“What We Would Have Done Differently” — Atiku Proposes Economic Solutions for Nigeria

In a comprehensive policy statement, former Vice President and 2023 presidential candidate Atiku Abubakar has called on President Bola Tinubu to adopt strategic reforms aimed at reviving Nigeria’s troubled economy. Speaking on issues ranging from subsidy removal to foreign exchange (forex) policy, Abubakar highlighted the need for carefully sequenced economic adjustments to alleviate the struggles faced by millions of Nigerians.

Abubakar emphasized his support for the removal of the fuel subsidy and the establishment of a managed floating exchange rate. However, he criticized the government’s current economic approach, attributing what he termed “excruciating pain” to what he described as “trial-and-error policies” under the Tinubu administration. According to Abubakar, these policy missteps have exacerbated hardship for Nigerians, leading to inflation in the prices of essentials like food, transport, and fuel.

In a series of statements released on social media, titled “What We Would Have Done Differently,” Abubakar laid out alternative approaches that he argues could mitigate the impact of these reforms on Nigeria’s populace. The former vice president, who served from 1999 to 2007 under President Olusegun Obasanjo, referenced his policy framework, My Covenant with Nigerians, which he describes as a guide to tackling the country’s economic challenges through systematic planning and stakeholder engagement.

“We would have planned better and more robustly,” Abubakar stated. “Our reform journey would begin with in-depth diagnostic assessments of Nigeria’s condition, rigorous consultation with key stakeholders, and clear goals for the outcomes. The approach would aim to prevent business failures, stabilize the economy, and build trust with Nigerians.”

Abubakar criticized the Tinubu administration’s simultaneous implementation of multiple reforms — including fuel price adjustments, electricity tariff increases, and a floating naira — describing the pace as overwhelming for both businesses and citizens. He stressed that his approach would have focused on aligning fiscal and monetary policies gradually, particularly given Nigeria’s reliance on petroleum imports. In his view, removing subsidies without stabilizing the currency creates avoidable economic volatility.

Additionally, Abubakar underscored the importance of fiscal discipline, advocating for the government to cut wasteful spending, eliminate revenue leakages, and communicate reform processes transparently. “We would lead by example, ensuring that any fiscal adjustments prioritize efficient resource management, while reducing governance costs,” he noted, adding that leaders must avoid extravagant expenses amid the population’s economic suffering.

Subsidy Removal and Refining Infrastructure

In regard to subsidy removal, Abubakar reaffirmed his stance that subsidies are prone to corruption, benefiting primarily the Nigerian National Petroleum Corporation Limited (NNPCL) and fostering what he termed “rent-seeking behavior.” He also highlighted Nigeria’s inadequate refining capabilities, calling it the “least efficient OPEC member” in terms of refining capacity utilization.

To address this, he proposed the gradual privatization of Nigeria’s state-owned refineries with a target of refining at least 50% of its crude oil domestically. Additionally, Abubakar suggested that the country export refined products to neighboring ECOWAS countries as part of a phased subsidy withdrawal, drawing on examples from Malaysia and Indonesia, which adopted similar gradual approaches.

Forex Policy Reform

On foreign exchange reform, Abubakar acknowledged the limitations of Nigeria’s previous fixed exchange rate system, but argued that a fully floating rate might be too abrupt given Nigeria’s current economic climate. Instead, he advocated for a “managed float” system that would allow gradual adjustments, stabilizing the naira while still promoting an open, private sector-driven economy.

Abubakar concluded by urging the Tinubu administration to consider these proposals, insisting that strategic planning and gradual reform are crucial for economic recovery. He expressed confidence that his outlined approach would enable a more sustainable economic transition for Nigeria, ultimately fostering growth and reducing the economic strain on its citizens.