Tinubu Government Declares End of FX and Fuel Subsidies in Nigeria

Tinubu Government has declared the end of FX and fuel subsidies in Nigeria.

Newsone Nigeria reports that the Federal Government of Nigeria led by President Bola Tinubu has officially announced the termination of fuel and foreign exchange subsidies, marking the end of a long-debated policy.

This online news platform understands that the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made this declaration during the presentation of the Nigeria Development Update by the World Bank in Abuja on Thursday, October 17, 2024.

The  Minister of Finance 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).

“Fuel and FX subsidy are extinguished,” Edun said, as he emphasized the financial strain these policies had imposed on the nation.

The minister also announced a new government plan aimed at addressing unemployment, with a focus on housing finance.

This initiative, he explained, would feature a mortgage scheme offering near single-digit interest rates.

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.

At the same event, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, explained the rationale behind the recent half-percent interest rate hike.

The CBN Governor disclosed that the Monetary Policy Committee (MPC) had anticipated the latest inflation trends, which drove their decision to increase the rate.

“Policies and decisions will be based on evidence and data going forward,” Cardoso affirmed, underscoring the CBN’s commitment to data-driven policy formulation.