Economic reforms prevented many Nigerians from falling into poverty — Zach Adedeji 

Zach Adedeji: Many Nigerians would have fallen into poverty without economic reforms

Zacch Adedeji, chairman of the Nigeria Revenue Service (NRS), says many more Nigerians would have fallen into poverty if the federal government did not implement its economic reforms.

Adedeji spoke on Channels Television’s Politics Today monitored by TheCable on Sunday.

The chairman said the impact of the reforms should be assessed based on the progress made from the situation inherited by the President Bola Tinubu administration.

“If you remember where we are coming from… if we’ve not done what we are supposed to do, possibly double of that population will have gone to poverty, and I’m telling you that progress is what we should measure,” he said.

Adedeji said state governments are no longer heavily reliant on federal support to pay salaries, while more civil servants are benefiting from improved access to credit.

He also cited the student loan scheme as an example of how the government’s policies have benefited ordinary Nigerians.

“Before now, nobody talks about student loan. Based on the last check, more than one million students in 300 higher institutions have been disbursed more than N303 billion to them in the last three years. This has never been in existence,” Adedeji said.

The NRS boss said the foreign exchange market reforms had also helped to improve capital inflows by eliminating distortions created by multiple exchange rates.

He said the disparity between the official and parallel market exchange rates previously discouraged investors from bringing capital into the country.

“When you have exchange rate at N463 and the official rate is roughly at N1,200, you have zero capital importation,” he said.

The chairman said the decision to unify the exchange rate system had since improved the environment for businesses, adding that this is reflected in the financial performance of companies operating in Nigeria.

‘REFINERY OPERATIONS WOULD NOT HAVE WORKED WITHOUT SUBSIDY REMOVAL’

Adedeji also said the removal of petrol subsidy was necessary to ensure domestic refineries were operating.

The NRS chair said Nigeria’s refining capacity had increased from about 30,000 barrels per day before the Tinubu administration to about 700,000 barrels per day.

“If Mr. President had not removed subsidy, there is no way [the] refinery will work,” he said.

According to Adedeji, the availability of domestic refining capacity had also helped shield Nigeria from disruptions in the global oil market.

He said Tinubu deserves support and commendation for taking courageous decisions “to be a state man and not a politician.”

Zach Adedeji