In a recent interview with the Financial Times, Nigeria’s former President, Chief Olusegun Obasanjo, stated that the fuel subsidy, which was removed in June 2023 by President Bola Tinubu’s administration, has made a comeback due to inflation.
Obasanjo criticized how the subsidy was removed, emphasizing that the government should have implemented proper measures beforehand.
Expressing his concerns, he highlighted the need for thorough planning rather than sudden decisions like subsidy removal.
Highlighting the impact of inflation, Obasanjo emphasized that the subsidy removal has not completely eradicated the issue, as it has resurfaced in a different form.
He emphasized the importance of building investor confidence in Nigeria and transitioning from a transactional economy to a transformational one.
Amidst the ongoing hunger protests in Nigeria, which began on Thursday and had entered its fifth day on Monday, the demand for the reinstatement of the fuel subsidy regime has been a major focus.
President Tinubu, in a Sunday broadcast urging protesters to halt demonstrations, defended the removal of the subsidy as a necessary but painful step to alleviate the economic burden on the nation and foster development and progress.
Recent data from the National Bureau of Statistics indicates a significant spike in core inflation rates to record highs of 34.19 percent and 40.87 percent in June 2024.