President Muhammadu Buhari wants the provision for petrol subsidies in 2022 increased from N442 billion to N4 trillion.
As a result, Nigeria’s president has written to the House of Representatives requesting a review of the fiscal framework for 2022.
During Thursday’s plenary, House Speaker Femi Gbajamila read the letter, titled “Submission of the Revised 2022 Fiscal Framework.”
Buhari cited the rising market price of crude oil, which has been exacerbated by the Russian-Ukraine war, in his letter dated April 5.
“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,” he said.
“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.”
According to him, the adjustments to the 2022 fiscal framework include a rise in the estimated crude oil price benchmark from $62 per barrel to $73 per barrel.
“A reduction in the projected oil production volume by 283,000 barrels per day, from 1.883 million barrels per day to 1.600 million barrels per day,” Buhari’s letter read.