Buhari seeks National Assembly’s approval for N4t fuel subsidy
President Muhammadu Buhari has formally requested the National Assembly’s approval of N4 trillion for fuel subsidy in the proposed amendment to the 2022 Fiscal Framework.
Buhari made the request in a letter sent to the Speaker of the House of Representatives, Hon. Femi Gbajabiamila.
The Speaker read the letter during plenary on Thursday.
The letter said: “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. “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.
“The decision to suspend the removal of Petroleum Motor Spirit (PMS) subsidy at a time when high crude oil prices have elevated the subsidy cost has significantly eroded government revenues. There is also the need to make adequate provisions for the recent enhancements of allowances for officers and men of the Nigeria Police Force to boost their morale as they grapple with heightened security challenges in the country.
“Following these developments, it has become necessary to adjust the fiscal framework and accordingly amend the 2022 Appropriation Act to ensure its successful implementation.
“The adjustments to the 2022 Fiscal Framework include an increase in the project oil price benchmark by US$11 per barrel, from US$62 per barrel to US$73 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.
“An increase in the Estimated provision for PMS subsidy for 2022 by N3.557 trillion from N442.72 billion to N4.00 trillion. A cut in the provision for Federally-funded upstream projects is being implemented by N200 billion. from N352.80 billion to N152.80 billion.
“An increase in the projection for Federal Government independent revenue by N400 billion; and an additional provision …