The Federal Government has ended the longstanding fuel and foreign exchange subsidies in Nigeria.
The announcement was made by Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, during an event held in Abuja on Thursday, October 17.
According to Edun, these subsidies have placed a heavy financial burden on the country, costing over N10 trillion, which is equivalent to five percent of Nigeria’s GDP.
The government aims to redirect funds toward a new housing finance initiative.
This plan, which involves a mortgage scheme with low interest rates, is expected to boost the construction sector and create job opportunities.
Central Bank of Nigeria Governor, Olayemi Cardoso, explained the recent interest rate increase by 0.5%, attributing it to inflation trends.
He assured that future policies would be guided by data.
During the event, Bauchi State Governor, Bala Mohammed, expressed concerns over inadequate federal allocations, noting the difficulty states face in maintaining infrastructure.
He highlighted the challenge of implementing the new N70,000 minimum wage, given budget constraints.
“The money coming from FAAC every month is not enough for state governments to provide infrastructure,” he lamented.
