The Federal Government has officially put an end to fuel and Foreign Exchange (FX) subsidies, Finance Minister and Coordinating Minister of the Economy, Wale Edun, announced on Thursday during the presentation of the Nigeria Development Update by the World Bank in Abuja.
Edun revealed that the subsidies had severely drained the nation’s economy, costing Nigeria approximately N10 trillion, which is equivalent to five percent of the country’s Gross Domestic Product (GDP).
“Fuel and FX subsidy are extinguished,” the minister declared, signaling a major shift in economic policy.
In response to rising unemployment, the government is rolling out a new plan centered around housing finance.
This initiative includes a mortgage scheme offering near single-digit interest rates, aimed at stimulating construction and creating substantial job opportunities.
At the same event, Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, explained the recent half-percent interest rate hike by the Monetary Policy Committee (MPC), citing inflationary trends as the reason for the move. He assured that future policies would be data-driven and evidence-based.
