President Muhammadu Buhari has asked the Senate to make changes to the fiscal framework for 2022 so that a N4 trillion increase in fuel subsidies can be paid for by the government.
At Tuesday’s session, Senate President Ahmad Lawan read the President’s letter dated April 5, 2022.
In Buhari’s view, the fiscal framework had to be changed because of the recent rise in crude oil prices caused by the Russian-Ukraine crisis, as well as other changes in the world and in Nigeria’s economy.
According to the letter, the 2022 Fiscal Framework, which was used to make a budget for the 2022 fiscal year, needs to be changed because of new developments both globally and in the United States. The 2022 Fiscal Framework was used to make the 2022 budget.
These changes include a rise in the price of crude oil, made worse by the Russian-Ukraine war; a significant drop in oil production because of production shut-ins because of a lot of theft of crude oil between the production platforms and the terminals; and a rise in the price of crude oil, made worse by the Russian-Ukraine war.
The decision to hold off on removing the subsidy on petroleum motor spirit at a time when crude oil prices have pushed up the cost of the subsidy has taken a big bite out of government revenue, the letter explained.
On the same subject, the President had asked for clearance from the House of Representatives.
President Buhari said in a letter sent to the lower legislative chamber last week that N442.72 billion had been set aside for fuel subsidies in 2022, but that due to an increase in crude oil prices caused by the Russia-Ukraine conflict and other factors, Nigeria would need an additional N3.557 trillion for fuel subsidies.