The Federal Government has officially ended subsidies on fuel and foreign exchange, according to an announcement made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, on Thursday.
Speaking at the presentation of the Nigeria Development Update by the World Bank in Abuja, Edun explained that the subsidies had drained the nation’s economy by ₦10 trillion, representing five percent of Nigeria’s Gross Domestic Product (GDP).
“Fuel and FX subsidies are extinguished,” Edun stated, emphasizing the government’s commitment to implementing critical reforms to stabilize the economy.
In a bid to tackle rising unemployment, the government introduced a new plan centered on housing finance. The initiative includes a mortgage scheme with near single-digit interest rates, designed to spur construction activity and create jobs on a large scale.
“The plan will be anchored around mortgage and housing financing,” Edun added, highlighting the government’s focus on long-term economic growth through housing development.
At the same event, the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, addressed the recent half-percent interest rate hike. He explained that the Monetary Policy Committee (MPC) had anticipated inflationary pressures, leading to the decision to raise rates.
“Policies and decisions will be based on evidence and data going forward,” Cardoso remarked, reinforcing the CBN’s data-driven approach to monetary policy.
