President Buhari Seeks Amendment To 2022 Budget, Proposes N2.5 Trillion For Fuel Subsidy

President Muhammadu Buhari has submitted an amendment to the 2022 budget, proposing N2.557 trillion for fuel subsidy.

Buhari’s request is contained in a letter dated Feb .10 and read at plenary on Tuesday by the President of Senate, Dr Ahmad Lawan.

The President said that it was imperative to remove all capital projects that were replicated in the 2022 budget, saying that 139 out of the 254 projects amounting to N13.24 billion had been identified for deletion.

Buhari also urged the National Assembly to amend the budget by adjusting the capital expenditure to N106 billion, while the recurrent expenditure should be adjusted to N43 billion.

The president also requested for N2.557 trillion to be appropriated for fuel subsidy in the budget.

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“As I indicated at the signing of the 2022 Appropriation Act, I forward herewith the proposals for amendment of the 2022 Appropriation Act for the kind consideration and approval by the Senate.

“Let me seize this opportunity to once again express my deep gratitude to the leadership and members of the Senate for the expeditious consideration and passage of the 2022 Appropriation Bill as well as the enabling 2021 Finance Bill.

“It has become necessary to present this amendment proposal considering the impacts of the recent suspension of the Petroleum Motor Spirit (PMS) subsidy removal and the adverse implications that some changes made by the National Assembly in the 2022 Appropriation Act could have for the successful implementation of the budget.

“It is important to restore the provisions made for various key capital projects in the 2022 executive proposal that were cut by the National Assembly,” he said.

Buhari added: “This is to ensure that critical ongoing projects that are cardinal to this administration and those nearing completion, do not suffer a setback due to reduced funding.

“It is equally important to reinstate the N25.81 billion cut from the provision for the Power Sector Reform Programme in order to meet the Federal Government’s commitment under the financing plan agreed with the World Bank.

“In addition, it is necessary to reinstate the four capital projects totalling N1.42 billion in the executive proposal for the Ministry of Water Resources that were removed in the 2022 Appropriation Act.

“Furthermore, there is a critical and urgent need to restore the N3 billion cut from the provision made for payment of mostly long outstanding Local Contractors’ Debts and Other Liabilities as part of our strategy to reflate the economy and spur growth.”

“You will agree with me that the inclusion of National Assembly’s expenditures in the Executive Budget negates the principles of separation of Powers and financial autonomy of the Legislature.

“It is, therefore, necessary to transfer the National Assembly’s expenditures totalling N16.59 billion in the Service Wide Vote to National Assembly Statutory Transfer provision.

“It is also imperative to reinstate the N22billion cut from the provision for Sinking Fund to Retire Mature Loans to ensure that government can meet its obligations under already issued bonds as and when they mature.

“The cuts made from provisions for the recurrent spending of Nigeria’s Foreign Missions, which are already constrained, are capable of causing serious embarrassment to the country as they mostly relate to office and residential rentals”.

Buhari said that the reduction in allowances allocated to personnel of the Nigerian Navy and the police needed to be revisited.

“It is therefore imperative that these provisions be restored as proposed.

“It is also absolutely necessary to remove all capital projects is that replicated in the 2022 Appropriation Act, 139 out of the 254 such projects totalling N13.24 billion have been identified to be deleted from the budget.

“Some significant and non-mandated projects were introduced in the budgets of the Ministry of Transportation, Office of the Secretary to the Government of the Federation and Office of the Head of Civil Service of the Federation.

” There are several other projects that have been included by the National Assembly in the budgets of agencies that are outside their mandate areas,” he said.

Buhari added: “The Ministry of Finance, Budget and National Planning has been directed to work with your relevant committees to comprehensively identify and realign all such misplaced projects.

“It is also necessary to restore 32 projects in the appropriation act contained in the executive proposal for the Ministry of Water Resources in furtherance of our efforts to complete and put to use critical agenda projects.

“I, therefore, request the National Assembly to make the above amendments without increasing the budget deficit. I urge you to roll back some of the N887.99 billion of projects earlier inserted in the budget by the National Assembly to accommodate these amendments.”