- The sum of N6.72 trillion has been earmarked for fuel subsidy the federal government announced on Thursday, July 21
- The Minister of Finance Budget and National Planning, Mrs Zainab Ahmed made the announcement stating that the funds will be provided for the NNPC
- She, however, stated that petrol subsidy will remain upward based on the 18-months extension announced in 2021
FCT, Abuja - The Minister of Finance Budget and National Planning, Mrs Zainab Ahmed has announced that the federal government has earmarked the sum of N6.72 trillion for subsidy in 2023, The Nation reported.
Mrs Ahmed made this announcement in Abuja on Thursday, July 21 during the 2023 – 2025 Medium Term Expenditure Framework and Fiscal Strategic Paper (MTEF and FSP) Public Consultation.
According to the minister, there is a projected fiscal outcome in the medium term under two scenarios based on the underlying budget parameters/assumptions.
She noted that the earmarked funds will be fully provided for the NNPC on behalf of the federation.
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Subsidy to remain upward says Zainab
In the second scenario, she said:
“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”.
She, however, noted that both scenarios have their own shortcomings for net accretion to the Federation Account and projected deficit levels.
Zainab Ahmed said:
“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”.
Reps begin probe of N4.9trn fuel subsidy, petroleum minister, NNPC, FIRS absent
Meanwhile, a probe into the N4.9trillion paid fuel subsidy by the House of Representatives has stalled.
Expected to appear before the House of Representatives, the minister of state for petroleum, Timipreye Sylva and other stakeholders were absent.
Their absence further stretched the proper commencement of the investigation until Wednesday, July 27.
NNPC announces no money, despite N1.89trn revenue
In another report, the Nigerian National Petroleum Corporation (NNPC) has announced it has no money to share with federal states and local governments.
Providing a breakdown of its finance, NNPC revealed it made N1.89 trillion in five months, but most of the money has been spent.
World Bank has expressed concern that Nigeria could be heading for a massive fiscal crisis due to continue subsidy payments.