Senate increases 2022 budget by N193bn
…approves additional N3.55 trillion for petrol subsidy
The Senate, on Thursday, approved a revised budget of N17.3trillion for the 2022 fiscal year.
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.
It would be recalled that the Senate, in December, 2021, passed a budget of N17.13 trillion for the fiscal year 2022.
The revised sum of N17.3 trillion, in contrast with the 2022 budget of N17.13 trillion passed last year, represents a N193 billion increase.
The passage of the Appropriations Act, 2022 (Amendment) Bill, Thursday, followed the consideration of a report by the Committee on Appropriations.
Out of the total sum of N17.31 trillion passed, N817.6billion is for Statutory Transfers; N3.9trillion for Debt Service; N7.1trillion for Recurrent (Non-Debt Expenditure); and N5.4trillion for Contribution to the Development Fund for Capital Expenditure.
Also, the Senate approved N3.55trillion for petrol subsidy in 2022, forwarded in two separate requests by the President to the National Assembly for approval.
The President, in a letter to the Legislature dated 10th February, 2022, sought an additional N2.557trillion to fund subsidy payments from July to December, 2022.
He disclosed that 138 of the 254 projects in the budget totalling N13.24billion had been identified for deletion.
The National Assembly in December, 2021, had approved the sum of N442.7billion for subsidy in the 2022 budget for the period of January to June this year.
Buhari, however, anchored his fresh request on the fact that petrol subsidy was not duly appropriated for in the national budget beyond June.
According to him, the development was as 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 N1trillion to his earlier N2.557trillion subsidy request to bring the total amount on payments to N4trillion for the year 2022.
He 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 chamber, accordingly, approved the President’s request for additional N3.557trillion for PMS subsidy with the passage of the 2022 Appropriations Act (Amendment) Bill, Thursday.
It also approved N192.52billion 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.
The Senate, after passing the 2022 Appropriations Act (Amendment) Bill, adjourned till the 26th of April, 2021.
