FG to Spend N6.7 Trillion on Petrol Subsidy in 2023

News - by RadioNow / Jul. 22nd, 2022

The Federal Government says it is projected to spend N6.7 trillion on petrol subsidy payments in 2023. Speaking yesterday at the presentation of the 2023-2035 Medium Term Expenditure Framework & Fiscal Strategy Paper (MTEF&FSP) in Abuja, Zainab Ahmed, the Minister of Finance, Budget and National Planning, said subsidy payment projection is based on two prevailing scenarios — business-as-usual or reform. 

She, however, said both scenarios have implications for net accretion to the federation account and projected deficit levels. 

According to the Minister, the Federal Government has recorded a N2 trillion budget deficit between January and April. 

She explained that the deficit further highlights the fiscal challenges confronting the current administration. 

Ahmed also said that the Nigerian National Petroleum Company Limited which has funded the fuel subsidy until June will henceforth leave that responsibility to the federation, an action she said will create a strain on the economy. 

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