The federal government has officially announced the end of fuel and foreign exchange subsidies.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made this declaration during the presentation of the Nigeria Development Update by the World Bank in Abuja on Thursday, October 17.
Edun revealed that these subsidies had drained the country’s economy, costing over N10 trillion, which amounts to five percent of Nigeria’s Gross Domestic Product (GDP).
“Fuel and FX subsidy are extinguished. The key thing here is that for the first time in 40 years, the vex tissue of fuel subsidy, and linked to it, the foreign exchange subsidy, costing five percent of GDP has gone,” he said.