BON justifies the end of the fuel subsidy

Nigeria Customs Service (NCS) officers collected the whopping sum of N241,903,781,854.46 in August, which is the highest the service has reached in 2022.
The collection comes at a time when the federal government’s thirst for revenue is heightened by dwindling revenues from the oil sector.
According to a cumulative table of monthly revenue collected by the NCS, previewed by The Tide source, the service collected a total of N1,755,386,486,390.02 from January to August 2022.
The cumulative collection is N363,436,321,614.95 which is higher than the N1,391,950,164,775.97 collected from January to August 2021.
The federal government’s emphasis on no. Sources of oil revenue have increased in recent times, which has raised higher expectations from organizations such as the Federal Inland Revenue Service (FIRS), Nigerian Ports Authority (NPA), Nigerian Maritime Administration and Safety Agency (NIMASA) and other revenue collection agencies.
The country plans to borrow 11 trillion naira to finance the 2023 budget in addition to selling some national assets
This was revealed recently by the Minister of Finance and National Planning, Mrs. Zainab Ahmed, who also said that the government’s budget deficit is likely to exceed 12.42 trillion naira if it were to maintain oil subsidies for the whole of the 2023 budget cycle.
Ahmed revealed this during his appearance before the House of Representatives Finance Committee to defend the 2023-2025 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP).
Explaining two budget deficit scenarios to the committee, the minister said the first option is to keep the oil subsidy for the whole of 2023.
According to her, in the first scenario, the deficit is projected to be N12.41 trillion in 2023 from the budgeted N7.35 trillion in 2022, which is 196% of total revenue or 5.50% of estimated GDP.
Under this option, she added, the government would spend N6.72 trillion on subsidies.
Ahmed said the second option is to maintain subsidies until June 2023 and this scenario will take the deficit to 11.3 trillion naira or 5.01% of estimated GDP.
In this option, the PMS subsidy is expected to gobble up N3.3 trillion.

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