Senate To Pass 2022 Revised Budget Next Week

The Nigerian Senate is set to pass the 2022 revised budget next week following the passage of a bill to amend the 2022 Appropriation Act for second reading.

Naija News reports that the bill seeks to amend the 2022 budget by making provisions for Capital Expenditure and Recurrent Expenditure without increasing the budget deficit.

Recall that President Muhammadu Buhari had written a letter to the Senate seeking adjustments in the recurrent and capital expenditures in the Federal Government’s budget with estimates totalling N150tn

The President also sought approval for another N2.557tn to extend the payment of subsidy on Premium Motor Spirit, popularly called petrol and asked the lawmakers to delete 139 out of the 254 projects in the 2022 budget valued at N13.24bn that had been identified.

Buhari also requested the National Assembly to provide for capital expenditures totalling N106tn and recurrent expenditures amounting to N43tn and requested an additional provision of N2.557tn be made to fund the PMS subsidy in 2022.

The President also asked the lawmakers to reinstate four capital projects worth N1.4bn under the Federal Ministry of Water Resources, and the N22bn cut from the provision for the Sinking Fund to retire mature loans needed to meet government’s obligations under already issued bonds.

Leading the debate at the second reading on Wednesday, Senate Majority Leader, Senator Yahaya Abdullahi, gave key highlights of the amendment to include 11 areas.

He said some of the highlights include funding to cushion the impacts of the recent suspension of the Petroleum Motor Spirit subsidy removal, and addressing the adverse implications that some changes made in the 2022 Appropriation Act could have for the successful implementation of the budget.

Meanwhile, Lawan urged the Federal Government to transmit a bill to the National Assembly to amend the Petroleum Industry Act to enable the parliament to extend the subsidy regime in the Act, in line with the President’s request for an additional N2.557tn to cover fuel subsidy in the 2022 budget from July this year.

Lawan, therefore, mandated the relevant Committees on Petroleum Resources at the National Assembly to engage with the Executive on a bill to amend the PIA to align with the President’s request and report back within one week.