Former President Olusegun Obasanjo has criticised President Bola Tinubu’s handling of the abolition of fuel subsidies, saying the measure was poorly implemented and led to stinging inflation.

The former president said the Nigerian government should have taken concrete measures to cushion the impact on the economy before removing fuel subsidies.

In a recent interview with the Financial Times, Obasanjo said the government should have prepared adequately for the economic consequences of the subsidy cuts. He stressed that the cuts had practically been reversed due to rising costs.
According to him, the fuel subsidies that Tinubu’s government abolished in June 2023 were reinstated due to inflation.

“There is a lot to do, not just waking up one morning and saying that the subsidies have been cut.

“The subsidies we eliminated are not gone because of inflation. They are back,” the former president stressed.
Obasanjo called for a shift from a transactional to a transformative economy to boost investor confidence and address persistent unrest among Nigeria’s youth, exacerbated by unemployment and skills shortages.

Obasanjo stressed the importance of building investor confidence and managing the transition from a transactional to a transformative economy to effectively manage such significant policy changes.
The former president criticized the management of state-owned refineries and revealed that Shell had rejected investments in Nigerian refineries due to concerns about corruption and inadequate maintenance.

“When I was president, I invited Shell and asked them to take an equity stake and operate our refineries. They refused, citing poor maintenance and corruption,” he said.

“They said there was too much corruption in the management and maintenance of our refinery. They did not want to be involved in such a mess,” he added.
Obasanjo also expressed skepticism about repeated promises to rehabilitate state-owned refineries.
“How many times have they told us this? And at what cost?” He criticized the lack of progress, saying: “The problems of the state-owned refineries have never gone away. In fact, they have gotten bigger.”
LEADERSHIP recalls that on March 15, Mele Kyari, CEO of the Nigerian National Petroleum Company (NNPC), promised that some of the refineries would start production by the end of March.

However, this deadline was not met.

Kyari has now drawn up a new timetable, saying: “Particularly with the NNPC refineries, it is impossible to commission the Kaduna refinery before December. However, the Port Harcourt refinery is scheduled to start production in early August this year.”

Obasanjo also raised the alarm about possible acts of sabotage at the Dangote oil refinery, suggesting that those who benefit from Nigeria’s fuel import industry may seek to undermine its success.

“If Aliko’s investment in a refinery goes well, it should encourage both Nigerians and non-Nigerians to invest in Nigeria. If those who sell or supply refined products to Nigeria feel they are missing out on the lucrative opportunity, they will also do everything in their power to dissuade him.”

He addressed concerns that international oil companies might deliberately hinder the refinery’s efforts.