Former President Olusegun Obasanjo has criticised President Bola Tinubu’s economic reforms, arguing that the sharp devaluation of the naira has worsened poverty and reduced Nigerians’ purchasing power.
Dailyt Trust reported that Obasanjo made the remarks on Wednesday at the Financial Times Africa Summit 2026 in London, United Kingdom, where he questioned the impact of the currency reforms on ordinary Nigerians.
Obasanjo said the naira’s depreciation had significantly reduced the value of Nigerians’ incomes, arguing that the currency’s movement from about ₦500 to the dollar to ₦1,500 represented a substantial loss in purchasing power.
“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,” Obasanjo said.
He argued that the policy had contributed to Nigeria’s high poverty levels, adding that he did not consider the outcome beneficial to the country.
Tinubu’s administration removed the petrol subsidy in May 2023, a decision that led to higher petrol prices and increased transportation costs. The following month, the government introduced foreign exchange reforms that allowed the naira to trade more freely.
The reforms were intended to address distortions in the foreign exchange market, improve market efficiency and attract investment. However, the naira subsequently depreciated sharply, while inflation and the cost of imported goods increased.
Higher food and transportation costs have placed additional pressure on households, weakening the purchasing power of many Nigerians.
Obasanjo’s comments add to the public debate over the economic consequences of the Tinubu administration’s reforms and their impact on living standards.
