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FG to spend N6.7trn on petrol subsidy in 2023

The Federal Government has said it would spend N6.7 trillion on petrol subsidy payments in 2023.

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, made this known in Abuja on Thursday during the 2023 – 2025 Medium Term Expenditure Framework and Fiscal Strategic Paper (MTEF and FSP) Public Consultation.

The minister said the Federal Government has projected fiscal outcomes in the medium term under two scenarios.

Ahmed stated that in the first scenario, the subsidy on petrol was estimated at N6.72 trillion for the full year 2023.

The minister noted that in the second scenario, petrol subsidy would remain up to mid-2023 based on the 18-month extension announced in early 2021, in which case only N3.36 trillion will be provided for.

She further stated that the scenarios have implications for net accretion to the Federation Account and projected deficit levels.

Details later…

The Star

Segun Ojo

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