National Assembly Passes Amended 2022 Budget, Approves N965.42bn Borrowing

The National Assembly has passed amendments to the 2022 Appropriation Act and 2022 Fiscal Framework, which raised the deficit in the Federal Government’s budget by N965.42 billion to N7.35 trillion.

The Senate and the House of Representatives, respectively, considered and adopted reports on the amendment bills at the plenary on Thursday based on the request by the President, Major General Muhammadu Buhari (retd.).

The federal parliament approved a new oil price benchmark of $73 per barrel, a new oil production volume of 1.600 million per day, and a PMS subsidy of N4 trillion.

Provision for federally-funded upstream projects being implemented was cut by N200bn from N352.80bn, while the projection for Federal Government independent revenue was raised by N400bn.

Also passed was an additional provision of N182.45bn to cater for the needs of the Nigeria Police Force as well as provision of N76.13bn for domestic debt service, with net reductions in statutory transfers by N66.07bn.

The statutory transfers’ adjustments were as follows: NDDC by N13.46bn, from N102.78bn to N89.32bn; NEDC by N6.30bn, from N48.08bn to N41.78bn; UBEC by N23.16bn, from N112.29bn to N89.13bn; Basic Health Care Fund by N11.58bn, from N56.14bn to N44.56bn; and NASENI by N11.58bn, from N56.14bn to N44.56bn.

The President had written to the National Assembly to call for amendments to the budget and the fiscal framework for 2022.

Buhari said the adjustments to the 2022 Fiscal Framework include an increase in the project oil price benchmark by $11 per barrel, 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; an increase in the estimated provision for PMS subsidy for 2022 by N442.72bn, from N3.557tn to N4tn.

Other adjustments include a cut in the provision for federally funded upstream projects being implemented by N200bn from N352.80bn to N152.80bn; an increase in the projection for Federal Government independent revenue by N400bn; and an additional provision of N182.45bn to cater for the needs of the Nigeria Police Force.

Buhari listed statutory transfers’ adjustments as follows: NDDC by N13.46bn, from N102.78bn to N89.32bn; NEDC by N6.30bn, from N48.08bn to N41.78bn; UBEC by N23.16bn, from N112.29bn to N89.13bn; Basic Health Care Fund by N11.58bn, from N56.14bn to N44.56bn; and NASENI by N11.58bn, from N56.14bn to N44.56bn.

He said, “Total budget deficit is projected to increase by N965.42 billion to N7.35 trillion, representing 3.99% of GDP. The incremental deficit will be financed by new borrowings from the domestic market.”