Nigeria’s foreign exchange reforms are beginning to reshape the country’s economy, with the Chairman of the Nigeria Revenue Service, Zacch Adedeji, saying the measures have helped restore stability after years of deep-rooted economic distortions. Speaking on Channels Television’s Sunday Politics, Adedeji said the reforms, alongside the removal of the petrol subsidy, were necessary to create a more sustainable economic system.
According to him, the government inherited an economy weighed down by multiple foreign exchange windows, an unsustainable fuel subsidy regime, weak oil-sector performance and a narrow revenue base. He explained that unifying the foreign exchange market was particularly important because the previous system created distortions and made it difficult for businesses and investors to determine the true value of transactions.
Adedeji acknowledged that the reforms brought significant pressure on households and businesses in their early stages, but argued that they are now producing wider changes across the economy. He pointed to the rise in domestic refining capacity, which he said has grown from about 30,000 barrels per day before the reforms to roughly 700,000 barrels per day. He also said government revenue had climbed from around N12tn to N40tn, attributing the increase to stronger revenue mobilisation and broader economic reforms.
The NRS chairman also defended the government’s tax reforms, insisting that the goal is not simply to collect more money from Nigerians but to expand economic activity and build a stronger tax base. “We are taxing prosperity, not poverty,” he said, while highlighting reforms in electricity, infrastructure, agriculture and access to credit. He argued that improved electricity supply, for example, could reduce production costs and make Nigerian businesses more competitive.
While admitting that Nigerians have faced real hardship during the adjustment period, Adedeji said the government is now focused on consolidating the gains of the reforms. He cited major infrastructure projects, including the Lagos-Calabar Coastal Highway and Sokoto-Badagry Expressway, as investments capable of creating jobs and stimulating economic activity. He added that support from institutions such as the Bank of Agriculture and Bank of Industry would help expand production and access to finance, as the administration works to move the economy from short-term adjustment towards longer-term growth.
source: punch
