Nigerian Government Says It Will Spend Over N6.7 Trillion On Fuel Subsidy In 2023

The Federal Government has revealed that it will make provision to spend N6.72 trillion on petrol subsidy payments in 2023.

Budget For Petrol Subsidy

The Minister of Finance Budget and National Planning, Zainab Ahmed disclosed this in Abuja on Thursday during the 2023 – 2025 Medium Term Expenditure Framework and Fiscal Strategic Paper (MTEF and FSP) Public Consultation.

According to her, the government has projected fiscal outcomes in the medium term under two scenarios based on the underlying budget parameters/assumptions.

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”.

Ahmed noted: “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”.

KanyiDaily recalls that in April, the National Assembly approved the request of President Muhammadu Buhari to increase petrol subsidy payments in 2022 to N4 trillion from N442.72 billion.