The Executive Chairman of the Nigeria Revenue Service, Zacch Adedeji, has revealed that Nigeria would have spent about N52 trillion on fuel subsidy in 2026, representing roughly 76 percent of the proposed N68 trillion national budget, if the subsidy regime had not been removed.

Adedeji made the disclosure on Tuesday during the commissioning of the Nigeria Revenue Service headquarters in Abuja, where he defended the federal government’s decision to eliminate fuel subsidy as a necessary step to restore fiscal stability.

He explained that the subsidy burden, which had grown significantly in previous years, would have left the government with limited fiscal space for critical sectors such as infrastructure, education, healthcare, and security. According to him, sustaining the policy would have further increased borrowing and deepened pressure on public finances.

The NRS boss argued that the removal of fuel subsidy has significantly improved Nigeria’s fiscal outlook, reducing wasteful spending and allowing for more efficient allocation of national resources.

He added that ongoing economic reforms are beginning to strengthen revenue generation and improve government capacity to fund development priorities.