Former President Olusegun Obasanjo has criticized President Bola Tinubu’s approach to removing the fuel subsidy, describing it as poorly executed and a cause of rising inflation.

In an interview with the Financial Times, Obasanjo suggested that the Nigerian government should have implemented mitigating measures to cushion the economic impact before eliminating the subsidy.

According to Obasanjo, the fuel subsidy, which was officially removed in June 2023 by Tinubu’s administration, has effectively returned due to inflation.

He stated, “There’s a lot of work that needed to be done, not just wake up one morning and say you removed the subsidy. Because of inflation, the subsidy that we removed is not gone. It has come back.”

The former president emphasized the need for a shift from a transactional to a transformational economy to build investor confidence and address the ongoing issues of youth unemployment and lack of skills in Nigeria. He highlighted the importance of effective management of significant policy changes and the necessity of creating an environment conducive to investment.

Obasanjo also criticized the handling of state-owned refineries and revealed that Shell had declined to invest in Nigerian refineries due to concerns about corruption and inadequate maintenance. He recounted, “When I was president, I invited Shell and asked them to take equity participation and run our refineries. They refused, citing poor maintenance and corruption. They said there’s too much corruption with the way our refinery is run and maintained. They didn’t want to get involved in such a mess.”

Expressing skepticism about promises to rehabilitate state-owned refineries, Obasanjo remarked, “How many times have they told us that? And at what price? Those problems, as far as the government refineries are concerned, have never gone. They have even increased.”

On March 15, Mele Kyari, group chief executive officer of the Nigerian National Petroleum Company (NNPC), had promised that some of the refineries would start production by the end of March, a deadline that was not met. Kyari has since set a new timeline, stating, “Specific to NNPC refineries, it is impossible to have the Kaduna refinery come to operation before December. However, the Port Harcourt refinery is expected to commence production in early August this year.”

Obasanjo also expressed concerns about potential sabotage of the Dangote Petroleum Refinery, suggesting that those profiting from Nigeria’s fuel importation industry might seek to undermine its success. He stated, “Aliko’s investment in a refinery, if it goes well, should encourage both Nigerians and non-Nigerians to invest in Nigeria. If those who are selling or supplying refined products for Nigeria feel that they will lose the lucrative opportunity, they will also make every effort to get him frustrated.”

He addressed concerns that international oil companies (IOCs) could be deliberately obstructing the refinery’s efforts, highlighting the challenges faced by the project in achieving its full potential.