…Approves N965.42bn Borrowing
The National Assembly has passed amendments to the 2022 Appropriation Act and the 2022 Fiscal Framework, bringing the federal government’s budget deficit to N7.35 trillion, recording N965.42 billion increase.
On the request of the President, Major General Muhammadu Buhari, the Senate and House of Representatives discussed and adopted reports on the amendment bills in plenary on Thursday.
A new oil price benchmark of $73 per barrel, oil production volume of 1.600 million barrels per day, and a N4 trillion PMS subsidy were all approved by the federal parliament.
The provision for federally-funded upstream projects that are currently being implemented has been reduced by N200 billion from N352.80 billion, but the projection for federal government independent revenue has been increased by N400 billion.
There was also an increased provision of N182.45 billion for the Nigeria Police Force’s needs, as well as a provision of N76.13 billion for domestic debt servicing, resulting in a net reduction of N66.07 billion in statutory transfers.
The statutory transfers were adjusted as follows: NDDC by N13.46 billion, from N102.78 billion to N89.32 billion; NEDC by N6.30 billion, from N48.08 billion to N41.78 billion; 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 NASENI by N11.58 billion, from N56
The President had written to the National Assembly, requesting that the budget and fiscal framework for 2022 be amended.
Buhari said the changes to the 2022 Fiscal Framework include an increase of $11 per barrel in the project oil price benchmark, from $62 to $73 per barrel; a reduction of 283,000 barrels per day in projected oil production volume, from 1.883 million barrels per day to 1.600 million barrels per day; and an increase of N442.72 billion in the estimated provision for PMS subsidy for 2022, from N3.557 trillion to N4 trillion.
Other changes include a N200 billion reduction in the provision for federally funded upstream projects being implemented, from N352.80 billion to N152.80 billion; an N400 billion increase in the projection for Federal Government independent revenue; and an additional N182.45 billion provision to meet the needs of the Nigeria Police Force.
