The House of Representatives yesterday granted President Muhammadu Buhari’s loan request of N4 trillion for the payment of fuel subsidy for the year 2022. 

Driving the news
The Nigerian Senate granted the loan request despite the N442.72 billion increase from the N3.557 trillion earlier requested by President Muhammadu Buhari in February 2022. 

  • The lawmakers also granted President Buhari’s request to raise the oil price benchmark by $11; from $62 to $73, and also to reduce the projected oil production volume from 1.883 million to 1.6 million barrels per day.

Current situation 
Pending the time Nigeria revisits the cancellation of fuel subsidy in about 17 months, the federal government has decided to loan N4 trillion for the payment of the 2022 subsidy. This would raise Nigeria’s debt to N43.56 trillion and President Buhari’s administration would be responsible for incurring over 200% or N25.168 trillion of Nigerians debt in his 7 years administration. 

Other approval by the Nigerian Senate 
The Nigerian Senate cut the federal government funded upstream projects by N200 billion from N352.80 billion. It increased the Federal Government Independent Revenue to N400 billion.

  • The lawmakers approved domestic debt service provision of N76.13 billion, and net reductions in Statutory Transfers by N66.07 billion for NDDC, NEDC, UBEC, Basic Health Care fund and NASENI.
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