Nigeria's inflation rate could have surged to as high as 120 per cent if not for the sweeping economic reforms implemented by the Federal Government, stated Zacch Adedeji, Executive Chairman of the Nigeria Revenue Service (NRS). Adedeji made these remarks in Abuja during the commissioning of the NRS headquarters, emphasizing that the reforms have helped stabilize prices and restore macroeconomic balance.
He noted that the country was at a critical economic turning point before the reforms, with rising inflation, fiscal imbalances, and structural distortions threatening stability. Adedeji highlighted that the current inflation rate is around 15 per cent and declining.
The NRS chairman identified three key reforms as central to reversing the country’s economic trajectory: fuel subsidy removal, exchange rate unification, and the naira-for-crude initiative. He explained that these policy shifts represented a comprehensive reset of the nation’s economic framework, driven by difficult but necessary decisions.
Data presented during his address indicated that without these policies, inflation could have ranged between 75 per cent and 120 per cent annually. Adedeji warned that retaining the fuel subsidy would have severely distorted public finances, estimating 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.
Regarding the foreign exchange market, Adedeji stated that the unification of rates eliminated distortions that previously fueled inflationary pressures and arbitrage. He pointed out that prior to the reforms, the official exchange rate fluctuated between N460 and N700 to the dollar, while the parallel market traded between N3,500 and N4,500, widening price instability.
The reforms have reportedly stabilized the exchange rate, improved investor confidence, and reduced inflationary pressures. Furthermore, Nigeria’s external position has strengthened, with net reserves rising significantly to about $34bn from below $2bn before the reforms.
Adedeji also highlighted improvements in fiscal performance, with domestic revenue collections increasing from approximately N6.8 trillion five years ago to N28.7 trillion in 2025. This growth is attributed to tax reforms and improved compliance, with over 60 fragmented tax laws streamlined into a more coherent system.
In the energy sector, the naira-for-crude initiative has helped reposition the sector from a fiscal burden to a stabilizing force. President Bola Tinubu, in his keynote address, echoed these sentiments, stating that the economic reforms were deliberate steps to restore stability, strengthen institutions, and rebuild public confidence. He emphasized that the reforms were necessary to address long-standing weaknesses in the country’s revenue system and economic management.
Tinubu noted that early outcomes from the reforms include improved fiscal stability, stronger foreign reserves, a more efficient trade ecosystem, and increased investor confidence. The commissioning of the NRS headquarters was described as a milestone symbolizing institutional renewal and the government’s commitment to long-term fiscal discipline.
Meanwhile, Rauf Aregbesola, former Minister of Interior and National Secretary of the African Democratic Congress (ADC), has called for President Bola Tinubu's resignation, describing the “Renewed Hope” agenda as a scam. Aregbesola cited worsening insecurity and economic hardship, claiming the exchange rate has devalued to about N1,400 to the dollar from N700, and fuel prices have risen significantly. He also criticized the power supply situation and the increase in out-of-school children, stating that the country is drifting into hopelessness.
