FUEL SUBSIDY COULD HAVE REACHED N53TN WITHOUT TINUBU’S REFORM — NRS CHAIRMAN
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By:Tajudeen Aminat
The Chairman of the Nigeria Revenue Service, Zacch Adedeji, has claimed that Nigeria’s petrol subsidy bill could have risen to about N53 trillion, while the naira could have weakened to N3,500 per dollar, if the subsidy regime had remained in place.
Adedeji made the assertion during an exclusive interview on Channels Television’s Sunday Politics, where he defended President Bola Tinubu’s economic reforms.
He described the removal of petrol subsidy as one of the most significant decisions taken by the administration, arguing that it had contributed to some of the positive economic outcomes recorded by the government.
“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.
According to Adedeji, 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 placed additional pressure on the country’s finances, particularly amid developments in the global energy market and the Iran crisis.
The NRS chairman said the subsidy bill could have reached approximately N53 trillion, while the exchange rate could have deteriorated to N3,500 to a dollar.
Adedeji also defended the administration’s exchange-rate reforms, urging Nigerians to evaluate the government’s economic policies based on their outcomes rather than emotions.
He challenged those seeking to replace Tinubu in the 2027 presidential election to explain how they would tackle the country’s economic challenges 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 announced the removal of petrol subsidy during his inauguration speech on May 29, 2023, declaring that “fuel subsidy is gone.” The decision triggered a significant rise in petrol prices and contributed to increased transportation, food and production costs.
The policy has also resulted in higher government revenues and increased allocations to the three tiers of government through the Federation Account, although its impact on the cost of living has remained a major concern.
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