The Federal Government on Thursday projected to spend N6.7 trillion on petrol subsidy payments in 2023.
Speaking at the presentation of the 2023-2035 Medium Term Expenditure Framework & Fiscal Strategy Paper in Abuja, the Minister of Finance, Budget and National Planning, Zainab Ahmed, said subsidy payment projection is based on two prevailing scenarios.
She, however, said both scenarios have implications for net accretion to
the federation account and projected deficit levels.
According to the Minister, the Federal Government has recorded a N2 trillion budget deficit between January and April.
She explained that the deficit further highlights the fiscal challenges
confronting the current administration.
Ahmed also said that the Nigerian National Petroleum Company Limited which has funded the fuel subsidy until June will henceforth leave that
responsibility to the federation, an action she said will create a strain on
the economy.
