According to Chief Olusegun Obasanjo, the former president of Nigeria, inflation has caused the fuel subsidy that President Bola Tinubu’s administration removed in June 2023 to reappear.

Obasanjo revealed this in a recent interview with the Financial Times.

He found it improper that Tinubu’s government eliminated fuel subsidies.

He said the government ought to have taken action prior to eliminating fuel subsidies.

‘Tinubu paying fuel subsidy more than before’ – El-Rufai reveals

“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,” the former President stressed.

According to him, investors need to have confidence in Nigeria.

“You have to go from transactional economy to transformational economy”, he added.

His statement is made in the midst of Nigeria’s continuing protests against hunger.

On Monday, the fifth day of the protests—which started on Thursday—began with a major demand: the reinstatement of the fuel subsidy program.

However, President Tinubu said in his Sunday broadcast that his administration’s decision to remove fuel subsidies is painful but necessary because it constituted a noose around the economic “jugular of our Nation and impeded our economic development and progress.” He was also pleading with protesters to call off their protests.

ZINGTIE says that the National Bureau of Statistics states that in June 2024, core inflation reached an all-time high of 34.19 percent and 40.87 percent.

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