Fuel subsidy could have hit ₦53tn without Tinubu’s reform – NRS chair

Nigeria's petrol subsidy bill could have ballooned to approximately ₦53 trillion, with the exchange rate potentially weakening to ₦3,500 to the dollar, had President Bola Tinubu's economic reforms not been implemented. This assertion was made by Zacch Adedeji, Chairman of the Nigeria Revenue Service (NRS), in a defense of the administration's economic policies.

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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.

Adedeji described the removal of the petrol subsidy as the most beneficial decision for Nigeria, stating it has directly contributed to the positive economic outcomes currently being observed. He characterized the subsidy as "evil" and a long-standing burden on the country. According to Adedeji, President Tinubu inherited an economy struggling with an unsustainable subsidy regime, an underperforming oil sector, and a narrow tax base.

He contended that maintaining the subsidy would have exacerbated the country's financial difficulties, particularly given global energy market pressures and the Iran crisis. Adedeji urged Nigerians to evaluate the administration's economic decisions objectively, without emotional bias, and challenged potential political opponents to present alternative solutions to the nation's economic challenges.

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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?’

President Tinubu announced the termination of the petrol subsidy on May 29, 2023, which led to an immediate increase in petrol prices and subsequent rises in transportation, food, and production costs. Despite these challenges, the NRS boss noted that the policy has also boosted government revenues and increased allocations to the three tiers of government. However, the impact on the cost of living remains a significant concern for many Nigerians.

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fuel subsidy is gone.