Buhari Seeks Approval for N2.557trn for Fuel Subsidy Payment

By Aduragbemi Omiyale

President Muhammadu Buhari has asked the Senate for approval for a supplementary budget of N2.557 trillion, with a significant part of it for the payment of subsidy for petrol in the later part of 2022.

A statement signed by Mr Ezrel Tabiowo, the Special Assistant to the Senate President on Press, Mr Ahmad Lawan, on Tuesday said the letter from Mr Buhari was dated February 10, 2022.

It was stated that the President wants the Senate to amend the 2022 Appropriation Act passed by the National Assembly in December 2021, noting that it was imperative to remove all capital projects that were replicated in the 2022 Appropriation Act.

He disclosed that 139 out of the 254 projects in the budget totalling N13.24 billion had been identified for deletion, asking the parliament to amend the Appropriation Act to provide for capital expenditures in the sum of N106.2 billion and N43.9 billion for recurrent expenditures.

The President also requested that an additional provision for N2.557 trillion be appropriated by the National Assembly to fund the petrol subsidy in the 2022 Budget Framework which was revised to provide fully for PMS subsidy.

Mr Buhari underscored the need to reinstate four capital projects totalling N1.4 billion in the executive proposal for the Federal Ministry of Water Resources; and N22.0 billion cut from the provision for the Sinking Fund to retire mature loans needed to meet government’s obligations under already Issued bonds.

The President noted that the N2.557 trillion for the fuel subsidy payment for premium motor spirit (PMS) is required “following the suspension of the PMS subsidy removal.”

“An additional provision of N2.557 trillion will be required to fund the petrol subsidy in 2022. Consequently, the federation account revenue for the three tiers of government is projected to decline by N2.00 trillion, while FGN’s share from the account is projected to reduce by N1.05 trillion. Therefore, the amount available to fund the FGN budget is projected to decline by N969.09 billion,” he added.