FUEL SUBSIDY COULD HAVE HIT ₦53TN WITHOUT TINUBU’S REFORM — NRS CHAIR

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 naira potentially weakening to ₦3,500 per dollar, if the subsidy regime had remained in place.

Adedeji made the claim during an interview on Channels Television’s Sunday Politics, while defending President Bola Tinubu’s economic reforms.

He described the removal of petrol subsidy as one of the best decisions taken for Nigeria, arguing that it helped prevent a much heavier financial burden on the government.

According to him, Tinubu inherited an economy affected by an unsustainable subsidy regime, a weak oil sector and a narrow tax base.

Adedeji argued that retaining the subsidy would have placed enormous pressure on government finances, particularly amid rising global energy prices and geopolitical tensions.

He said the subsidy bill could have reached ₦53 trillion, while the exchange rate could have weakened to approximately ₦3,500 to the dollar.

The NRS chairman also defended the administration’s exchange-rate reforms, urging Nigerians to evaluate the government’s economic policies based on their long-term impact rather than emotions.

He challenged politicians seeking to defeat Tinubu in the 2027 presidential election to explain what they would do differently to address the country’s economic challenges.

Adedeji questioned whether critics believed the removal of the fuel subsidy and the unification of exchange rates were wrong policies.

President Tinubu announced the removal of the petrol subsidy during his inauguration on May 29, 2023, declaring that “fuel subsidy is gone.”

The policy immediately triggered a significant increase in petrol prices and contributed to higher transportation, food and production costs across the country.

However, the reform has also increased government revenues and boosted allocations to the Federal, State and Local Governments through the Federation Account, while the resulting cost-of-living pressures remain a major concern for Nigerians.