The Federal Government of Nigeria has declared its intention to stop the payment of fuel subsidy by the end of June 2023, a month after the expiration of the tenure of President Muhammadu Buhari.
This revelation was made known by The Minister of Finance, Budget and National Planning, Zainab Ahmed, during the public presentation of the 2023 Federal Government budget.
She further highlighted that provisions worth N3.36 Trillion were made for fuel subsidy payment to cover the first six months of this year, in the 2023 fiscal period. This is in line with the 18-month extension announced in early 2022. In breaking down the budget, the minister stated that as of November 2022, the country’s revenue performance stood at 6. 5 trillion naira, or 87 percent of the set target of 7. 8 trillion naira for the year.
According to the minister of finance and planning, a review of the major sources of revenue collection shows that the federal government contributed N586 billion, customs contributed N15 billion, independent sources contributed N1.3 trillion, and other sources contributed N3.7 trillion. Agriculture, which contributed 23% to the growth of the GDP in 2022, ICT, trade, manufacturing, and the oil and gas sector, which contributed roughly 5.6 percent, are the top contributing sectors.
The minister claimed that the declining economic contribution of the oil and gas industry is a sign of the government’s determination to diversify the economy. For enterprises, moving ahead, the pioneer status tax waiver has been withdrawn, according to the finance minister. According to her, the tax waiver program has saved a total of N6 trillion since 2021. Her idea, in her opinion, will support the federal government’s revenue.