Youth unemployment: Nigeria maybe sitting on a keg of gun powder— Obasanjo

Obasanjo shared his thoughts today during an interview.

“Our youth are restless, and their restlessness stems from a lack of skills, empowerment, and employment. We are all sitting on a powder keg, and my hope is that we will take the necessary actions before it’s too late,” he cautioned.

His remarks comes in the wake of ongoing nationwide protests led by the youth under the #Endbadgovernance movement, driven by issues of hunger and economic hardship.

Since August 1, young people across Nigeria have taken to the streets, with reports of escalating violence and looting surfacing.

Obasanjo further remarked that Nigeria’s economy could have been significantly stronger if it had not depended solely on crude oil production, which he labeled a “deadly mistake.”

“We made a grave error by putting all our resources into oil. We had another valuable resource, gas, which we were flaring instead of utilizing,” he stated.

He also criticized the Nigerian National Petroleum Company Limited (NNPCL), international oil companies, and other national oil entities for failing to increase oil production to meet the country’s needs.

Obasanjo emphasized that Nigeria should have prioritized investments in agriculture rather than relying predominantly on oil.

“We overlooked agriculture, which could have been the cornerstone of our investment strategy,” he noted.

The former president also addressed the ongoing issues with Nigeria’s four refineries, which have remained inactive despite significant investments aimed at revitalizing them.

He recounted his efforts to persuade Shell to manage the refineries, but they declined, citing rampant corruption in the sector.

“When I was president, I invited Shell to take equity and manage our refineries, but they refused, stating that the refineries were poorly maintained. We brought in amateurs instead of professionals, and there was too much corruption in the maintenance process. They didn’t want to get involved in such a situation,” he explained.

Obasanjo criticized the government’s approach to restoring the refineries, questioning how many times they have promised repairs and at what cost, noting that the problems persist and have even worsened.

He warned that those profiting from fuel importation would likely attempt to undermine the Dangote Petroleum Refinery, following allegations from Alhaji Aliko Dangote, President of the Dangote Group, about certain ‘mafias’ trying to sabotage the $20 billion project.

“Aliko’s investment in a refinery, if successful, should inspire both local and foreign investments in Nigeria. However, those who profit from selling refined products may try to thwart his efforts,” Obasanjo remarked.

Officials from the Dangote Group recently claimed that international oil companies were hindering the refinery’s progress by either refusing to sell crude or charging a premium of up to $4 above the standard price.

They also accused the Nigerian Midstream and Downstream Regulatory Authority of intentionally issuing licenses for the importation of substandard fuel.

The regulatory authority denied these claims, asserting that Dangote’s diesel was inferior to imported alternatives.

NMDPRA Chief Executive Farouk Ahmed added that the country would continue fuel imports to prevent a monopoly by the Dangote Group.

Obasanjo also criticized President Bola Tinubu’s approach to removing fuel subsidies, stating that the current administration should have first considered the potential hardships this decision could cause and how to mitigate them.

“There’s a lot of work that needs to be done. You can’t just wake up one morning and declare the removal of subsidies. Due to inflation, the impact of the subsidy removal hasn’t disappeared; it has returned,” the former president emphasized.

He stressed the need for investor confidence in Nigeria, stating, “We must transition from a transactional economy to a transformational economy.”