Nigeria’s economic reforms are once again under the spotlight after financial analyst Kalu Aja delivered a blunt assessment of President Bola Ahmed Tinubu’s economic policies, arguing that the government introduced bold reforms but failed to protect Nigerians from their immediate consequences.
In a post shared on his X account, Aja acknowledged that the removal of the fuel subsidy and the decision to float the naira against the US dollar in 2023 were necessary economic reforms capable of addressing long-standing structural challenges.
However, he argued that the real problem began after the policies were announced.
According to the analyst, the Federal Government failed to implement sufficient palliative measures and economic support programmes to cushion the impact on millions of Nigerians already battling rising inflation and the increasing cost of living.
“The FGN reforms are good. It was expedient to remove subsidy on Premium Motor Spirit and Dollar. The problem is they removed subsidy then went to sleep, no palliatives, no cushion,” Aja wrote.
President Tinubu’s administration removed the long-standing fuel subsidy shortly after assuming office in May 2023 before allowing the naira to trade more freely against foreign currencies in June of the same year.
While the government has consistently defended the reforms as essential for rebuilding the economy and attracting investment, the policies have also triggered significant increases in transportation costs, food prices, and overall living expenses across the country.
Current market prices reflect the scale of the changes. Petrol, which sold for about ₦238 per litre before the reforms, now sells for between ₦1,300 and ₦1,335 per litre, while the naira has weakened from about ₦464 per dollar in May 2023 to approximately ₦1,368 per dollar.
Aja’s remarks have reignited discussions over whether economic reforms should be accompanied by stronger social protection programmes, as Nigerians continue to debate the long-term benefits and short-term hardships associated with the government’s policy direction.
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