According to the Federal Government, fuel subsidies will no longer be paid after the month of June 2023.
This information was revealed by Mrs. Zainab Ahmed, Minister of Finance, Budget, and National Planning, at the formal introduction of the Federal Government’s 2023 budget.
According to Mrs. Zainab, for the first half of this year’s fuel subsidy payment, the government has budgeted N3.36 trillion for the fiscal year 2023.
This, according to her, is consistent with the 18-month extension announced in early 2022.
The minister explained the budget, pointing out that the country’s revenue performance as of November 2022 was at 6. 5 trillion naira, reflecting an 87 percent of the stated objective of 7. 8 trillion naira for the year.
An analysis of the key contributors to the revenue collection according to the minister of finance and planning, includes a N586billion collection from the Federal Government, Customs – N15billion, independent revenue collection N1.3trillion as well as a N3.7trillion 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.