…Says Reforms Create Over 900 Millionaires, Boost Market Value
The Executive Chairman of the Nigeria Revenue Service, Zacch Adedeji, has said more Nigerians would have fallen into poverty if President Bola Tinubu had not implemented his economic reforms.
Adedeji, who spoke on Channels Television’s Politics Today on Sunday, challenged claims that the Tinubu administration had worsened the economic condition of Nigerians, arguing that the government inherited an economy with serious structural problems that required difficult reforms.
According to him, the impact of the reforms should be measured against the condition of the economy when the administration assumed office and the progress recorded since then.
He said, “If we’ve not done what we’re supposed to do, possibly double of that population will have gone to poverty.”
The NRS boss was responding to references to poverty statistics indicating that a significant proportion of Nigerians were living below the national poverty line and millions faced food insecurity.
Adedeji argued that the administration’s reforms had begun to create the conditions for stronger investment, employment and economic growth, insisting that the benefits should not be assessed solely through short-term household pressures.
He cited developments in the capital market, saying market capitalisation had risen from about N30tn to N150tn under the administration.
He also claimed that the increase had created more than 900 millionaires, as investors and shareholders benefited from the performance of listed companies.
The NRS chairman said the performance of businesses was another indication that the reforms were beginning to produce results, noting that corporate earnings had increased significantly.
“When big companies, big corporations are doing well, they are the ones to recruit, and that is the real economy,” he said.
Adedeji also pointed to the recapitalisation of the banking sector, saying banks had raised about N4.6tn following the Central Bank of Nigeria’s directive, with approximately 75 per cent of the funds coming from domestic investors.
He further cited the oversubscription of Aliko Dangote’s N1.2tn private placement as evidence of renewed confidence in Nigeria’s investment environment.
According to him, the government’s reforms were aimed at first stabilising the fundamentals of the economy before their wider benefits could be felt by households.
He said the administration had also introduced interventions such as the student loan scheme and the Credit Corps to provide access to finance and education for Nigerians.
Adedeji said more than one million students in about 300 higher institutions had benefited from student loans, with more than N303bn disbursed in the last three years.
He also defended the removal of the petrol subsidy, arguing that the policy was necessary to create an environment in which private refineries could operate profitably.
The NRS boss said Nigeria’s refining capacity had increased significantly, adding that the country was on course to become a net exporter of Premium Motor Spirit.
He argued that increased domestic refining would create employment, conserve foreign exchange and reduce Nigeria’s vulnerability to international oil market shocks.
On government revenue, Adedeji said monthly allocations to the three tiers of government had increased substantially since the Tinubu administration came into office.
He said monthly allocations had risen from about N700bn in 2023 to approximately N4.5tn, representing an increase of about 530 per cent.
According to him, the increase had strengthened the finances of state governments and reduced their dependence on federal interventions to meet recurrent obligations.
He said the improved fiscal position of the states was another indicator that the reforms were beginning to have an impact beyond the federal government.
Adedeji also defended the administration’s foreign exchange reforms, saying the unification of exchange rates had helped restore investor confidence and improve capital inflows.
He argued that the previous wide gap between the official and parallel market exchange rates discouraged foreign investment because investors could not accurately determine the value of their returns.
According to him, the reforms have helped create a more predictable environment for businesses and contributed to improved corporate earnings.
Adedeji urged Nigerians to assess the administration’s performance based on verifiable economic data and its starting point, rather than general assertions about the state of the economy.
He also challenged political opponents to explain what they would have done differently if they believed the Tinubu administration’s approach was wrong.
“Ask them what will you do differently. It’s not about saying both,” he said.
The NRS boss maintained that the government’s immediate priority had been to stabilise the economy and create the foundation for sustainable growth, arguing that the benefits of such reforms would take time to fully filter through to households.
ENDS
