Nigeria Saves $20 Billion by Ending Fuel Subsidy and Adopting Market-Based Forex

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Economy News

Nigeria,Fuel Subsidy,Foreign Exchange

The Nigerian Federal Government announced a significant saving of $20 billion by eliminating petrol subsidies and implementing market-based foreign exchange pricing. Finance Minister Wale Edun stated that these subsidies previously consumed 5% of the country's GDP, which amounted to $20 billion annually. The government intends to allocate these funds to crucial sectors like infrastructure, healthcare, social services, and education. The removal of subsidies is seen as a major step towards economic reform, aimed at curbing profiting from inefficient systems.

The Federal Government has announced that it has saved a whopping $20 billion by removing petrol subsidy and adopting market-based foreign exchange pricing. The revelation was made by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, at an event in Abuja marking the first 100 days in office of Esther Walso-Jack, Head of the Civil Service of the Federation.According to the minister, the two subsidies cost the country five percent of the Gross Domestic Product .

Assuming GDP was $400 billion on average, five percent of that is $20 billion — funds that could now go into infrastructure, health, social services, and education,” he said.The minister further noted that the removal of the petrol subsidy and the adoption of market-based foreign exchange pricing have brought about significant changes.“The real change is that no one can wake up and target cheap funding or forex from the Central Bank to enrich themselves without adding value.

 

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