How FG Aims To Secure N8.46 Trillion Revenue In 2023

By Tolulope Oke

The Federal Government of Nigeria (FG) has projected a revenue of N8.46 trillion in 2023 through crude oil incomes and non-oil sources.

Minister of Finance, Budget and National Planning, Dr. Zainab Ahmed stated this while addressing the House of Representatives Committee on Finance on Monday explaining that under the first scenario, federal government revenue is estimated at N6.34 trillion, out of which only N373.17 billion is expected from oil related sources, while the balance of N5.97 will come from non-oil, while for the second scenario, she said “in addition to subsidy reform, this scenario assume an aggregate implementation of cost to income limit of Government Owned Companies.

“With these, the 2023 FGN revenue is projected at N8.46 trillion out of which N.99 trillion or 23 percent is projected to come from oil revenue sources,” she said.

The Minister also stated that the budget deficit for the 2023 fiscal year might range from N11.30 trillion to N12.41 trillion, depending on certain fiscal policy choices regarding the payment of gasoline subsidies.

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The minister asserts that difficulties with crude oil output and NNPC withdrawals of PMS subsidies have significantly hampered the fulfillment of the nation’s revenue growth targets and that prompt, bold action is required.

“in this scenario, the budget deficit is projected to be N11.30 trillion in 2023, up from N7.35 trillion in 2022. This represents 5.01 percent of the estimated GDP, above the 3 percent threshold stipulated in the Fiscal Responsibility Act, 2007”, she said.

Regarding the alternative option, which might entail funding subsidies from January to December, she stated that “given the severely constrained fiscal space, budget deficit is projected to be N12.41 trillion in 2023, up from N7.35 trillion budgeted in 2022, representing 196% of total FGN revenue or 5.50% of the estimated GDP.

“This is significantly above the 3 percent threshold stipulated in the Fiscal Responsibility Act 2007 and there will be no provision for treasury funded MDA’s capital projects in 2023”.