Tinubu's Subsidy Reform Could Have Cost Nigeria ₦53tn

Zacch Adedeji, the Chairman of the Nigeria Revenue Service, stated in an interview on Channels Television’s Sunday Politics that Nigeria's petrol subsidy bill could have escalated to approximately ₦53 trillion if the subsidy had not been removed. He defended President Bola Tinubu's economic reforms, asserting that the removal of the petrol subsidy was a crucial decision that has led to positive economic outcomes.

Adedeji described the subsidy as detrimental and noted that Tinubu inherited an economy burdened by an unsustainable subsidy regime, an underperforming oil sector, and a narrow tax base. He emphasized that retaining the subsidy would have severely impacted the country's finances, especially amid global energy market pressures.

Adedeji also urged Nigerians to evaluate the administration's economic decisions rationally and questioned those who plan to contest in the 2027 elections about their alternative solutions to the economic challenges. Tinubu announced the removal of the petrol subsidy on May 29, 2023, which resulted in increased petrol prices and heightened costs of living.