Former President Olusegun Obasanjo has said that President Bola Tinubu’s economic reforms, including the devaluation of the naira, have worsened poverty in Nigeria.
He spoke on Wednesday at the Financial Times Africa Summit 2026 in London, United Kingdom.
According to him, the sharp decline in the naira’s value has impoverished Nigerians and solidified the country’s status as the global poverty capital.
“We do not live in isolation as a country; we interact with the rest of the world,” Obasanjo said.
“And overnight, you devalue the currency by 300 percent. The naira went from N500 to a dollar to N1,500 to a dollar.
“What that meant was that every Nigerian was made poorer by 300 percent. That made Nigeria the poverty capital of the world, meaning Nigeria has the largest number of poor people in the world.
“You cannot tell me that is good for Nigeria. You cannot tell me that is good for us in any sense.”
In May 2023, Tinubu announced the removal of the petrol subsidy, a move that triggered a surge in fuel prices and transport costs nationwide.
A month later, his administration introduced foreign exchange reforms, allowing the naira to float and collapsing the multiple exchange-rate system.
While the reforms were intended to boost market efficiency, attract foreign investment, and fix currency distortions, they coincided with a steep depreciation of the naira, soaring inflation, and high import costs.
The resulting spike in the prices of food, transportation, and other essentials has severely eroded the purchasing power of ordinary citizens.
