NASS Passes Amended 2022 Budget, Grants N965.42bn Borrowing Plan

The National Assembly on Thursday passed the amended 2022 Appropriation Act and 2022 Fiscal Framework, granting approval to the Federal Government’s borrowing plan which raised budget deficit by N965.42bn to N7.35trn.

Both Houses considered and adopted reports on the amendment bills during plenary based on the request by President Muhammadu Buhari.

The Senate and House of Representatives, in granting the request and raising the budget deficit 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 N4trn.

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

The parliament also passed an additional provision of N182.45bn to cater for the needs of the Nigeria Police Force.

This was as the lawmakers provided N76.13bn for domestic debt service, with net reductions in statutory transfers by N66.07bn.

Based on the passage of the budget, the lawmakers adjusted statutory transfers’ adjustments for the Niger Delta Development Company by N13.46bn, from N102.78bn to N89.32bn.

Also affected is the budget of the North East Development Commission which was reduced by N6.30bn, from N48.08bn to N41.78bn.

Others affected by the adjustment are the Universal Basic Education Commission 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 adjustment was based on the request of the President, who justified the adjustments including an increase in the projected oil price benchmark by $11 per barrel, from $62 per barrel to $73 per barrel.

The President also sought for 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, and an increase in the estimated provision for PMS subsidy for 2022 by N442.72bn, from N3.557trn to N4trn from the lawmakers during consideration.

“Total budget deficit is projected to increase by N965.42bn to N7.35trn, representing 3.99 per cent of GDP. The incremental deficit will be financed by new borrowings from the domestic market,” the letter from the President to the lawmakers had read.