Former President Olusegun Obasanjo has criticised President Bola Tinubu’s economic policies, arguing that the sharp depreciation of the naira has significantly worsened the living conditions of Nigerians.
Obasanjo made the remarks on Wednesday at the Financial Times Africa Summit 2026 in London, United Kingdom, where he questioned the impact of the government’s foreign exchange reforms on the country’s economy and citizens’ purchasing power.
According to the former president, the rapid decline in the value of the naira has eroded household incomes and contributed to Nigeria’s growing poverty challenge.
He argued that the currency’s depreciation from about N500 to the dollar to approximately N1,500 represented a substantial loss in purchasing power for Nigerians.
Obasanjo maintained that such a dramatic adjustment had imposed serious economic hardship on citizens, questioning whether the policy could be considered beneficial to the country.
His comments come amid continued public concerns over the cost of living, following the removal of petrol subsidies and the introduction of foreign exchange reforms by the Tinubu administration in 2023.
The removal of the petrol subsidy triggered increases in fuel prices and transportation costs, while changes to the foreign exchange market allowed the naira to trade more freely and reduced the previous system of multiple exchange rates.
The Federal Government introduced the reforms to address distortions in the foreign exchange market, improve market efficiency and attract foreign investment.
However, the depreciation of the naira, coupled with rising inflation and higher import costs, has placed additional pressure on households and businesses.
Food prices, transportation fares and the cost of other essential goods have also increased, reducing the purchasing power of many Nigerians.
Obasanjo’s remarks have brought renewed attention to the economic consequences of the reforms and the debate over whether their long-term benefits can outweigh the immediate hardships experienced by citizens.
While the administration’s policies were designed to address structural economic challenges, the former president’s criticism highlights concerns about their social impact and the need to protect vulnerable households from rising living costs.
The debate over the reforms continues to centre on currency stability, inflation, job creation and the ability of ordinary Nigerians to meet their basic needs.
