The Nigerian Government has announced a budget of N19.76 trillion for 2023 fiscal year.
The proposal however provides for a deficit of N11.3 trillion.
This was announced Monday by the Minister of Finance, Budget and National Planning, Dr Zainab Ahmed, at a meeting with the House of Committee on Finance on the 2023-2025 Medium Term Expenditure Framework.
Projections on the budget indicate that of the N8.46 trillion expected revenue, oil related sources would provide N1.9 trillion while the balance would come from other sources.
According to the Minister, the benchmark for the budget would be on the sale of crude oil at $70 per barrel based on an exchange rate of N435.57 to the Dollar.
Other parameters that influenced the budget proposals included expected oil production of 1.69 million barrel per day, a GDP growth rate of 3.7 per cent and an inflation rate of 17.16 per cent for 2023.
On fuel, Ahmed stayed that the present subsidy on the product would continue till mid-2023 adding that this would be financed with N3.36 trillion.
She said there would be tighter enforcement of performance management framework for Government-owned Enterprises that would significantly increase operating surplus/dividend remittances in 2023.
Ahmed gave an assurance that there were no projections that Nigeria would default in her debt services in the nearest future.
Nigerians should also be sure that while the amount currently used in debt servicing had overshot appropriation in the 2022 budget, systems had been put in place to manage the situation.
“We planned that 60 per cent of revenue would be spent on debt servicing, but in some months, the ratio went up to 90 per cent.
“We have been able to, consistently without fail, serviced our debt and we do not have any projections even in the near future that we will fail.
“We actually follow the Medium Term Debt Management Strategy very strictly; the debts are not taken haphazardly and they are planned.
“They are appropriated and then we borrow against appropriation,’’ she stressed.
Ahmed however acknowledged that government was under pressure to manage debt servicing as revenue generation was dwindling.
She called on the National Assembly and on other stakeholders to join government to increase revenue performance.
“We do have pressure in terms of the ratio because when revenue is underperforming, it means we have problems being able to service all of government’s (debts). The liquidity situation is very challenging.
“That is why what we need to do, including the parliament, is to work towards increasing revenue performance.
“Yes you have been doing that and we are beginning to see improvement, but we need to keep pushing the bar,’’ she stressed.
Earlier, Chairman of the Committee, James Faleke acknowledged the dwindling revenue generation in the country
noting that this had affected the economy.
