Business
Tinubu’s subsidy removal, FX reforms, stabilising Nigeria’s economy
The Executive Chairman of the Nigeria Revenue Service (NRS), Zacch Adedeji, has defended President Bola Tinubu’s economic reforms, arguing that the administration deserves commendation rather than criticism for removing fuel subsidy and unifying the foreign exchange market.
Mr Adedeji spoke in an interview on Channels Television’s Sunday Politics.
He said the reforms were necessary because the Tinubu administration inherited an economy burdened by an unsustainable fuel subsidy regime, an opaque foreign exchange market, an underperforming oil sector and a narrow tax base.
According to him, the government’s decision to remove the subsidy was implemented alongside the unification of the foreign exchange market as part of broader efforts to stabilise the economy.
He pointed to several indicators which, he said, showed that the reforms had begun to change the structure of the Nigerian economy.
Mr Adedeji cited the growth in domestic refining capacity, saying it had increased from about 30,000 barrels per day before the reforms to about 700,000 barrels per day.
He also said government revenue had risen significantly, from about N12 trillion to N40 trillion, attributing the increase to improved revenue collection and broader economic reforms.
The NRS chairman said the administration’s objective was not to increase the burden on Nigerians but to create an environment in which businesses could grow and generate greater prosperity.
“We are taxing prosperity, not poverty,” he said, stressing that the government would ultimately collect more revenue when businesses become more profitable.
Mr Adedeji also defended the government’s tax reforms, saying they were designed to broaden the tax base and improve the business environment rather than extract more money from poor Nigerians.
He said about 90 per cent of Value Added Tax (VAT) revenue goes to the states, arguing that the reforms had therefore strengthened the finances of sub-national governments.
The NRS chairman said the government had also taken steps to address structural constraints to economic growth, including electricity supply, education, infrastructure and access to credit.
He cited the Electricity Act as one of the reforms intended to change the structure of the power sector by allowing greater state participation and creating room for investment.
According to him, reliable electricity is essential to industrialisation and reducing the cost of doing business.
Mr Adedeji also defended the administration’s infrastructure spending amid concerns over the pace of budget implementation.
He said there was a difference between budgeting and funding, arguing that the government could not simply release money without considering the strategic allocation of resources to projects with long-term economic benefits.
He cited the Lagos-Calabar Coastal Highway and the Sokoto-Badagry Expressway among major infrastructure projects requiring substantial funding.
He also linked infrastructure spending to employment, saying projects such as the coastal road and airport reconstruction would create jobs and stimulate economic activity.
The NRS chairman said the “government was also supporting agriculture through institutions such as the Bank of Agriculture and the Bank of Industry, to expand mechanised farming and improve production.”
Mr Adedeji acknowledged concerns about the hardship Nigerians had experienced since the reforms began, but argued that the government was focused on consolidating the gains already recorded.
He said the administration’s priority was to maintain economic stability while ensuring that the benefits of the reforms gradually translated into improved household prosperity.
He also rejected the perception that increased government revenue meant the administration was taking more money from poor Nigerians.
Rather, he said, the government’s approach was to expand economic activity and collect more revenue from increased prosperity.
Mr Adedeji defended government expenditure against criticism of public officials’ lifestyles, explaining that government spending also circulates through the private sector.
He used spending on facilities such as conference centres as an example, arguing that government expenditure could generate revenue for private businesses and create employment.
READ ALSO: Why subsidy removal, FX reforms caused unavoidable economic shocks — Oyedele
On youth unemployment, he said the administration was supporting technical and vocational education while encouraging corporate organisations to play a greater role in creating employment opportunities.
He said education remained critical to reducing poverty and improving the economic prospects of young Nigerians.
Mr Adedeji also highlighted the government’s credit programmes as part of efforts to promote economic inclusion, particularly by providing financing for small businesses and individuals.
He said continued support for such programmes would help more Nigerians participate in economic activity.
The NRS chairman said the government’s recent reforms, including the new tax laws, would require time to produce their full impact.
He urged Nigerians to support the consolidation phase of the reforms, saying the government was focused on improving energy security, education, infrastructure and the broader economic environment.
He maintained that the ultimate objective of the reforms was to build an economy capable of generating prosperity without relying on unsustainable government interventions.
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The State Security Services (SSS) and the Nigeria Police Force are investigating the circulation of a false message claiming that OPay would shut down its operations in Nigeria, the company said on Wednesday.
The leading financial technology company disclosed this at a press conference and town hall meeting on Wednesday, in response to the viral message, which claimed that the company would cease operations in September.
Earlier, a viral post circulated on social media claiming that OPay would shut down its operations on 1 September and stop processing transactions until further notice.
The viral post also urged OPay customers to withdraw their funds from the fintech platform as soon as possible to avoid possible inconvenience.
OPay subsequently debunked the claim in an X post, on Sunday, describing it as false and reaffirming that its operations would continue.
On Monday, the company wrote to accounts involved in the circulation of the post, including Adamu B. Garba (@adamugarba) on X and Viralgrabtvng (@viralgrabtvng) on TikTok, demanding that they take down the publication, which it described as “false, malicious, libellous and defamatory.”
OPay is going nowhere
At the press conference, OPay’s Chief Operating Officer and Chief Technology Officer, Dotun Adekunle, said the company remained fully operational in Nigeria, describing the viral shutdown message as false.
He said the message had caused concern among customers, merchants and other stakeholders because OPay operates in the financial inclusion space, where many users are first-time users of digital financial services.
“OPay is going nowhere. The message that is circulating online is false. It did not come from OPay. There is no decision from OPay or by OPay to shut down its operations in Nigeria, and there is no indefinite leave.
“In fact, according to the false information itself, OPay was supposed to have shut down yesterday, 1 September. It is September two, and we are still here. Our services continue to operate normally,” Mr Adekunle said.
He also said the Central Bank of Nigeria (CBN) had identified the circulating message as fake news, which he urged Nigerians to treat with the seriousness that it deserves. He added that the CBN is a statutory regulator responsible for supervising Nigeria’s financial system.
Mr Adekunle urged customers not to make financial decisions based on unverified messages circulated on social media or messaging platforms, warning that a message could appear official without actually originating from the company.
The CTO further said false information concerning a financial institution could create fear, disrupt businesses and undermine confidence in the wider financial system, noting that OPay would work with the authorities to identify and prosecute those responsible.
“Therefore, we will do everything in our power to make sure that we bring those who are responsible for this to book. We will chase them to wherever we can chase them to.
“OPay will continue to work with appropriate authorities and pursue the necessary steps to address deliberate attempts to spread false information and cause public concern.”
Security agencies
OPay’s Chief Legal Counsel, Akinfolabi Moses, said OPay had formally engaged relevant regulatory, security and law enforcement authorities over the matter, adding that the company was cooperating with the ongoing investigations.
He said the DSS, police and other relevant authorities and agencies were investigating the source and circulation of the message for proper legal processes.
“OPay has therefore taken this matter beyond social media. We have formally engaged the relevant regulatory, security, and law enforcement authorities.
“The DSS and the Nigerian Police, among the relevant law enforcement agencies, are currently intensifying their investigation into this matter.
“We are fully cooperating with the ongoing investigations being conducted, and have provided the necessary evidence to identify those responsible for it,” OPay said.
Legal action
Also, the company said it had commenced legal action against those behind the false information, adding that it would pursue those responsible and ensure that due process of law was followed.
“Let me be clear. OPay is taking legal action against those responsible for deliberately creating and circulating this callous information. We will pursue them, and we will ensure that the law takes its full course. There will be no impunity,” the OPay Legal Counsel, Mr Moses said.
He disclosed that at least one case was already before the court, saying the company would provide further details as the matter progresses.
Mr Moses said the issue was not about preventing criticism of the company but ensuring accountability where false information is deliberately used to cause harm.
“This is not about silencing anymore. OPay is not going to be silent. It is about accountability, customer protection, and respect for the rule of law. We are ready, and we will ensure that the law takes its course,” he added.
ALMPO
Also speaking, the Financial Secretary of the Association of Licensed Mobile Payment Operators (ALMPO) said the incident went beyond OPay because false information about a major payment operator could undermine confidence in Nigeria’s wider digital payments ecosystem.
He said trust was fundamental to digital payments, as customers depended on financial institutions to safeguard their funds and process transactions reliably.
“This is why the recent false information circulated online about OPay goes beyond one company. False information about a leading licensed payment operator can create unnecessary fear among customers and merchants if left unchallenged.
“It can weaken confidence in the wider digital payment ecosystem when people question the stability of a major player in the industry,” the ALMPO Financial Secretary, Mr Disu, said.
According to him, such misinformation could discourage digital payment adoption and affect businesses that depend on electronic transactions.
In a similar vein, Mr Disu urged customers to rely on official communication channels and information from regulators before taking action involving their funds.
The association also urged the media to maintain high standards of verification when reporting issues capable of affecting confidence in financial institutions.
The ALMPO representative, however, said the industry’s position should not be interpreted as opposition to scrutiny or criticism of financial institutions.
READ ALSO: OPay debunks viral claim of September shutdown, urges customers to disregard post
“There’s room to criticise, right? To look into financial institutions as and when required. The industry does not seek to prevent journalists, customers, members of the public from asking difficult questions, but we must collectively guard against deliberate creation or an amplification of false information,” he said.
He said ALMPO would continue working with the CBN, other regulators, its members, the media and other stakeholders to strengthen confidence and resilience in Nigeria’s digital payments ecosystem.
The development highlights the growing challenges faced by corporate organisations on social media, where unauthorised individuals and entities impersonate brands to commit fraud and circulate misleading information.
In recent months, several companies have disowned social media posts published by unauthorised accounts impersonating their brands and issuing purported corporate communications.
Similarly, PREMIUM TIMES reported in July that customers of corporate organisations had fallen victim to fraudulent social media advertisements, some of which were AI-generated and designed to target and lure unsuspecting Nigerian users into scams, particularly on TikTok.
Established in 2018, OPay has grown into one of Nigeria’s leading digital financial platforms, offering payment, savings, credit and other financial services as a mobile money operator.
The company has also expanded its operations beyond Nigeria into emerging markets in Africa and Asia, including Indonesia, Pakistan and Egypt.
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