The federal government has officially announced the end of fuel and foreign exchange (FX) subsidies, marking the conclusion of a long-standing policy.

The decision was disclosed 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 have cost over N10 trillion, equivalent to 5% of Nigeria’s Gross Domestic Product (GDP).

“Fuel and FX subsidy are extinguished,” Edun declared,

In addition to ending subsidies, the minister unveiled a new government initiative aimed at reducing unemployment, centred on housing finance. The plan includes a mortgage scheme designed to offer near single-digit interest rates, a move intended to stimulate the construction sector and create jobs.

“The plan will be anchored around mortgage and housing financing,” Edun said, adding that the government hopes the initiative will provide a significant boost to job creation across the country.