NNPC to stop funding subsidy as FG estimates N6.72trn for subsidy in 2023—Zainab

 Minister of Finance and National Zainab Ahmed has said that the government in its fiscal projection in the medium term will provide for subsidy on PMS an estimated N6.72 trillion for the full year 2023. The Minister however said that the Nigerian National Petroleum Company Ltd., which had funded the fuel subsidy until last month, would henceforth leave that responsibility to the federation. This she said would even create a greater strain on the fiscal position of the federal government, describing fuel subsidy as unsustainable.

She said “it will remain and be fully provided for by the NNPC on behalf of the federation in if government allow this to continue.” She also said that another scenario is 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. Both scenarios have implications for net accretion to the Federation Account and projected deficit levels”.

She said that “There will be tighter enforcement of the performance management framework for Government Owned Enterprises (GOEs) that will significantly increase operating surplus/dividend remittances in 2023.” She said that the Federal Government has recorded a N3.09 trillion deficit in its 2022 budget implementation between January and April. Mrs. Zainab Ahmed, said these at the Public Consultative Forum on the draft Federal Government 2023 – 2025 Medium Term Fiscal Framework and Fiscal Strategy, in Abuja. According to her, the deficit underscored the fiscal challenges confronting the Federal Government.