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In a surprising turn of events, former President Olusegun Obasanjo has revealed that the fuel subsidy, removed by the Federal Government in 2023, has been reintroduced due to rampant inflation.
This comes after President Bola Tinubu's firm declaration during his May 29, 2023, inaugural address that the subsidy was abolished.
The removal of the subsidy had led to a steep increase in petrol prices, which skyrocketed from around ₦200 to over ₦600 per litre.
Obasanjo criticism of Tinubu's approach on subsidy removal
In an interview with the Financial Times, Obasanjo criticised the government's approach to the subsidy removal, suggesting that more preparatory measures should have been in place.
"There's a lot of work that needs to be done. Not just wake up one morning and say you removed the subsidy. Because of inflation, the subsidy that we have removed is not gone. It has come back," he stated.
Need for investors in Nigeria
Obasanjo further emphasised the importance of building investor confidence in Nigeria, advocating for a shift from a transactional to a transformational economy.
Meanwhile, Daily Trust reported that the reinstatement of the fuel subsidy is among the key demands of the ongoing nationwide protests.
Despite this, President Tinubu, in a recent broadcast, dismissed the possibility of reintroducing the subsidy.
He acknowledged the decision's difficulty but defended it as necessary, describing the subsidy as a "noose around the economic jugular of our Nation" that had stifled economic growth and development.