Subsidy Removal Saved Nigeria From ₦53trn Fuel Subsidy Burden, Says NRS Chairman

The Chairman of the Nigeria Revenue Service (NRS), Zacch Adedeji, has strongly defended the economic reforms of President Bola Ahmed Tinubu’s administration, arguing that the removal of fuel subsidy and other fiscal measures have significantly improved Nigeria’s financial position.

Adedeji, speaking during an interview with journalist Seun Okinbaloye on the program Sunday Politics, said the removal of the subsidy was one of the most consequential decisions taken by the Tinubu administration, warning that the cost of maintaining it could have risen to about ₦53 trillion amid developments in the global oil market and exchange-rate pressures.

According to him, the subsidy had existed for decades and had become unsustainable.

“Removal of subsidy is the best thing to have happened to this nation. Subsidy was evil and had been with Nigeria for decades,” Adedeji said.

He further argued that, without the subsidy removal, the naira-dollar exchange rate could have deteriorated to about ₦3,500 to $1. In comparison, the government would have faced an estimated ₦53 trillion subsidy bill under prevailing global conditions.

Adedeji also highlighted what he described as improvements in Nigeria’s fiscal position since the administration assumed office in 2023.

“When we came on board in 2023, the total monthly allocation was around ₦700 billion. Today we are sharing ₦4.5 trillion. That’s about 530%,” he said.

He recalled that, as a former commissioner of finance, he had witnessed periods when state governments frequently sought federal assistance to pay salaries and requested bailouts.

“I was a commissioner of finance 11 years ago. We used to come here looking for support to pay salaries and bailouts. How many times have you heard that happen in the last three years?” he asked.

The NRS chairman also presented an economic snapshot comparing key indicators from May 2023 with figures he attributed to the middle of 2026.

He said Nigeria’s domestic refining capacity had increased from 30,000 barrels per day in May 2023 to about 700,000 barrels per day by mid-2026, noting that the country recorded its first net petrol export in March 2026.

On tax revenue, Adedeji said collections under the former Federal Inland Revenue Service (FIRS), now NRS, increased from ₦12.3 trillion in May 2023 to ₦28.3 trillion in 2025, while the figure stood at ₦27.1 trillion as of July 2026.

He also cited an expansion in Nigeria’s trade balance, from a marginal ₦44.7 billion surplus in May 2023 to ₦7.55 trillion in the first quarter of 2026.

According to him, capital importation rose from US$3.9 billion in May 2023 to US$23.22 billion in 2025, while revenue from solid minerals increased from ₦16 billion to ₦70 billion over the period.

The NRS chairman further pointed to developments in the Nigerian capital market, saying the NGX All-Share Index had risen from 55,738 points in May 2023 to about 250,000 points, while market capitalisation increased from ₦30.36 trillion to ₦161 trillion.

He also cited a reduction in the estimated number of out-of-school children, from about 20 million in 2023 to between 18.3 million and 18.5 million, and an increase in the national minimum wage from ₦30,000 to ₦70,000.

Defending his comments that the country’s improving financial position would ultimately translate into better living conditions, Adedeji said the performance of the national economy should not be viewed separately from the welfare of citizens.

“If the balance sheet of Nigeria is getting better, so by extension, the lives of Nigerians are getting better,” he said.

The NRS chairman also rejected suggestions that President Tinubu maintains an extravagant lifestyle while Nigerians face economic hardship.

Responding to a question about perceptions that government officials “live large and in luxury,” Adedeji said the President’s personal habits did not reflect such allegations.

“Mr President goes from home to the office on foot, not even driving except when he is going to the airport. I don’t know where you see the convoy,” he said.

He also claimed that the President eats only once a day, in an apparent effort to counter allegations of an excessively lavish lifestyle.

Adedeji described Tinubu as a statesman who should receive support and commendation for undertaking difficult reforms.

“The greatest gift to this republic is the leadership of President Tinubu, because if not for him at that time, removing the subsidy, only God knows where we would be now.”

He urged Nigerians to assess potential presidential contenders based on the policies they would offer rather than simply making promises.

“What the President deserves now is support and commendation for being a statesman and not a politician. Anybody who says he is coming to the contest as president, just ask them: ‘What will you do differently?’” he said.