Elimination of fuel subsidies, Naira Floatation Good, but is not applied by the Tinubu Government – Peter Obi

A former Governor of Anambra State, Peter Obi, has expressed support to eliminate gasoline subsidies and float Naira by the administration of the Tinubu Bola President.

He, however, stated regret that the federal government handled both policies badly.

Obi, who spoke in an interview that aired on Monday on television that appeared, confirmed that the elimination of fuel subsidies and allowing Naira to be determined by market forces are the steps he always planned to be applied.

However, he stressed that such a large economic decision requires “gradual and organized” execution, warning that the current difficulties faced by Nigerians are a direct result of the rigging and unstructured policy launch.

“There is nothing wrong with eliminating fuel subsidies,” the presidential candidate of the Labor Party in the 2023 election stated.

“What’s wrong with the haphazard ways announced and implemented. We are told to save money and reduce loans, but where is money saved? What critical infrastructure has been improved since then?”

Obi, known for his economical style during his term of office in Anambra, stated frustration because of the lack of investment seen in the main sectors such as health, education, and poverty alleviation.

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He argues that these areas should see immediate attention, considering the billions reportedly stored from the removal of subsidies.

The former governor also aimed at the federal government’s decision to float Naira without first overcoming the challenges of productivity that underlies Nigeria.

“You float the currency when your economy can absorb shocks. You don’t do it when your agricultural and manufacturing sectors are poor performing,” he said.

Obi emphasized that his government would prioritize domestic production, build local capacity, and involve stakeholders, including fuel marketers and the private sector, in negotiations to determine a fair determination system before applying the large reform.

President Tinubu, in May 29, 2023, the inaugural speech, announced the end of the fuel subsidy regime, a policy that immediately sent gasoline prices soaring from ₦ 190 to more than ₦ 500, and then above ₦ 850.

The government also introduced a floating exchange rate system, which caused a significant depreciation of Naira.

While this reform is applauded by several international observers and financial institutions as a necessary step towards long -term stability, many Nigerians continue to wrestle with increasing the cost of living and minimal safety nets.