Former President Olusegun Obasanjo has criticised the administration of President Bola Tinubu for its handling of the removal of petroleum subsidies and the floating of the naira, describing the implementations as poorly executed.
In a statement released on Sunday by his Special Assistant on Media, Kehinde Akinyemi, Obasanjo also took issue with Nigeria’s response to the coup in the Republic of Niger. He expressed his concerns at a colloquium in Abuja titled “Nigeria’s Development: Navigating the Way Out of the Current Economic Crisis and Insecurity.”
“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,” Obasanjo remarked. “These are the removal of subsidy, closing the gap between the black market and official rates of exchange, and dealing with a military coup in Niger Republic.”
Obasanjo emphasised that economic progress requires “production and productivity, which belief and trust in government leadership will engender.” He noted that economic improvements could be seen within two years if proper changes were made to leadership characteristics, attributes, and attitudes to gain the confidence of investors.
Reflecting on the nation’s need to attract foreign investment, Obasanjo pointed to Total Energy’s decision to invest $6 billion in Angola instead of Nigeria as indicative of the current administration’s failure to inspire confidence among investors. “The present administration has not found the right way to handle the economy to engender confidence and trust for investors to start trooping in,” he said.
Obasanjo criticised the government’s financial policies and high taxation at Nigerian airports, calling for a reduction in the financial burden on airlines and passengers. “Nigerian airports charge foreign airlines about 27 levies, making them the most expensive in the world,” he stated. “This discourages airlines from flying into the country and is a disincentive to investment.”
Obasanjo also addressed the year 2023’s cost-related challenges, pointing out that increased handling costs for aircraft cannot easily be passed on to airlines due to regulatory constraints. He called for consistency and continuity in economic policy to ensure stability and predictability, which he argued would incentivize both domestic and foreign investment.
“Change is possible but it must begin with the leadership,” Obasanjo insisted. He proposed a 25-year socio-economic development agenda, agreed upon by all political parties and enacted into law, to address the root causes of Nigeria’s economic and security challenges.
On security, Obasanjo advocated for a “stick-and-carrot approach” to deal with criminality, emphasizing the need for compulsory education up to the secondary level and employment rights for all Nigerians aged 18 to 65. “With such a carrot in position, the stick must then be made more severe for criminals,” he concluded.
Obasanjo’s comments come six months after claims that Nigeria’s refineries would begin operation in January. He criticized the current administration’s approach to the refinery issue and recalled the failed attempt to privatize the refineries in 2007, a decision he made after thorough study but which was reversed by his successor.
