TheCable

President Muhammadu Buhari has requested a slash in federally funded upstream projects from N352.80 billion to N152.80 billion. 

Buhari said this in a letter addressed to the senate, seeking adjustments to the 2022 fiscal framework.

Ahmad Lawan, senate president, read the letter, dated April 5, during the plenary session on Tuesday.

Buhari explained that the adjustments became imperative because of new developments in both the global and domestic economies.

He said the developments were occasioned by spikes in the market price of crude oil as a fallout of the Russian-Ukraine war. 

“As you are aware, there have been new developments both in the global economy as well as in the domestic economy which have necessitated the revision of the 2022 Fiscal Framework on which the 2022 Budget was based,” the letter reads.

“These developments include spikes in the market price of crude oil, aggravated by the Russian-Ukraine war, significantly lower oil production volume due principally to production shut-ins as a result of massive theft of crude oil between the production platforms and the terminals. 

Buhari emphasised the need for “a cut in the provision for federally funded upstream projects being implemented by N200 billion, from N352.80 billion to N152.80 billion”.

He also proposed an increase in the projection for federal government independent revenue by N400 billion; and an additional provision of N182.45 billion to cater for the needs of the Nigerian Police.

“Based on the above adjustments, the Federation Account (Main Pool) revenue for the three tiers of government is projected to decline by N2.418 trillion, while FGN’s share from the Account (net of transfer to the Federal Capital Territory and other statutory deductions) is projected to reduce by N1.173 trillion,” it added.

Given the “urgency of the request” for revision of the 2022 fiscal framework and 2022 budget amendment, Buhari sought the corporation of the national assembly for expeditious action on the request. 

Buhari had also sent a similar letter to the house of representatives.