The Federal Government has announced that it will discontinue paying fuel subsidy by the end of June 2023.
This was disclosed during the public presentation of the 2023 Federal Government budget by the Minister of Finance, Budget, and National Planning, Zainab Ahmed.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, disclosed this during the public presentation of the 2023 Federal Government budget.
According to Zainab, the government has set aside N3. 36 trillion for gasoline subsidy payments in the 2023 fiscal year, enough to cover the first half of this year.
This, she stated, is in line with the 18-month extension announced in early 2022.
When breaking down the budget, the minister pointed out that, as of November 2022, the country had generated 6. 5 trillion naira in income, which was 87 percent of the yearly objective of 7. 8 trillion naira.
According to the minister of finance and planning, an analysis of the major contributors to revenue collection includes a N586 billion collection from the federal government, a N15 billion collection from customs, a N1.3 trillion independent revenue collection, and a N3.7 trillion 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.