The Chairman of the Nigeria Revenue Service, Zacch Adedeji, has defended President Bola Tinubu’s economic reforms, saying the removal of fuel subsidy and foreign exchange reforms are helping to stabilise Nigeria’s economy.
Adedeji made the remarks during an interview on Channels Television’s Sunday Politics. He said the Tinubu administration inherited an economy weighed down by fuel subsidy, an opaque foreign exchange market, weak oil production and a narrow tax base.
According to him, the government introduced the reforms to address these challenges and create a stronger foundation for economic growth.
Adedeji defends subsidy removal, FX reforms
The NRS chairman said the removal of fuel subsidy came alongside the unification of the foreign exchange market. He argued that both measures formed part of the government’s wider plan to stabilise the economy and correct structural problems.
Adedeji also pointed to developments in the domestic refining sector as evidence of changes following the reforms. He said Nigeria’s domestic refining capacity had grown from about 30,000 barrels per day before the reforms to about 700,000 barrels per day.
The NRS boss also said government revenue had increased from about N12tn to N40tn. He attributed the rise to improved revenue collection and other economic reforms introduced by the administration.
“We are taxing prosperity, not poverty,” Adedeji said.
He explained that the government expects higher revenue as businesses grow and become more profitable.
NRS chair speaks on tax reforms
Adedeji also defended the administration’s tax reforms, saying they were designed to expand the tax base. He said the reforms were not intended to place more pressure on poor Nigerians.
According to him, about 90 per cent of Value Added Tax revenue goes to the states. He argued that the system therefore helps strengthen the finances of state governments.
The NRS chairman said the government was also addressing other barriers to economic growth. He listed electricity, education, infrastructure and access to credit among the areas receiving attention.
Electricity, infrastructure reforms
Adedeji cited the Electricity Act as one of the measures aimed at changing the power sector. He said the law would allow greater participation by state governments and create more room for investment.
According to him, reliable electricity remains important for industrial growth and lower business costs. He also defended government spending on major infrastructure projects.
Adedeji said Nigerians should distinguish between budget allocations and actual funding for projects. He noted that the government must consider the long-term value of projects before releasing funds. He mentioned the Lagos-Calabar Coastal Highway and the Sokoto-Badagry Expressway among the major projects requiring substantial funding.
According to him, such projects can also create jobs and stimulate economic activity.
Adedeji acknowledges economic hardship
The NRS chairman acknowledged that many Nigerians have experienced hardship since the reforms began. He, however, said the government was focused on consolidating the gains from the policies.
Adedeji said the administration’s priority was to maintain economic stability while ensuring that the benefits eventually reach households. He also rejected claims that higher government revenue means the government is taking more money from poor Nigerians.
Instead, he said the government wants to expand economic activity and increase revenue through greater prosperity.
On youth unemployment, Adedeji said the government was supporting technical and vocational education. He also called for greater involvement from private companies in creating jobs for young Nigerians.
The NRS chairman further highlighted government credit programmes for small businesses and individuals. He said continued support for such programmes would help more Nigerians participate in economic activities.
Adedeji added that the new tax laws and other reforms would need time to produce their full impact.
He urged Nigerians to support the consolidation of the reforms, saying the government remained focused on energy security, education, infrastructure and economic growth. He maintained that the long-term goal was to build an economy that can generate prosperity without depending on unsustainable government interventions.
