Former President Olusegun Obasanjo has expressed his views on the economic policies of President Bola Tinubu’s administration. He believes that while the decisions on fuel subsidy removal and exchange rate adjustments were necessary, they were not implemented correctly.
Obasanjo’s critique comes as Tinubu celebrates his first year in office.
In a statement released by his media aide, Kehinde Akinyemi, Obasanjo criticized the current administration for its handling of the economy, stating that it has failed to instill confidence and trust in investors.
He pointed out that the government has made three key decisions, two of which, although necessary, were poorly executed, leading to economic hardship for Nigerians. These decisions include the removal of the fuel subsidy, the adjustment of exchange rates, and the response to the military coup in Niger Republic.
Obasanjo stressed that the path to economic progress lies in production and productivity, which can only be achieved through hard work and sweat. He added that the economy does not respond to orders, even military ones, and that a change in leadership characteristics and attitudes at all levels is needed to gain the confidence and trust of investors.
He lamented the fact that Total Energy has chosen to invest 6 billion dollars in Angola instead of Nigeria, attributing this to the current administration’s failure to handle the economy in a way that inspires confidence and trust in investors.
Obasanjo emphasized the need for Nigeria to present itself in a way that is taken seriously by investors. He argued that if existing investors are leaving the country, it will be difficult to persuade new investors to come in. He called for a shift from transactional to transformational leadership in government.
Obasanjo concluded by saying that the solution to the economic challenges is not to tinker with the exchange rate, but to ensure consistency and continuity in policy for stability and predictability. This, he believes, will incentivize both domestic and foreign investment. He also stressed the need for honesty and transparency in government dealings and contracts. He believes that when the government is seen as pursuing the right policy, the private sector will focus on production and productivity.
