Amanze Chinonye
Nigeria could have faced an annual petrol subsidy bill of about N53 trillion under current market conditions if President Bola Tinubu had not scrapped the scheme, Nigeria Revenue Service Chairman Zacch Adedeji said, Prime Business Africa reports.
Adedeji said the subsidy was fiscally unsustainable and that its removal was the best economic decision for the country, despite the immediate increase in petrol prices and the resulting pressure on household and business costs.
Join our WhatsApp Channel“If you had continued subsidy, today, you would be paying about N53 trillion,” Adedeji said in an interview on Sunday, August 9, 2026 with Channels Television’s Sunday Politics programme.
READ ALSO :
The N53 trillion figure, which Adedeji presented as a projection, would amount to more than three-quarters of Nigeria’s N68 trillion 2026 federal budget, underscoring the scale of the fiscal burden he said the government avoided by ending the subsidy.
Adedeji argued that the subsidy regime required the government to purchase petrol at a higher cost and sell it below market value, creating a persistent drain on public finances.
“Subsidy is not an income. It is like you are borrowing money to buy a product for N10 and selling it at N3,” he said.
Tinubu announced the removal of the petrol subsidy in his inaugural address on May 29, 2023, triggering a sharp increase in petrol prices and raising transportation, food and production costs.
The policy has remained one of the most contentious elements of Tinubu’s economic reform programme. The government has maintained that ending the subsidy freed resources for public spending and increased revenues available for distribution to the federal, state and local governments.
READ MORE :
Nigerian Economy: Undergoing Quick Patches or 2027 Manifesto Packaging?
Critics, however, have argued that the reform placed a disproportionate burden on households and businesses at a time of elevated living costs.
Adedeji defended the subsidy removal as part of a broader effort to correct structural distortions in the economy, alongside foreign-exchange and tax reforms.
He also argued that the naira could have weakened substantially further had the previous policy framework remained in place, saying the exchange rate inherited by the Tinubu administration did not reflect market realities.
“All the good results that I will reel out soon come as a result of that courageous decision,” Adedeji said. “So, it is not a mistake; it is the best thing that has happened to this country.”
His comments come as the government seeks to consolidate its economic reforms while addressing concerns over inflation, household purchasing power and the wider cost-of-living crisis.
Adedeji said reversing the subsidy reform would risk recreating the fiscal pressures and market distortions that prompted its removal.
Amanze Chinonye is a Staff Correspondent at Prime Business Africa, a rising star in the literary world, weaving captivating stories that transport readers to the vibrant landscapes of Nigeria and the rest of Africa. With a unique voice that blends with the newspaper's tradition and style, Chinonye's writing is a masterful exploration of the human condition, delving into themes of identity, culture, and social justice. Through her words, Chinonye paints vivid portraits of everyday African life, from the bustling markets of Nigeria's Lagos to the quiet villages of South Africa's countryside . With a keen eye for detail and a deep understanding of the complexities of Nigerian society, Chinonye's writing is both a testament to the country's rich cultural heritage and a powerful call to action for a brighter future. As a writer, Chinonye is a true storyteller, using her dexterity to educate, inspire, and uplift readers around the world.
