The Federal Government has officially announced the termination of fuel and foreign exchange subsidies, marking the end of a long-debated policy.
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, yesterday.
Edun revealed that these subsidies had drained the countrys economy, costing over N10 trillion, which amounts to five percent of Nigerias Gross Domestic Product (GDP). Fuel and FX subsidy are extinguished, Edun said, as he emphasised 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. The plan will be anchored around mortgage and housing financing, Edun stated. According to him, the Government expects this approach to boost construction activities and generate significant job creation.
At the same event, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, expressed concern over the insufficient funds allocated to state governments through the Federation Account Allocation Committee (FAAC). The money coming from FAAC every month is not enough for state governments to provide infrastructure, he lamented.
Mohammed criticized federal policies, noting that they had reduced the purchasing power of Nigerians. These policies are not working, he declared, pointing to the hardship being felt by the masses.
World Bank Senior Vice-President and Chief Economist, Indermit Gill, wrapped up the discussion by calling on Nigerias economic units, Monetary, Fiscal, and other units, to collaborate more effectively.
He emphasised the need for unified efforts to drive economic reforms and growth.
