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Fuel Subsidy To Gulp N6.7trn In 2023, Minister Describes FG Borrowing “Wasteful”

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It was the convergence of stakeholders to interact and share opinions with the government on the 2023-2025 Medium Term Fiscal Framework.

Speaking at the Medium Term Fiscal Framework consultative forum in Abuja, Minister of Finance, Budget and National Planning, Zainab Ahmed said the country will witness an astronomical rise in fuel subsidy next year.

She said in 2023, the estimated cost for fuel subsidy will hit N6.7 trillion which will be more than N2 trillion increase from what the government is currently paying.

The Minister while calling on Nigerians to understand that retention of fuel subsidy was affecting operations said fuel subsidy regime is responsible for the country’s inability to service its debts as well as meet up with capital expenditure.

She also spoke on other sundry issues in the budget process.

Earlier, the Director General, Budget Office of the Federation, Ben Akabueze spoke on what the government tend to achieve through the consultative forum. Meanwhile, the Federal Government has instructed the new Nigerian National Petroleum Corporation Limited, NNPC to cover the cost of subsidy on behalf of the federation.

In the vein, the government also hinted that the New NNPC Limited will no longer be contributing to the monthly Federation Account Allocation Committee, FAAC as it is structured to pay only royalties, taxes, and dividends.

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