FG Ends Fuel and Forex Subsidies Amid Economic Strain
Finance minister Wale Edun said the subsidies cost over N10 trillion, five percent of GDP, as experts warn of higher fuel prices and inflation.
The federal government has officially terminated its fuel and foreign exchange subsidies, a decision that has been a subject of intense debate over the years.
The announcement was made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, during the presentation of the Nigeria Development Update by the World Bank in Abuja.
Edun revealed that the subsidies have significantly drained the country’s economy, costing over N10 trillion, which accounts for five percent of Nigeria’s Gross Domestic Product (GDP). “Fuel and FX subsidy are extinguished,” he declared.
Meanwhile, experts argue that the termination of fuel and foreign exchange subsidies by the federal government is will significantly impact citizens and the economy. With the removal of these subsidies, fuel prices are expected to rise, leading to increased transportation costs and contribute to higher inflation rates.
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