The request by President Muhammadu Buhari for the adjustment in the 2022 fiscal framework to cater for the raise of subsidy on Premium Motor Spirit, also known as petrol by N442.72billion from N3.557trillion to N4tn, has been jointly approved by the Senate and the House of Representatives to
The consideration by the two chambers of the National Assembly respectively was sequel to a letter written by President Buhari, dated April 2022.
The President had in the letter explained that an adjustment to the 2022 fiscal framework became imperative in view of new developments in both the global and domestic economies.
Meanwhile the two chambers on Thursday considered and adopted the President’s request for an amendment at the plenary. They also approved a new oil price benchmark price of $73 per barrel from $62 per barrel and a new oil production volume of 1.6 million per day from 1.883 million barrels per day.
They also approved a cut in the provision for federally funded upstream projects being implemented by N200bn from N352.80bn to N152.80bn.
President in the letter which was later approved by the Assembly 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.
President Buhari noted that the decision to suspend the removal of Petrol subsidy at a time when high crude oil prices have elevated the subsidy cost has significantly eroded government revenues.