The Executive Chairman of the Nigeria Revenue Service (NRS), Zacch Adedeji, stated on Tuesday that sweeping economic reforms by the Tinubu administration prevented Nigeria’s inflation from soaring as high as 120 percent.
Speaking during the commissioning of the new NRS headquarters in Abuja, Adedeji argued that the Federal Government’s recent policy shifts have stabilised prices and restored macroeconomic balance.
He noted that without these interventions, inflation could have surged to between 75 and 120 per cent, whereas current figures sit around 15 per cent and are declining.
Adedeji identified three central pillars driving this economic trajectory: the removal of the fuel subsidy, the unification of the exchange rate, and the “naira-for-crude” initiative.
He characterised the policy shift not as an incremental change but as a comprehensive reset of the nation’s economic framework.
Highlighting the fiscal necessity of subsidy removal, Adedeji warned that maintaining the subsidy would have severely distorted public finances.
The NRS boss noted that at an oil price of $120 per barrel, subsidy payments could have cost between N38 trillion and N52 trillion annually, consuming as much as 76 per cent of the Federal Government’s N68 trillion budget.
Regarding the foreign exchange market, the chairman stated that unifying rates eliminated the distortions and arbitrage that previously fuelled inflationary pressures.
He noted that before the reforms, the parallel market traded between N3,500 and N4,500 per dollar, while the official rate ranged between N460 and N700.
The reforms have also strengthened Nigeria’s external position. Adedeji reported that net foreign reserves have risen significantly from below $2 billion to approximately $34 billion.
Fiscal performance has also seen a marked improvement. Domestic revenue has climbed from approximately N6.8 trillion five years ago to a projected N28.7 trillion in 2025.
This growth, he noted, is attributed to the streamlining of over 60 fragmented tax laws into a coherent system, improving compliance without increasing the overall tax burden.
While delivering the keynote address, President Bola Tinubu described the reforms as deliberate steps to restore stability and rebuild public confidence in governance.
He emphasised that a transparent and efficient revenue system is essential for national prosperity, stating that the administration is committed to moving the economy toward discipline and sustainable growth.
Also speaking, the Minister of State for Finance, Taiwo Oyedele, noted that the transition from the Federal Inland Revenue Service (FIRS) to the Nigeria Revenue Service (NRS) signifies a major shift toward stronger governance and accountability.
The new NRS headquarters, which features three towers and 16 floors, is designed to accommodate over 3,000 staff and will serve as a center of excellence for tax administration and public-sector efficiency.
