The Federal Government may borrow about N11.3 trillion to fund expenditure in the 2023 budget as the deficit is projected to be at most, over 12.41 trillion next year or at least, N11.3trn which is over 100 per cent of the N7.35trn deficit for the 2022 fiscal year.

The Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, stated this yesterday while presenting the draft 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF&FSP) before the House Committee on Finance.

On government expenditure, the minister stated that given the constrained fiscal space, the deficit was projected to be N12.41trn in 2023, up from N7.35trn in 2022, representing 196 per cent of total federal government’s revenue of 5.50 per cent of the estimated GDP.

She added that, “This is significantly above the three per cent threshold stipulated in the Fiscal Responsibility Act (FRA) 2007, and there will be no provision for treasury-funded MDAs capital projects in 2023.

“Scenario two, the federal government’s 2023 aggregate expenditure is estimated at N19.76trn (inclusive of GOEs). In this scenario, the budget deficit is projected to be N11.30trn in 2023 up from N7.35trn in 2022

"This represents 5.01 per cent of the estimated GDP, above the three per cent threshold stipulated in the Fiscal Responsibility Act (FRA), 2007”.

On petrol subsidy, Zainab said the government may spend N3.36trn or N6.7trn in 2023. The first scenario, tagged “Business as Usual”, assumes that the subsidy on Premium Motor Spirit (PMS), estimated at N6.72trn for the full year 2023 will remain and be fully provided for.

However, she said the second scenario, tagged “The Reform Scenario”, assumed that petrol subsidy would remain up to mid-2023 based on the 18 months extension announced early 2021.

She explained that, “In which case only N3.36trn will be provided for. Additionally, there will be tighter enforcement of the performance management framework for Government Owned Enterprises (GOEs) that will significantly increase operating surplus/dividend remittances in 2023. Both scenarios have implications for net accretion to the Federation Account and projected deficit levels.

“The 2023 federal government revenue is projected at N6.34trn, out of which only N373.17bn or 5.9 per cent comes from oil-related sources. The balance of N5.97trn is to be earned from non-oil sources.

On oil revenues this year, she said despite higher oil prices, oil revenue has been underperforming due to significant oil production shortfall adding that crude oil production challenges and PMS subsidy deductions by NNPC constitute significant threats.

Zainab also said despite pegging N3.2 billion for pipeline security, Nigeria is not getting enough value on it to address energy theft

She said: “From what has happened in 2022, clearly what we are spending is not giving us much value because production continues to decline and what this means is whatever we are doing is not working and therefore we have to do something totally different.

“Oil production in April was 1.3 million barrels per day and by July it was 1.4 million. We do hope that the increase will be very significant because it’s costing us not just N3.2 billion in terms of security cost, but the revenue we have earned.”

She said for the new MTEF, the government has removed the federation spending on pipeline security, assuming that with the transition of NNPC to NNPC Limited, they will be carrying that cost directly, not the federation.

“A lot of the expenditure the federation used to carry, will now be carried by NNPC limited. NNPC will be paying taxes and dividends and we believe in the medium term, the federation will end up earning more revenue.”

Chairman of the House Committee on Finance, James Abiodun Faleke said, given Nigeria’s current financial situation, all revenue sources must be explored as the government was short of revenue.

https://dailytrust.com/fg-may-borrow-n11tr-for-2023-budget-as-deficit-rises-above-100

Wahala oo

They thought they were doing us
The hardship is turning to hardaeroplane

Soon people will be cruising in poverty.

Lol

Wow

Hmm

This current Federal Government is wicked. Most of this borrowed money will end up eaten by termites, swallowed by python, stolen by monkeys, hijacked by bandits and licked up by greedy politicians.

11.3 Trillion!!! Oh God! These poliTHIEVEcians have drained us completely.


With God, I am sure a new Nigeria is still very possible. We will rise again.


LIKE for OBI if you're OBIdient

The country is doomed

I wish Buhari will be in power for another 4 years. He can't borrow the country into the latrine and then hand it over to somebody else.
Buhari should be in power for another 4 to 5 years to supervise the implosion and then explosion of the country as a result of his evil policies.
That will be a good farewell gift to those who continuously voted for him out of ethnic resentments for better alternatives.

Haa

This people should leave the country to run itself

Bunch of thieves

All is well that ends well.

Buhari government is not like that oooo. I pity the incoming administration.


https://www.youtube.com/watch?v=ctN1hL5YQOw

I weep for Nigeria

Earnestly waiting 4 may 29 for dis nightmare 2 b over!

APC Make una continue...
The worst finance minister in the history of Nigeria and the worst zero knowledge economic president is Buhari.

Yet Tinubu wants to continue from where he stopped....

In Obi/Datti I trust!

Na beauty this one take collect minister from buhari,if no be say them dey see for back she would have been fired.

Borrow borrow make me rich

INEC SHOULD BE RELEASING THE FULL DETAILS OF ELECTIONS IMMEDIATELY AFTER EACH ELECTION.

Since Nigeria now operates the electronic transmission method, then, the INEC should be releasing all the full details of the Election Results, down to the Polling-Unit Results, Ward Results, and the LGA Results..
And they should transmit all the Accreditation details to the NATIONAL BUREAU OF STATISTICS for proper categorisation and demographic details of the election.

It is high-time we start demanding from INEC to be releasing and publishing the full details of the Election Results as they were transmitted electronically to “The Collation Support and Result Verification System” (CSRVS) on their website and/or Online Results Portal immediately the Outcome of the Elections are declared and final results called out.
..
Since we (the voters) are aware that the data contained inside the CSRVS are a highly secret information because they are there to be used in the process of the election, and because the results of the election are not yet declared publicly. So, we can patiently wait.
..
But immediately the Election-Results are publicly declared by the INEC, then it means that the INEC had run all their checks, and confirmed that the information contained inside the CSRVS are genuine figures, and that they had finished using those figures for the purpose of the elections, and thus, they have to publish the whole figures as contained in the CSRVS on the INEC’s website and/or Results Portal..
..
The most important question now becomes:
“Since the CSRVS is now functional and being actively used in the Elections,, why are they still using any form of MANUAL COLLATION again??”.

DOTian:
I wish Buhari will be in power for another 4 years

Are you serious?

We will keep borrowing as long as we subsidized fuel, education, electricity, health etc.

Imagine paying N6.72trn for fuel subsidy, that's stupidity.

Students pay N30,000 per session as fees in Federal Universities and you expect Nigerian University to be great. The cheapest university in South Africa is above 1 million naira.

Let's tell ourselves the truth.

Dem want borrow the one were dey go share among their selves before Dem leave office

And according to Fashola, the rocket science Minister, FG's borrowing is justifiable ...

Borrowing trillions to subsidize the pockets of criminals.

Bubu is setting up the next two preaidents for failure but they'd succeed!

If with the current realities and future forecast by this government, we still allow Religion, ethnicity or tribalism to determine our voting pattern then we should be ready to take up whatever happens to us as a people.

There are prelude to national disasters.

Horrible.

Let sell this country at once ..and everybody goes his own way... because with all this huge amount of money the federal government is borrowing almost everyday nigeria will soon collapse

Dd

This is the change and next level nigerians voted for.. nawaoooo

And yet some young people are still campaigning for APC. What a shame Ur mumu never do??
It's only a man like OBI that can take us from the mess.