menu Home chevron_right
LifestyleNews

Hardship: Fuel, FX Subsidies Gone – Finance Minister Updates on Nigerian Economy

October 18, 2024

The Nigerian Minister of Finance, Wale Edun, has reaffirmed the government’s decision to abolish fuel and foreign exchange (FX) subsidy policies, which he said had been financially draining the nation’s economy.

Speaking during the presentation of the Nigeria Development Update by the World Bank in Abuja on Thursday, Edun emphasized the financial burden that these policies had placed on the country.

“Fuel and FX subsidies are extinguished,” Edun stated, adding that the twin policies had cost Nigeria over N10 trillion, which equates to five percent of the country’s Gross Domestic Product (GDP).

In a bid to tackle the ongoing economic challenges, Edun announced a new government strategy focused on addressing unemployment. The plan, he explained, would prioritize housing finance to stimulate the construction industry and create jobs.

“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 explained.

The event also featured Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, who justified the recent half-percent hike in interest rates, which now stand at 26.75 percent. He emphasized that the central bank’s decisions on managing the naira crisis and curbing inflation were data-driven and grounded in empirical evidence.

“Policies and decisions will be based on evidence and data going forward,” Cardoso said.

However, not all officials were in agreement with the federal government’s policies. The Governor of Bauchi State, who also attended the event, openly criticized the federal government’s approach, attributing the widespread hardship faced by Nigerians to these policies.

“These policies are not working,” the governor asserted, lamenting the economic strain on ordinary Nigerians.

In June 2023, the Nigerian government officially removed fuel and FX subsidies, leading to significant price surges. Fuel prices rose from N195 per liter to N1030 per liter, while the FX exchange rate surged to N1660.49 per dollar from N461 per dollar in May 2023. This was followed by a spike in inflation, which climbed to 32.70 percent in September, up from 20.41 percent in May.

As the economic situation evolves, many Nigerians continue to face harsh realities, as the government seeks ways to mitigate the effects of its policies and restore financial stability.

Written by Adeyemi Adewale




This area can contain widgets, menus, shortcodes and custom content. You can manage it from the Customizer, in the Second layer section.

 

 

 

  • cover play_circle_filled

    FlowFm92.7
    Araba Radio

  • cover play_circle_filled

    01. LOFI IN SPACE chill lofi beats to vibe
    Afro Lofi Beats

  • cover play_circle_filled

    01. FLOW CAFÉ
    EARLY MORNING

  • cover play_circle_filled

    01. Afro Hiphop
    FlowFM Mix

  • cover play_circle_filled

    01. Jazz
    FlowFM mix

  • cover play_circle_filled

    01. Flow FM's 2000s
    Flow FM mix

  • cover play_circle_filled

    01. Battle of the Boybands
    Flow FM's 90s

play_arrow skip_previous skip_next volume_down
playlist_play