The Federal Government has said to make provisions of N3.36 trn to mitigate fuel subsidy payment for the period of the first six months before the removal of fuel subsidy by the end of June 2023.
The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, disclosed this on Wednesday in Abuja during the public presentation of the 2023 Federal Government budget.
Ahmed revealed that in the 2023 fiscal period, the government has made provisions of N3.36 trn for fuel subsidy payment to cover the first six months of this year. Adding that inline with the 18-month extension announced in early 2022.
Giving the overview of the budget, the minister noted that the nation’s revenue performance as at November 2022 stood at N6.5trn, representing 87 percent of the set target of N7. 8 trn for the year.
In analysing the key contributors to the revenue collection, according to the minister, included a N586bn collection from the Federal Government, Customs N15 Billion, independent revenue collection N1.3 trillion as well as a N3.7 trillion collection from other sources of revenue.
“Top sectors that contributed to the growth of the economy in 2022 include 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.
The Minister of Finance also related to tax waiver, the withdrawal of the pioneer status tax waiver for companies going forward.
She further explained that a total of N6trn had been forgone between 2021 to date under its tax waiver scheme adding that the plan would help shore up the Federal Government’s revenue.