Former President Olusegun Obasanjo has criticised President Bola Tinubu’s economic reforms, arguing that the sharp depreciation of the naira has weakened Nigerians’ purchasing power and worsened poverty across the country.
Obasanjo made the remarks on Wednesday at the Financial Times Africa Summit 2026 in London, United Kingdom, where he questioned the impact of the administration’s economic policies on citizens’ living standards.
The former president said the naira’s depreciation from about N500 to the dollar to approximately N1,500 had significantly reduced the economic strength of Nigerians.
“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.
Obasanjo added that the currency’s decline had left Nigerians poorer and contributed to the country’s position as one of the nations with the largest populations living in poverty.
“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 said.
He argued that the consequences of the devaluation could not be considered beneficial to the country, given the hardship experienced by households.
“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 added.
Background to the Economic Reforms
Tinubu announced the removal of the petrol subsidy in May 2023, a decision that triggered significant increases in petrol prices, transportation costs and the prices of goods and services.
The following month, his administration introduced foreign exchange reforms that allowed the naira to trade more freely and sought to address distortions created by the multiple exchange-rate system.
The government maintained that the measures were necessary to improve market efficiency, attract foreign investment and strengthen the economy.
However, the reforms coincided with a sharp decline in the naira’s value, rising inflation and higher import costs, placing additional pressure on households and businesses.
The depreciation of the currency also increased the cost of imported goods and raw materials, while rising food and transportation expenses further strained household budgets.
Obasanjo’s comments add to the debate over the effectiveness of the Tinubu administration’s economic policies and whether their long-term benefits will outweigh the immediate difficulties faced by Nigerians.
The former president’s criticism centres on the human cost of the reforms, particularly their effects on purchasing power, poverty and the ability of ordinary citizens to afford basic necessities.
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