The Federal Government revealed on Monday, August 29, that the petrol subsidy will remain in place until mid-2023. Minister of Finance, Zainab Ahmed, disclosed this information during her appearance before the House of Representatives Committee on Finance in Abuja. She presented details of the 2023-2025 Medium-Term Expenditure Framework and Fiscal Strategy Paper, stating that the federal government is planning to allocate N3.36 trillion for petrol subsidy in 2023.
In addition, the Federal Government is proposing an aggregate expenditure of N19.76 trillion for the 2023 financial year, with a projected deficit of N11.30 trillion. The government also anticipates a total revenue of N8.46 trillion, with N1.9 trillion expected to come from oil-related sources and the rest from non-oil sources.
For the financial projections, the Federal Government aims to set the crude oil price at $70 per barrel at an exchange rate of N435.57 per dollar. The real Gross Domestic Product (GDP) is projected at 3.7 percent, with inflation expected to range from 16 to 17 percent.