The Federal Government has outlined the economic benefits of recent reforms in Nigeria’s downstream petroleum sector and foreign exchange market, projecting over N10 trillion in savings to support critical infrastructure. These funds, freed from the termination of fuel and forex subsidies, are set to be channeled into essential sectors like education, healthcare, housing, and social services.

During the presentation of the Nigerian Development Update (NDU) in Abuja, Minister of Finance Wale Edun highlighted the long-term gains from these reforms, despite the immediate challenges faced by citizens. He credited President Bola Tinubu for taking bold steps to address the costly subsidies, which accounted for 5% of Nigeria’s GDP. Edun also announced a new initiative aimed at boosting job creation through long-term, low-interest housing loans to stimulate the construction industry.

Central Bank Governor Olayemi Cardoso defended a recent 50 basis point interest rate hike, citing inflation control as a driving factor. Meanwhile, World Bank officials praised Nigeria’s reform efforts, warning against any reversal, and stressed the importance of private sector-driven growth to create jobs and ensure inclusive development. While the reforms have started stabilizing the economy, many Nigerians still face inflation and rising living costs, making sustained efforts crucial.