of over N1 trillion despite enforcement of the anti-subsidy policy in the last five months, creating doubt about the implementation process.
The World Bank had also said that the federal government would save up to N11trn from the subsidy removal policy.In the period under review, the amount available for distribution from the federation account – main pool – was N1.86 trillion. Of this, the federal government received N981.39 billion, while the state and local governments received N497.78 billion and N383.76 billion respectively.
The 2024-2026 Medium Term Expenditure Framework and Fiscal Strategy Paper will be presented to stakeholders today on the sidelines of the 29th Nigeria Economic Summit in Abuja. Based on the current 7.5 percent VAT, the government expects to make N2.625 trillion in 2024, N3 trillion in 2025 and N3.375 trillion in 2026, bringing it to a cumulative figure of N9 trillion VAT revenue within the 2024-2026 MTEF/FSP implementation.
“If not managed prudently, high debt levels can negatively impact FGN’s ability to fund essential expenditures. The probability of crystallisation of this risk is moderate, considering factors such as borrowing conditions and debt sustainability,” the budget office said.