President Muhammadu Buhari on Tuesday sent a revised Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to the National Assembly, seeking an increase in the proposed budget estimate for 2022.
The President in the revised MTEF is seeking the approval of the parliament to raise the 2022 budget proposal by N2.47 trillion to N16.45 trillion against the previous figure of N13.98 trillion.
In the MTEF FSP approved by the two chambers of the national assembly, the president had proposed N13.98 trillion for the fiscal 2022.
In the letter which convey the new proposal to the Senate and read by the deputy senate president, Ovie Omo-Agege at plenary, President Buhari said that the adjustments were important to reflect “the new fiscal terms in the Petroleum Industry Act (PIA).”
“The PIA establishes a progressive fiscal framework aimed at encouraging investment in the Nigerian petroleum industry,” the president said.
“This significantly alters the oil and gas fiscal terms and has necessitated changes in the 2022-2024 Medium Term Fiscal Framework.”
The president noted that the increase in the proposed 2022 budget estimate was because N100 billion has been voted for the conduct of the 2023 general poll, amongst other necessities.
“The increase in expenditure is due to; N100 billion additional provision to INEC, to cater for the 2023 general election,” he added.
“The provision of N54 pillion to NASENI, which represents 1 percent FGN share of federation account.
“Additional provision of N510 billion in the Service Wide Votes to cater for National poverty reduction with growth strategy (N300 billion), Police Operations Fund (N50 billion), Hazard Allowance for Health Workers (N50 billion), Public Service Wage Adjustments (additional N80 billion), and MDAs’ Electricity Bills Debt (additional N37 billion).
“Additional capital provision of N1.70 trillion, attributed to projected increases in the budget.”
Buhari also projected a decline in net oil and gas revenue by N5.42 billion.
The president is expected to present the 2022 budget estimate to the joint sitting of the National Assembly this Thursday.