Peter Obi, the Labour Party’s presidential candidate in the 2023 general elections, has expressed his support for the removal of fuel subsidy and the floating of the naira, but criticized the manner in which the current administration executed the policies.
In an interview with Arise Television on Monday, the former Anambra State governor stated that although he agreed with the removal of fuel subsidies in principle, the abrupt and disorganised implementation by President Bola Tinubu’s government has caused unnecessary hardship.
“I have always been in support of removing the fuel subsidy. It is clearly outlined in my manifesto,” Obi said.
“However, the way it was handled lacked proper planning. The problem isn’t the policy itself, but the chaotic way it was introduced.”
He noted that the subsidy regime had long been plagued by inefficiencies and corruption, but questioned what had been done with the funds saved since the subsidy was scrapped.
“When it was removed, we were told it would reduce borrowing and help fund critical infrastructure. But where is the evidence of this investment?” Obi asked. “We’ve saved billions—yet there’s no visible improvement in education, healthcare, or poverty reduction.”
Speaking on the floating of the naira, Obi said he supports the move but stressed that it should be backed by a productive economy.
“There is nothing wrong with adjusting your currency value, but it must be done with a strong production base to support it,” he explained.
According to him, his approach would have focused first on strengthening agriculture and manufacturing before implementing such economic reforms.
“In everything, the process matters. I would have taken these steps in a structured, well-prepared manner,” he added.
President Tinubu had announced the end of petrol subsidies during his inaugural speech on May 29, 2023. The decision led to a sharp increase in fuel prices, jumping from around ₦190 per litre to over ₦500 initially, and currently exceeding ₦850.
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