Peter Obi, Presidency Clash Over Fuel Subsidy, Forex Policies
Obi Blasts Tinubu’s ‘Chaotic’ Policy Execution
Labour Party’s 2023 presidential candidate, Peter Obi, and the Presidency clashed on Monday over the removal of fuel subsidy and the floating of the naira two major economic policies of President Bola Tinubu’s administration.
Speaking on Arise TV, Obi agreed that removing the fuel subsidy and floating the currency were necessary reforms but condemned the “haphazard and disorganized” way the Tinubu government executed them. He warned that these decisions have contributed to Nigeria’s current economic crisis, skyrocketing inflation, and currency devaluation.
“There is nothing wrong with the removal of the fuel subsidy. What is wrong is the haphazard way it was announced and implemented,” Obi said.
Obi questioned the government’s transparency, demanding a detailed account of the billions reportedly saved from the subsidy removal and where they have been invested, especially in education, health, and poverty reduction.
“Billions saved. Where is it? Where is it invested in critical areas of development?” he asked.
Obi Supports Reform But Criticises Execution
Obi reiterated that he would have implemented both the subsidy removal and forex unification, but in a “gradual, organised fashion” aligned with Nigeria’s economic productivity. He also argued for a fair pricing template negotiated with stakeholders to cushion the impact on everyday Nigerians.
“You float your currency when you have productivity. I would have done the same thing but in an organised manner,” he said.
Presidency Hits Back: Obi Is ‘Desperate and Shallow’
In a swift response, Daniel Bwala, Special Adviser to the President on Policy Communications, slammed Obi, describing him as “shallow” and “desperate for power.”
“Anybody with a rational mind knows these guys are just looking to grab power. He seems to have very shallow knowledge of economics and governance,” Bwala said via his official X account.
He ridiculed Obi for agreeing with Tinubu’s policies in principle but trying to spin the execution for political mileage.
“He agreed with our policy of removal of subsidy and unification of foreign exchange; he claimed he would have done it better than us in an ‘organised manner’,” Bwala wrote.
NOA: Subsidy Removal Saved $84 Billion, Funded Infrastructure
In a detailed policy explainer released over the weekend, the National Orientation Agency (NOA) stated that the removal of fuel subsidy has saved Nigeria $84 billion, enabling the government to fund 40 road projects nationwide.
According to the NOA, the subsidy regime between 2005 and 2022 cost the country over $84.39 billion and consumed more than 70% of federal revenue, pushing Nigeria toward bankruptcy.
Major Highlights from NOA Report
$84 billion saved from subsidy removal.
40 major road projects funded nationwide.
FAAC allocations rose from N4.79tn in 2022 to N15.26tn in 2024.
State debts reduced from N5.82tn in June 2023 to N3.97tn by Dec 2024.
Capital expenditure in 2025: N23.96tn — higher than recurrent expenditure for the first time.
The agency emphasized that subsidy removal allowed both federal and state governments to cut borrowing, pay salaries regularly, and invest more in infrastructure.
