The Federal government has officially announced the termination of subsidies on fuel and foreign exchange, marking the end of a long-debated policy.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made this declaration during the presentation of the Nigeria Development Update by the World Bank in Abuja on Thursday.
Edun revealed that these subsidies had drained the country’s economy, costing over N10 trillion, noting that the amount represents five percent of Nigeria’s Gross Domestic Product (GDP).
“Fuel and FX subsidy are extinguished,” Edun said, emphasizing the financial strain the policyhad imposed on the nation.
The minister also announced a new government plan aimed at addressing unemployment, with a focus on housing finance.
The initiative, he explained, would feature a mortgage scheme offering near single-digit interest rates.
The government expects the initiative to boost construction activities and generate a significant number of jobs.
“The plan will be anchored around mortgage and housing financing,” Edun stated.
At the same event, Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, explained the rationale behind the recent half-percent interest rate hike.
He disclosed that the Monetary Policy Committee (MPC) had anticipated the latest inflation trends, which drove their decision to increase the rate.
“Policies and decisions will be based on evidence and data going forward,” Cardoso affirmed, underscoring the CBN’s commitment to data-driven policy formulation.