According to the Centre for the Promotion of Private Enterprise (CPPE), the Federal Government might save N10 trillion in 2023 if the future administration can generate the fortitude to terminate the contentious fuel subsidy and multiple foreign exchanges (forex) window regimes.
In a paper titled “Tweaking the 2023 Finance Bill and Options for Unlocking Revenue in 2023,” Muda Yusuf, Director of CPPE, mentioned these.
He stated that although removing the fuel subsidy alone may liberate a minimum of N6 trillion, removing the foreign exchange subsidy might save an estimated N4 trillion.
He said that eliminating the forex subsidy will address imbalances in the currency ecosystem, increase government income, reduce corruption in forex transactions, and improve liquidity in the forex market.
According to him, it would also improve forex allocation efficiency, promote transparency in the forex environment, and boost investor confidence in the Nigerian economy.
As a result, he has advocated for a reassessment of the exchange rate assumption in the 2023 budget to reflect the exchange rate reality and increase revenue to the federation account.
