The House of Representatives has been requested by President Muhammadu Buhari to adopt a N819.5 billion supplementary budget for 2022.
The budget would be funded through fresh domestic borrowing, according to President Buhari, in a letter that was read aloud by Speaker Femi Gbajabiamila on Wednesday.
He pointed out that the overall deficit in 2022 will increase to N8.17 trillion if the supplementary budget is approved.
Due to the effects of the flood and the requirement to finish important highways that are 85% complete, Mr. Buhari indicated that the nation has made the decision to investigate a supplementary budget.
“The president writes that 2022 has witnessed the worst flood incident in recent history which has caused massive destruction of farmlands at a point already close to harvest season, this may compound the situation of food security and nutrition in this country,” the letter reads.
Adding that “The flood also devastated the road infrastructure across the 36 states and the FCT. It has affected several sections of major roads and bridges nationwide that are critical to the movement of goods and services. The water sector was equally affected by the flood, and there is a need to complete some ongoing projects that have achieved 85% completion across the country.”
For additional legislative action, the letter was referred to the House Committee on Appropriations.
President Buhari also informed the lawmakers in a different letter that the government would obtain a second N1 trillion loan from the CBN.
He said the additional N1 trillion will take the total obligation to CBN to N23 trillion which the government seeks to convert to bonds.
The committees on finance, banking and currency, loans, aid, and grants received the letter.
