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Buhari budgets additional 2.557trn for petrol subsidy in 2022
Buhari budgets additional 2.557trn for petrol subsidy in 2022, asks senate to amend 2022 Appropriation Act
President Muhammadu Buhari has requested the senate for 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.
The Federal Government had soft-pedal on its initial plan to remove subsidy on petroleum products saying it was clear to even the blind and audible to the deaf that the situation of the country does not allow for that at the moment.
In seeking for a soft landing based on the outcry from Nigerians the minister of Petroleum Resources Timipre Sylva and his counterpart in the ministry of Finance Hajia Zainab Ahmad as well as the Group managing Director NNPC limited Mele Kyari met with the national assembly leadership to ammend the law to provide for an extension of subsidy provision beyond June 2022.
The President therefore requested the senate to amend the 2022 Appropriation Act passed by the National Assembly in December, 2021.
The request was contained in a letter dated February 10, 2022, and read during plenary by the Senate President, Ahmad Lawan.
Buhari in his request said it was imperative to remove all capital projects that were replicated in the 2022 Appropriation Act.
He disclosed that 139 out of the 254 projects in the budget totaling N13.24 billion had been identified for deletion.
Buhari, therefore, requested the National Assembly to amend the Appropriation Act to provide for Capital Expenditures in the sum of N106,161,499,052 billion naira; and N43,870,592,044 billion naira for Recurrent Expenditures.
Buhari underscored the need 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.
The full text of the letter entitled, “Submission of the 2022 Appropriation Amendment Proposal”, reads:
“As I indicated at the signing of the 2022 Appropriation Act, I forward herewith the Proposals for amendment of the 2022 Appropriation Act (as detailed in Schedules I-V), for the kind consideration and approval by the Senate.
“Let me seize this opportunity to once again express my deep gratitude to the leadership and members of the Senate for the expeditious consideration and passage of the 2022 Appropriation Bill as well as the enabling 2021 Finance Bill.
“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 important to restore the provisions made for various key capital projects in the 2022 Executive Proposal (see details in Schedule l) that were cut by the National Assembly. This is to ensure that critical ongoing projects that are cardinal to this administration, and those nearing completion, do not suffer a setback due to reduced funding.
“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.
“In addition, it is necessary to reinstate the four (4) capital projects totaling N1.42 billion in the Executive Proposal for the Federal Ministry of Water Resources that were removed in the 2022 Appropriation Act.
“Furthermore, there is critical and urgent need to restore the N3 billion cut from the provision made for payment of mostly long outstanding Local Contractors’ Debts and Other Liabilities as part of our strategy to reflate the economy and spur growth (see Schedule I).
“You will agree with me that the inclusion of National Assembly’s expenditures in the Executive Budget negates the principles of separation of Powers and financial autonomy of the Legislature. It is therefore necessary to transfer the National Assembly’s expenditures totaling N16.59 billion in the Service Wide Vote to National Assembly Statutory Transfer provision (see Schedule l).
“It is also imperative to reinstate the N22.0 billion cut from the provision for Sinking Fund to Retire Mature Loans to ensure that government can meet its obligations under already issued bonds as and when they mature.
“The cuts made from provisions for the recurrent spending of Nigeria’s Foreign Missions, which are already constrained, are capable of causing serious embarrassment to the country as they mostly relate to office and residential rentals.
“Similarly, the reductions in provisions for allowances payable to personnel of the Nigerian Navy and Police Formations and Commands could create serious issues for government. It is therefore imperative that these provisions be restored as proposed (see Schedule II).
“It is also absolutely necessary to remove all capital project is that replicated in the 2022 Appropriation Act; 139 out of the 254 such projects totaling N13.24 billion have been identified to be deleted from the budget.
“Some significant and non-mandate projects were introduced in the budgets of the Ministry of Transportation, Office of the Secretary to the Government of the Federation and Office of the Head of Civil Service of the Federation (see Schedule III).
There are several other projects that have been included by the National Assembly in the budgets of agencies that are outside their mandate areas. The Ministry of Finance, Budget and National Planning has been directed to work with your relevant Committees to comprehensively identify and realign all such misplaced projects.
“It is also necessary to restore the titles / descriptions of 32 projects in the Appropriation Act to the titles contained in the Executive Proposal for the Ministry of Water Resources (see Schedule IV) in furtherance of our efforts to complete and put to use critical agenda projects.
“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 (see Schedule V). 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.
“Aggregate expenditure is projected to increase by N45.85 billion, due to additional domestic debt service provision of N102.5 billion net of the reductions in Statutory Transfers by N56.67 billion, as follows: NDDC, by N12.61 billion from N102.78 billion to N90.18 billion; NEDC, by N5.90 bilion from N48.08 billion to N42.18 billion; UBEC, by N19.08 billion from N112.29 billion to N93.21 billion; Basic Health Care Fund, byN 9.54 billion from N56.14 billion to N46.60 billion; and NASENI, by N9.54 billion from N56.14 billion to N46.60 billion.
“Total budget deficit is projected to increase by N1.01 trillion to N7.40 trillion, representing 4.01% of GDP. The incremental deficit will be financed by new borrowings from the domestic market.
“Equally, it is imperative that Clause 10 of the 2022 Appropriation Act which stipulates that the Economic and Financial Crimes Commission (EFCC) and the Nigerian Financial Intelligence Unit (NFIU) are authorized to charge and defray from all money standing in credit to the units as revenues, penalties or sanctions at 10% for technical setup and operational cost at the units in this financial year be repealed.
“This clause is in conflict with the Act establishing these Agencies, as well as some other laws and financial regulations of the government. These are neither Revenue Generating Agencies nor Regulatory Bodies that generate revenue or charge penalty fees. They are fully funded (Personnel, Overhead and Capital) by Government through Budgetary provisions.
“The Fiscal Responsibility Act 2007, as well as the Finance Act 2021, require these Agencies to remit fully any recovered funds to the Consolidated Revenue Fund (CRF). This clause may lay a dangerous precedence, and spark clamours for similar treatment by other anti-corruption agencies.
“Also, the Clause 11 which stipulates that “Notwithstanding the provisions of any other law in force, Nigerian Embassies and Missions are authorised to expend funds allocated to them under the Capital components without having to seek approval of the Ministry of Foreign Affairs” should likewise be repealed. It too is inconsistent with extant Financial Regulations and the Public Procurement Act, which set thresholds for approving officers and Parastatal / Ministerial Tenders Boards for awards of Contracts for the procurement of goods and Services. This also amounts to an intrusion of the Legislature into what is an executive function.
“Given the urgency of the request for amendments, I I seek the cooperation of the National Assembly for expeditious legislative action on the 2022 Appropriation Amendment Proposal in order to sustain the gains of an early passage of the budget.
“Please accept, Distinguished Senate President, the assurances of my highest consideration.”
The Director-General of the Africa Centres for Disease Control and Prevention (Africa CDC), Dr Jean Kaseya, has explained why Ebola outbreaks continue to occur in Africa, citing the need for stronger health systems and surveillance mechanisms to prevent and control the spread of infectious diseases.
Kaseya spoke during an interview on Channels Television on Thursday, October 22, while discussing recurring Ebola outbreaks on the continent and the challenges facing public health authorities.
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He explained that some outbreaks originate from animals and spread to humans through contact with the environment, stressing that effective surveillance and stronger healthcare systems were necessary to address the threat.
“We are in Africa in a specific environment. And as you are saying, this outbreak is coming also from animals to humans. It means we are in contact with our environment,” he said.
“But we can avoid that if we have a strong health system in place, if we have strong surveillance mechanisms in place. And this is what we are working to address.”
The Africa CDC chief also announced plans to convene African health ministers on October 28 to discuss the Ebola Bundibugyo outbreak, which he described as the most geographically widespread outbreak of its kind.
According to Kaseya, three African regions—West, Central and East Africa—have been affected, making coordinated action among countries increasingly important.
“This is why I’m calling even a meeting on the 28th of October of all African ministers, because we see now this outbreak — this Ebola Bundibugyo outbreak — is the most geographically extended outbreak, with three regions in Africa already affected: West, Central and Eastern African regions,” he said.
He also expressed confidence in Africa’s preparedness to respond to public health emergencies, while emphasising the importance of strengthening existing systems to contain outbreaks.
Africa CDC Seeks Cooperation Over Nigeria’s Reported Ebola Case
Kaseya further called for cooperation among Nigeria, Uganda and the Democratic Republic of the Congo (DRC) to clarify the travel history of a woman linked to Nigeria’s reported Ebola case.
He said he had been communicating with health authorities in the three countries to establish the woman’s movements before she returned to Abuja on October 3.
According to him, the woman was born in Uganda and had spent some time there before returning to Nigeria. However, further information was needed to establish whether she had travelled through the DRC or had contact with anyone arriving from the country.
“We are talking to all authorities—with Nigerian authorities, with Ugandan authorities, even to DRC authorities,” Kaseya said.
He urged the woman to provide the relevant information to health officials, noting that it would help authorities determine the circumstances surrounding the case and support the countries involved.
“What we want is collaboration from this person, the lady. She has to tell us, to disclose to the authorities. I need this information, as Nigeria needs this information, because we need also to support Uganda,” he said.
Kaseya added that establishing the woman’s travel history and possible contacts would help prevent misunderstandings between the African countries.
“I think these are the pieces of information we are looking for, and it will help all of us, and it will avoid crisis between African countries,” he added.
A truck carrying grains fell on its side after crashing into a road median at Itowolo, along the Ikorodu axis of Lagos State, early Thursday, occupying the entire Bus Rapid Transit (BRT) lane.
The incident occurred at about 5 a.m. along the route inward Agric and towards Ogolonto, according to the Lagos State Traffic Management Authority (LASTMA), which disclosed the development on Thursday.
SEE ALSO: Lagos: LASTMA Announces Traffic Restrictions Along Route to Toll Gate
The agency identified the vehicle as a white 10-tyre mini truck and confirmed that no casualties were recorded in the accident.
LASTMA said its officers were at the scene managing the situation, while recovery of the fallen vehicle was expected to commence shortly.
Despite the truck occupying the entire BRT lane, the agency said the incident was not affecting traffic flow at the time of its update.
The authority shared the information to alert motorists to the incident and its ongoing response at the scene.
The Commissioner of Police in Ogun State, Bode Ojajuni, has urged the Police Officers’ Wives Association (POWA) to transform its skills acquisition centre in Abeokuta into an industrial hub to promote job creation, entrepreneurship and women’s empowerment.
According to a statement signed by the Police Public Relations Officer, DSP Oluseyi B. Babas eyi, on Thursday, Ojajuni made the call on Monday when he led members of the Ogun State Police Command’s Management Team on an inspection visit to the POWA Skills Acquisition Centre at the Command Headquarters, Eleweran, Abeokuta.
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During the visit, the POWA Acting Chairperson, Bolanle Adeoye, and members of the association’s executive received the commissioner and conducted him around the facility, including its photography and make-up studios.
The centre is designed to equip POWA members and members of the public with practical vocational skills, promote entrepreneurship and create sustainable livelihood opportunities, particularly for women and young people.
Ojajuni charged POWA to leverage partnerships with government agencies, private sector organisations, manufacturers, vocational institutions and development partners to transform the facility into a thriving industrial hub.
He emphasised that the centre’s vision should go beyond skills acquisition to include enterprise development, productive ventures and employment generation.
According to the statement, the commissioner stressed the need for the initiative to create opportunities for beneficiaries to become self-reliant and contribute meaningfully to economic growth.
Ojajuni also highlighted the relationship between economic empowerment and crime prevention, noting that sustainable livelihoods could help address socio-economic factors associated with criminal activity.
He stressed that the centre could contribute to public safety through crime-prevention awareness, constructive community engagement and opportunities that encourage women and young people to pursue legitimate and productive ventures.
Commending Adeoye and the POWA Ogun State executive for their commitment to human capital development, the commissioner pledged the command’s support for the centre.
He reaffirmed the command’s readiness to encourage strategic collaboration and partnerships that would advance the facility’s development, expand its reach and strengthen its contribution to empowerment and community safety.
The Ogun State Police Command reiterated its commitment to supporting initiatives that promote productive engagement, strengthen community resilience and advance public safety across the state.
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