2022 revised budget: NASS approves N4trn for petrol subsidy

THE Senate and House of Representatives on Thursday approved the sum of N4 trillion for petrol subsidy in the revised N17.320 trillion budget for the 2022 fiscal year, in response to President Muhammadu Buhari’s request. 

The approval was given at the committee of finance, after which the budget was passed through the third reading. 

From the N17.320 trillion total budget, the sum of N817.699 billion is for statutory transfer; N3.978 trillion for debt servicing; N7.109 trillion is for recurrent (non-debt) expenditure and N5.415 trillion for capital expenditure. 

Under the statutory transfers, National Assembly gets N153.101 billion; National Judicial Council (NJC), N120 billion; Niger Delta Development Commission (NDDC), N89.325 billion; Public Complaints Commission (PCC), N11.190 billion; Independent National Electoral Commission (INEC), N219.544 billion; National Human Rights Commission (NHRC), N4.500 billion; North East Development Commission (NEDC), N41.781 billion; Basic Health Care Fund, N44.565 billion, with the National Agency for Science and Engineering Infrastructure getting N44.565 billion. 

While acknowledging President Buhari’s request last week, the Speaker, Honourable Femi Gbajabiamila, had observed that the deficit in the 2022 Appropriation Act had risen by N965.42 billion. 

At the committee of supply, the lawmakers increased the projected oil price benchmark from $62 per barrel to $73 per barrel (an increase of $11 per barrel) and a reduction in the projected oil production volume by 283,000 barrels per day, from 1.883 million barrels per day to 1.6 million barrels per day. 

Other adjustments were the N200 billion cut in the provision for federallyfunded upstream projects being implemented, from N352.80 billion to N152.80 billion and increase in the projected Federal Government independent revenue by N400 billion. 

Speaking during a media chat after the passage of the Appropriation bill, Chairman, House Committee on Appropriation, Honourable Muktar Aliyu Betara, said the delay in the passage of the amendment bill was to accommodate the police budget and petrol subsidy. 

He said President Buhari brought an amendment to the 2022 Appropriation Act, including increase in the police salaries by N182 billion. 

Betara said: “We passed the budget with an increment to police salaries that was reduced by the president himself. 

“We increased the police salaries by N182 billion, that’s the only difference between the Appropriation Act and the amendment bill, it’s just the police increment.” 

He, however, observed that “the cry of the police is not about the salaries but overhead.” He added that when President Buhari sent the letter, the Minister of Finance, Budget and National Planning, Zainab Ahmed, still brought the letters of request for the police and subsidy, so that delayed the process as we waited to take them together. 

On the N7.35 trillion deficit, he said: “for me to give you answer to this question, I think you have to refer it to the chairman, Loans and Aids committee. I don’t know how much of loan is taken.” 

According to him, the adjustment was based on the increment for the police, adding that the budget now is N17,319,704,091,019. 

On the subsidy request, he said: “Actually, subsidy issue reflects in the MTEF; we have to raise the benchmark of additional $11 to add up the subsidy request by the President.” 

On the budget line removed from the 2022 Appropriation Act as highlighted by President Buhari, he said: “as legislators, when the executive brings the budget, you have to work on it very well. Some committees I think exceeded what suppose to be done within the budget. 

“You know if they bring the budget to you, not all what is given to you will pass. There are items that are not to be part of that budget. “So some committees did some adjustments. Where the executive requested that those line items are important, they want us to return them. Some of them we looked at, if it is genuine, we return, those that are not genuine, we refused to return,” Betara said.