The Federal Government is set to provide for next year’s subsidy to the tune of N6.72 trillion.
Recall that petrol subsidy payments grew by 349.42 percent from N350 billion in 2019 to N1. 573 trillion in 2021.
Minister of Finance, Budget, and National Planning, Mrs. Zainab Ahmed, spoke in Abuja during the 2023 – 2025 Medium Term Expenditure Framework and Fiscal Strategic Paper (MTEF and FSP) Public Consultation.
According to her, the government has projected fiscal outcomes in the medium term (2023 to 2025) under two scenarios based on the underlying budget parameters/assumptions.
Under the first scenario, the finance minister said “the subsidy on PMS is estimated at N6.72 trillion for the full year 2023”.
This amount, she said, “will remain and be fully provided for by the NNPC on behalf of the federation”.
The second scenario, the minister explained, 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”.
