Minister explains how government will end fuel subsidy by June 2023

*Zainab Ahmed, Minister for Finance, Budget and National Planning, explains how the Federal Government of Nigeria will stop fuel subsidy payments by the end of June 2023

Alexander Davis | ConsumerConnect

As previously announced in 2022, the Federal Government has restated its intention to discontinue the payment of fuel subsidy by the end of June 2023.

ConsumerConnect reports Mrs. Zainab Ahmed,  Honourable Minister for Finance, Budget and National Planning, confirmed this development during the public presentation and analysis of the 2023 Federal Budget Wednesday, January 4, 2023, in Abuja, FCT.

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

The Minister noted this is in line with the 18-month extension earlier announced 2022.

In her analysis of the 2023 Budget, Mrs. Ahmed stated that Nigeria’s revenue performance as of November 2022 stood at N6.5 trillion, representing an 87 percent of the set target of N7.8 trillion for the year.

As regards the key contributors to the revenue collection, the Minister for Finance, Budget and National Planning, these include 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.

Aside from these, the depreciation in the contribution of the oil and gas sector to the economy represents the Federal Government’s decision to diversify the Nigerian economy.

Ahmed also noted that  the withdrawal of the pioneer status tax waiver for companies, going forward.

A total of N6trillion had been forgone between 2021 and date under its tax waiver scheme, said she.

According to the Minister, the plan will help to the Federal Government’s revenue.

Kindly Share This Story