FG to Stop Payment of Fuel Subsidy from June 2023

By our Reporter

Following the effects of biting economic meltdown, the Federal Government has said that it will stop the payment of fuel subsidy by the end of June 2023.

Mrs. Zainab Ahmed, the Minister of Finance, Budget and National Planning, disclosed this during the public presentation of the 2023 Federal Government budget.

The minister disclosed that in the 2023 fiscal period, the government has made provisions of N3. 36 trillion naira for fuel subsidy payment to cover the first six months of this year.

She said, this is in line with the 18-month extension announced in early 2022.

And painstakingly breaking down the budget, the minister noted that the nation’s revenue performance as at November 2022 stood at 6. 5 trillion naira, representing an 87 percent of the set target 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 N586 billion 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.

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The 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.

For her, the depreciation in the contribution of the oil and gas sector to the economy represents the government’s resolve to diversify the economy.

As for tax waivers, the minister announced the withdrawal of the pioneer status tax waiver for companies going forward.

Mrs. Ahmed stated that a total of N6 trillion had been forgone between 2021 to date under its tax waiver scheme.

This plan according to her, will help shore up the federal government’s revenue.


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