Fuel Subsidy: Senate Passes N162bn Supplementary Budget

Amidst mixed feelings amongst some of its members, Senate has passed into an Act the request by President Goodluck Jonathan for an additional N161,617,364,911 as fuel subsidy payment in the 2012 budget framework.

The approval came from the upper chamber after the second reading of the bill for an Act to authorize the issue of appropriation of the request from the Consolidated Revenue Fund of the Federation to provide for the supplementary payment of fuel subsidy.

The Senate eventually passed it in view of its emergency nature, as observed by Deputy Senate Leader, Senator Abdul Ningi.

House Suspends Consideration of N162bn Extra Fund for Fuel Subsidy

House of Representatives Speaker, Hon. Aminu Tambuwal has tactically stood down further consideration of the request by President Goodluck Jonathan for an additional N161,617,364,911 to fund the fuel subsidy scheme. He suspended debate on the Supplementary Appropriation Bill, through which the president is seeking legislative mandate for more cash for the subsidy scheme, following stiff opposition by some lawmakers.

Jonathan, had presented the Supplementary Appropriation Bill to the House and requested the lawmakers to give it an expedited passage. The bill, if passed, will bring the total fund the Federal Government will be earmarking for the fuel subsidy scheme this fiscal year to the N1 trillion mark. The National Assembly had earlier passed the provision of N888.1 billion contained in the 2012 budget for the payment of fuel subsidy.

Fuel Subsidy: Jonathan Seeks N162bn Supplementary Budget

President Jonathan, in a letter to the Senate, read by Senate President, David Mark, explained that after a forensic audit, Federal Government discovered that the provision for fuel subsidy in the 2012 budget was underestimated.

The letter read: “The distinguished Senate President will recall that as part of the 2012 budget framework, a provision of N888.1 billion was made for payment of fuel subsidy for the nation.

“I wish to intimate the distinguished Senate of the fact that following the forensic audit carried out, the provision for fuel subsidy in the 2012 budget was underestimated. As of now, the sum of N880,264,243,683:61 has been paid out, leaving a balance of N7,735,756,316. 39.

“In order to accommodate the outstanding arrears resulting from the forensic audit and remaining period of 2012, an additional N161,617, 364,911 over and above what was programmed in the 2012 framework is required.

“Given the need to maintain a steady flow of petroleum products, especially in the run up to the festive season, it is my hope that the distinguished senators will kindly accord this request their traditional expeditious consideration and approval.

“Accordingly, I hereby forward copies of the supplemental request for the additional payment of 2012.”