President Muhammadu Buhari on Tuesday tendered a modification of the 2022 Appropriation Act to the National Assembly.

This contained in a letter titled, “Submission of the 2022 Appropriation Amendment Proposal,” which budgeted N2.557 trillion for the fee of fuel subsidy.

The President of the Senate, Ahmad Lawan, and the Speaker of the House of Representatives, Femi Gbajabiamila read the letter in their respective chambers during plenary sessions.

An excerpt from the letter read, “As l indicated on the signing of the 2022 Appropriation Act, I ahead herewith the Proposals for the modification of the 2022 Appropriation Act (as detailed in Schedules I-V), for the type attention and approval through the Senate.

“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 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.

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“The Appropriation Amendment request is for a total sum of N106,161,499,052 (One hundred and six billion, one hundred and sixty-one million, four hundred and ninety-nine thousand, and fifty-two Naira only) for Capital Expenditures and N43,870,592,044 (Forty-three billion, eight hundred and seventy million, five hundred and ninety-two thousand, and forty-four Naira only) for Recurrent Expenditures. 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.

“However, following the suspension of the PMS subsidy removal, the 2022 Budget Framework has been revised to fully provide for PMS subsidy. An additional provision of N2.557 trillion will be required to fund the petrol subsidy in 2022. Consequently, the Federation Account (Main Pool) revenue for the three tiers of government is projected to decline by N2.00 trillion, while FGN’s share from the Account is projected to reduce by N1.05 trillion. Therefore, the amount available to fund the FGN Budget is projected to decline by N969.09 billion.”


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