2022 budget: FG gets Senate nod to spend N3.55trn more on petrol subsid

Senate has approved a revised budget of N17.319trillion for the 2022 fiscal year.

The revised sum of N17.3 trillion is higher than the initial 2022 budget of 17.13 trillion passed last year but the increase represents N193 billion top-up in the budget.

The approval of the Appropriations Act, 2022 (Amendment) Bill was a sequel to the consideration of a report by the Committee on Appropriations presented by its Chairman, Senator Jibrin Barau.

The approval came with the passage of a bill to amend the 2022 Appropriations Act transmitted to the National Assembly on 10th February 2022, by President Muhammadu Buhari for consideration.

The Senate had in December 2021, passed a budget of N17, 126,873,917,692 trillion. Out of the total sum of N17.319 trillion passed, N817.699 billion is for Statutory Transfers; N3.978trillion for Debt Service; N7.108trillion for Recurrent (Non-Debt Expenditure); and N5.415 trillion for Contribution to the Development Fund for Capital Expenditure.

Approval of N3.557trn for PMS subsidy

Also, the Senate approved the total sum of N3.557 trillion for PMS subsidy in 2022, forward in two separate requests by the President to the National Assembly for approval.

It also approved the N192.52 billion aggregate increase sought by the executive, and an additional provision of N182.45 billion to cater for the needs of the Nigerian Police Force to enhance their morale.

President Buhari had in a letter to the Legislature dated 10th February 2022, sought an additional N2.557 trillion to fund subsidy payments from July to December 2022, just as he said that 138 of the 254 projects in the budget totalling N13.24 billion had been identified for deletion.

What you should know

The National Assembly in December 2021, had approved the sum of N442.7 billion for subsidy in the 2022 budget for the period of January to June this year.

Buhari in the letter, however, anchored his fresh request on the fact that PMS subsidy was not duly appropriated for in the national budget beyond June. According to him, the development was a result of the provisions of the Petroleum Industry Act which stops all such payments past the given June deadline.

In another letter dated 12th April 2022, President Buhari requested the National Assembly to approve an additional N1 trillion to his earlier N2.557 subsidy request to bring the total amount on payments to N4 trillion for the year 2022.

The President explained that the additional request was against the backdrop of adjustments to the 2022 fiscal framework which became imperative due to market developments occasioned by the spike in crude prices, following the Russian-Ukrainian war.

The Senate, accordingly, approved the President’s request for an additional N3.557 trillion for PMS subsidy with the passage of the 2022 Appropriations Act (Amendment) Bill, Thursday.