Former Labour Party presidential candidate, Peter Obi, has reiterated his position on the removal of Nigeria’s petrol subsidy and the floating of the naira currency, emphasizing that while these policies are necessary, their implementation must be gradual and well-organized.
In an interview with Arise Television aired on Monday, Obi stated, “I have consistently maintained that I would have removed the fuel subsidy. If you go to my manifesto, it is there and the steps I would have taken in an organised manner.” He criticized the current administration under President Bola Tinubu for the abrupt and poorly executed removal of the subsidy.
Obi acknowledged that the subsidy system was plagued by “criminality and corruption” and needed to end. However, he questioned the management of funds saved from subsidy removal, asking, “Since we were told that we removed it because we don’t want to borrow and that the funds will allow for investments in critical infrastructure. Billions saved. Where is it? Where is it invested in critical areas of development? Everybody knows critical areas of development — education, health, and pulling people out of poverty. Have any of these three improved? No.”
On the issue of the naira’s floatation, Obi remarked, “There is nothing wrong in floating and devaluing your currency. You do this when you have productivity. In all of this, I would have done the same thing in an organised manner.” He stressed the importance of economic productivity backing such monetary policies.
Since the subsidy removal announcement on May 29, 2023, petrol prices have surged from N190 to over N850 per litre, while the naira’s value has been allowed to fluctuate freely under market forces.
