President Buhari has raised the 2022 budget from N13.98 trillion to N16.45 trillion – an increase of N2.47 trillion. Although the National Assembly has recently approved N13.98 trillion for the 2022 fiscal year, the presidency said the increment is due to new fiscal projections captured in the Petroleum Industry Act (PIA) of 2021 and that of the 2022 budget.
The presidency clarified that the “underlying drivers of the 2022 fiscal projections, such as oil price benchmark, oil production volume, exchange rate, GDP growth and inflation rate reflect emergent realities and the macroeconomic outlook, and remain unchanged as in the previously approved 2022 – 2024 MTEF and FSP.”
Buhari stated that the progressive fiscal framework made possibly by the PIA will boost investment in the oil and gas sector; and that it alters the terms of the petroleum sector and necessitated chances in the Medium Term Fiscal Framework for 2022 – 2024.
The federal government said the economic effects necessitated by the implementation of the PIA will begin to be seen as from mid-2022.
All these were contained in a letter titled “Submission of the revised FGN 2022-2024 Medium Term Fiscal Framework” and delivered to the Senate by the presidency. The letter was read on the floor of the Senate by Deputy Speaker Ovie Omo-Agege.
“The Aggregate Deficit (inclusive of GOEs and Project-tied Loans) is projected to increase by N692.0 billion or to 3.42% of GDP from 3.05 per cent of GDP,” Buhari disclosed. “As the 2022 budget of the Federal Government will be prepared based on the parameters and fiscal assumptions of the approved Revised 2022-2024 MTEF, I seek the cooperation of the National Assembly for expeditious legislative action on the submission.”
Meanwhile, the president will be presenting the 2022 Appropriations Bill to the joint session of the National Assembly on Thursday.
