Nigeria’s House of Representatives has authorised N4 trillion for subsidy on Premium Motor Spirit (PMS) popularly known as petrol.
The approval followed a request by President Muhammadu Buhari for revision of the 2021 fiscal framework.
The President, in a letter read last Thursday by the Speaker of the House of Representatives, Femi Gbajabiamila, sought an increment of $11 to the oil benchmark to accommodate subsidy consumption and other expenses.
In forwarding the request for the revision, he wanted to adjust the Medium Term Expenditure Framework (MTEF) to accommodate the projected N4 trillion for petroleum subsidy in 2022.
This meant the lawmakers had to approve N3.557 trillion in addition to the N442.72 billion provided in the 2022 budget for subsidy.
The House also approved 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.
The Parliament also approved a reduction in the provision for Federally Funded upstream projects being implemented by the federal government by about N200 billion from N352.80 billion.
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