2023 Budget: Lawmakers Approve N3.6trn As Subsidy On Petroleum

..Approve new borrowings of N8.437trn

…Peg oil price at $73/brrl, FX rate at N437.57/$

The Senate on Wednesday approved, for 2023, the oil price benchmark of $73 per barrel of crude oil and sustained the exchange rate of N437.57 to one dollar, as contained in the 23-25 Medium Term Expenditure Framework (MTEF) and Fiscal Strategic Paper (FSP) ahead of the presentation of the 2023 Budget proposals by the President on Friday.

The Senate gave the approval following the consideration of the report of its Joint Committee on Finance and National Planning on the 2023-25 Medium Term Expenditure Framework (MTEF) And Fiscal Strategy Paper (FSP) which President Muhammadu Buhari recently proposed to the National Assembly.

The report was presented by the chairman of the Committee, Senator Adeola Olamilekan (APC – Lagos West).

After the debate on the report, the Senate also approved the sum of N3.6 trillion as a subsidy on petroleum products for 2023.

Other parameters approved include; “projected new borrowings of N8.437 trillion, including foreign and domestic borrowings subject to the approval of the provisions of details of the borrowing plan by the National Assembly.

“A retained revenue of N9.352 trillion as a result of an increase in the oil benchmark, fiscal deficit of N10.563 trillion, Statutory transfers, totalling N722.11 billion; debt service estimate of N6.31 trillion; sinking fund at N247.7 billion; pensions, gratuities and Retirees benefits at N827.8 billion.

The Senate further recommended a comprehensive review of the waiver policy to ensure that only companies engaged in manufacturing and production are granted such waivers.

It also granted relevant oversight committees of the National Assembly the liberty to remove recycled projects in their budget proposals during the Committees’ budget defence.