Former President Olusegun Obasanjo has criticised President Bola Tinubu’s economic reforms, linking the sharp depreciation of the naira to worsening poverty in Nigeria.
Obasanjo spoke on Wednesday at the Financial Times Africa Summit 2026 in London, United Kingdom, where he argued that the currency’s loss of value had significantly reduced Nigerians’ purchasing power.
He also linked the naira’s depreciation to Nigeria’s position as the country with the largest number of people living in 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 percent. The naira went from N500 to a dollar to N1,500 to a dollar,” Obasanjo said.
“What that meant was that every Nigerian is made poor by 300 percent. That made Nigeria become the poverty capital of the world, which means Nigeria has the largest number of poor people in the world.
“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.”
Background to Tinubu’s economic reforms
Tinubu announced the removal of the petrol subsidy in May 2023, a decision that contributed to higher petrol prices and increased transportation costs across the country.
In June 2023, his administration introduced foreign exchange reforms that allowed the naira to trade more freely, effectively dismantling the multiple exchange-rate system.
The government said the reforms were intended to improve market efficiency, attract foreign investment and address distortions in the foreign exchange market.
However, the measures coincided with a sharp depreciation of the naira, rising inflation and higher costs for imported goods, placing additional pressure on households and businesses.
Rising food prices, transportation costs and the prices of other essential commodities have further strained household budgets and eroded consumers’ purchasing power.
Chronicle NG reports that Obasanjo’s remarks add to the debate over the effects of Tinubu’s economic policies, particularly their impact on the cost of living and the financial wellbeing of Nigerians.
