Subsidy Removal Best Thing To Happen To Nigeria — NRS Chairman Says

The chairman of the Nigeria Revenue Service (NRS), Zacch Adedeji, has described the removal of petrol subsidy as the best thing to have happened to Nigeria, commending President Bola Tinubu for taking the decision.

Adedeji made the remarks during an exclusive interview on Channels Television’s Sunday Politics programme, where he attributed several of the government’s reported economic gains to the subsidy removal.

According to him, the subsidy regime was financially unsustainable and had negatively affected the country’s economy despite remaining in place for decades.

“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 weighed down by an unsustainable petrol subsidy system, a poorly performing oil sector and a limited tax base.

He explained that the administration had consequently embarked on fundamental economic reforms aimed at addressing the structural weaknesses and repositioning the economy for sustainable growth.

The NRS chairman also urged Nigerians to assess the government’s economic policies based on their long-term impact rather than emotions, insisting that the reforms were necessary to tackle deep-rooted challenges.

He dismissed criticism of the policies, arguing that the administration had made significant changes to Nigeria’s economic structure which some of its critics might not yet fully recognise.

Adedeji further challenged individuals seeking to contest the 2027 presidential election to explain how they would address the country’s economic challenges differently if elected.

“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.

The NRS chairman maintained that retaining the subsidy would have imposed a much heavier strain on government finances, particularly against the backdrop of pressures in the global energy market and the Iran crisis.

He estimated that Nigeria’s subsidy expenditure could have climbed to about ₦53 trillion if the policy had remained in place, while the naira-dollar exchange rate could have deteriorated to as much as ₦3,500 per dollar.

Tinubu announced the removal of petrol subsidy during his inaugural address on May 29, 2023, a decision that immediately triggered a significant increase in petrol prices and contributed to rising transportation, food and production costs.

Although the reform has strengthened government revenues and increased allocations to the federal, state and local governments through the Federation Account, its effect on the cost of living has remained a major concern among Nigerians.