Nigeria 2023 Budget Proposal: Petrol Subsidy Remains Until Mid Year
Oil crude benchmark, $70pb
Exchange rate N435.57/Dollar
GDP projected at 3.7%
Inflation at 17 to 16%.
The Nigerian government has said that current petrol subsidy regime will remain in place until mid-2023. Fuel subsidy means that a fraction of the price that consumers are supposed to pay to enjoy the use of petroleum products is paid by government so as to ease the price burden.
The federal government removed part of this subsidy claiming that prices paid by Nigerians to use petroleum products are less than what they should pay particularly when benchmarked against the prices in the international market.
Also Read: Declining Oil Output Derailing CBN Interventionist Programs – Emefiele
Disclosing the information on the subsidy timeline yesterday in Abuja, the minister of finance, Mrs. Zainab Ahmed, revealed that the government is proposing to spend only N3.36 trillion for petrol subsidy in 2023.
The minister, who made the disclosure ahead the 2023 budget presentation, told the House of Representatives Committee on Finance in Abuja also threw light on the 2023-2025 Medium-Term Expenditure Framework and Fiscal Strategy Paper.
According to her, the federal government is proposing an aggregate expenditure of N19.76 trillion for the 2023 financial year, with a projected deficit of N11.30 trillion. She said the federal government is projecting total revenue of N8.46 trillion, out of which N1.9 trillion is expected to come from oil-related sources while the remaining is to come from non-oil sources.
The federal government is also expected to peg crude oil price at $70 per barrel at an exchange rate of N435.57 per dollar, while real Gross Domestic Product (GDP) is projected at 3.7% and inflation at 17 to 16%.