The federal government has formally announced the termination of fuel and foreign exchange subsidies, according to Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, on Thursday.

Edun made this statement during the presentation of the Nigeria Development Update hosted by the World Bank in Abuja.

The subsidies, according to the government, had drained the nation’s economy by as much as N10 trillion, which is equivalent to five percent of Nigeria’s Gross Domestic Product (GDP).

“Fuel and FX subsidies are eliminated,” Edun affirmed.

To tackle the urgent issue of unemployment, the government has introduced a new initiative centered on housing finance. This program includes a mortgage scheme with nearly single-digit interest rates, designed to boost construction and create a substantial number of jobs.

“The plan will focus on mortgage and housing finance,” Edun explained.

During the same event, the Central Bank of Nigeria (CBN) Governor, Mr. Olayemi Cardoso, provided insights into the recent half-percent increase in interest rates.

He noted that the Monetary Policy Committee (MPC) had anticipated the latest inflation trends, leading to the rate adjustment.

“Going forward, policies and decisions will be grounded in data and evidence,” Cardoso remarked.