JUST IN: Despite Uncertainties, FG to Spend N6.72trn on Fuel Subsidy in 2023

By Ozumi Abdul

The Federal Government has concluded plans of making provision for subsidy in 2023 to the tune of N6.72 trillion.

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

Zainab Ahmed revealed that the government has projected fiscal outcomes in the medium term under two scenarios based on the underlying budget parameters/assumptions.

Also Read: NNPC Shifts Fuel Subsidy Payment Burden To FG

Under the first scenario, the Minister said that “the subsidy on PMS is estimated at N6.72 trillion for the full year 2023”. This amount she said “will remain and be fully provided for by the NNPC on behalf of the federation”.

The second scenario the minister explained is that petrol subsidy will remain up to mid-2023 based on the 18-month extension announced early 2021, in which case only N3.36 trillion will be provided for.

The Minister cautioned that both scenarios have implications for net accretion to the Federation Account and projected deficit levels.

Zainab Ahmed noted that there will be tighter enforcement of the performance management framework for Government Owned Enterprises (GOEs) that will significantly increase operating surplus/dividend remittances in 2023.

Details later…..