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The Chairman of the Nigeria Revenue Service, 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.
Adedeji spoke in an exclusive interview on Channels Television’s Sunday Politics programme.
According to him, the positive economic outcomes being recorded by the government are largely a result of the decision to remove the subsidy, which he described as unsustainable and detrimental to the country.
The NRS chairman said the subsidy regime had persisted for decades despite its negative impact on Nigeria’s economy.
“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 characterised by an unsustainable subsidy regime, an underperforming oil sector and a narrow tax base.
He argued that the administration had taken fundamental steps to address the structural challenges confronting the economy.
The NRS chairman said the government’s economic decisions should not be assessed based on emotions, insisting that the reforms were necessary to reposition the country’s economy.
Credit: The GUARDIAN
He also dismissed criticism of the reforms, saying the administration had fundamentally altered Nigeria’s economic structure in ways that some of its critics might not yet fully appreciate.
According to Adedeji, politicians seeking to challenge the Tinubu administration ahead of the 2027 elections should explain how they would handle the country’s economic challenges 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.
Subsidy Bill Could Have Reached ₦53 Trillion
The NRS chairman argued that retaining the subsidy would have placed an even greater burden on Nigeria’s finances.
According to Adedeji, if the subsidy had remained, Nigeria’s subsidy bill could have risen to about ₦53 trillion, while the exchange rate could have reached ₦3,500 to the dollar.
President Tinubu announced the removal of petrol subsidy in his inaugural address on May 29, 2023.
The decision triggered a sharp increase in petrol prices and contributed to higher transportation, food and production costs across the country.
The policy has also contributed to increased government revenues and higher allocations to the three tiers of government through the Federation Account.
While the reform has improved government finances, its impact on the cost of living has remained a major concern for Nigerians.
