January 29, 2023

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Ahmed: FG to stop fuel subsidy payment by June 2023

AN OPEN LETTER TO THE HONORABLE MINISTER OF FINANCE, BUDGET AND FISCAL PLANNING

Minister of Finance, Budget and National Planning Shamsuna-Ahmed

The Federal Government has said that it will stop the payment of fuel subsidy by the end of June 2023.

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, disclosed this during the public presentation of the 2023 Federal Government budget on Wednesday.

Mrs Zainab disclosed that in the 2023 fiscal period, the government has made provisions of N3. 36trillion naira for fuel subsidy payment to cover the first six months of this year.

This, she stated, is in line with the 18-month extension announced in early 2022.

Breaking down the budget, the minister noted that the nation’s revenue performance as at November 2022 stood at 6. 5 trillion naira, representing an 87 percent of the set target of 7. 8 trillion naira for the year.

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.