Federal Government To Spend N6.72 Trillion On Subsidy In 2023

The Federal government of Nigeria has announced that it will spend the sum of N6.72trillion on subsidy in 2023. This was made known in Abuja on Thursday by the Minister of Finance, Budget and National Planning, Zainab Ahmed, during the 2023 – 2025 Medium Term Expenditure Framework and Fiscal Strategic Paper (MTEF and FSP) Public Consultation. 

According to the minister, federal government has projected fiscal outcomes in the medium term under two scenarios based on the underlying budget parameters and assumptions. She said that the second scenario is that 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. 

The Finance Minister noted that "There will be tighter enforcement of the performance management framework for Government Owned Enterprises (GOEs) that will significantly increase operating surplus and dividend remittances in 2023". Recall that the National Assembly approved the sum of N4 trillion for subsidy this year (2022) representing almost 25% of the country's National Budget for the year according to a Policy and Advocacy Centre (PLAC) report.