2027: Tinubu deserves second term to consolidate reforms — APC chieftain

Former Nigerian President Olusegun Obasanjo has criticized President Bola Tinubu's economic reforms, stating they have worsened poverty in the country. Speaking at the Financial Times Africa summit 2026 in London, Obasanjo argued that the sharp decline in the naira's value, caused by the devaluation of the currency, had impoverished Nigerians.

He explained that the naira's value plummeted from N500 to a dollar to N1,500 to a dollar overnight, effectively making every Nigerian poorer by 300 percent. Obasanjo further claimed that this drastic devaluation contributed to Nigeria's position as the world's poverty capital, with the nation now hosting the largest number of poor people globally.

He emphasized that it was unjust and detrimental to Nigeria to implement such reforms. In May 2023, Tinubu removed the petrol subsidy, leading to higher petrol prices and transportation costs nationwide. In June 2023, his administration introduced foreign exchange reforms, allowing the naira to trade more freely and dismantling the multiple exchange-rate system.

These reforms aimed to enhance market efficiency, attract foreign investment, and rectify distortions in the currency market. However, they coincided with the naira's sharp depreciation, resulting in rising inflation and increased costs of imported goods, thereby exacerbating the pressure on households and businesses. This, in turn, further diminished citizens' purchasing power due to the escalating costs of essential commodities like food and transportation.