Subsidy Removal, Exchange Rate Unification — Obasanjo Expresses Disapproval

Olusegun Obasanjo

Obasanjo faults exchange rate unification and the execution of subsidy elimination

Although they are essential, their implementation was flawed, he claimed. Obasanjo's spokesperson Kehinde Akinyemi said in a statement on Sunday that his principal made the remark on Saturday at the Paul Aje Colloquium (tPAC) in Abuja at a symposium titled “Nigeria's Development: Navigating the Way Out of the Current Economic Crisis and Insecurity.”

He said: “Today, the government has taken three decisions, two of which are necessary but wrongly implemented and have led to the impoverisation of the economy and of Nigerians. These are the 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.

“The way forward is production and productivity which belief and trust in government leadership will engender. No shortcut to economic progress but hard work and sweat.”

Moreover, Olusegun Obasanjo slamed people who disagreed with him over the highly publicized restoration of the refinery at Port Harcourt, Rivers State, calling them “sycophants and spin doctors.”

He said that those who did not remember that a comprehensive analysis of the issue led to the 2007 attempt to partially privatize the refineries; as a result, he had more knowledge and a clearer understanding of the situation when he made his decision late last year.

The former president also proposed solutions to the nation's problems, including as a 25-year development plan, on what may be called his perspective on the first 365 days of President Tinubu's government.

He said: “The economy does not obey orders, not even military orders. I know that. If we get it right, in two years, we will begin to see the light beyond the tunnel. It requires a change of characteristics, attributes, and attitudes by the leadership at all levels to gain the confidence and trust of investors who have alternatives.

“Total Energy has gone to invest $6 billion in Angola instead of Nigeria. If the truth must be stated, the present administration has not found the right way to handle the economy to engender confidence and trust for investors to start trooping in.

“They know us more than we know ourselves. And now they are laughing at us, not taking us seriously. We have to present ourselves in such a way that we will be taken seriously. If the existing investors are disinvesting and going out of our country, how do we persuade new investors to rush in? We can be serious if we choose to be but we need to change we choose to be but 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 the doubt, and security will be taken care of on a sustainable long-term basis, they will start to test the water. With the right economic policies, attribute of integrity, and honesty of purpose, all should be well with all hands on deck and the government should become a catalyst for development, growth, and progress.

“Tinkering with the exchange rate is not the answer. The answer is consistency and continuity in policy to ensure stability and predictability. That way, we will be sure to incentivize domestic and foreign investment. 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. Change is possible but it must begin with the leadership.”

“Looking at the topic of today's occasion, the question I would ask is, how do we navigate our way out of these crises and pave the path towards a more secure and prosperous Nigeria? I believe the answer to this requires a multi-faceted approach that addresses the root causes of these challenges,” he said. 

“The central questions are: where were we? And how did we get to where we are today?”

Obasanjo said, “Firstly, we must know where we are coming from. Our economy has consistently suffered from poor policies, lack of long-term sustainable policies, discontinuity, adhocry, and corruption firmed on personal greed, avarice, incompetence, lack of knowledge and understanding, and lack of patriotism.”