The Executive Chairman of the Nigeria Revenue Service, Zacch Adedeji, on Tuesday said inflation in Nigeria could have risen as high as 120 per cent without the sweeping economic reforms introduced by the Federal Government.
Adedeji stated this in Abuja during the commissioning of the NRS headquarters, noting that the reforms helped to stabilise prices and restore macroeconomic balance.
He said, “If you’ve not taken that decision, Mr President… the inflation will have been 75 to 120 per cent. Today, inflation is around 15 per cent and declining.”
The NRS chairman explained that the country was at a critical economic turning point before the reforms, with rising inflation, fiscal imbalances, and structural distortions threatening stability.
He stated, “When this administration assumed office, Nigeria faced a critical inflexion point, marked by constrained fiscal space, weakened investor confidence and structural distortions across key sectors.”
He noted that the policy shift was not incremental but a comprehensive reset of the nation’s economic framework, driven by difficult but necessary decisions.
Adedeji identified three key reforms—fuel subsidy removal, exchange rate unification, and the naira-for-crude initiative—as central to reversing the country’s economic trajectory.
Data presented during his address showed that without these policies, inflation could have surged to between 75 per cent and 120 per cent annually, compared to about 15 per cent currently.
He also warned that retaining the fuel subsidy would have severely distorted public finances, noting that at a $120 per barrel oil price, subsidy payments could have reached between N38tn and N52tn annually, consuming as much as 76 per cent of the Federal Government’s N68tn budget.
“Just imagine that N52tn out of N68tn would have gone to fuel subsidy. That would have been 76 per cent of total spending,” he said, stressing that the decision to scrap the subsidy was a fiscal necessity rather than a policy option.
On the foreign exchange market, Adedeji said the unification of rates eliminated distortions that previously fuelled inflationary pressures and arbitrage.
He noted that prior to the reforms, the official exchange rate ranged between N460 and N700 to the dollar, while the parallel market traded between N3,500 and N4,500, widening price instability across the economy.
According to him, the reforms have helped to stabilise the exchange rate, improve investor confidence, and reduce inflationary pressures.
The NRS chairman further said the reforms had strengthened Nigeria’s external position, with net reserves rising significantly compared to pre-reform levels.
“If you’ve not taken that decision, our net reserves would have been below $2bn. Today, they are about $34bn,” he added.
Adedeji also highlighted improvements in fiscal performance, stating that domestic revenue had risen sharply in recent years due to tax reforms and improved compliance.
He said revenue collections increased from about N6.8 trillion five years ago to N28.7 trillion in 2025, reflecting what he described as the impact of disciplined reforms and stronger governance.
Adedeji added that over 60 fragmented tax laws had been streamlined into a more coherent system, improving efficiency, predictability, and compliance without increasing the tax burden.
He also pointed to improvements in fiscal governance, including tighter controls on public financial flows, enhanced transparency, and the introduction of the National Single Window to modernise trade processes.
In the energy sector, he said the naira-for-crude initiative had helped reposition the sector from a fiscal burden to a stabilising force, supporting supply and reducing pressure on foreign exchange.
Adedeji described the commissioning of the NRS headquarters as a milestone in Nigeria’s reform journey, noting that the building symbolised institutional renewal and the government’s commitment to long-term fiscal discipline.
He added that the facility, comprising three towers and 16 floors, with capacity for over 3,000 staff, would serve as a centre of excellence for tax administration and public-sector efficiency.
The NRS chairman emphasised that the reforms, though difficult, had laid the foundation for sustainable growth, improved governance, and economic stability.
President Bola Tinubu, in his keynote address at the event, said the economic reforms undertaken by his administration were deliberate steps aimed at restoring stability, strengthening institutions, and rebuilding public confidence in governance.
He stated that the reforms were designed to move Nigeria away from uncertainty and place the economy on a path of discipline, transparency, and sustainable growth.
Tinubu noted that the reforms, including fiscal and tax restructuring, were necessary to address long-standing weaknesses in the country’s revenue system and overall economic management.
He said, “No serious nation can achieve lasting prosperity on a weak and fragmented revenue system. No government can demand trust from its citizens when its fiscal system is opaque, inefficient, or unjust.”
The president said his administration took “bold decisions” to eliminate distortions and create a more transparent and investment-friendly economic environment.
Tinubu said early outcomes from the reforms were already visible, citing improvements in fiscal stability, external reserves, and investor confidence.
“We are witnessing improved fiscal stability, stronger foreign reserves, a more efficient trade ecosystem, and increased investor confidence in Nigeria’s economic direction,” he said.
He described the commissioning of the NRS headquarters as more than a ceremonial event, saying it symbolised a broader institutional transformation within the public sector.
The president stressed that strong institutions were critical to national development, urging the Nigeria Revenue Service to go beyond revenue collection and focus on accountability and trust-building.
Tinubu added that the reforms were part of a long-term strategy to reposition Nigeria’s economy and ensure inclusive growth.
He reaffirmed his administration’s commitment to sustaining the reform agenda, noting that the goal was to deliver measurable improvements in governance and economic performance.
The Minister of State for Finance, Dr Taiwo Oyedele, who represented the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the ongoing fiscal reforms had begun to reposition Nigeria’s revenue system for long-term sustainability and growth.
Speaking at the event, Oyedele described the commissioning of the NRS headquarters as a major milestone in the country’s fiscal transformation, noting that it reflected bigger structural changes in revenue administration.
Oyedele noted that prior to the reforms, Nigeria’s fiscal system was constrained by fragmented tax laws, weak coordination, a low tax-to-GDP ratio, and a rising debt service burden, which limited the government’s capacity to mobilise revenue effectively.
He stated, “Before the reforms of this administration, Nigeria’s fiscal system faced structural challenges… Today, we are witnessing a different trajectory through decisive leadership.”
He said the reforms had led to stronger revenue institutions, improved collections, and a more coherent fiscal framework capable of supporting economic growth.
The minister added that the transformation of the Federal Inland Revenue Service into the Nigeria Revenue Service signified more than a name change, describing it as a shift towards stronger governance, accountability, and expanded mandates.