According to the Federal Government, it will set aside N6.72 trillion for subsidies in 2023.
This disclosure was made by Mrs. Zainab Ahmed, 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.
According to Zainab Ahmed, based on the underlying budget parameters and assumptions, the government has projected fiscal outcomes under two scenarios for the medium term.
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:-
“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”.
