LONDON, England — Former President Olusegun Obasanjo has blamed President Bola Tinubu’s economic reforms for worsening poverty in Nigeria, arguing that the sharp devaluation of the naira has drastically reduced Nigerians’ purchasing power and contributed to the country’s position as the world’s poverty capital.
Obasanjo made the remarks on Wednesday during a keynote interview at the ongoing Financial Times Africa Summit 2026 in London, United Kingdom.
The former president faulted the pace and impact of the currency devaluation, saying the naira’s sharp depreciation against the dollar had significantly eroded the purchasing power of Nigerians and deepened their economic hardship, reports Daily Independent.
Obasanjo argued that Nigeria’s economic policies must account for the country’s interaction with the global economy and the consequences of exchange-rate changes for ordinary citizens.
“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 per cent. The naira went from N500 to a dollar to N1,500 to a dollar.
“What that meant was that every Nigerian is made poor by 300 per cent. That made Nigeria to become the poverty capital of the world, which means Nigeria has the largest number of poor people in the world.
“You cannot say to me that that is good for Nigeria. You cannot say to me that that is good for us in any sense,” Obasanjo said.
The former president’s criticism centres on the impact of the naira’s depreciation on the cost of imported goods, domestic prices and the purchasing power of households.
Tinubu’s administration introduced major economic changes after taking office in May 2023, including the removal of the petrol subsidy and reforms to the foreign exchange market. The policies were intended to address longstanding economic distortions, improve government revenue and stabilise the economy, but they have also coincided with sharp increases in the cost of living.
The debate over the reforms has continued, with critics highlighting their immediate effects on household welfare and businesses, while the government has defended the changes as necessary to address structural weaknesses in the economy.
Obasanjo’s remarks add to the criticism of the administration’s economic management as Nigerians continue to contend with the effects of inflation, exchange-rate pressures and rising living costs.
