Former President Olusegun Obasanjo has issued a scathing critique of President Bola Tinubu’s economic policies, particularly targeting the removal of fuel subsidies and the unification of exchange rates.
In a statement issued by his media aide, Kehinde Akinyemi, on Sunday, Obasanjo evaluated the current administration’s performance over the past year, arguing that these policies have significantly harmed the Nigerian economy and driven away foreign investors.
He pointed out that the implementation of these policies was flawed, leading to economic impoverishment.
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“Today, the government has taken three decisions, two of which are necessary but wrongly implemented and have led to the impoverization of the economy and of Nigerians. These are removal of subsidy, closing the gap between the black market and official rates of exchange, and the third is dealing with a military coup in Niger Republic,” he stated.
He further argued that the current administration has not yet found the right approach to manage the economy in a way that inspires confidence and trust among investors. “The present Administration has not found the right way to handle the economy to engender confidence and trust for investors to start trooping in,” Obasanjo said.
Obasanjo’s criticism comes amid a notable exodus of multinational companies from Nigeria. Companies like Shoprite, which sold its Nigerian operations, and Mr. Price, which exited the market entirely, underscore the growing challenges of doing business in the country. Others, such as ExxonMobil, have scaled back their operations significantly, citing the unfriendly business environment and policy inconsistencies. These departures are described as symptomatic of the broader issues plaguing Nigeria’s investment climate.
Highlighting the exodus of investors, Obasanjo cited the example of Total Energy opting to invest $6 billion in Angola instead of Nigeria. He lamented that foreign investors, who are well aware of Nigeria’s economic challenges, are now avoiding the country.
“If the existing investors are disinvesting and going out of our country, how do we persuade new investors to rush in?” he asked.
Tinubu’s Global Investment Hunt
In an effort to attract foreign investment, President Tinubu has been globetrotting, meeting with potential investors and world leaders. However, these efforts have yet to yield positive results. Despite his trips to major economic hubs such as the United States, Europe, and the Middle East, Nigeria’s poor economic policies and unfriendly business environment continue to deter investors.
Against this backdrop, Obasanjo emphasized the need for transformational leadership, which he believes is essential for economic recovery and growth.
“We need to change from transactional leadership in government to transformational and genuine servant leadership. With change by us, the investors will give us the benefit of doubt, and security being taken care of on a sustainable long-term basis, they will start to test the water,” he said.
The former president stressed that consistency and continuity in policy are crucial for ensuring stability and predictability, which in turn incentivize both domestic and foreign investment.
“Tinkering with the exchange rate is not the answer to the economic problems,” Obasanjo asserted. “The answer is consistency and continuity in policy to ensure stability and predictability. That way, we will be sure of incentivizing domestic and foreign investment.”
The former military head of state called for honesty and transparency in government dealings, particularly regarding contracts and economic policies.
“There must be honesty and transparency in government dealings and contracts and not lying with deception about these issues. When the government is seen as pursuing the right policy, the private sector will go for production and productivity,” he noted.
Obasanjo also underscored the importance of integrity and honesty of purpose in economic management. He expressed optimism that with the right policies and a unified effort, Nigeria can overcome its economic challenges.
“With the right economic policies, attributes of integrity, and honesty of purpose, all should be well with all hands on deck and the government becoming a catalyst for development, growth, and progress,” he concluded.
The Way Forward
Obasanjo’s critique comes at a time when Nigeria is grappling with significant economic challenges, including sky-high inflation, a depreciating currency, and a lack of investor confidence. His remarks highlight the need for a strategic and transparent approach to economic policy-making to restore stability and foster growth.
Many believe his detailed assessment serves as a call to action for the Tinubu administration to reevaluate its economic strategies and adopt a more consistent and transparent approach. The goal, according to Obasanjo, should be to create an environment conducive to investment and economic growth, driven by transformational leadership.