President Muhammadu Buhari is seeking the Senate’s approval for adjustments to the 2022 fiscal framework.
Gatekeepers News reports that the Senate received the President’s request at the Plenary on Tuesday.
The key adjustments in the request contained in a letter dated April 5 and read by Senate President Ahmad Lawan, include the increase in the oil benchmark from $62 per barrel to $73 per barrel and a reduction of the projected oil production volume from 1.883 million barrels per day to 1.60 million barrels per day.
Other provisions in the adjustment are approval for an increase in the estimated provision for petrol subsidy for 2022 from N442.72 billion to N4 trillion, a reduction in the provision for federally funded upstream projects being implemented from N352.80 billion to N152.80 billion.
Buhari, in the letter, explained that an adjustment to the 2022 fiscal framework became imperative due to new developments in both the global and domestic economies which were occasioned by spikes in the market price of crude oil, which were a fallout of the Russian-Ukraine war.
“As you are aware, there have been new developments both in the global economy as well as in the domestic economy which have necessitated the revision of the 2022 Fiscal Framework on which the 2022 Budget was based.
“These developments include spikes in the market price of crude oil, aggravated by the Russian-Ukraine war, significantly lower oil production volume due principally to production shut-ins as a result of massive theft of crude oil between the production platforms and the terminals.
“The decision to suspend the removal of Petroleum Motor Spirit (PMS) subsidy at a time when high crude oil prices have elevated the subsidy cost has significantly eroded government revenues,” the President said.
