Nigeria's economic reforms prevented 120% inflation surge, says Revenue Service Chairman
via Punch Nigeria9 hours ago5 min read
Zacch Adedeji, the Executive Chairman of the Nigeria Revenue Service, stated that without the Federal Government's economic reforms, inflation in Nigeria could have reached between 75% and 120%, compared to the current rate of approximately 15%. Speaking at the commissioning of the NRS headquarters in Abuja, Adedeji highlighted that these reforms stabilized prices and restored macroeconomic balance. He identified the removal of fuel subsidies, exchange rate unification, and the naira-for-crude initiative as crucial to reversing the country's economic trajectory. Adedeji warned that retaining the fuel subsidy would have led to payments of N38tn to N52tn annually, consuming up to 76% of the N68tn federal budget. He also noted that exchange rate unification eliminated distortions that fueled inflationary pressures and arbitrage, with the official rate previously ranging from N460 to N700 to the dollar, while the parallel market traded between N3,500 and N4,500. The reforms have strengthened Nigeria’s external position, with net reserves rising to about $34bn from below $2bn. Domestic revenue collections increased from N6.8tn five years ago to N28.7tn in 2025 due to tax reforms and improved compliance. President Bola Tinubu, in his keynote address, emphasized that these reforms were deliberate steps to restore stability, strengthen institutions, and rebuild public confidence, moving Nigeria towards discipline, transparency, and sustainable growth. Dr. Taiwo Oyedele, Minister of S
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Original source
This summary was AI-generated from a story originally published by Punch Nigeria.
