NRS Chairman Defends Subsidy Removal, Warns of ₦53tn Bill Threat

The Chairman of the Nigeria Revenue Service (NRS), Zacch Adedeji, has said Nigeria’s petrol subsidy bill could have risen to around ₦53 trillion, while the exchange rate could have weakened to ₦3,500 per dollar, had President Bola Tinubu not implemented his economic reforms. Adedeji made these claims during an exclusive interview on Channels Television’s Sunday Politics, defending the administration’s decision to remove petrol subsidy and reform the foreign exchange system.

The NRS chairman described subsidy removal as one of the most significant economic decisions of the administration, insisting it had driven positive economic outcomes. He said: “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.”

Adedeji explained that Tinubu inherited an economy weighed down by an unsustainable subsidy regime, a struggling oil sector and a narrow tax base. He argued that maintaining the subsidy would have placed an even heavier strain on government finances, especially amid pressures in the global energy market and tensions linked to the Iran crisis. According to him, the subsidy bill could have climbed to approximately ₦53 trillion, while the naira could have weakened to ₦3,500 per dollar without reform.

The NRS boss also defended the government’s exchange-rate policies, urging Nigerians to judge economic decisions by their outcomes rather than emotional reactions. He challenged potential 2027 presidential contenders to clarify how they would handle the country’s economic challenges differently, stating: “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 further questioned critics of the reforms, asking: “Are they saying that it is wrong that we removed fuel subsidy? Are they saying that it is wrong that we unified the rate?”

President Tinubu first announced the removal of petrol subsidy during his inauguration on 29 May 2023, famously declaring that “fuel subsidy is gone.” The policy triggered a sharp rise in petrol prices, pushing up transportation, food and production costs, while simultaneously boosting government revenue and increasing allocations to states and local governments through the Federation Account. Despite these gains, subsidy removal has continued to draw criticism over its impact on household incomes and Nigeria’s rising cost of living.

Do you think Nigeria’s economic reforms have delivered more benefits than burdens for ordinary citizens?