The Chairman of the Nigeria Revenue Service (NRS), Zacch Adedeji, has said Nigeria’s petrol subsidy bill could have risen to about ₦53 trillion, while the exchange rate could have weakened to ₦3,500 to the dollar, if President Bola Tinubu had not implemented his economic reforms.
Adedeji made the claim during an exclusive interview on Channels Television’s Sunday Politics, where he defended the Tinubu administration’s decision to remove petrol subsidy and reform the foreign exchange regime.
The NRS chairman described the removal of subsidy as one of the most significant economic decisions taken by the administration, arguing that it had contributed to what he described as positive economic outcomes.
“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 inherited an economy burdened by an unsustainable subsidy regime, an underperforming oil sector and a narrow tax base.
He argued that maintaining the subsidy would have imposed an even heavier burden on government finances, particularly against the backdrop of pressures in the global energy market and the Iran crisis.
According to him, the subsidy bill could have reached about ₦53 trillion, while the exchange rate could have weakened to ₦3,500 per dollar.
The NRS boss also defended the administration’s exchange-rate reforms, urging Nigerians to assess the government’s economic decisions based on their outcomes rather than emotions.
He challenged those seeking to replace Tinubu in 2027 to explain how they would 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?’” he said.
“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 announced the removal of petrol subsidy during his inauguration on May 29, 2023, declaring that “fuel subsidy is gone.”
The policy triggered a sharp increase in petrol prices and contributed to higher transportation, food and production costs, while also boosting government revenues and increasing allocations to the three tiers of government through the Federation Account.
However, the removal has continued to attract criticism over its impact on household incomes and the rising cost of living.
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