Former Labour Party presidential candidate, Peter Obi, has explained how he would have approached the removal of petrol subsidy and the floating of the naira if he had been elected president — asserting that while both policies were necessary, they should have been carried out with strategic planning and clarity.
In an interview aired Monday on Arise Television, the former Anambra State governor made it clear that he was never opposed to the removal of fuel subsidy. However, he faulted the Bola Tinubu-led administration for implementing the policy in a “haphazard” and poorly thought-out manner.
“I have consistently maintained that I would have removed the fuel subsidy,” Obi stated. “If you go to my manifesto, it is there and the steps I would have taken in an organised manner.”
Obi argued that subsidy removal was inevitable due to the “criminality and corruption” that plagued the system. But he emphasized that the manner of execution is critical to minimizing hardship and ensuring positive outcomes for the economy and the people.
“There is nothing wrong with the removal of fuel subsidy. What is wrong is the haphazard way in which it was announced and implemented,” he said.
He expressed strong concerns about the lack of transparency and tangible impact in the aftermath of the policy. According to Obi, the government claimed that subsidy removal would save billions and reduce borrowing, allowing the funds to be redirected into key development sectors. But over a year later, the evidence of that investment is lacking.
“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?” Obi asked.
“Everybody knows critical areas of development — education, health, and pulling people out of poverty. Have any of these three improved? No.”
He further argued that a “fair pricing template” should have been worked out with relevant stakeholders to cushion the impact of the subsidy removal on ordinary Nigerians.
Turning to the floating of the naira, Obi said he was not opposed to the idea but insisted that such a policy must be backed by robust economic productivity. He believes that simply letting the market determine the value of the currency without building productive capacity only exacerbates economic hardship.
“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.”
Since President Tinubu announced the removal of fuel subsidy on May 29, 2023, petrol prices have soared from N190 to over N850 per litre, intensifying the cost of living crisis. The administration also floated the naira, causing steep currency devaluation as market forces took over exchange rate determination — a move that has drawn criticism from economists and citizens alike.
Peter Obi’s remarks underscore his belief that while tough economic decisions are necessary, execution and planning are what make the difference between reform and regression.
