The Chairman of the Nigeria Revenue Service (NRS), Zacch Adedeji, has said Nigeria’s petrol subsidy bill could have risen to about ₦53 trillion, with the exchange rate weakening to ₦3,500 to the dollar, if the subsidy had not been removed.
Adedeji made the remarks in an exclusive interview on Channels Television’s Sunday Politics programme while defending President Bola Tinubu’s economic reforms.He described the removal of the petrol subsidy as “the best thing that has happened to this country,” arguing that it was a courageous decision that had delivered positive economic results.
“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 noted that Tinubu inherited an economy marked by an unsustainable subsidy regime, a struggling oil sector, and a narrow tax base. He argued that retaining the subsidy would have placed an even heavier burden on the country’s finances, especially amid global energy market pressures and the Iran crisis.
The NRS chairman also defended the government’s exchange-rate reforms and urged Nigerians to assess the administration’s economic policies without emotional bias. He challenged those planning to contest the 2027 elections to explain what they would do 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 end of the fuel subsidy in his inaugural address on May 29, 2023, leading to a sharp rise in petrol prices and higher costs for transportation, food, and production. While the policy has boosted government revenues and increased allocations to the three tiers of government, its impact on the cost of living remains a major concern for many Nigerians.
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