Obasanjo Faults Naira De-valuation Under Tinubu, Says Every Nigerian Has Been Made 300% Poorer

According to a report by The Cable on Thursday, October 22, 2026, former President Olusegun Obasanjo has criticised President Bola Tinubu’s economic reforms, arguing that the sharp depreciation of the naira has significantly reduced Nigerians’ purchasing power and worsened poverty across the country.

Obasanjo made the remarks on Wednesday while speaking at the Financial Times Africa Summit 2026 in London, United Kingdom, where he discussed Nigeria’s economic challenges and the consequences of its currency depreciation.

The former president argued that the naira’s decline against the United States dollar had weakened the financial position of Nigerians, making it increasingly difficult for households to afford essential goods and services.

According to him, the currency’s depreciation from about N500 to the dollar to approximately N1,500 represented a substantial loss in value, with far-reaching consequences for the country’s economy and living standards.

“We do not live in isolation as a country. We interact with the rest of the world. And overnight, you devalue the currency by 300 percent. The naira went from N500 to a dollar to N1,500 to a dollar,” Obasanjo said.

He argued that the development had made Nigerians poorer and contributed to the country’s growing poverty challenge.

“What that meant was that every Nigerian is made poor by 300 percent. That made Nigeria become the poverty capital of the world, which means Nigeria has the largest number of poor people in the world.

“You cannot say to me that that is good for Nigeria. You cannot say to me that that is good for us in any sense,” he added.

Obasanjo’s comments reflect continuing concerns about the impact of the Tinubu administration’s economic policies, particularly the removal of petrol subsidies and the liberalisation of the foreign exchange market.

Tinubu announced the removal of the petrol subsidy during his inauguration on May 29, 2023, declaring that the subsidy regime had ended.

The decision triggered an immediate increase in petrol prices, with transportation costs and the prices of several goods and services also rising as businesses adjusted to higher operating expenses.

In June 2023, the administration introduced foreign exchange reforms that allowed the naira to trade more freely in the official market. The policy was designed to reduce distortions arising from multiple exchange rates, improve transparency and attract foreign investment.

However, the reforms coincided with a significant depreciation of the naira, placing additional pressure on businesses and households that depend on imported goods, raw materials and equipment.

The weaker currency increased the naira cost of imports, including food products, medicines, machinery and industrial inputs. These pressures contributed to rising prices across several sectors of the economy.

Inflation also surged during the period, further eroding the purchasing power of workers and households whose incomes struggled to keep pace with rising living costs.

Food and transportation have been among the major sources of pressure on household budgets, leaving many Nigerians with less money available for other essential needs.

NewsNight24 feedback-opera-news-app@opera.com