Hardship: Fuel, FX Subsidies Gone – Finance Minister Gives Update On Nigerian Economy

Wale Edun, the Nigerian Government through the Minister of Finance, has reiterated that fuel and foreign exchange subsidy policies are gone.

Edun disclosed this during the presentation of the Nigeria Development Update by the World Bank in Abuja on Thursday.

“Fuel and FX subsidies are extinguished,” he said, noting that the twin policies had imposed financial strain on Nigeria.

Edun revealed that these subsidies had drained the country’s economy, costing over N10 trillion, which amounts to five percent of Nigeria’s Gross Domestic Product (GDP).

This comes as the minister announced a new government plan aimed at addressing unemployment, with a focus on housing finance.

“The government expects this approach to boost construction activities and generate significant job creation.

“The plan will be anchored around mortgage and housing financing,” Edun stated.

Earlier, the Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, explained the rationale behind the recent half-percent interest rate hike which stood at 26.75 percent.

According to him, the policies and interventions to cushion the Naira crisis and inflation are based on empirical data and necessary steps.

“Policies and decisions will be based on evidence and data going forward”, he said.

Meanwhile, the Governor of Bauchi State, speaking at the event, condemned the policies put forward by the Federal Government.

He emphasized that policies are the cause of the hardship Nigerians across the country face.

“These policies are not working,” he declared.

Recall that in June 2023, the Nigerian government announced fuel and FX subsidies removal.

Consequently, in the last months, the country’s fuel price and FX exchange rate surged to N1030 per liter and N1660.49 from N195 per liter and N461 per dollar in May last year.

This comes as Nigeria’s inflation rose to 32.70 percent in September from 20.41 percent in May 2023.