Former President Olusegun Obasanjo has faulted President Bola Tinubu’s handling of the fuel subsidy removal, stating that it was poorly implemented and has led to biting inflation.
The former president suggested that the Nigerian government should have implemented specific measures to cushion the impact on the economy before removing the fuel subsidy.
In a recent interview with the Financial Times, Obasanjo said the government should have prepared adequately for the economic impact of the subsidy removal, asserting that it has effectively returned due to rising costs.
According to him, the fuel subsidy removed in June 2023 by Tinubu’s administration has come back due to inflation.
“There’s a lot of work that needed to be done, not just wake up one morning and say you removed the subsidy.
“Because of inflation, the subsidy that we removed is not gone. It has come back,” the former president stressed.
Obasanjo called for a shift from a transactional to a transformational economy to build investor confidence and address the ongoing unrest among Nigeria’s youth, exacerbated by unemployment and lack of skills.
Obasanjo highlighted the importance of building investor confidence and transitioning from a transactional to a transformational economy to effectively manage such significant policy changes.
The former president criticised the management of state-owned refineries and revealed that Shell declined to invest in Nigerian refineries due to concerns over corruption and inadequate maintenance.
“When I was president, I invited Shell and asked them to take equity participation and run our refineries. They refused, citing poor maintenance and corruption,” he said.
“They said there’s too much corruption with the way our refinery is run and maintained. They didn’t want to get 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 that? And at what price?” He criticised the lack of progress, stating, “Those problems, as far as the government refineries are concerned, have never gone. They have even increased.”
LEADERSHIP recalls that on March 15, Mele Kyari, group chief executive officer of 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 set a new timeline, stating, “Specific to NNPC refineries, it is impossible to have the Kaduna refinery come to operation before December. However, the Port Harcourt refinery is expected to commence production in early August this year.”
Obasanjo also raised the alarm about potential sabotage of the Dangote Petroleum Refinery, suggesting that those benefiting from Nigeria’s fuel importation industry might try to undermine its success.
“Aliko’s investment in a refinery, if it goes well, should encourage both Nigerians and non-Nigerians to invest in Nigeria. If those who are selling or supplying refined products for Nigeria feel that they will lose the lucrative opportunity, they will also make every effort to get him frustrated.”
He addressed concern that international oil companies (IOCs) could be deliberately obstructing the refinery’s efforts.
