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

President Muhammadu Buhari has requested the House of Representatives’ approval for an increase in fuel subsidy to N4 trillion this year.

In a letter dated April 5, 2022, and addressed to the lower legislative chamber, the President said N442.72 billion was set aside for subsidy in 2022 but because of increase in price of crude oil occasioned by the ongoing conflict between Russia and Ukraine and other factors, Nigeria would require an additional N3.557 trillion for fuel subsidy.

He stressed that the decision to suspend the removal of fuel subsidy at a time when high crude oil prices had increased the subsidy cost significantly reduced the government’s revenues.

READ ALSO: ‘Reliefs will come your way soon,’ Buhari begs Nigerians over fuel scarcity, power outage

Buhari had in February requested the parliament’s approval for the provision of N2.557 trillion for payment of fuel subsidy in 2022.

The Speaker of the House, Femi Gbajabiamila, read the President’s letter at Thursday’s plenary in Abuja.

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.”

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