Zacch Adedeji, the head of the Nigeria Revenue Service, announced on Tuesday that without significant economic changes made by the government, inflation in Nigeria could have reached an alarming level of up to 120 percent.

He shared this insight during the opening of the new NRS headquarters in Abuja, emphasizing that these changes were critical for stabilizing prices and restoring economic order.

Adedeji explained, “If we hadn’t taken these steps, Mr. President, inflation would have been between 75 and 120 percent. Right now, it’s about 15 percent and starting to go down.”

He pointed out that before these reforms, Nigeria was dealing with serious economic issues, including high inflation, budget problems, and challenges in key sectors. “When this administration came into power, Nigeria faced a crucial time with limited funds, low investor confidence, and structural issues,” he noted.

Adedeji explained that the changes made were not simply minor adjustments but a complete redesign of the country’s economic strategies, requiring tough but necessary decisions.

He highlighted three key reforms: ending the fuel subsidy, standardizing the exchange rate, and a new approach to trading naira for crude oil. These reforms were essential in changing the country’s economic direction. According to information he shared, without these actions, inflation could have skyrocketed to between 75 percent and 120 percent each year, compared to the current level of about 15 percent.

He also warned that keeping the fuel subsidy would have caused major financial problems for the government. For instance, if oil prices were $120 per barrel, the cost of the subsidy might have reached between N38 trillion and N52 trillion each year, using up to 76 percent of the government’s total budget of N68 trillion.

The Nigerian government removed fuel subsidies, which accounted for a significant portion of its budget—approximately N52 trillion out of N68 trillion, or 76 percent of total spending. This move is seen as a crucial step towards improving the country’s financial health rather than just a straightforward policy adjustment.

In the foreign exchange market, recent developments have aligned the exchange rates, helping to eliminate the discrepancies that previously fueled inflation and allowed individuals to profit from price differences. Prior to these changes, the official exchange rate for the naira (N) ranged from N460 to N700 per dollar, while in the parallel market, it soared to between N3,500 and N4,500. This led to price volatility across the economy.

These reforms have been commended for stabilizing the exchange rate, enhancing investor confidence, and curbing inflation. The chairman of the National Revenue Service noted that these adjustments have significantly improved Nigeria’s financial landscape, with national reserves rising to around $34 billion—up from projections that suggested they would dip below $2 billion without the reforms.

Additionally, the country has seen impressive advancements in its financial situation. Thanks to new tax reforms and improved enforcement, domestic revenue has surged, climbing from about N6.8 trillion five years ago to N28.7 trillion in 2025. Over 60 outdated tax laws have been streamlined into a more efficient system, making it easier for taxpayers to comply without feeling overwhelmed.

He also pointed out progress in managing public finances, including better monitoring of government spending, greater openness about financial activities, and the introduction of a system called the National Single Window to streamline trade processes.

In the energy sector, he shared that a new program allowing payments in local currency for oil has changed the situation. This initiative has turned a financial burden into a stable support system, helping to improve supply and reducing pressure on foreign currency resources.

Adedeji described the opening of the new headquarters for the National Revenue Service (NRS) as a key moment for Nigeria’s efforts to improve its systems, showing the government’s dedication to good financial practices. The new building, which includes three towers and 16 floors, will house over 3,000 workers and serve as a hub for managing taxes and improving how the government operates.

He pointed out that the tough reforms being implemented are laying the foundation for lasting growth and better governance. During the event, President Bola Tinubu explained that these changes are aimed at bringing stability to the economy, strengthening government institutions, and rebuilding the public’s trust.

The President highlighted that the reforms, which focus on improving fiscal policies and taxes, are essential to fixing problems in how the government collects revenue and manages the economy. He stressed that a serious country cannot succeed with a broken revenue system and pointed out the importance of being transparent and efficient. Tinubu noted that the bold steps taken so far have already led to positive results, including greater financial stability, increased external reserves, and renewed confidence from investors.

“Nigeria is on a positive path toward better financial management, more savings from foreign countries, and increased trust from investors,” the President said during the opening of the Nigeria Revenue Service (NRS) headquarters. He pointed out how important it is to have strong institutions for the country’s growth and encouraged the revenue service to prioritize both accountability and the collection of funds.

President Tinubu also reiterated his dedication to reforms that aim to reshape Nigeria’s economy in a way that benefits everyone.

Dr. Taiwo Oyedele, who spoke on behalf of the Minister of Finance, explained that the ongoing financial reforms are helping Nigeria improve its way of managing revenue for the future. He described the opening of the NRS headquarters as a significant step forward, marking improvements in how the country handles tax collection and management, which have struggled in the past. These changes are leading to stronger revenue systems, better tax collection, and overall economic development.