Former President Olusegun Obasanjo has blamed President Bola Tinubu’s economic reforms for the sharp devaluation of the naira and worsening poverty in Nigeria.

Obasanjo spoke on Wednesday at the Financial Times Africa Summit 2026 in London, United Kingdom, where he argued that the currency’s depreciation had significantly reduced Nigerians’ purchasing power and contributed to the country’s position as the world’s poverty capital.

“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 percent. The naira went from N500 to a dollar to N1,500 to a dollar,” Obasanjo said.

“What that meant was that every Nigerian is made poor by 300 percent. That made Nigeria become the poverty capital of the world, which means Nigeria has the largest number of poor people in the world.

“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.”

In May 2023, Tinubu announced the removal of the petrol subsidy, a decision that triggered increases in petrol prices and transportation costs nationwide.

The administration subsequently introduced foreign exchange reforms in June 2023, allowing the naira to trade more freely and merging the multiple exchange-rate system.

The reforms were intended to improve market efficiency, attract foreign investment and address distortions in the foreign exchange market.

However, the naira depreciated sharply amid the reforms, while rising inflation and the cost of imported goods placed additional pressure on households and businesses.

Higher food and transportation costs, alongside increases in other essential commodities, further eroded Nigerians’ purchasing power.