Senate approves N4tn for petrol subsidy

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The Senate on Thursday approved President Muhammadu Buhari’s request to increase fuel subsidy payments in 2022 to N4 trillion from N442.72 billion.

The legislators made the approval after considering the report of the Committee on Finance on the Revised 2022 Fiscal Framework.

The Senate also approved the President’s request to raise the oil price benchmark from $62 to $73 and the reduction of projected oil production volume from 1.883 million to 1.6 million barrels per day.

The Senate also approved an additional provision of N182.45 billion to cater for the needs of the Nigeria Police Force.

The letter partly read, “Based on the above adjustments, the Federation Account (Main Pool) revenue for the three tiers of government is projected to decline by N2.418trillion, while FGN‘s share from the Account (net of transfer to the Federal Capital Territory and other statutory deductions) is projected to reduce by N1.173 trillion.

“However, the amount available to fund the FGN Budget is projected to decline by N772.91 billion due to the increase in the projection for independent revenue (Operating Surplus Remittance) by N400 billion.

“Aggregate expenditure is projected to increase by N192.52 billion, due to increase in personnel cost by N161.40 billion and other service wide votes by N21.05 billion (both for the Nigeria Police Force), additional domestic debt service provision of N76.13 billion, and net reductions in Statutory Transfers by N66.07 billion.”

Buhari listed statutory transfers’ adjustments as follows: NDDC by N13.46bn, from N102.78bn to N89.32bn; NEDC by N6.30bn, from N48.08bn to N41.78bn; UBEC by N23.16bn, from N112.29bn to N89.13bn; Basic Health Care Fund by N11.58bn, from N56.14bn to N44.56bn; and NASENI by N11.58bn, from N56.14bn to N44.56bn.

He said, “Total budget deficit is projected to increase by N965.42 billion to N7.35 trillion, representing 3.99% of GDP. The incremental deficit will be financed by new borrowings from the domestic market.”




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