Nigeria's Inflation Could Reach 120% Without Reforms

Zacch Adedeji, the Executive Chairman of the Nigeria Revenue Service, addressed the impact of economic reforms on inflation in Nigeria, stating that without these reforms, inflation could have surged to between 75% and 120%. Currently, inflation stands at approximately 15%.

Adedeji emphasized that the reforms were crucial in stabilizing prices and restoring macroeconomic balance, particularly in light of the fiscal imbalances and structural distortions that threatened economic stability when the current administration took office. He identified three key reforms: the removal of fuel subsidies, the unification of the exchange rate, and the crude oil initiative.

Adedeji noted that the cost of fuel subsidies could reach N52 trillion against a federal budget of N68 trillion, stressing the need to eliminate these subsidies to alleviate fiscal pressure. He also mentioned improvements in domestic revenue collection due to tax reforms, projecting an increase from N6.8 trillion five years ago to N28.7 trillion by 2025.

Adedeji concluded by highlighting the government's commitment to long-term fiscal discipline.