Fuel and foreign exchange subsidy programs are no longer in place, the Nigerian government has reaffirmed this through Finance Minister Wale Edun.
This was revealed by Edun at the World Bank’s Nigeria Development Update presentation in Abuja on Thursday.
The Finance Minister declared, “Fuel and FX subsidies are extinguished,” adding that Nigeria was financially strained by the dual programs.
Edun disclosed that the country’s economy has been depleted by these subsidies, which had cost more than N10 trillion, or 5% of Nigeria’s GDP.
This coincides with the Finance Minister’s announcement of a new government strategy that focuses on housing financing in order to combat unemployment.
Edun said:
“The government expects this approach to boost construction activities and generate significant job creation.
“The plan will be anchored around mortgage and housing financing.”
Mr Olayemi Cardoso, the governor of the Central Bank of Nigeria (CBN), had earlier given an explanation of the reasoning for the recent half-percent interest rate increase, which brought the interest rate to 26.75 percent.
The Finance Minister asserts that the measures and strategies intended to mitigate the inflation and Naira problem are grounded in empirical evidence and the appropriate course of action.
“Policies and decisions will be based on evidence and data going forward,” he added.
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cc: Daily Post Ng
