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After writing Reps, Buhari requests Senate’s approval for increase in fuel subsidy to N4tr

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President Muhammadu Buhari has requested the Senate’s approval for adjustments to the 2022 fiscal framework to accommodate the increase in fuel subsidy to N4 trillion.

The Senate President, Ahmad Lawan, read the President’s letter dated April 5, 2022 at Tuesday’s plenary.

The adjustment to the fiscal framework, according to Buhari became necessary because of the recent increase in the price of crude oil occasioned by the Russian-Ukraine conflict and other development in the global and domestic economies.

The letter read: “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.

READ ALSO: Buhari requests Reps’ approval for increase in fuel subsidy to N4tr

“The decision to suspend the removal of the Petroleum Motor Spirit subsidy at a time when high crude oil prices have elevated the subsidy cost has significantly eroded government revenues.”

The President had also requested the House of Representatives’ approval on the same issue.

In the letter forwarded to the lower legislative chamber last week, President Buhari said N442.72 billion was set aside for subsidy in 2022, adding that due to increase in price of crude oil occasioned by the Russia- Ukraine conflict and other factors, Nigeria would require an additional N3.557 trillion for fuel subsidy.

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