You Can’t Just Wake Up One Morning and Remove Subsidy – Obasanjo Tells Tinubu

Former President Olusegun Obasanjo has expressed concerns about the potential challenges facing the Dangote Petroleum Refinery, highlighting efforts by those benefiting from fuel importation to undermine the $20bn project.

Speaking in response to Alhaji Aliko Dangote’s allegations of sabotage by ‘mafias,’ Obasanjo underscored the significant resistance the refinery could face.

In an interview with the Financial Times, Obasanjo described the Dangote refinery as a beacon of hope for investment in Nigeria. “Aliko’s investment in a refinery, if it goes well, should encourage both Nigerians and non-Nigerians to invest in Nigeria. If those who are selling or supplying refined products for Nigeria feel that they will lose the lucrative opportunity, they will also make every effort to get him frustrated,” he said.

Obasanjo criticized Nigeria’s economic reliance on oil, calling it a “deadly mistake” and emphasizing the neglect of gas and agriculture. “I believe we made a very, very deadly mistake. We put all our eggs in one basket of oil. We even ignored gas. We were flaring gas, which is a very important commodity. We ignored agriculture, which should have been the centrepiece of our economic development,” he stated.

Recalling his tenure as President, Obasanjo shared his attempts to involve Shell in running Nigeria’s refineries, which the oil giant declined due to corruption concerns. “When I was President, I invited Shell and I said, look, come and take equity participation and run our refineries for us. They refused. They said our refineries have not been well maintained. We have brought amateurs rather than bringing professionals. They said there’s too much corruption with the way our refinery is run and maintained. And they didn’t want to get involved in such a mess,” he explained.

Obasanjo also criticized the government’s promises to fix the refineries, questioning their efficacy and cost. “How many times have they told us that? And at what price? Those problems, as far as the government refineries are concerned, have never gone away. They have even increased. So if you have a problem like that and that problem is not removed then you aren’t going anywhere,” he remarked.

Addressing the removal of fuel subsidies by President Bola Tinubu, Obasanjo stressed the need for a more considerate approach. “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,” he asserted.

He emphasized the importance of building investor confidence and transitioning from a transactional to a transformational economy. Obasanjo also voiced concerns about youth unemployment and its potential repercussions. “Our youth are restive. And they are restive because they have no skill. They have no empowerment. They have no employment. We are all sitting on a keg of gunpowder. And my prayer is that we will do the right thing before it’s too late,” he warned.