FG to spend N6.72trn on Fuel Subsidy in 2023

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Zainab Ahmed

The Federal Government has said it will make provision for in 2023 to the tune of N6.72 trillion.

This announcement was made known by Mrs. , Minister of Finance, Budget, and National Planning, on Thursday in Abuja during the Medium Term Expenditure Framework and Fiscal Strategic Paper (MTEF and FSP) Public Consultation for the years 2023 to 2025.

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According to Zainab Ahmed, based on the underlying budget criteria and assumptions, the government has predicted budgetary results under two scenarios for the medium term.

According to the Minister, “the subsidy on PMS is anticipated at N6.72 trillion for the full year 2023” under the first scenario. According to her, “the NNPC will remain and completely provide  this money on behalf of the federation.”

According to the second scenario, which the minister described, “only N3.36 trillion will be provided for, and the petroleum subsidy will continue up to mid-2023 based on the 18-month extension announced early 2021.”

Both eventualities could affect predicted deficit levels and net accretion to the Federation Account, the minister warned.

According to Zainab Ahmed, “Government Owned Enterprises (GOEs) would face stricter implementation of the performance management system, which will dramatically boost operational surplus/dividend remittances in 2023.”

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