Buhari to present ₦19.76trn 2023 budget on Friday

Nigeria's President is gearing up to present the proposed 2023 Appropriation Bill to the Joint National Assembly on Friday, as the nation grapples with intensified scrutiny and demands for a slash in the proposed ₦3.6 trillion petrol subsidy. The upcoming budget presentation is not only significant due to the imminent change in government next year, but also crucial in navigating Nigeria's challenging economic landscape. Eze Onyekpere, Lead Director of the Center for Social Justice, highlighted the importance of this budget, emphasizing the need for measures to stimulate the economy, boost production, tackle unemployment, and enhance export opportunities. Amidst these expectations, the issue of petrol subsidy looms large. The proposed allocation of 3.6 trillion Naira for fuel subsidy has sparked debates, with calls for a 50% reduction to 1.7 trillion Naira. Despite the implementation of the Petroleum Industry Act (PIA) and discussions on extending the subsidy beyond the current half-year mark, the government seems determined to retain the substantial petrol subsidy. On this matter, Dr. Onyekpere noted the government's perceived lack of political will to phase out the subsidy gradually and target relief efforts towards the most vulnerable segments of society. Another critical aspect that will shape the budget presentation is the ongoing process of scrapping and merging unprofitable ministries, departments, and agencies. The Senate's push to eliminate ineffective entities aligns with recommendations from the Dafinone Rosario report, which has languished for nearly a decade. While Dr. Onyekpere acknowledged the potential cost savings from implementing these recommendations, he underscored the need for broader fiscal reforms. He called for a reevaluation of tax expenditures, citing potential revenue losses of up to five trillion Naira. Dr. Onyekpere emphasized the importance of curbing tax exemptions and ensuring that revenue is channeled towards economic growth rather than being foregone. As Nigeria grapples with a substantial budget deficit, these challenges underscore the urgency of addressing wasteful expenditures and enhancing revenue generation to foster sustainable economic development.