Abuja, Nigeria – Peter Obi, the Labour Party’s presidential candidate in the 2023 elections, has once again addressed the contentious issues of fuel subsidy removal and the floating of the naira. Speaking in an interview with ARISE NEWS, Obi expressed that while he agrees with the necessity of these reforms, he believes the execution by the current administration has been poorly managed.
Obi has consistently described the fuel subsidy as “an organised crime,” citing widespread corruption and inefficiencies within the system. He argued that the subsidy regime was unsustainable and that its removal was essential for redirecting funds into critical sectors such as education, healthcare, and infrastructure.
However, Obi criticized the manner in which the subsidy was removed, stating that the process was abrupt and lacked proper planning. He emphasized the need for a structured approach that includes stakeholder consultations and transparent allocation of the funds saved from the subsidy.
Floating the Naira: A Cautious Approach
On the issue of floating the naira, Obi acknowledged the challenges posed by the multiple exchange rate regimes and the pressure on the currency. He cautioned against a sudden float without adequate foreign exchange reserves, likening it to “building a non-gated house in a criminal-ridden society.
Instead, Obi proposed a gradual devaluation of the naira to around N600 to the dollar, accompanied by measures to boost exports and stabilize the economy. He stressed the importance of having a robust economic team and a clear strategy to manage the transition effectively
Throughout his statements, Obi has been vocal about the need for transparency in the management of public funds. He has urged the government to provide clear information on how the savings from subsidy removal are being utilized, particularly in sectors like education and healthcare. Obi believes that such transparency is crucial for maintaining public trust and ensuring that the reforms lead to tangible benefits for Nigerians
Peter Obi’s stance on fuel subsidy removal and the floating of the naira reflects his commitment to economic reforms that are both necessary and well-executed. While acknowledging the challenges, he advocates for a methodical approach that prioritizes transparency, stakeholder engagement, and strategic planning. As Nigeria continues to navigate its economic landscape, Obi’s insights offer a perspective focused on sustainable development and fiscal responsibility.
