The FG Has Approved N3 Trillion, Of 17.5% Of The 2022 Budget, To Maintain Subsidy - Jobisco

The FG Has Approved N3 Trillion, Of 17.5% Of The 2022 Budget, To Maintain Subsidy

Zainab Ahmed Minister of Finance, Budget And National Planning
Minister of Finance, Zainab Ahmed For Budget And National Planning

The federal government of Nigeria has announced its intention to postpone the implementation of the Petroleum Industry Act (PIA) and to maintain the payment of petrol subsidies for an additional 18 months. The government approved N3 trillion for the new fuel subsidy regime yesterday.

The sum money was approved by the Federal Executive Council (FEC) at its weekly meeting in Abuja. The N3 trillion now budgeted to sustain subsidy payments in 2022 alone accounts for 17.5% of the total N17.126 trillion 2022 budget signed into law in December last year.

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Also now, the authorised 2022 budget has a deficit of N6.39 trillion, or 37% of the total budget of N17.126 trillion. This is a clear indication that the government may borrow more money this year than previously anticipated.

The N3 trillion approved by the FEC represents 55% of the capital component and 43% of the recurrent expenditure of the 2022 budget, respectively. The PIA, which calls for the elimination of gasoline subsidies, was supposed to go into effect in February 2022, but it was later pushed back to July 2022.

Moreover, due to pressure and the threat of a protest from the Nigeria Labour Congress (NLC) and the Trade Union Congress (TUC), the removal of the subsidy was halted on Monday.

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