Nigerian entrepreneur and Coscharis Group founder Cosmas Maduka has said Peter Obi, the Labour Party’s 2023 presidential candidate, would have faced the same policy challenges as President Bola Tinubu’s administration.
Speaking on Mic On Podcast with host Okinbaloye, Maduka said tough economic decisions like fuel subsidy removal were unavoidable regardless of who is in power.
“People ask me, ‘Would Peter Obi have done anything different if he won?’ My answer is no. He would have removed subsidies from day one too,” Maduka said.
According to most economists, Nigeria’s fiscal constraints leave little room for alternative options.
The International Monetary Fund (IMF) has long advocated for subsidy reforms, estimating Nigeria spent ₦4.3 trillion ($10 billion) on fuel subsidies in 2022 alone.
Maduka acknowledged the hardships caused by subsidy removal, including inflation and currency depreciation.
But he stressed that reinvesting savings into infrastructure is key to long term stability.
“The government must discipline itself to allocate subsidy savings to projects that benefit the public. Redirecting funds from private jet subsidies to roads or power plants is real progress,” he said.
If not, he warned, the country will remain in the same graveyard: “Moving from one tomb to another keeps you in the same graveyard.”
On Nigeria’s rising debt, Maduka said borrowing is not bad if linked to productive investments.
“Debt for infrastructure or capital projects can pay for itself. But borrowing for frivolous spending, like ‘sharing money for poverty alleviation’, deepens the hole we cannot escape,” he said.
Data from Nigeria’s Debt Management Office shows public debt rose to ₦121.67 trillion ($285 billion) in March 2024 with recurrent expenditure consuming over 90% of federal revenue.
Maduka is cautiously optimistic about Nigeria’s direction, calling for stricter fiscal controls.
“Discipline is needed to curb government excesses. Are we on the right path? Yes,” he added.
Maduka is also right with the World Bank’s 2024 recommendation for Nigeria to prioritise structural reforms and transparent public spending.