Fuel Subsidy Removal Was Nigeria’s Best Economic Decision, NRS Chairman Says

The Chairman of the Nigeria Revenue Service (NRS), Zacch Adedeji, has described the removal of petrol subsidy as one of the most important economic decisions taken by the administration of President Bola Tinubu, saying the president deserves commendation for the policy.

Adedeji made the statement during an interview on Channels Television’s Sunday Politics programme.

According to him, several of the economic gains being recorded by the Federal Government are linked to the decision to end the subsidy regime, which he described as financially unsustainable and harmful to Nigeria’s economy.

He argued that the subsidy had existed for decades and placed a significant burden on government finances without adequately addressing the country’s structural economic challenges.

“All the good results that I will reel out soon come as a result of that courageous decision. So, it is not a mistake; it is the best thing that has happened to this country,” Adedeji said.

The NRS chairman said Tinubu inherited an economy affected by an unsustainable fuel subsidy system, a struggling oil sector and a narrow revenue base. He added that the administration had introduced major reforms aimed at addressing these problems.

Adedeji also urged Nigerians to assess the government’s economic policies based on their long-term impact rather than emotions, arguing that the reforms were necessary to reposition the Nigerian economy.

He challenged politicians seeking to contest against Tinubu in the 2027 presidential election to explain what they would do 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?’” he said.

According to Adedeji, maintaining the fuel subsidy would have placed an even greater strain on Nigeria’s finances, particularly amid pressures in the global energy market and the Iran crisis.

He claimed that if the subsidy had remained in place, Nigeria’s subsidy bill could have risen to about ₦53 trillion, while the exchange rate could have deteriorated to around ₦3,500 to the US dollar.

President Tinubu announced the removal of the petrol subsidy during his inaugural address on May 29, 2023. The decision immediately triggered a sharp increase in petrol prices and contributed to higher transportation, food and production costs across the country.

While the policy has increased government revenues and boosted allocations to the federal, state and local governments through the Federation Account, the rising cost of living remains a major concern for many Nigerians.

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