The Nigerian government has officially ended fuel and foreign exchange (FX) subsidies, signaling the conclusion of a long-standing economic policy. This announcement was made by Wale Edun, Minister of Finance and Coordinating Minister of the Economy, during the presentation of the Nigeria Development Update by the World Bank in Abuja on Thursday, October 17.
Edun revealed that the subsidies had cost Nigeria over N10 trillion, amounting to 5% of the country's Gross Domestic Product (GDP). "Fuel and FX subsidies are now completely eliminated," Edun stated during the event.
In addition to phasing out the subsidies, the federal government introduced a new initiative aimed at addressing unemployment through housing finance. This plan includes a mortgage scheme offering near single-digit interest rates, designed to stimulate the construction industry and create jobs.
“The program will be anchored around mortgage and housing financing,” Edun said, highlighting the government's aim to use the initiative to significantly boost job creation across the nation.
This policy shift marks a major step in the government's efforts to reform the economy and tackle unemployment while reducing the financial burden of subsidies.
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