The anticipated benefits of the Federal government’s elimination of the subsidy on Premium Motor Spirit (PMS) have yet to materialize, as official records indicate a decline in oil revenue exceeding N1 trillion, despite enforcing the anti-subsidy policy over the past five months…CONTINUE READING....KINDLY READ THE FULL STORY HERE▶
This has raised concerns about the effectiveness of the implementation process.
The 2023 national budget had initially projected a total oil and gas revenue of N9.38 trillion. However, by July 2023, only N4.16 trillion had been realized from the prorated sum of N5.47 trillion.
According to the Budget Office of the Federation, accounting for various deductions, which includes the 13 percent derivation, the net inflow of oil and gas revenue into the federation account amounted to a mere N1.69 trillion.
This figure falls significantly short of the initial target by N1.01 trillion, representing a 37 percent deficit for the first seven months of 2023.
The government’s argument that removing the petrol subsidy would boost oil revenue and release funds for fiscal obligations has not borne fruit as expected.
Furthermore, the World Bank’s earlier estimation of the federal government saving up to N11 trillion from the subsidy removal policy now appears questionable in light of these revenue shortfalls.
