Tinubu’s Reforms Made Nigerians Poorer — Obasanjo

Former President Olusegun Obasanjo has criticised President Bola Tinubu’s economic policies, arguing that the devaluation of the naira and other reforms have deepened poverty in Nigeria.

Obasanjo made the remarks on Wednesday at the Financial Times Africa Summit 2026 in London, United Kingdom, where he faulted the sharp depreciation of the naira and its impact on Nigerians’ living standards.

He argued that the currency’s loss of value had significantly reduced citizens’ purchasing power, contributing to Nigeria’s position as the country with the largest number of people living in extreme poverty.

“We do not live in isolation as a country. We interact with the rest of the world. And overnight, you devalue the currency by 300 per cent. The naira went from N500 to a dollar to N1,500 to a dollar,” he said.

According to the former president, the depreciation had substantially weakened Nigerians’ economic standing.

“What that meant was that every Nigerian is made poor by 300 per cent. That made Nigeria become the poverty capital of the world, which means Nigeria has the largest number of poor people in the world,” he added.

Obasanjo questioned the policy’s benefits, insisting that its consequences for Nigerians could not be considered favourable.

“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,” he said.

Tinubu introduced major economic reforms shortly after assuming office in May 2023, beginning with the removal of the petrol subsidy, which triggered increases in fuel prices and transportation costs.

The following month, his administration reformed the foreign exchange market to allow the naira to trade more freely, effectively ending the previous multiple exchange-rate regime.

The government introduced the measures to address distortions in the foreign exchange market, improve transparency, attract foreign investment and strengthen the economy.

However, the reforms were accompanied by a steep decline in the naira’s value and rising inflation, which increased the cost of imported goods and placed additional financial pressure on households and businesses.

The resulting increases in food prices, transportation fares and other essential expenses have continued to erode Nigerians’ purchasing power, leaving many struggling to meet their basic needs.