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.