Peter Obi, the Labour Party’s presidential candidate in the 2023 elections, has faulted President Bola Tinubu’s approach to two major economic reforms: the removal of fuel subsidies and the floating of the naira. In a recent interview with ARISE News, Obi emphasized that while he supports both policies in principle, he would have implemented them with greater planning, structure, and accountability.
“I’ve always maintained that fuel subsidy needed to go,” Obi said, referencing his campaign manifesto. “It’s there in black and white. The real issue isn’t the removal itself—it’s the chaotic and abrupt way it was done.”
Obi criticized the Tinubu administration for failing to prepare Nigerians and key sectors for the fallout, arguing that an organised withdrawal from the subsidy regime would have curbed the shock to the economy and poor households.
“Everyone knew the subsidy system was riddled with corruption. But when you claim you’re removing it to save funds, the next question should be: where are those savings? What critical development projects have they been invested in?” he asked.
On the Central Bank’s decision to float the naira, Obi again agreed with the intent but took issue with the timing and execution. “There’s nothing wrong with floating your currency or even devaluing it—if you are a productive economy. It should lead to increased investment and boost exports,” he said. “But when you float your currency in an unproductive economy, with nothing to sell, all you do is create more hardship.”
Obi insisted that both the subsidy removal and FX liberalisation must be accompanied by policies that stimulate local production and protect vulnerable citizens, noting that his administration would have taken a more comprehensive approach.
Context
President Tinubu announced the removal of fuel subsidies during his inauguration speech on May 29, 2023, declaring: “Fuel subsidy is gone.” The move marked a dramatic shift in economic policy and aimed to reduce the massive fiscal burden it imposed on the government.
Although the subsidy—introduced in the 1970s—helped keep pump prices low, it came at a steep cost. Nigeria, despite being Africa’s top oil producer, imports most of its refined fuel due to inadequate refining capacity. The subsidy bill reached ₦4.3 trillion in 2022 alone, with another ₦3.36 trillion budgeted for the first half of 2023.
While the policy has been hailed by economists as a necessary step toward fiscal sustainability, its implementation has sparked widespread criticism and economic anxiety, with inflation and living costs rising sharply.
Obi’s remarks highlight the growing debate over how major reforms are rolled out in Nigeria, and the importance of coupling bold economic decisions with strategic execution and transparency.
