Nigeria Revenue Service Chairman Zacch Adedeji has described the removal of petrol subsidy as the best thing to have happened to Nigeria, saying President Bola Tinubu deserves commendation for taking the decision.
Adedeji made the remarks during an interview on Channels Television’s Sunday Politics programme, arguing that several of the economic gains recorded by the government stem from the subsidy removal.
According to the NRS chairman, the subsidy regime had been unsustainable and had placed a significant burden on Nigeria’s finances for decades.
“All the good results that I will reel out soon come as a result of that courageous decision,” Adedeji said, insisting that the policy was not a mistake.
He said the Tinubu administration inherited an economy affected by an unsustainable subsidy system, an underperforming oil sector and a narrow tax base.
Adedeji argued that the government’s economic reforms should be assessed based on their long-term impact rather than emotions, adding that the administration had taken steps to address what he described as fundamental structural problems.
He also challenged those seeking to defeat Tinubu in the 2027 presidential election to explain how they would handle the country’s economic difficulties 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.
Adedeji cites potential ₦53tn subsidy bill
The NRS chairman further argued that retaining the petrol subsidy could have placed an even heavier burden on Nigeria’s finances.
He claimed that, if the subsidy had remained in place, Nigeria’s subsidy bill could have risen to about ₦53 trillion, while the exchange rate could have reached ₦3,500 to the dollar.
Tinubu announced the removal of petrol subsidy during his inaugural address on May 29, 2023. The decision immediately triggered a sharp rise in petrol prices, with knock-on effects on transportation, food and production costs.
While the policy has improved government revenues and increased allocations to the three tiers of government through the Federation Account, the resulting cost-of-living pressures have remained a major concern for Nigerians.
Adedeji nevertheless maintained that the reform was necessary and said Tinubu should be supported and commended for taking what he described as a courageous decision.
