NASS approves Buhari’s demand, increases petrol subsidy from N442bn to N4tn

The Nigerian Senate and House of Representatives have approved an increase of petrol subsidy from N442 billion to N4 trillion for 2022 as requested by President Muhammadu Buhari.

The approval of the request came after the two chambers considered reports from their committees on finance.

Buhari has requested the lawmakers to approve an increase in the estimated provision for 2022 subsidy for Premium Motor Spirit (PMS), also called petrol, by N3.557 trillion, from N442.72 billion to N4 trillion.

In response to the request, the lawmakers on Thursday passed the revised 2022 fiscal framework before adjourning seating for Easter break.

Part of the revised fiscal framework is the request for approval for an increase in fuel subsidy.

In a letter dated April 5, 2022, Buhari had asked the Senate to adjust the 2022 fiscal framework.

According to the president, doing so became necessary in view of new developments in both the global and domestic economies.

He added that the developments came as the result of spikes in the market price of crude oil, following the Russian-Ukraine war.

Buhari, therefore, urged the Senate to approve an increase in the oil benchmark by US$11 per barrel, from US$62 per barrel to US$73 per barrel.

He equally sought a reduction in the projected oil production volume by 283,000 barrels per day, from 1.883 million barrels per day to 1.600 million barrels per day.

He underscored the need for a cut in the provision for federally-funded upstream projects being implemented by N200 billion, from N352.80 billion to N152.80 billion.

Buhari then proposed an increase in the projection for Nigerian Government Independent Revenue by N400 billion, and an additional provision of N182.45 billion to cater for the needs of the Nigeria Police Force.