By the end of June 2023, the Federal Government has stated that it will discontinue providing fuel subsidies.
During the public presentation of the 2023 Federal Government budget, Mrs. Zainab Ahmed, Minister of Finance, Budget, and National Planning, made this disclosure.
Mrs. Zainab revealed that the government has set aside N3. 36 trillion for fuel subsidy payments to cover the first half of this year during the fiscal year 2023.
This is consistent with the 18-month extension announced in early 2022, she said.
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a picture of Mrs. Zainab Ahmed, the minister of finance.
When breaking down the budget, the minister pointed out that, as of November 2022, the country had generated 6. 5 trillion naira in revenue, which was 87 percent of the yearly target of 7. 8 trillion naira.
According to the minister of finance and planning, an analysis of the major contributors to revenue collection includes a N586 billion collection from the federal government, a N15 billion collection from customs, a N1.3 trillion independent revenue collection, and a N3.7 trillion collection from other sources of revenue.
Agriculture, which contributed 23% to the growth of the economy in 2022, information and communications technology, trade, manufacturing, and the oil and gas sector, which contributed just 5.6%, are the top contributing sectors.
According to the minister, the decline in the oil and gas sector’s economic contribution is a sign of the government’s determination to diversify the economy.
Regarding tax exemptions, the finance minister declared that moving ahead, enterprises will no longer be eligible for the pioneer status tax exemption.
She claimed that the tax waiver program had saved a total of N6 trillion between 2021 and the present.
She said that the strategy will support the federal government’s earnings.