In a recent address, former President Olusegun Obasanjo criticized the administration of President Bola Tinubu for its handling of key economic policies. Obasanjo acknowledged the necessity of Tinubu’s measures, particularly the removal of fuel subsidies and adjustments to exchange rates, but condemned their execution as flawed.
Obasanjo’s remarks coincided with Tinubu’s one-year anniversary in office. Speaking at the Paul Aje Colloquium in Abuja, he emphasized the mismanagement of three major decisions: fuel subsidy removal, exchange rate adjustments, and the response to the military coup in Niger Republic.
“The present Administration has not found the right way to handle the economy to engender confidence and trust for investors to start trooping in,” Obasanjo stated, as quoted by his media aide, Kehinde Akinyemi.
Highlighting the consequences of these policies, Obasanjo noted, “The removal of subsidy and closing the gap between black market and official exchange rates, though necessary, have led to the impoverishment of the economy and Nigerians.”
He stressed the importance of production and productivity, linked to trust and confidence in government leadership, as the pathway to economic progress. “No shortcut to economic progress but hard work and sweat,” Obasanjo asserted.
Citing an example, Obasanjo pointed out Total Energy’s $6 billion investment in Angola over Nigeria, attributing this to a lack of investor confidence in Tinubu’s economic policies. He called for a shift from transactional to transformational leadership to attract and retain investors.
“With change by us, the investors will give us the benefit of doubt, and security being taken care of on a sustainable long-term basis, they will start to test the water,” he said. He advocated for consistency, continuity, and transparency in economic policies to ensure stability and predictability, crucial for incentivizing domestic and foreign investment.
Obasanjo concluded by stressing that effective economic management requires honesty and transparency, warning against deceptive practices. “When the government is seen as pursuing the right policy, the private sector will go for production and productivity,” he concluded.
