Fuel subsidy has been reintroduced- Obasanjo

Former President Olusegun Obasanjo has recently revealed that the fuel subsidy, which was removed by the Federal Government in 2023, has been reintroduced due to inflation.

This contrasts with President Bola Tinubu’s declaration during his May 29, 2023, inaugural address that the fuel subsidy was eliminated.

The reintroduction of the subsidy has contributed to the increase in petrol prices from approximately N200 to over N600 per litre.

In an interview with the Financial Times, Obasanjo criticized the government’s approach to subsidy removal, suggesting that certain measures should have been implemented beforehand. He emphasized that inflation has effectively reinstated the subsidy, despite its official removal.

Obasanjo also stressed the importance of building investor confidence in Nigeria, advocating for a shift from a transactional economy to a transformational one.

Despite ongoing nationwide protests demanding the reinstatement of the fuel subsidy, President Tinubu, in a recent broadcast, ruled out this possibility.

He described the subsidy removal as a painful but necessary step to free the nation’s economy from what he termed a “noose around the economic jugular” that has hindered development and progress.