Zainab Ahmed: The FG plans to spend N6.72 trillion on subsidies in 2023
The Federal Government has stated that it will reserve N6.72 trillion for subsidies in 2023.
This statement was made on Thursday in Abuja at the Medium Term Expenditure Framework and Fiscal Strategic Paper (MTEF and FSP) Public Consultation for the years 2023 to 2025 by Mrs. Zainab Ahmed, Minister of Finance, Budget, and National Planning.
According to Zainab Ahmed, the administration has forecasted budgetary results under two scenarios for the medium term based on the underlying budget parameters and assumptions.
According to the Minister, “the subsidy on PMS is anticipated at N6.72 trillion for the full year 2023” under the first scenario. According to her, “the NNPC will remain and completely provide for this money on behalf of the federation.”
According to the second scenario, which the minister described, “only N3.36 trillion will be provided for, and the petroleum subsidy will continue up to mid-2023 based on the 18-month extension announced early 2021.”
Both eventualities could affect predicted deficit levels and net accretion to the Federation Account, the minister warned.
In 2023, operational surplus/dividend remittances would increase significantly as a result of stricter enforcement of the performance management framework for Government Owned Enterprises (GOEs), according to Zainab Ahmed.