Fuel Subsidy: FGN budgets N3.36 trillion as debt profile hits $102 billion

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Minister of Finance, Zainab Shamsuna Ahmed.

Fuel Subsidy: FGN budgets N3.36 trillion as debt profile hits $102 billion

The Federal Government of Nigeria (FGN) has allocated N3.36 trillion for fuel subsidy in 2023 as Nigeria’s debt profile hits $102 billion.

Minister of Finance, Zainab Shamsuna Ahmed, who made this known on Wednesday, in Abuja, said the 2023 appropriation bill has a budget deficit of N10.78 trillion.

She said this will be funded through domestic and multilateral borrowings and proceeds from privatisation.

According to her, of Nigeria’s $102bn debt, 35% is foreign and 65% is domestic, adding that the current public debt is at 23% of the country’s gross domestic product.

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The Minister also said the 2023 budget also factored in 17.16% inflation.

She said the draft 2023 budget has been prepared on the background of international challenges such as the Russia-Ukraine war and COVID-19 pandemic, adding that revenue generation has been a major challenge to national development in the country.

On the allocations for critical sectors, she said the sum of N2.05 trillion is allocated to education and N1.58 trillion to health.

She added that N2.74 trillion is allocated to defence and security, infrastructure got N998.9 billion, while social development and poverty reduction has N756 billion.

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