FG to fund fuel subsidy with N6.72trn in 2023

The Federal Government is retaining subsidy regime funding in the 2023 fiscal year with estimated provision of N6.72 trillion to be funded by the Nigerian National Petroleum Limited (NNPL) on behalf of the federation, Minister of Finance, Budget and National planning Mrs. Zainab Ahmed, confirmed on Thursday at the presentation of 2023-2035 Medium Term Expenditure Framework & Fiscal Strategy Paper (MTEF&FSP) in Abuja.

Its funding (subsidy) is, however, tied to two prevailing scenarios, Minister added.

In first scenario, the business-as-usual model which entails full provisioning of subsidy, the minister said: “This assumes that the subsidy on PMS, estimated at N6.72 trillion for full year 2023, will remain and be fully provided for by the NNPC on behalf of the federation.

“Scenario two, the reform scenario: This assumes that petrol subsidy will remain up to mid-2023 based on the 18-month extension announced early 2021, in which case only N3.36 trillion will be provided for,” she said. (New Telegraph)