The Nigerian government has officially ended its fuel and foreign exchange (FX) subsidies, according to Finance Minister Wale Edun. During the World Bank’s presentation of the Nigeria Development Update in Abuja, Edun confirmed the termination of these policies, which had placed a heavy financial burden on the country. He explained that the subsidies had been draining Nigeria’s economy, costing approximately N10 trillion, an amount equivalent to 5% of the nation’s GDP.
Edun highlighted the government’s focus on economic recovery, emphasizing that the decision to remove the subsidies is a step toward addressing the fiscal challenges Nigeria faces. The minister noted that the government is committed to rechanneling resources towards more sustainable initiatives, particularly in job creation and housing development.
To combat unemployment, the government is launching a new plan centered around mortgage and housing financing. Edun explained that this approach is expected to stimulate construction activities, which, in turn, will lead to significant job creation. The housing initiative aims to create a multiplier effect across various sectors of the economy, fostering long-term growth and stability.
