Subsidy Removal Best Thing for Nigeria, NRS Chairman Says.
Zacch Adedeji, chairman of the Nigeria Revenue Service, said the removal of the petrol subsidy was the best thing to have happened to Nigeria and that President Bola Tinubu deserves commendation for the decision.
Adedeji spoke in an exclusive interview on Channels Television’s “Sunday Politics” program broadcast Aug. 9, 2026. He said the government’s positive economic outcomes largely resulted from the subsidy removal, which he called unsustainable and detrimental to the country.
Adedeji: Subsidy was ‘evil’
Adedeji said the subsidy regime had persisted for decades despite its negative impact on the economy. “All the good results that I will reel out soon come as a result of that courageous decision (subsidy removal).
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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.
Tinubu inherited economic challenges
Adedeji said Tinubu inherited an economy characterized 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. The government’s economic decisions should not be assessed based on emotions, he said, insisting that the reforms were necessary to reposition the economy.
Critics challenged
Adedeji dismissed criticism of the reforms, saying the administration had fundamentally altered Nigeria’s economic structure in ways that some critics might not yet fully appreciate. He said those seeking to challenge Tinubu ahead of the 2027 elections should explain how they would handle the 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.
Cost of retaining subsidy
Adedeji argued that retaining the subsidy would have placed an even greater burden on the country’s finances, particularly amid the economic pressures triggered by the global energy market and the Iran crisis. According to him, had the subsidy remained, Nigeria’s subsidy bill could have risen to about 53 trillion naira, while the exchange rate could have reached 3,500 naira to the dollar.
Background: Subsidy removal impact
Tinubu announced the removal of petrol subsidy in his inaugural address on May 29, 2023, triggering a sharp increase in petrol prices and contributing to higher transportation, food and production costs.
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.
