“Fuel, FX Subsidies Are Gone,” Tinubu’s Govt Declares, Details Emerge

• President Tinubu’s led federal government has finally eliminated fuel and foreign exchange subsidies entirely
• Minister of Finance and Coordinating Minister of the Economy, Wale Edun, confirmed the development to the press in Abuja on Thursday
• During his swearing-in as the 16th president, Tinubu maintained that his administration could no longer fund the fuel subsidy, an announcement that plunged Nigeria into hardship

Legit.ng journalist Esther Odili has over two years of experience covering political parties and movements.

FCT, Abuja – The federal government led by President Bola Ahmed Tinubu has officially announced the termination of fuel and foreign exchange subsidies, marking the end of a long-debated policy.

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.

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Why FG declared an end to fuel, FX subsidies

As reported by The Nation, Edun revealed that these subsidies had drained the country’s economy, costing over N10 trillion, which amounts to five per cent of Nigeria’s Gross Domestic Product (GDP).

“Fuel and FX subsidy are extinguished,” Edun said, as he emphasized the financial strain these policies had imposed on the nation.

The minister also announced a new government plan aimed at addressing unemployment, with a focus on housing finance.

Since the removal of subsidy, fuel prices have continued to skyrocket. Recall that the NNPCL raised the pump price of fuel. Reports showed that petrol, which previously sold for N897 per litre in Abuja, now retails at N1,030 per litre.

This represents a 14.8% or N133 rise when compared to the pump price quoted as of September 2024.

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The change in pump prices was observed at various NNPCL stations in Abuja.

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Group proffers solutions to fuel price

Legit.ng reported that President Bola Tinubu has been urged by the Transparency Accountability for Development Initiatives (TADI) to fire the administrators of Nigeria’s oil industry due to the petrol crisis rocking the nation.

TADI’s programs research and public relations officer, Adeniran Taiwo, responded to the recent increase in fuel prices by the Nigerian National Petroleum Company Limited (NNPCL), which saw prices rise from N895 to N1,030.

Taiwo urged President Bola Tinubu to step in and alleviate Nigerians’ suffering.

Proofreading by Nkem Ikeke, journalist and copy editor at Legit.ng.

Source: Legit.ng