Solomon Adeola: Subsidy removal, tax reforms will save Nigeria N10trn annually

Senator Solomon Adeola, representing Ogun West (also known as Yayi), has stated that the removal of the fuel subsidy and implementation of tax reforms under President Bola Tinubu’s administration will save Nigeria more than ₦10 trillion annually. He made this claim while responding to critics during his thanksgiving service in Ilaro, Ogun State. 

According to Adeola, Nigeria was previously spending heavily to sustain the petrol subsidy, with monthly borrowings of between ₦7 billion and ₦8 billion adding up to around ₦10 trillion a year. He argued that subsidy removal has taken a significant financial burden off the government and allowed for more predictable economic planning. 

Adeola described the reforms including tax changes as necessary steps toward economic stability and growth. He suggested that Nigerians would begin to feel the positive effects more fully over time. The senator also rejected claims of disagreement between the National Assembly and the executive on tax reform, saying any adjustments are being made transparently in the country’s interest. 

To illustrate the practical use of the savings and reforms, Adeola pointed to major infrastructure projects like the Lagos–Calabar Coastal Road and the Sokoto–Badagry Highway, saying they reflect the administration’s long-term development agenda. 

Ending the fuel subsidy potentially frees up government funds previously used to subsidise petrol, allowing for reallocation to other sectors. 

According to the senator, the economy is now more predictable and better positioned for planning across sectors. 

While government officials defend the reforms as necessary, public debate remains active on the pace and social impact of subsidy removal and wider tax policy changes.