Exchange rate, Subsidy Removal, are all important — Obasanjo advises President Tinubu on economic policies

Exchange rate, Subsidy Removal, are all important — Obasanjo advises President Tinubu on economic policies

Former President Olusegun Obasanjo emphasised that while subsidy removal and exchange rate policies were essential for the economy, their flawed implementation has led to adverse effects on both the economy and the Nigerian populace.

Speaking at the Paul Aje Colloquium in Abuja, he addressed strategies to mitigate these challenges, proposing a comprehensive 25-year development agenda as part of navigating the current economic crisis and insecurity under President Bola Ahmed Tinubu’s administration.

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

“These are removal of subsidy, closing the gap between black market and official rates of exchange, and the third is dealing with military coup in Niger Republic.

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

“An 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 attitude 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… 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 from transactional leadership in government to transformational and genuine servant-leadership.”

Obasanjo criticised those opposing his stance on the revamped Port Harcourt Refinery in Rivers State, labeling them as “sycophants and spin doctors.”

He reminded them that during his tenure, an attempt was made in 2007 to partially privatise the refineries after a comprehensive study, indicating his informed decision-making process late last year.

To address the current economic challenges, he advocated for a 25-year socio-economic development plan as a viable solution.