The federal government has officially stopped providing fuel and foreign exchange subsidies, Finance Minister Wale Edun announced on Thursday.
Speaking during the World Bank’s Nigeria Development Update in Abuja, Edun explained that these subsidies had significantly drained the economy, costing Nigeria N10 trillion, or about 5% of its GDP.
“Fuel and FX subsidy are extinguished,” Edun confirmed.
To tackle the rising unemployment issue, the government is introducing a new plan focused on housing finance. This plan includes a mortgage scheme offering near single-digit interest rates, aimed at increasing construction activities and creating jobs.
“The plan will be anchored around mortgage and housing financing,” Edun said.
At the same event, Central Bank Governor Olayemi Cardoso discussed the recent half-percent interest rate increase. He noted that the decision was driven by anticipated inflation trends, as identified by the Monetary Policy Committee (MPC).
“Policies and decisions will be based on evidence and data going forward,” Cardoso stated.
