Thursday, the Medium Term Expenditure Framework and Fiscal Strategy Paper was approved by the House of Representatives (FSP).
The lower house ordered the government to set a cap of N1.7 trillion on the planned spending after rejecting the executive’s proposal to spend N3.3 trillion on PMS subsidies.
The lawmakers also mandated that all government departments make sure that fuel subsidy spending stays under a N1.7 trillion threshold.
According to PulseNets, the federal government has planned to finance subsidies at an average rate of N18.9 billion per day till June 2023.
According to the MTEF plan made by Zainab Ahmed, the Minister of Finance, the federal government will borrow more than N11 trillion to pay for the budget.
The committee cut the intended spending on subsidies since the government has not been able to determine the precise daily usage, according to Saidu Musa, the committee’s vice chairman, who briefed journalists on the matter on Thursday.
He revealed that the Port Harcourt refinery is anticipated to be operational in a couple of months by the lawmakers.
“The Port Harcourt refinery is coming to being– the committee of the House is also working with the executive to actually come up with the scientifically proven volume of our daily consumption—looking at those things, we decided to flatten it out,” he stated.
Recall that there have been disputes over the precise amount of PMS consumed everyday in Nigeria.
Various government entities have provided a range of numbers. An ad hoc committee is, however, looking into Nigeria’s daily PMS intake.
