and businesses to cope with rising prices.
He maintained that the government could not justify the economic hardship simply by arguing that the reforms were necessary, particularly when millions of Nigerians were struggling to afford basic necessities.
Obasanjo Faults Naira Devaluation Under Tinubu
Speaking at the summit, Obasanjo criticised the extent of the naira’s depreciation, arguing that the currency’s declining value had significantly reduced the wealth and purchasing power of Nigerians.
“We do not live in isolation as a country. We interact with the rest of the world. And overnight, you devalue the currency by 300 per cent. The naira went from N500 to a dollar to N1,500 to a dollar. What that meant was that every Nigerian is made poor by 300 per cent,” he said.
Obasanjo linked the depreciation of the naira to Nigeria’s worsening poverty situation, noting that the loss of purchasing power had made it increasingly difficult for citizens to meet their daily needs.
He described Nigeria as “the poverty capital of the world” while questioning whether the economic outcomes justified the sacrifices Nigerians had been asked to make.
“You cannot say to me that that is good for Nigeria. You cannot say to me that that is good for us in any sense,” the former president added.
His comments have brought renewed attention to the debate over the consequences of the Tinubu administration’s foreign exchange reforms and their effects on inflation, household income and business operations.
Former President Questions Results of Tinubu’s Policies
Tinubu, who assumed office in May 2023, introduced major economic reforms, including the removal of the petrol subsidy and changes to Nigeria’s foreign exchange system.
The administration has defended the measures as necessary to address longstanding economic distortions, reduce pressure on public finances, improve government revenue and attract investment.
However, the reforms have also been accompanied by higher fuel and transportation costs, as well as increased pressure on household budgets.
Obasanjo questioned whether the government had achieved sufficient progress to justify the hardship experienced by ordinary Nigerians.
“For the economy, I don’t see anything getting better. What policies are you seeing through? You impoverish your people, and you want to see impoverishment through?” he remarked.
He also challenged the argument that the administration’s programmes were necessarily serving the best interests of citizens, insisting that the consequences of the policies could not be separated from the economic difficulties facing the population.
The former president called for greater attention to citizens’ welfare, suggesting that the government should reconsider its approach to economic management.
Obasanjo Questions Petrol Subsidy Removal
Obasanjo also criticised aspects of the government’s handling of petrol subsidy removal, one of the most controversial components of Tinubu’s economic agenda.
He noted that fuel prices affect virtually every part of the economy because businesses depend on transportation and energy to move goods, manufacture products and provide services.
Higher petrol prices can therefore increase transportation expenses, raise food distribution costs and add to the operating expenses of manufacturers and other businesses.
According to Obasanjo, the government should have addressed corruption associated with the subsidy system before placing the full burden of the adjustment on Nigerians.
He argued that tackling corruption, reducing wasteful expenditure and improving domestic production should be central to efforts to stabilise the economy.
The former president said a country facing a severe economic crisis must “curb corruption, wastefulness and unnecessary luxury and produce.”
His position places emphasis on public accountability, responsible government spending and domestic production as important measures for improving economic conditions.
Tinubu Government Defends Subsidy Removal
The Tinubu administration has maintained that removing the petrol subsidy was necessary to reduce the financial burden on the government and free up resources for infrastructure and other public services.
Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele said on August 19 that subsidy removal saved the government N15.8 trillion between June 2023 and December 2025.
The reported savings have featured prominently in the government’s defence of the policy, as officials argue that the reform has reduced the financial pressure associated with subsidising petrol consumption.
However, the effect of subsidy removal on household purchasing power, transportation costs and the prices of essential goods remains a major concern for Nigerians.
The debate reflects a broader disagreement over how the benefits of economic reforms should be measured, particularly when improvements in government finances are accompanied by increased living costs for citizens.
Economic Hardship Remains a Major Concern
Obasanjo’s remarks highlight the continuing debate over whether Nigeria’s economic reforms are delivering sufficient benefits to justify their immediate social and financial costs.
While the government has pointed to subsidy savings and efforts to correct structural economic problems, many households and businesses remain concerned about the affordability of food, transportation, energy and other necessities.
The former president’s criticism underscores the need for policies that address inflationary pressures, strengthen domestic production, improve accountability and protect vulnerable citizens.
As the Tinubu administration continues to defend its economic direction, the central question remains whether the reforms can translate into improved living standards and greater economic security for ordinary Nigerians.