The Federal Government of Nigeria has announced plans to stop the payment of fuel subsidy by the end of June this year.
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, made this known during the public presentation of the 2023 Federal Government budget.
Zainab said the Federal Government has made provisions of N3.36 trillion for fuel subsidy payment in the 2023 budget for the first six months of the year, adding that the move was in line with the 18-month extension announced in early 2022.
She said, “The projected fiscal outcome in the 2023 Budget is based on the PMS subsidy reform scenario.
“In the 2023 Budget framework, it is assumed that petrol subsidy will remain up to mid-2023 based on the 18-month extension announced early 2022.
“In this regard, only N3.36trn has been provided for PMS subsidy. There will be tighter enforcement of the performance management framework for Government Owned Enterprises that will significantly increase operating surplus/dividend remittances in 2023.”
On the Federal Government’s revenue, the Minister said as of November 2022, the sum of N6.50trn was generated.
This, she said, is about 87 per cent of the prorated target of N7.48trn.
An analysis of the key contributors to the revenue collection according to the minister of finance and planning, includes a N586billion collection from the Federal Government, Customs – N15billion, independent revenue collection N1.3trillion as well as a N3.7trillion collection from other sources of revenue.
Top sectors that contributed to the growth of the economy in 2022 includes Agriculture at 23 percent, information and communications technology, trade, manufacturing with the oil and gas sector contributing just about 5. 6 percent.
The depreciation in the contribution of the oil and gas sector to the economy according to the minister represents the government’s resolve to diversify the economy.
As regards tax waivers, the minister of finance announced the withdrawal of the pioneer status tax waiver for companies going forward.
She stated that a total of N6trillion had been forgone between 2021 to date under its tax waiver scheme.
The plan according to her, will help shore up the federal government’s revenue.
