Business
Obasanjo Criticizes Fuel Subsidy Removal Amid Rising Inflation and Protests
In a recent interview with the Financial Times, former Nigerian President Olusegun Obasanjo addressed the reemergence of the fuel subsidy in Nigeria, attributing its return to the inflationary pressures that have arisen since its removal.
The fuel subsidy, which was abolished in June 2023 by President Bola Tinubu’s administration, has reportedly reappeared due to escalating inflation, according to Obasanjo.
Obasanjo criticized the manner in which the subsidy was eliminated, arguing that the government failed to implement necessary preparatory measures before its removal.
He emphasized the need for a more strategic approach, suggesting that the removal of the subsidy was executed abruptly without adequate planning.
“The subsidy we thought we had removed is effectively back because of inflation,” Obasanjo noted.
He highlighted that there is considerable work required to address the economic issues at hand and called for a transition from a transactional economy to a transformational one to bolster investor confidence in Nigeria.
His comments come in the wake of persistent hunger protests across the country. These demonstrations, which began last Thursday, have now stretched into their fifth day, with a major demand being the reinstatement of the fuel subsidy.
In response to the protests, President Tinubu addressed the nation in a broadcast on Sunday, acknowledging the pain caused by the subsidy removal but defending it as a necessary measure. He argued that the subsidy was a significant burden on the country’s economic progress and development.
The impact of these economic changes is reflected in the sharp rise in core inflation, which surged to unprecedented levels of 34.19 percent and 40.87 percent in June 2024, according to data from the National Bureau of Statistics.
Ecobank Group is reportedly set to raise up to $250 million through an Additional Tier 1 (AT1) capital offering in order to strengthen the bank’s capital base.
This was revealed during the company’s annual general meeting held in Togo on the 29th of May, 2025. According to the meeting, the bank stated that the conversion price for the shares will be based on the higher of the prevailing exchange rate and the floor price of $0.02 per ordinary share.
The speaker stated “As we cast our eyes into the future and reimagine all possibilities—rising competition from banks, fintechs, and non-bank financial institutions, as well as factors such as geopolitics, regulations, and capital markets—we cannot afford complacency.”
The Central Bank of Nigeria (CBN) recently assured stakeholders about the state of the banking sector in Nigeria, stating that the banking sector can still be trusted and is secure.
The assurance was shared in a statement signed by Hakama Sidi Ali, Acting Director of Corporate Communications at the CBN. In the statement, it was emphasized that stakeholders should disregard any negative news concerning the banking sector, as such reports are misleading.
The CBN also highlighted the security of the deposits entrusted to it, stating, “There is no reason for the public to worry about the security of their deposits.” The extent of the measures and security in place was also emphasized by the director in the statement.
Nigerian Businessman Dr. Cosmos Maduka analyzes popular Billionaire, Aliko Dangote and describes him as the biggest debtor in Nigeria.
The businessman highlighted the fact that people who seem to have the most money are often the largest debtors.
“The number one debtor in Nigeria is Aliko Dangote. He’s the wealthiest man in Africa. The number one debtor in the world is the United States of America and you call them the richest in the world.”
“As you admire all of those things, it’s all credit. It’s all about credit. So you should leverage on loan, but you have to have a good structure that will support that loan.”
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