Obasanjo Critiques Tinubu’s Fuel Subsidy Removal

Former President Olusegun Obasanjo has raised concerns about how President Bola Tinubu has handled the removal of the fuel subsidy in Nigeria. Obasanjo criticized the decision as poorly implemented, arguing that it has contributed to rising inflation in the country.

In a recent interview with the Financial Times, Obasanjo suggested that the government should have put specific measures in place to cushion the economic impact before making such a significant move. He emphasized that there was a need for adequate preparation before removing the fuel subsidy.

Obasanjo pointed out that since the fuel subsidy was removed in June 2023 by Tinubu’s administration, its effects are still very much present due to inflation. He said, “There’s a lot of work that needed to be done, not just wake up one morning and say you removed the subsidy.”

Obasanjo believes that the fuel subsidy, which was supposed to be eliminated, has somehow returned because of the soaring costs in Nigeria. He stressed that transitioning the economy from a transactional to a transformational state could help build investor confidence and address the ongoing unrest among the youth, who face high unemployment rates.

He further criticized the management of state-owned refineries and mentioned how Shell had previously declined to invest in Nigerian refineries due to worries about corruption and inadequate maintenance practices.

“When I was president, I invited Shell and asked them to take equity participation and run our refineries. They refused, citing poor maintenance and corruption,” he explained, expressing frustration about the lack of improvements in government-controlled facilities.

Obasanjo also expressed doubts regarding promises made about rehabilitating these state-owned refineries. He questioned how many times the promise had been made and stressed the lack of significant progress over the years.

Mele Kyari, group CEO of the Nigerian National Petroleum Company (NNPC), previously promised that some refineries would resume production by the end of March, a deadline that was ultimately missed. Kyari has now updated the timeline for the Port Harcourt refinery to start production in early August.

Additionally, Obasanjo raised alarms about the possibility of sabotage concerning the Dangote Petroleum Refinery, suggesting that individuals benefiting from Nigeria’s fuel importation might attempt to undermine its success.