N443 billion allocated for fuel subsidy presently in the 2022 budget cannot last beyond June – Minister
The Federal Executive Council (FEC) has approved N3 trillion for the Nigerian National Petroleum Company, NNPC, Limited to offset payment of fuel subsidy in 2022.
Platforms Africa reports that the Minister of Finance, Budget and National Planning, Mrs Zainab Ahmed, who made the disclosure maintained that the FEC considered the request to make additional funding provision to enable the government to meet incremental fuel subsidy payment in the 2022 budget.
She recalled that only N443 billion is presently available in the 2022 budget meant to accommodate subsidy from January to June.
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The Minister said with the realities on ground including the present hardship faced by Nigerians and the lack of structures to support subsidy removal, the NNPC made a request for N3 trillion from the Ministry of Finance for 2022.
According to her, “What this means is that we have to make incremental provision of N2.557 trillion to be able to meet subsidy requirement which is averaging about N270 billion per month.”
She said the request was considered by council which directed the ministry to approach the National Assembly for an amendment to the fiscal framework as well as the budget.
Ahmed said the Council has approved an amendment to be transmitted to the National Assembly to repeal clauses 10 and 11 concerning the Economic and Financial Crimes Commission (EFCC) and the Nigerian Financial Intelligence Unit (NFIU) operations in the 2022 budget and as well restore what the lawmakers had deleted amounting to N103 billion.
She further added that the Council approved that the National Assembly should restore the N103 billion slashed from the budget for the provision of critical infrastructure.
Anxiety, Platforms Africa recalled, enveloped the oil industry after government announced the extension for implementation of the Petroleum Industry Act, PIA.
This government said it would give all stakeholders time to ensure that the implementation is carried out in a manner that ensures all necessary modalities are in place to cushion the effect of the PMS subsidy removal, in line with prevailing economic realities.
The Minister of State for Petroleum Resources, Timipre Sylva, explained, “We don’t intend to remove subsidies now. That is why I am making this announcement. We also see the legal implication. There is a six-month provision in the PIA that will expire in February and that is why we are coming out to say that before the expiration of this time, as I said earlier, we will engage the legislature.
“We believe that this will go to the legislature, we are applying for amendment of the law so that we would still be within the law.
“We are proposing an 18-months extension but what the National Assembly is going to approve is up to them. We would approve an 18-months extension and then it is up to the National Assembly to look at it and pass the amendment as they see it.”
About a possible gradual increase in fuel prices in the coming months, he said “that is not on the table as well. Gradual or increment in whatever guise is not on the table.
