President Bola Ahmed Tinubu and Peter Obi

Former Labour Party presidential candidate Peter Obi has said that although he supports the removal of petrol subsidies and the floating of the naira, the policies should have been implemented gradually and with better coordination.

Obi made this known during an interview on Arise Television on Monday, where he criticised the manner in which the current administration executed both policies.

He maintained that the fuel subsidy regime was riddled with corruption and needed to end but said the abrupt removal and lack of clear reinvestment plans had left many Nigerians worse off.

“Subsidy removal is necessary, but the way it was handled was haphazard,” Obi said. “Where are the savings from the removal? Have they been invested in education, health, or poverty reduction?”

On the foreign exchange market, Obi backed the unification of the exchange rate but stressed that the economy must be productive before such a step could be effective.

He argued that the government should have first strengthened agriculture and manufacturing before floating the naira.

President Bola Tinubu had announced the end of the fuel subsidy during his inauguration on May 29, 2023, triggering a sharp rise in fuel prices and economic hardship for many Nigerians. The policy remains a major point of contention in national discourse.