By Oluwakemi Kindness
The Chairman of the Nigeria Revenue Service (NRS), Zacch Adedeji, says Nigeria’s petrol subsidy bill could have risen to about ₦53 trillion if the government had retained the policy.
Adedeji also claimed that the naira could have weakened to about ₦3,500 to the dollar if the subsidy regime had continued.
He made the claims while speaking on a National Television on Sunday.
The NRS chairman 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 said the subsidy was unsustainable and had imposed a heavy burden on the country’s finances for decades.
He attributed what he described as positive economic outcomes under the Tinubu administration largely to the subsidy removal.
According to him, the reform has contributed to increased government revenues and higher allocations to the three tiers of government through the Federation Account.
Adedeji said Tinubu inherited an economy characterised by an unsustainable subsidy regime, an underperforming oil sector and a narrow tax base.
He said the administration had taken fundamental steps to address what he described as Nigeria’s structural economic challenges.
The NRS chairman also challenged presidential aspirants preparing for the 2027 elections to explain how they would handle the country’s economic challenges differently.
He specifically questioned whether critics of the administration believed it was wrong to remove petrol subsidy and unify the exchange rate.
Adedeji urged Nigerians to assess the government’s economic reforms based on their outcomes rather than emotions.
However, the subsidy removal has also increased the cost of living, with higher petrol prices contributing to increased transportation, food and production costs.
Tinubu announced the removal of petrol subsidy during his inaugural address on May 29, 2023, triggering a sharp increase in petrol prices.
While the reform has strengthened government finances, its impact on household costs remains a major concern and continues to fuel debate over the government’s economic policies.
