A prominent economic analyst, Kalu Aja, has publicly apologized for previously supporting Bola Ahmed Tinubu’s removal of the petroleum subsidy.
In a post shared on X (formerly Twitter), Aja acknowledged that while the policy was fiscally sound in theory, he had hoped the revenue generated would be used to rebuild Nigeria’s infrastructure.
He also said the funds could have been used to improve social services, including education for millions of children.
Aja’s public apology reflects growing frustration over the administration’s spending priorities and the limited impact of the subsidy removal on development projects.
However, Aja said the first half of 2025 shows that hope will not be realized under the current administration.
According to him, Tinubu has borrowed and spent far beyond available revenues, yet allocations to critical capital projects remain extremely low.
This, he warned, raises concerns that the country is slowly sinking into a debt trap.
READ MORE: “₦266m for Streetlights, ₦212m for Boreholes”- Kalu Aja Slams FG Over Budget, Calls for Subsidy Return
Aja’s analysis suggests that the government’s fiscal trajectory is not aligned with the initial promises of infrastructure development and public investment.
Citing official figures, Aja noted that despite earning N10.92 trillion in cash and borrowing an additional N6.1 trillion, only N393 billion less than 3% of total funds was allocated to federal capital projects in the first half of the year.
He contrasted this with 2021 under former President Buhari, when about 34% of total revenues were spent on capital expenditure.
The stark difference highlights what Aja calls a “gross fiscal irresponsibility” by the current administration.
Aja also warned that defenders of the administration’s fiscal policies are either unaware of the facts or have ulterior motives.
His public apology has sparked discussions among economists, policymakers, and the general public.
The debate has renewed scrutiny over Nigeria’s fiscal priorities and the effectiveness of subsidy removal as a revenue strategy, especially given the limited impact on infrastructure and social services.
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