October 17, (THEWILL) – Nigeria has officially declared an end to fuel and Foreign Exchange (FX) subsidies regime.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made the formal declaration on Thursday, in Abuja.
Speaking during the presentation of the Nigeria Development Update by the World Bank, Edun declared, “Fuel and FX subsidy are extinguished”. He revealed that the subsidy on fuel and FX cost Nigeria over N10 trillion, which amounts to five percent of Nigeria’s Gross Domestic Product (GDP).
This is as he disclosed the government’s plan to address unemployment and housing with a new mortgage scheme offering near single-digit interest rates.
“The plan will be anchored around mortgage and housing financing”, Edun said; adding that the mortgage scheme would boost construction activities and generate employment.
On his part, Bauchi State Governor, Bala Mohammed, expressed concern over the insufficient funds allocated to state governments through the Federation Account Allocation Committee (FAAC).
“The money coming from FAAC every month is not enough for state governments to provide infrastructure”, he lamented.
Mohammed criticised federal policies, noting that they had reduced the purchasing power of Nigerians. “These policies are not working”, he declared, pointing to the hardship being felt by the masses.
On the implementation of the new N70,000 minimum wage, Governor Mohammed said while states are loyal to the wage law, the ability to fund essential infrastructure after meeting the new wage obligation remains a serious challenge.
“Some states can afford N70,000, some cannot. We in Bauchi State are paying the old minimum wage religiously. We’re looking at paying the new minimum wage as soon as possible. We are about to be lynched”, he said.
