President Muhammadu Buhari called on the House of Representatives (reps) to approve ₦4 trillion as payments for petrol subsidy payments in 2022.
Nigeria’s President made his request via a letter addressed to the house of representatives, titled “Submission of the Revised 2022 Fiscal Framework”.
The speaker of the House of Reps, Femi Gbajabiamila read the President’s letter during a plenary on Thursday.
In the letter dated April 5, President Buhari said the incremental provision by ₦442.72 billion from ₦3.557 trillion to ₦4 trillion was necessary for the face of current economic developments, including the increased market price of crude oil aggravated by the Russian-Ukraine war.
“As you are aware, there have been new developments both in the global economy as well as in the domestic economy which have necessitated the revision of the 2022 Fiscal Framework on which the 2022 Budget was based,” he said.
“These developments include spikes in the market price of crude oil, aggravated by the Russian-Ukraine war, significantly lower oil production volume due principally to production shut-ins as a result of massive theft of crude oil between the production platforms and the terminals.”
According to Buhari, the decision to suspend the removal of petrol subsidy at a time when high crude oil prices have elevated the subsidy cost has significantly eroded government revenues.
“Following these developments, it has become necessary to adjust the fiscal framework and accordingly, amend the 2022 Appropriation Act to ensure its successful Implementation,” Buhari said.
He said the adjustments to the 2022 fiscal framework include an increase in the projected oil price benchmark, from $62 per barrel to $73 per barrel, up by US$11 per barrel.
“A reduction in the projected oil production volume by 283,000 barrels per day, from 1.883 million barrels per day to 1.600 million barrels per day,” the letter reads.
“An increase in the Estimated provision for PMS subsidy for 2022 by from ₦442.72 billion from ₦3.557 trillion to ₦4 trillion.
“A cut in the provision for federally-funded upstream projects being implemented by ₦152.80 billion from ₦200 billion to N352.80 billion.
The President also said the federation account revenue for the three tiers of government is projected to decline by N2.418 trillion, while FG’s share from the account is projected to reduce by ₦1.173 trillion.
He, however, noted that the amount available to fund the FG’s budget is projected to decline by ₦772.91 billion due to the increase in the projection for independent revenue by ₦400 billion.
“Given the urgency of the request for revision of the 2022 Fiscal Framework and 2022 Budget amendments, I seek the cooperation of the National Assembly for expeditious legislative action on this request,” Buhari said.
“Please accept. Right Hon. Speaker, the assurances of my highest consideration.”
