Subsidy could have cost Nigeria ₦53tn without Tinubu’s reform – NRS chair
The Chairman of the Nigeria Revenue Service (NRS), Zacch Adedeji, has said Nigeria’s petrol subsidy expenses could have “risen to about ₦53 trillion and the exchange rate weakened to ₦3,500 to the dollar if the subsidy had remained.”
Adedeji made the statement during an exclusive interview on Channels Television’s Sunday Politics programme, where he defended President Bola Tinubu’s economic reforms.
He described the removal of petrol subsidy as the most beneficial decision taken for the country, arguing that it had played a role in the government’s reported economic gains.
“All the good results that I will reel out soon come as a result of that courageous decision (subsidy removal). So, it is not a mistake; it is the best thing that has happened to this country. Subsidy was evil and had been with Nigeria for decades,” he said.
Adedeji said Tinubu took over an economy facing an unsustainable subsidy system, a poorly performing oil industry and a limited tax base.
He maintained that keeping the subsidy would have put additional pressure on the nation’s finances, especially amid developments in the global energy market and the Iran crisis.
According to him, the cost of maintaining the subsidy could have climbed to about ₦53 trillion, while the naira-dollar exchange rate could have reached ₦3,500 to the dollar.
The NRS chairman also justified the administration’s foreign exchange reforms and called on Nigerians to evaluate its economic policies based on facts rather than emotions.
He said opposition figures planning to contest against the Tinubu administration in the 2027 elections should tell Nigerians how they intend to tackle the country’s economic difficulties differently.
“What the President deserves now is support and commendation for being a statesman and not a politician. Anybody who says he is coming (to contest as president), just ask them, ‘What will you do differently?’
“Are they saying that it is wrong that we removed fuel subsidy? Are they saying that it is wrong that we unified the rate?” he asked.
Tinubu declared the removal of petrol subsidy during his inaugural speech on May 29, 2023, leading to a significant rise in petrol prices and contributing to increased transportation, food and production expenses.
Tinubu had announced that “fuel subsidy is gone.”
The removal has also resulted in higher government revenues and increased allocations to the three tiers of government through the Federation Account, although its effect on the cost of living remains a significant concern, the NRS chairman said.
