Senate Injects N2.6trn Fuel Subsidy, Deletes 139 Duplicated Projects In Budget 2022

Appropriation committee in the Senate has begun further works on the amendment to the 2022 Appropriation Act.

President Muhammadu Buhari assented the budget at the twilight of 2021 but was returned to the parliament for amendment of some items including the deletion of 139 capital projects totalling N13.24 billion.

The 2022 fiscal policy document contain 254 capital projects of which 139 projects were duplicated.

In total, the new amendment is expected to make a provision of N106,161,499,052 for Capital Expenditures and N43,870,592,044 for recurrent without increasing budget deficit.

President Muhammadu Buhari, in a 10th February letter to the National Assembly underscored the need to remove all capital projects that were replicated in the 2022 Appropriation Act.

The President also requested that an additional provision for N2.557 trillion naira be appropriated by the National Assembly to fund the petrol subsidy in the 2022 Budget Framework which was revised to provide fully for PMS subsidy.

Buhari requested the National Assembly to reinstate four capital projects totaling N1.4 billion in the Executive proposal for the Federal Ministry of Water Resources; and N22.0 billion cut from the provision for the Sinking Fund to retire mature loans needed to meet government’s obligations under already Issued Bonds

Speaking on the bill, the Senate Leader, Yahaya Abdullahi (Kebbi North) the disclosed that the 139 replicated projects had been identified for deletion.

Other key highlights of the amendment are eleven areas such as 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.

Others include Restoring the provisions made for various key projects in the 2022 budget proposal to ensure that critical projects that are cardinal to the administration are implemented and to ensure that those nearing completion do not suffer setback due to reduced funding; Re-instating the N25.18 billion cut from the provision for the Power Sector Reform Programme; Re-instating the four Capital Projects totaling N1.42 billion in the Executive Proposal for the Federal Ministry of Water Resources; restoring the N3 billion cut from the provision made for payment of mostly long outstanding Local Contractors’ Debts; and transferring the National Assembly’s expenditures totaling N16.59 billion in the Service Wide Vote to National Assembly Statutory Transfer provision.

The Senate Leader added that the amendment also seeks the reinstatement the N22.0 billion cut from the provision for Sinking Fund to retire Mature Loans; reinstatement of cuts made from provisions for the recurrent spendings of Nigeria’s Foreign Missions; restoration of reductions in provisions for allowances payable to personnel of the Nigerian Navy and Police Formations and Commands; and removal of all capital projects that were replicated in the 2022 Appropriation Act; following the identification of 139 out of 254 such projects totaling N3.24 billion for deletion from the budget.

Contributing to the debate, Senator Gabriel Suswam bemoaned the high tax expenditure in the 2922 budget.

“Tax expenditures are waivers that are given to individuals or companies.

“Mr. President, if you look at the tax expenditure in 2022, it is about N1 trillion and totally unnecessary.

“It is not just what the president has sent here, let us consider those areas that can help them save money, because we might decide to step down those tax expenditures.”

The Senate President, Ahmad Lawan, after the bill scaled second reading, referred the same to the Committee on Appropriation for further work.

The Committee was given one week to report back to the chamber in plenary.

Meanwhile, two bills seeking to establish the Federal College of Education Afon, Kwara State; and Alvan Ikoku Federal University of Education have also passed second reading.

The bills were sponsored by Senators Yahaya Oloriegbe (Kwara Central) and Ezenwa Onyewuchi (Imo East).

The bills after consideration were both referred by the Senate President to the Committee on Tertiary Institution and TETFUND.

The Committee was given four weeks to report back to the Senate.