Kalu Aja, a prominent financial analyst and educator, has asserted that Nigeria would have faced total bankruptcy if President Bola Tinubu had opted against floating the naira and eliminating fuel subsidies.
Aja clarified that these actions were not merely discretionary but essential, as the country had no viable alternatives. However, in a recent post on his X account, he criticized the way Tinubu handled the rollout of support measures for citizens.
He highlighted that it took the Nigerian government a full year to realize the necessity of food imports and to create a coherent strategy, lamenting the ongoing absence of CNG buses from the market.
Aja suggested that had Tinubu proposed abolishing all duties and taxes on food products and introduced new public transportation initiatives, the public backlash from these policies would have been less severe.
He stated, “Floating the naira was not an option; Nigeria had no choice. The removal of PMS subsidies was also unavoidable.
“A true decision implies Nigeria had the luxury of choosing not to float the naira or remove subsidies; either choice would have led to complete economic ruin—think of lining up for bread with vouchers.
“The real misstep by Tinubu was in the execution of the palliatives. Remember, at one point, the proposed relief was a mere N8,000.
“It took the Federal Government a year to recognize the need for food imports and to formulate a plan! As of now, the promised CNG buses remain just a dream.
“If the president had declared a complete waiver of all duties and taxes on food and rolled out new public transport options, the public distress would have been significantly mitigated. This is crucial.
“All the calls to ‘reverse the policy’ overlook the reality that we spent more on PMS subsidies than on health, education, and infrastructure combined over the years; such a system is unsustainable.”
