Reps approve 4trn for petrol subsidy in revised 2022 MTEF

The House of Representatives on Thursday approved the revised 2022 Medium-Term Expenditure Framework (MTEF) sent to it last week by President Muhamadu Buhari.

The House also approved N4 trillion as subsidy for petrol in the 2022 appropriation act as well as N7.35 trillion budget deficit.

This followed the consideration and adoption of the report of the House committee on finance on the request by the president for revision of the 2022 fiscal framework and passage of a bill for an act to amend the appropriation act, 2022 in order to provide for petrol subsidy.

Buhari in the letter requested the review of the 2022 MTEF to make some adjustments to accommodate present realities such as oil production and price as well as suspension of the removal fuel subsidy.

Going by this, the House approved an increase in the oil benchmark to $73 per barrel and a daily oil production volume of 1.6 million barrels per day.

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Other approvals include a cut in the provision for federally funded upstream projects being implemented, by N200 billion from N352.80 billion; an increase in the projection for Federal Government independent revenue by N400 billion and an additional provision of N182.45 billion to cater to the needs of the Nigeria Police Force.

Also approved by the parliament is a domestic debt service provision of N76.13 billion, and net reductions in statutory transfers by N66.07 billion, as follows: “Niger Delta Development Commission (NDDC), N13.46 billion from N102.78 billion to N89.32 billion; North-East Development Commission (NEDC), by N6.30 billion from N48.08 billion to N41.78 billion; and Universal Basic Education (UBEC), by N23.16 billion from N112.29 billion to N89.13 billion.

“Basic health care fund, by N11.58 billion from N56.14 billion to N44.56 billion; and that NASENI, by N11.58 billion from N56.14 billion to N44.56 billion.”

The president had also requested an increase in the estimated provision for petrol subsidy for 2022 by N3.557 trillion, from N442.72 billion to N4.00 trillion.

This was granted through “a bill for an act to amend the appropriation act, 2022 in order to provide for petrol subsidy and make adjustments on the schedule; and for related matters (HB.1860) presented by Alhassan Ado Doguwa, the House leader.