Edun, however, announced a new government plan aimed at addressing unemployment, with a focus on housing finance
By Kehinde Okeowo
The Minister of Finance, Wale Edun, on Thursday reminded Nigerians that the era of fuel and foreign exchange subsidies has ended.
He made this known in Abuja, during the presentation of the Nigeria Development Update by the World Bank.
in June 2023, the President Bola Tinubu-led 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.
Despite this, Edun while speaking at the World Bank event said, “Fuel and FX subsidies are extinguished” because the twin policies imposed financial strain on Nigeria.
He further disclosed that the subsidies drained the country’s economy, costing over N10 trillion, which amounts to five percent of Nigeria’s Gross Domestic Product (GDP).
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Edun also 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,” the minister added.
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, Bauchi State governor, Bala Mohammad, while speaking during a recent interview condemned the policies put forward by the Federal Government.
In his words, the policies brought untold hardship on Nigerians.