Well, well, well, in case you missed it, the Federal Government has officially declared the end of fuel and foreign exchange (FX) subsidies. But let’s be honest, does this really come as a shock to anyone? The announcement is just a formality at this point. Nigerians have been living with the harsh realities of subsidy removal since May 29th, 2023, and trust me, it wasn’t pretty then, and it’s not getting any prettier now.
The Minister of Finance and Coordinating Minister of the Economy, Wale Edun, made the grand declaration during the presentation of the Nigeria Development Update by the World Bank in Abuja on Thursday, October 17. According to Edun, these subsidies had been draining Nigeria’s economy dry, burning through over ₦10 trillion— That’s around five percent of the country’s Gross Domestic Product (GDP). And for what? To keep fuel prices artificially low while our economy suffers?
“Fuel and FX subsidies are extinguished. The key thing here is that for the first time in 40 years, the vexing issue of fuel subsidy, and linked to it, the foreign exchange subsidy, costing five percent of GDP, has gone,” Edun proudly announced.
Why are we even pretending this is breaking news? Sure, it’s official now, but Nigerians have been dealing with the fallout for over a year. Since the so-called “removal” last year, the price of fuel skyrocketed, inflation hit new highs, and the cost of living became unbearable for many. People didn’t need this press conference to tell them that subsidies are over—they’ve been living with the consequences every day.
The removal of these subsidies, in theory, is supposed to free up funds for development projects and much-needed infrastructure. Yet, Nigerians are left wondering, where is that money going? With no real improvement in public services, it’s hard not to be cynical.
And let’s not even get started on foreign exchange. The naira has been on life support for years, and the end of the FX subsidy hasn’t exactly given it a new lease on life. If anything, it’s made things worse for businesses and individuals alike, with the black market thriving as the gap between official and parallel exchange rates widens.
For the average Nigerian, this announcement is just another reminder that the government’s priorities rarely align with their daily struggles. The removal of subsidies might look good on paper, but on the streets, it feels like a slap in the face.
So, while Wale Edun and his colleagues celebrate the “end” of fuel and FX subsidies, Nigerians will continue to bear the brunt of this decision. The only thing that’s officially ended here is the illusion that the government has the people’s best interests at heart.
And if this is the “savings” that the government is so proud of, then maybe they should start spending it where it really matters, on the people. Until then, the only thing extinguished is our patience.
