The Federal Government has officially declared the end of fuel and foreign exchange (FX) subsidies, marking a significant shift in the country’s economic policies.
This announcement was made by Wale Edun, Minister of Finance and Coordinating Minister of the Economy, during the presentation of the Nigeria Development Update by the World Bank in Abuja on Thursday, October 17.
Edun explained that the subsidies had severely strained the national economy, costing over N10 trillion—equivalent to 5% of Nigeria’s Gross Domestic Product (GDP).
“Fuel and FX subsidy are extinguished,” Edun stated. “The key thing here is that, for the first time in 40 years, the vexed issue of fuel subsidy, and its connection to the foreign exchange subsidy, costing five percent of GDP, has been resolved.”
The removal of these subsidies aligns with the government’s efforts to stabilize the economy and redirect funds toward more productive sectors.
