The Labour Party presidential candidate in the 2023 general election, Peter Obi, has clarified that while he supported the removal of fuel subsidy and the floating of the naira, the implementation by the Tinubu-led administration was rushed and uncoordinated.
Obi, who spoke during an interview on Arise Television on Monday, explained that if he had been elected president, he would have undertaken both policy decisions—but in a more structured and systematic manner.
“I have consistently maintained that I would have removed the fuel subsidy,” Obi said.
“If you go to my manifesto, it is there, along with the steps I would have taken in an organised manner. There is nothing wrong with the removal itself. What is wrong is the haphazard way in which it was announced and implemented.”
Describing the subsidy regime as a conduit for corruption and criminality, Obi reiterated his long-standing position that eliminating it was necessary for economic growth. However, he expressed concern over what he described as a lack of transparency in how the savings from the policy have been utilized.
“Since we were told that we removed it because we do not want to borrow, and that the funds would allow for investments in critical infrastructure, billions must have been saved. But where is the money? Where has it been invested in critical areas of development?” he queried.
He pointed out that key developmental sectors—education, health, and poverty alleviation—have seen no measurable improvement since the subsidy was removed.
“Everybody knows the critical areas of development. Have any of these three improved? No. Not education, not health, and certainly not poverty,” Obi lamented.
Turning to the issue of the naira, Obi said he supports the policy of floating the currency but cautioned that it should only be done when the domestic economy, particularly agriculture and manufacturing, is strong enough to absorb the shock.
“There is nothing wrong with floating and devaluing your currency. You do this when you have productivity,” he explained.
“My government would have focused on strengthening local production first before floating the naira. In all of this, I would have done the same thing, but in an organised manner.”
Obi’s comments come against the backdrop of growing economic hardship since President Bola Tinubu’s abrupt removal of the petrol subsidy during his inauguration on May 29, 2023. The move saw petrol prices jump from N190 to N500 per litre, with subsequent increases pushing the price beyond N850 per litre today.
Critics have accused the federal government of failing to cushion the effects of these economic reforms, with many Nigerians now grappling with soaring living costs and worsening inflation.
Peter Obi concluded by stressing the importance of policy planning and coordination, especially when dealing with matters that directly affect the livelihood of the masses. “Policies are not just about intention. It’s about timing, execution, and the people,” he said.
