Obasanjo faults Tinubu’s economic reforms, calls them necessary but poorly designed

Former President Olusegun Obasanjo has weighed in on Nigeria’s ongoing economic reforms, describing key policies introduced by President Bola Ahmed Tinubu as necessary but insufficiently planned, warning that weak preparation has intensified their impact on citizens.

Speaking in an interview aired on NoireTV on Wednesday, May 13, 2026, Obasanjo focused on the removal of fuel subsidy and the unification of the foreign exchange system, two major reforms that have reshaped Nigeria’s economy since 2023.

He acknowledged that the subsidy regime was no longer sustainable, but questioned the approach taken to dismantle it. According to him, the policy direction may have been right, but the execution lacked the depth of study and preparation required for such a sensitive economic shift.

“Subsidy has to go, but what study have you done before you wake up and just say, ‘no more subsidy’?” he asked. He argued that a structured process involving proper assessment of costs, benefits, and mitigation measures should have preceded the announcement, stressing that reforms of that scale require careful planning and clear communication to prevent avoidable hardship.

Obasanjo’s remarks come at a time when Nigeria’s economic indicators present a mixed picture. Inflation stood at 15.38% in May 2026, slightly higher than earlier in the year after months of gradual decline. Foreign reserves have strengthened to about $49.4 billion, the highest in nearly a decade, while the gap between the official and parallel foreign exchange markets has narrowed significantly, suggesting improved currency convergence.

Despite these gains, many households continue to face rising living costs, particularly in transportation and essential goods, as fuel prices remain high following subsidy removal and broader global market pressures.

The former president maintained that while reforms such as subsidy removal and exchange rate unification were “desirable in principle,” they required more rigorous groundwork before implementation. He also drew attention to Nigeria’s projected $11.6 billion debt servicing obligation for 2026, arguing that the country needs structured relief and clearly defined spending priorities to ensure that economic gains translate into public benefit.

Recalling Nigeria’s 2005 debt relief agreement, Obasanjo noted that savings from that period were directed into specific development programmes rather than left to general expenditure. He urged a similar approach today, insisting that any fiscal gains from current reforms should be carefully managed and tied to measurable development outcomes.

He also warned that unpredictable or improvised policymaking discourages investment and long-term planning, adding that investors require stable, long-range economic direction rather than short-term adjustments. According to him, Nigeria’s current transition demands consistency and a clearer development roadmap to build confidence both domestically and internationally.

Obasanjo’s comments add to ongoing national debate about the balance between economic stabilisation and social welfare. While the administration maintains that its reforms are necessary for long-term recovery, critics continue to highlight the immediate strain on households.

As the Tinubu administration approaches its third year in office, the former president’s intervention underscores the continuing tension between economic restructuring and the human cost of transition in Africa’s largest economy.