The Federal Government has officially ended “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 disclosed that the subsidies had significantly strained the nation’s economy, costing Nigeria around “N10 trillion,” which is about five percent of the country’s Gross Domestic Product (GDP).
“Fuel and FX subsidy are extinguished,” the minister stated, marking a major shift in economic policy.
In response to growing unemployment, the government is launching a new plan focused on housing finance.
The initiative includes a mortgage scheme with near single-digit interest rates, intended to boost construction and generate considerable job opportunities.
At the same event, Central Bank of Nigeria (CBN) Governor, “Olayemi Cardoso,” discussed the recent half-percent interest rate hike by the Monetary Policy Committee (MPC), attributing the increase to inflationary pressures.
He assured that future policies would be “data-driven and evidence-based.”
