Obasanjo Faults Naira Devaluation, Says Every Nigerian Made 300% Poorer

Former President Olusegun Obasanjo has blamed President Bola Tinubu’s economic reforms for the sharp devaluation of the naira and worsening poverty in Nigeria. He spoke on Wednesday at the Financial Times Africa summit 2026 in London, United Kingdom (UK).

Obasanjo said the naira’s decline had impoverished Nigerians and contributed to Nigeria’s position as the world’s poverty capital. "We do not live in isolation as a country. We interact with the rest of the world. And overnight, you devalue the currency by 300 percent. The naira went from N500 to a dollar to N1,500 to a dollar," he said.

Poverty capital claim

He said the movement meant every Nigerian was made poor by 300 percent. "What that meant was that every Nigerian is made poor by 300 percent. That made Nigeria become the poverty capital of the world, which means Nigeria has the largest number of poor people in the world," Obasanjo said.

He added: "You cannot say to me that that is good for Nigeria. You cannot say to me that that is good for us in any sense."

Back story

In May 2023, Tinubu announced the removal of the petrol subsidy. The move led to higher petrol prices and transport costs across the country.

In June 2023, his administration initiated foreign exchange reforms. The reforms allowed the naira to trade more freely and collapsed the multiple exchange-rate system.

The reforms were aimed at improving market efficiency, attracting foreign investment and addressing distortions in the currency market. But they coincided with a sharp depreciation of the naira, rising inflation and higher costs of imported goods. That put additional pressure on households and businesses.

The reforms were designed to make the currency market more efficient. In practice, the period that followed brought a weaker naira, higher inflation and a higher cost of imported goods, with food and transport costs also rising.

Pressure on consumers, businesses

Rising costs of food, transportation and other essential commodities further eroded Nigerians’ purchasing power. The weaker naira raises the cost of imported goods and inputs. For businesses, it increases the price of imported raw materials and equipment, squeezing margins and adding to inflation pressure.

The debate over the reforms now sits alongside concerns about poverty, household incomes and the cost of doing business in Nigeria.