The Speaker of the House of Representatives, Femi Gbajabiamila, has said members of the national assembly are concerned about the long-term impact of the burden that the endless borrowings by the Federal Government and growing debt profile will place on Nigeria.
Gbajabiamila, who said the President, Major General Muhammadu Buhari (retd.), was expected to lay the 2023 Appropriation Bill before the National Assembly early October, decried the huge deficit in the proposed budget of the Federal Government.
The Federal Government is proposing a budget to the national assembly with estimates totalling N19.76tn, while the deficit will hover between N11.30tn and N12.41tn, depending on the duration that the Premium Motor Spirit (petrol) subsidy regime will be extended, in the 2023 fiscal year.
The Minister of Finance, Budget and National Planning, Zainab Ahmed, had, on August 29, 2022, in her presentation to the national assembly, at the hearing on the proposed 2023-2025 Medium Term Expenditure Framework and Fiscal Strategy Paper, decried that the government might be unable to provide for treasury-funded capital projects next year, especially due to dwindling revenue and petrol subsidy.
Ahmed had pointed out that crude oil production challenges and the PMS subsidy deductions by the Nigerian National Petroleum Company Limited (formerly Nigerian National Petroleum Corporation) constitute a major threat to the country’s revenue growth targets.
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