Former President Olusegun Obasanjo has criticised President Bola Tinubu’s economic reforms, arguing that the sharp depreciation of the naira has worsened poverty and reduced Nigerians’ purchasing power.
Obasanjo made the remarks on Wednesday at the Financial Times Africa Summit 2026 in London, United Kingdom.
He argued that the rapid decline in the naira’s value had placed a heavy burden on households and contributed to Nigeria’s growing poverty challenge.
According to the former president, the currency’s fall from about ₦500 to the dollar to approximately ₦1,500 represented a significant loss in the purchasing power of Nigerians.
He said the consequences of the devaluation had made life more difficult for citizens.
“You cannot say to me that that is good for Nigeria. You cannot say to me that that is good for us in any sense,” Obasanjo said.
Obasanjo Questions Impact of Tinubu’s Economic Reforms
The former president’s criticism focused on the foreign exchange reforms introduced by Tinubu’s administration in June 2023.
The policy allowed the naira to trade more freely against foreign currencies and reduced the multiple exchange-rate system that had operated in the country.
The government introduced the reforms to improve efficiency in the foreign exchange market, attract foreign investment and address distortions in currency trading.
However, the changes coincided with a sharp decline in the naira’s value, rising inflation and increased prices for imported goods.
Obasanjo argued that the resulting economic pressure had made Nigerians poorer, questioning the benefits of the reforms to ordinary citizens.
Petrol Subsidy Removal Adds to Cost-of-Living Pressure
Tinubu announced the removal of the petrol subsidy in May 2023, shortly after assuming office.
The decision triggered a sharp increase in petrol prices, raising transportation costs and affecting the prices of goods and services across the country.
The currency reforms and subsidy removal have since formed part of wider efforts by the administration to restructure Nigeria’s economy.
However, households and businesses have faced higher expenses as food, transport and other essential commodities became more expensive.
The rising cost of living has reduced the amount many Nigerians can afford with their earnings, putting additional pressure on families struggling to meet basic needs.
Nigeria’s Poverty Challenge Remains a Major Concern
Obasanjo linked the naira’s depreciation to Nigeria’s position among countries with the largest populations living in poverty.
He maintained that economic policies should be assessed by their effects on citizens’ living standards, rather than by their stated objectives alone.
His remarks add to the ongoing debate over the impact of Tinubu’s reforms, including whether their longer-term economic benefits will outweigh the immediate hardships experienced by households.
While the government introduced the measures to improve market efficiency and attract investment, the impact on inflation, purchasing power and living costs remains central to public discussions about Nigeria’s economic direction.
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