Petrol Subsidy Could Have Reached ₦53tn, Dollar Rate ₦3,500

Petrol Subsidy Could Have Reached ₦53tn, Dollar Rate ₦3,500 – NRS chair
He said subsidy costs could have reached ₦53 trillion.
Adedeji also projected ₦3,500 dollar exchange rate without reforms.

The Chairman of the Nigeria Revenue Service, Zacch Adedeji, has said Nigeria’s petrol subsidy bill could have risen to about ₦53 trillion, while the exchange rate could have weakened to ₦3,500 to the dollar if the subsidy had remained.

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EKO HOT BLOG reports that Adedeji made the claim during an interview on Channels Television’s Sunday Politics, where he defended President Bola Tinubu’s economic reforms.

He described the removal of petrol subsidy as the best thing to have happened to Nigeria, arguing that the policy had contributed to the positive economic outcomes recorded by the government.

“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,” he said.

Adedeji said Tinubu inherited an economy affected by an unsustainable subsidy regime, an underperforming oil sector and a narrow tax base.

He argued that retaining the subsidy would have placed additional pressure on government finances, particularly amid developments in the global energy market and the Iran crisis.

According to him, the subsidy bill could have reached about ₦53 trillion, while the exchange rate could have weakened to ₦3,500 to the dollar.

The NRS chairman also defended the government’s exchange rate reforms and urged Nigerians to assess the administration’s economic policies based on their outcomes rather than emotions.

He challenged those seeking to defeat Tinubu in the 2027 presidential election to explain how they would handle the country’s 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.

Tinubu announced the removal of petrol subsidy during his inaugural address on May 29, 2023, with the decision leading to a sharp increase in petrol prices and higher transportation, food and production costs.

The policy has also increased government revenues and allocations to the three tiers of government through the Federation Account, although its impact on the cost of living has remained a major concern.