Taiwo Oyedele, Chairman of the Presidential Committee on Tax Policy and Fiscal Reforms, has offered a sobering critique of Nigeria’s economic framework before the removal of petrol subsidies. Speaking at The Platform, an annual event hosted by Covenant Nation in Lagos, Oyedele described the pre-subsidy era as one of “window-dressed realities.”
Oyedele argued that subsidies on essentials such as fuel and electricity created a false sense of affordability while concealing the severe financial instability undermining Nigeria’s economy. “We were living in window-dressed realities,” he declared. “If you look back about two years, the naira exchange rate was N450, but was it really N450? Petrol was under N200 per litre, but was it really under N200 per litre?”
He likened the situation to a parent enrolling their child in an unaffordable school, emphasising the dangers of masking fiscal incapacity. Oyedele explained that the government-funded subsidies distorted true economic values and contributed to Nigeria’s financial crisis.
“A country can afford to sell petrol at N200 per litre if it is sustainable, but there’s everything wrong if you cannot afford it,” he said. “We spent all our revenues servicing debts while borrowing at high-interest rates to run the economy and finance these subsidies. It was unsustainable.”
The reliance on loans, he added, brought Nigeria dangerously close to economic collapse, drawing parallels to countries like Sri Lanka and Venezuela, where fuel shortages and crippling debt sparked social upheaval.
“In Sri Lanka, you would hold money but couldn’t buy fuel,” he noted. “There was even a rule against driving every day because there wasn’t enough petrol. That’s where we were headed.”
Critiquing the perception of Nigeria’s economic strength, Oyedele revealed that the nation’s real GDP growth over the past decade was less than 10%. When adjusted for inflation, the growth was effectively negative.
“Our GDP of $450 billion and per capita income of $2,000 might look substantial, but these figures don’t reflect reality. Over the past 10 years, our GDP growth was weak—less than 10%, and in real terms, it was negative.”
The prolonged illusion of stability, he argued, prevented meaningful economic development.
Oyedele emphasised that the removal of petrol subsidies is a decisive step towards fiscal accountability, even though the transition has been painful for citizens. According to him, the decision has stripped away the false façade of affordability, laying bare the true economic challenges.
“Removing subsidies is the best decision we made as a country. For once, we can say the subsidy is gone,” he affirmed.
Looking to the future, Oyedele stressed the importance of comprehensive tax reforms in stabilising Nigeria’s economy. The Presidential Committee on Fiscal Policy and Tax Reforms aims to complete the approval process for tax bills by 2025, with plans for phased implementation beginning in mid-2025.
“Our expectation is to finalise reforms before the end of Q1, allowing us to give taxpayers adequate notice,” he explained.