Nigeria’s Finance Minister, Wale Edun, announced that the country has saved $20 billion following the removal of gasoline subsidies and the implementation of market-based foreign exchange pricing.
Edun made the revelation at a recent event in Abuja, celebrating the first 100 days of Esther Walso-Jack’s tenure as the head of the civil service. He explained that these two reforms, which replaced long-standing subsidies on petroleum products and foreign exchange, were costing the country approximately five percent of its Gross Domestic Product (GDP).
“When petroleum subsidies and the foreign exchange subsidies were in place, they were consuming about five percent of GDP. With an average GDP of $400 billion, this translates to a savings of $20 billion,” Edun said.
He highlighted that these funds, which were previously being lost to inefficient subsidy regimes, are now being redirected into critical sectors such as infrastructure, health, education, and social services.
Edun emphasized the broader impact of these reforms, noting that they have eliminated the practice of individuals leveraging cheap government funding or foreign exchange to generate wealth without contributing to the economy. “The real change is that people can no longer exploit the system to become wealthy overnight by accessing cheap funding or participating in the inefficient petrol subsidy market,” he added.
The Finance Minister concluded that these measures are a step towards fostering a more sustainable and equitable economy for Nigeria, with resources now being channeled towards essential public services and infrastructure.
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