President Muhammadu Buhari is seeking an increase in the provision for fuel subsidy for 2022 from N442 billion to N4trillion.
As a result, he has written to the House of Representatives, demanding a review of the 2022 fiscal framework.
Femi Gbajabiamila, the Speaker of the House of Representatives, read the letter, titled “Submission of the Revised 2022 Fiscal Framework” during plenary on Thursday.
In the letter dated April 5, President Buhari attributed the development to rising market price of crude oil heightened by the Russian-Ukraine war.
“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”, he said.
According to President Buhari, 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,” the letter partly read.