FG will stop providing fuel subsidies by June 2023

The government claimed to have set aside N3.36 trillion to pay for fuel subsidies for the first half of 2023.

The Federal Government has said that it will stop giving fuel subsidies at the end of June 2023.

During the public presentation of the 2023 federal government budget, Mrs. Zainab Ahmed, Minister of Finance, Budget, and National Planning, made this disclosure.

Mrs. Zainab revealed that the government has set aside N3.36 trillion for gasoline subsidy payments to cover the first half of this year for the fiscal year 2023.

This is consistent with the 18-month extension announced in early 2022, she said.

When breaking down the budget, the minister pointed out that, as of November 2022, the country had generated N6. 5 trillion in income, which was 87 percent of the yearly objective of N7. 8 trillion.

The minister of finance and planning says that an analysis of the major sources of revenue shows that N586 billion comes from the federal government, N15 billion comes from customs, N1.3 trillion comes from independent revenue sources, and N3.7 trillion comes from other sources of revenue.

In 2022, the sectors that contributed the most to the growth of the economy were agriculture (23%), information and communications technology, trade, manufacturing, and the oil and gas sector (5.6%).

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The minister says that the drop in the oil and gas sector’s share of the economy shows that the government is serious about diversifying the economy.

Regarding tax exemptions, the finance minister declared that moving forward, enterprises will no longer be eligible for the pioneer status tax exemption.

She claimed that the tax waiver programme had saved a total of N6 trillion between 2021 and the present.

She said that the strategy would support the federal government’s earnings.