Fuel subsidy is back – Obasanjo

Former President Olusegun Obasanjo says the fuel subsidy removed by President Bola Tinubu on May 29, 2023 has been reintroduced due to inflation.

Tinubu during his inaugural address on May 29, had declared that fuel subsidy “is gone.”

The development has led to the increase in the price of petrol from about N200 to over N800 per litre.

In an interview with the Financial Times, Obasanjo faulted the manner in which the subsidy was removed.

According to him, the government should have implemented some measures before the subsidy removal.

He, however, explained that the subsidy has “come back” due to the inflation rate.

“There’s a lot of work that needs to be done. Not just wake up one morning and say you removed the subsidy. Because of inflation, the subsidy that we have removed is not gone. It has come back,” Obasanjo said.

He also highlighted the need for investor confidence in Nigeria, stating, “You have to go from a transactional economy to a transformational economy.”