Nigeria to spend N6.72trn on fuel subsidy in 2023

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The minister of finance, budget and national planning, Mrs. Zainab Ahmed has put the subsidy of petrol at N6.72 trillion for the full year 2023.

Ahmed disclosed at the release of the 2023-2025 Medium Term Expenditure Framework and Fiscal Strategic Paper (MTEF and FSP) Public Consultation in Abuja, yesterday.

The amount, according to her “will remain and be fully provided for by the Nigerian National Petroleum Company Limited on behalf of the federation.”

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

Under the first scenario, the minister said “the subsidy on PMS is estimated at N6.72 trillion for the full year 2023. It will remain and be fully provided for by the NNPCL on behalf of the federation.”

The second, she said, 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.”

“Both scenarios have implications for net accretion to the Federation Account and projected deficit levels.

“There will be tighter enforcement of the performance management framework for government owned enterprises that will significantly increase operating surplus/dividend remittances in 2023.”

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