- Reveals Subsidy Bill Could Have Risen To ₦53tr, Exchange Rate ₦3,500/$1 Had Tinubu Not Removed Subsidy
- Defends Tax Reforms, Says We Are Taxing Prosperity, Not Poverty
The Executive Chairman of the Nigeria Revenue Service (NRS), Zaach Adedeji, has mounted a strong defence of President Bola Ahmed Tinubu’s economic policies, insisting that the administration’s reforms are laying the foundation for a stronger, more sustainable Nigerian economy.
Adedeji, speaking on Channels Television’s Sunday Politics programme monitored by TheMatrix Newspaper on August 9, 2026, said the government’s economic direction should be assessed against the structural challenges inherited by the administration, rather than through short-term difficulties associated with the ongoing reforms.
He argued that measures implemented under the Tinubu administration were designed to address longstanding weaknesses in Nigeria’s fiscal and revenue systems, improve transparency and strengthen the government’s capacity to finance development.
According to him, the reforms are gradually repositioning the economy by creating a more efficient revenue mobilisation framework and reducing the country’s dependence on volatile sources of government income.
Adedeji maintained that Nigeria could not achieve sustainable economic growth without undertaking difficult but necessary reforms.
Speaking pointedly on the fuel subsidy removal, he noted that the positive economic outcomes the government is recording are largely a result of the decision to remove the subsidy, which he described as unsustainable and detrimental to the country.
The NRS chairman 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).
“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.
According to him, those seeking to challenge the Tinubu administration 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.
The NRS chairman 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.
Painting a grim picture, Adedeji revealed that had the subsidy remained, Nigeria’s subsidy bill could have risen to about ₦53 trillion, while the exchange rate could have reached ₦3,500 to the dollar.
On the contentious tax reforms, he disclosed that the government’s tax reforms are not designed to extract more money from Nigerians but to create an environment in which businesses and individuals can prosper.
Adedeji said the focus of the NRS was to tax prosperity rather than poverty, stressing that increased revenue would naturally follow when businesses and individuals perform better.
Responding to concerns about the state of the economy, particularly amid weak household incomes and high levels of poverty, Adedeji said the revenue service was not focused on extraction.
“We are not there to extract, and that is Mr President’s policy. Honestly, our focus is not revenue. If you remember, Mr President’s cliché is that I am to tax prosperity. I don’t want to tax poverty. I’m to tax the fruit, not the seed, and I’m to tax the return, not investment.
“So, for us, it’s not extracting. We are not there to extract. And that is why Mr President is creating a conducive economic environment,” he said.
Adedeji explained that the revenue service’s interest was directly linked to the performance of businesses and individuals, saying higher earnings would translate into higher tax receipts.
“When business does well, the Nigerian revenue will do well, so we are not there to extract. That is not our focus. That is why you see more of my job as Chief Tax Officer is to make sure that businesses are doing well, because if you make 100 naira, I will take 30 naira. If you make 200, I will take 60. If you make 300, I will take 90.
“So, if I want to make more, I must work for you to make more. And that is why it is in the best interest of us in the Nigeria Revenue Service that businesses are doing well and individuals are doing well,” he said.
The NRS chairman also linked the government’s economic reforms to efforts to remove obstacles to business growth, citing reforms in the power sector and increased allocations to state governments.
He said states had a critical role to play in reducing poverty because of their proximity to the people, particularly in areas such as primary and secondary education. He also cited the establishment of the Nigerian Education Loan Fund (NELFUND) as part of the Federal Government’s intervention in areas that could help people improve their economic prospects.
“For us in Nigeria Revenue Service, it’s not about extracting. It’s about making the country prosperous. Mr President has said it publicly. We are not here to tax poverty. We are here to tax prosperity. That is what our duty is, to make sure people prosper. That is our responsibility,” he said.
