The federal government has officially declared the end of fuel and foreign exchange subsidies, concluding a long-standing policy debate.
Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, made the announcement during the presentation of the Nigeria Development Update by the World Bank in Abuja on Thursday, October 17.
Edun highlighted that these subsidies had severely strained the economy, costing over N10 trillion—equivalent to five percent of Nigeria’s Gross Domestic Product (GDP). “Fuel and FX subsidies are extinguished,” he stated, underlining the financial burden they imposed on the nation.
Additionally, Edun unveiled a new government initiative aimed at tackling unemployment, with a focus on housing finance. He indicated that this strategy is expected to stimulate construction activities and create significant job opportunities. “The plan will be anchored around mortgage and housing financing,” he said.
At the same event, Central Bank of Nigeria Governor Mr. Olayemi Cardoso provided insights into the recent half-percent increase in interest rates, explaining the rationale behind this decision.
