By John Ikani
The House of Representatives in Nigeria has approved ₦4 trillion for subsidy on Premium Motor Spirit (PMS) known as petrol.
The approval was sequel to a request by President Muhammadu Buhari for revision of the 2021 fiscal framework.
Buhari requested the lawmakers to approve an additional ₦3.557 trillion in addition to the ₦442.72 billion provided in the 2022 budget for subsidy.
The House also approved a cut in the provision for federally funded upstream projects being implemented by the Federal Government by about N200 billion from N352.80 billion as well as the reduction in crude oil production quota from 1.8million barrel per day to 1.6 million barrel per day and a 73 dollar oil price benchmark.
What you should know
The approval of Buhari’s N4 trillion request for petrol subsidy comes days after the House kicked against fuel subsidy in the country.
The House had said it cannot continue to approve N4 trillion annually for fuel subsidies due to the state of the nation’s economy.
Chairman of the ad-hoc committee which is investigating the state of Nigeria’s refineries, Ganiyu Johnson, had stated the position of the House, saying, “We do not want subsidy, and if we do not want subsidy, then the refineries must be working. We must find a way to make them work so we can refine them locally. It is a shame.
“So, I want to implore everybody, let us work together as Nigerians. We owe our people so that we can end the issue of subsidy. That money for subsidy can be channelled to developmental projects if the refineries are working.
“You expect the National Assembly to sit down and approve over N4 trillion just for subsidy, money that should be used for something else. We cannot continue.