NRS Chairman Says Subsidy Removal Best Decision for Nigeria

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, saying President Bola Tinubu deserves commendation for taking the decision.

Speaking during an interview on Channels Television’s Sunday Politics, Adedeji said the positive economic outcomes being recorded by the government are largely linked to the removal of the subsidy, which he described as unsustainable and damaging to the country’s economy.

According to him, President Tinubu inherited an economy faced with an unsustainable subsidy regime, an underperforming oil sector and a narrow tax base. He said the administration’s reforms, including subsidy removal and the unification of the foreign exchange rate, were necessary to address structural challenges in the economy.

Adedeji argued that retaining the petrol subsidy would have placed a significantly greater burden on government finances, particularly amid pressures in the global energy market and the Iran crisis.

He estimated that Nigeria’s subsidy bill could have risen to about ₦53 trillion if the policy had remained, while the exchange rate could have reached ₦3,500 to the dollar.

The NRS chairman urged Nigerians to support the reforms and challenged those seeking to contest against the Tinubu administration in 2027 to explain what they would do differently.

President Tinubu announced the removal of petrol subsidy during his inaugural address on May 29, 2023. While the policy has increased government revenues and allocations to the three tiers of government, it has also contributed to higher transportation, food and production costs, with the resulting pressure on the cost of living remaining a major concern.