Home Business N3.36tn Allocated for Fuel Subsidy In 2023, Debt Profile Hits $102bn

N3.36tn Allocated for Fuel Subsidy In 2023, Debt Profile Hits $102bn

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Nigeria’s Minister of Finance, Zainab Ahmed, has said that N3.36tn has been allocated for fuel subsidy in 2023 even as the country’s debt profile has risen to $102billion.

The Minister, who disclosed this on Wednesday in Abuja, also said the 2023 budget proposal has a budget deficit of 10.78 trillion naira.

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.

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

According to her, 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.

Speaking on the allocations for critical sectors, she said the sum of 2.05 trillion naira is allocated to education and N1.58 trillion for health.

She revealed that 2.74 trillion naira is allocated to defense and security, infrastructure got 998.9 billion naira while social development and poverty reduction has  N756 billion naira.

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