Lawmakers in the red chamber on Wednesday kicked against the proposed reduction of fuel subsidy from N3.6 trillion to N1.7 trillion provision for petroleum subsidy from January to June 2023 as recommended in the report of senate committee on finance
The lawmakers argued that it will spell doom for the country if a difference of 1.9 is reduced from the 3.6 trillion as proposed for subsidy by the executive, based on information supplied by the NNPC, Nigeria upstream petroleum regulatory commission and the minister of finance
Chairman senate committee on finance, senator Solomon Olamilekan in his presentation says the reduction will bring down the N11.3 trillion 2023 Budget Deficit to N10.563.
Adding that a significant reduction in both waivers and tax exemption of corporate organisation will cushion the effect of budget deficit.
After several hours of discordant tunes among the senators, the issue of retaining the executive’s proposal on subsidy was put on voice vote , and the majority had the final say, leading to the adoption of 3.6 trillion as proposed estimate for subsidy from January to June 2023
Other recommendations as proposed by the Senate Joint Committees On Finance, National Planning And Economic Affairs On The 2023 – 2025 Medium Term Expenditure Framework (MTEF) And Fiscal Strategy Paper (FSP) Includes :
Daily crude oil production of 1.69mbpd, 1.83mbpd, and 1.83mbpd for 2023, 2024 and 2025 respectively,
Oil price of $73 per barrel was approved as a result of continuous increase in the oil price in the global oil market and continuous invasion of Ukraine by Russia
Exchange rate of N437.57 sustained,
projected GDP growth rate Pegged at 3.75% , Inflation rate of 17.16% .
The senate also approved New Borrowings of N8.437 trillion (including Foreign and domestic Borrowing)
Other parameters approved in the 2023-2025 MTEF/FSP Document includes:
A retained revenue of N9.352 trillion, Fiscal deficit N11.3 trillion (including GOEs)
Statutory transfers, totaling, N722.11 billion, Debt Service estimate of N6.31 trillion
Sinking Fund to the tune of N247.7 billion, Pension, Gratuities & Retirees Benefits of N827.8 billion
Aggregate FGN Expenditure of N19.76 trillion, made up of Total Recurrent (Non-debt) of N8.53 trillion, Personnel Costs (MDAs) of N827.8 billion , of Capital expenditure (exclusive of Transfers) N3.96 trillion
Special Intervention (Recurrent) amounting to N350 billion and Special intervention (Capital) of N7 billion.
Fiscal deficit of 11.3 trillion.
Editor : Ena Agbanoma
