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Senate receives Buhari’s request to amend 2022 Appropriation Act 

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President Muhammadu Buhari
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***As Executive budgets additional 2.557trn for petrol subsidy in 2022
 
The Senate has received a request from President Muhammadu Buhari to amend the 2022 Appropriation Act passed by the National Assembly in December, 2021.

The request was contained in a letter dated February 10, 2022, and read during plenary by the Senate President, Ahmad Lawan.

Accordingly, President Muhammadu Buhari in the letter said it was imperative to remove all capital projects that were replicated in the 2022 Appropriation Act.

He disclosed that 139 out of the 254 projects in the budget totaling N13.24 billion had been identified for deletion.

Buhari, therefore, requested the National Assembly to amend the Appropriation Act to provide for Capital Expenditures in the sum of N106,161,499,052 billion naira; and N43,870,592,044 billion naira for Recurrent Expenditures.

The President also requested that an additional provision for N2.557 trillion naira be appropriated by the National Assembly to fund the petrol subsidy in the 2022 Budget Framework which was revised to provide fully for PMS subsidy.

Buhari underscored the need to reinstate four capital projects totaling N1.4 billion in the Executive proposal for the Federal Ministry of Water Resources; and N22.0 billion cut from the provision for the Sinking Fund to retire mature loans needed to meet government’s obligations under already Issued Bonds.

The full text of the letter entitled, “SUBMISSION OF THE 2022 APPROPRIATION AMENDMENT PROPOSAL”, reads:

“As I indicated at the signing of the 2022 Appropriation Act, I forward herewith the Proposals for amendment of the 2022 Appropriation Act (as detailed in Schedules I-V), for the kind consideration and approval by the Senate.

“Let me seize this opportunity to once again express my deep gratitude to the leadership and members of the Senate for the expeditious consideration and passage of the 2022 Appropriation Bill as well as the enabling 2021 Finance Bill.

“It has become necessary to present this amendment proposal considering the impacts of the recent suspension of the Petroleum Motor Spirit (PMS) subsidy removal and the adverse implications that some changes made by the National
Assembly in the 2022 Appropriation Act could have for the successful implementation of the budget.

“It is important to restore the provisions made for various key capital projects in the 2022 Executive Proposal (see details in Schedule l) that were cut by the National Assembly.  This is to ensure that critical ongoing projects that are cardinal to this administration, and those nearing completion, do not suffer a setback due
to reduced funding.

“It is equally important to reinstate the N25.81 billion cut from the provision for the Power Sector Reform Programme in order to meet the Federal Government’s commitment under the financing plan agreed with the World Bank.

“In addition, it is necessary to reinstate the four (4) capital projects totaling N1.42 billion in the Executive Proposal for the Federal Ministry of Water Resources that were removed in the 2022 Appropriation Act.

“Furthermore, there is critical and urgent need to restore the N3 billion cut from the provision made for payment of mostly long outstanding Local Contractors’ Debts and Other Liabilities as part of our strategy to reflate the economy and spur growth (see Schedule I).

“You will agree with me that the inclusion of National Assembly’s expenditures in the Executive Budget negates the principles of separation of Powers and financial autonomy of the Legislature. It is therefore necessary to transfer the National Assembly’s expenditures totaling N16.59 billion in the Service Wide Vote to National Assembly Statutory Transfer provision (see Schedule l).

“It is also imperative to reinstate the N22.0 billion cut from the provision for Sinking Fund to Retire Mature Loans to ensure that government can meet its obligations under already issued bonds as and when they mature.

“The cuts made from provisions for the recurrent spending of Nigeria’s Foreign Missions, which are already constrained, are capable of causing serious embarrassment to the country as they mostly relate to office and residential rentals.

“Similarly, the reductions in provisions for allowances payable to personnel of the Nigerian Navy and Police Formations and Commands could create serious issues for government. It is therefore imperative that these provisions be restored as proposed (see Schedule II).

“It is also absolutely necessary to remove all capital project is that replicated in the 2022 Appropriation Act; 139 out of the 254 such projects totaling N13.24 billion have been identified to be deleted from the budget.

“Some significant and non-mandate projects were introduced in the budgets of the Ministry of Transportation, Office of the Secretary to the Government of the Federation and Office of the Head of Civil Service of the Federation (see Schedule III). There are several other projects that have been included by the National Assembly in the budgets of agencies that are outside their mandate areas. The Ministry of Finance, Budget and National Planning has been directed to work with your relevant Committees to comprehensively identify and realign all such misplaced projects.

“It is also necessary to restore the titles / descriptions of 32 projects in the Appropriation Act to the titles contained in the Executive Proposal for the Ministry of Water Resources (see Schedule IV) in furtherance of our efforts to complete and put to use critical agenda projects.

“The Appropriation Amendment request is for a total sum of N106,161,499,052 (One hundred and six billion, one hundred and sixty-one million, four hundred and ninety-nine thousand, and fifty-two Naira only) for Capital Expenditures and N43,870,592,044 (Forty-three billion, eight hundred and seventy million, five hundred and ninety-two thousand, and forty-four Naira only) for Recurrent Expenditures. I therefore request the National Assembly to make the above amendments without increasing the budget deficit. I urge you to roll back some of the N887.99 billion of projects earlier inserted in the budget by the National Assembly to accommodate these amendments.

“However, following the suspension of the PMS subsidy removal, the 2022 Budget Framework has been revised to fully provide for PMS subsidy (see Schedule V). An additional provision of N2.557 trillion will be required to fund the petrol subsidy in 2022. Consequently, the Federation ACCOunt (Main Pool) revenue for the three tiers of government is projected to decline by N2.00 trillion, while FGN’s share from the Account is projected to reduce by N1.05 trillion. Therefore, the amount available to fund the FGN Budget is projected to decline by N969.09 billion.

“Aggregate expenditure is projected to increase by N45.85 billion, due to additional domestic debt service provision of N102.5 billion net of the reductions in Statutory Transfers by N56.67 billion, as follows: NDDC, by N12.61 billion from N102.78 billion to N90.18 billion; NEDC, by N5.90 bilion from N48.08 billion to N42.18 billion; UBEC, by N19.08 billion from N112.29 billion to N93.21 billion; Basic Health Care Fund, byN 9.54 billion from N56.14 billion to N46.60 billion; and NASENI, by N9.54 billion from N56.14 billion to N46.60 billion.

“Total budget deficit is projected to increase by N1.01 trillion to N7.40 trillion, representing 4.01% of GDP. The incremental deficit will be financed by new borrowings from the domestic market.

“Equally, it is imperative that Clause 10 of the 2022 Appropriation Act which stipulates that the Economic and Financial Crimes Commission (EFCC) and the Nigerian Financial Intelligence Unit (NFIU) are authorized to charge and defray from all money standing in credit to the units as revenues, penalties or sanctions at 10% for technical setup and operational cost at the units in this financial year be repealed.

“This clause is in conflict with the Act establishing these Agencies, as well as some other laws and financial regulations of the government. These are neither Revenue Generating Agencies nor Regulatory Bodies that generate revenue or charge penalty fees. They are fully funded (Personnel, Overhead and Capital) by Government through Budgetary provisions.

“The Fiscal Responsibility Act 2007, as well as the Finance Act 2021, require these Agencies to remit fully any recovered funds to the Consolidated Revenue Fund (CRF). This clause may lay a dangerous precedence, and spark clamours for similar treatment by other anti-corruption agencies.

“Also, the Clause 11 which stipulates that “Notwithstanding the provisions of any other law in force, Nigerian Embassies and Missions are authorised to expend funds allocated to them under the Capital components without having to seek approval of the Ministry of Foreign Affairs” should likewise be repealed. It too is inconsistent with extant Financial Regulations and the Public Procurement Act, which set thresholds for approving officers and Parastatal / Ministerial Tenders Boards for awards of Contracts for the procurement of goods and Services. This also amounts to an intrusion of the Legislature into what is an executive function.

“Given the urgency of the request for amendments, I I seek the cooperation of the National Assembly for expeditious legislative action on the 2022 Appropriation Amendment Proposal in order to sustain the gains of an early passage of the budget.

“Please accept, Distinguished Senate President, the assurances of my highest consideration.”
 

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Business & Economy

Ogun, DP World Seal $7bn Port, Blue Marine SEZ Investment Deal

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4 days ago

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September 24, 2026

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Ogun State Governor Dapo Abiodun
Ogun State Governor, Dapo Abiodun
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The Ogun State Government and DP World MEA FZE have signed Memoranda of Understanding (MoUs) for the development of the Gateway Deep Sea Port and the Ogun State Blue Marine Special Economic Zone (SEZ), in a deal projected to attract more than $7 billion in initial investment and create over 50,000 direct jobs.

President Bola Tinubu witnessed the signing in Paris, France, alongside the Minister of Marine and Blue Economy, Adegboyega Oyetola, and the Director-General of the Nigerian Ports Authority (NPA), Abubakar Dantsoho.

The agreements bring together the Federal Government, Ogun State, DP World, financial advisers and other private-sector partners in a framework designed to ease logistics bottlenecks, expand industrial capacity and strengthen Nigeria’s manufacturing and export potential.

The Gateway Deep Sea Port, planned for Ogun Waterside, will feature a four-kilometre berth and an 18-metre draft, allowing it to accommodate larger vessels, ease pressure on the Lagos port corridor and reduce transportation costs and delays for businesses.

The port will be linked to the proposed 10,000-hectare Blue Marine Special Economic Zone, which is expected to host manufacturing, processing, logistics and export-oriented industries.

Tinubu said the integrated development would help transform imported inputs into finished goods while enabling Nigerian raw materials to be processed for export, thereby supporting the expansion of the country’s non-oil export base.

“A port moves cargo; a port integrated with a special economic zone helps to build an economy,” the President said.

He said the 28-kilometre Ogun section of the Lagos-Calabar Coastal Highway would provide a critical connection between the port, the industrial zone, Lagos, the Nigerian hinterland and wider African markets.

The corridor is also expected to connect with other strategic investments, including the proposed Nigerian Navy Operating Base and Dockyard and the OK LNG Project, creating stronger links between maritime infrastructure, industry, energy and trade.

According to the President, the projects represent an initial investment of more than $7 billion and are projected to generate over 50,000 direct jobs, in addition to indirect employment opportunities.

Tinubu described the development as a practical demonstration of the Federal Government’s economic diversification and industrialisation drive under the Renewed Hope Agenda.

He commended Ogun State Governor Dapo Abiodun for securing the required land, structuring the investment framework and reducing project risks for investors.

The President also described the initiative as an example of cooperative federalism, with Ogun State driving the project while receiving strategic support from the Federal Government.

Tinubu assured investors of regulatory clarity and policy stability, pledging federal support for road, rail and power connectivity, investment security and the maritime sector.

He stressed that the agreements must translate into actual investments, infrastructure, jobs and economic opportunities.

Earlier, Governor Abiodun described the signing as a defining moment for Ogun State and Nigeria’s engagement with the global economy.

Abiodun said the deep seaport vision had remained largely unrealised for more than three decades until the intervention of the Tinubu administration.

“It has taken the foresight, courage and dogged leadership of President Bola Ahmed Tinubu to move it from aspiration to reality,” the governor said.

He commended the Federal Government, Oyetola, the NPA and other institutions for supporting the project, describing it as a convergence of the Renewed Hope Agenda and Ogun State’s Building Our Future Together agenda.

According to Abiodun, the deep seaport will strengthen trade, attract investment, improve connectivity and expand Nigeria’s maritime economy, while creating opportunities for SMEs, logistics operators, manufacturers, technology firms and other businesses.

He said the Blue Marine SEZ would provide a platform for investment, technology, innovation and talent, drawing on the integrated port-and-industrial-zone model exemplified by DP World’s Jebel Ali Free Zone.

The governor added that the development would form part of a wider multimodal infrastructure network connecting the Gateway International Airport, dry ports, the Lagos-Calabar Coastal Highway and the deep seaport.

“History will judge us not by the elegance of documents signed, but by the transformation that follows. Ceremonies proclaim intentions; only implementation creates prosperity,” Abiodun said.

He assured DP World and other partners of Ogun State’s commitment to investment, while emphasising community participation, environmental sustainability and security.

The MoUs mark a significant step in Ogun State’s long-standing ambition to develop its coastline into a major maritime and industrial hub, with the proposed port and SEZ expected to strengthen logistics, manufacturing, exports and regional trade.

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Business & Economy

FG Cuts Interest Rate on Late Tax Payments, New Order Takes Effect October 1

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4 days ago

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September 24, 2026

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The Federal Government has introduced a new tax administration order reducing the interest rate charged on late payment of taxes.

The Nigeria Tax Administration Order 2026, signed by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, will take effect from October 1, 2026.

The Order, issued under Section 65 of the Nigeria Tax Administration Act, 2025, links interest on late tax payments more closely to prevailing market rates.

What the New Order Says

For taxes payable in naira, interest will be charged at the Central Bank of Nigeria’s Monetary Policy Rate (MPR) plus one percentage point.

This represents a reduction from the previous five-percentage-point spread. However, the applicable rate will not be lower than the yield on 364-day Treasury Bills.

For taxes payable in foreign currency, the interest rate will be based on the Secured Overnight Financing Rate (SOFR) plus six percentage points.

The Nigeria Revenue Service (NRS) is required to publish the applicable rates on its website by the third business day of every month.

Explaining the policy, Oyedele said the new system was designed to ensure that delaying tax payments would not become a cheaper source of credit than borrowing from the market.

According to him, the new framework will also provide taxpayers with greater certainty because the applicable rates will be published monthly and applied uniformly.

New Rates Apply From October 1

The new rates will apply to interest arising from October 1, 2026, including interest on taxes that became due before that date.

However, interest that arose before October 1 will remain governed by the rules applicable at the time.

The new Order also supersedes the 2017 notice on interest on unpaid taxes and other earlier notices on the subject.

The 10 per cent penalty for late payment under Section 65 of the Nigeria Tax Administration Act remains unchanged.

Tax authorities may also waive interest or penalties where good cause is established, as provided under Section 66 of the Act.

The minister urged taxpayers to file their returns and pay their taxes on time, while those with outstanding liabilities were advised to settle them promptly or engage the relevant tax authority.

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Business & Economy

Nigeria’s Inflation Eases Marginally to 15.39% in August — NBS

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2 weeks ago

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September 15, 2026

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Symbol of Inflation
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Nigeria’s headline inflation rate eased marginally to 15.39 per cent in August 2026, from 15.43 per cent in July, according to the latest Consumer Price Index (CPI) report released by the National Bureau of Statistics (NBS) on Tuesday.

The latest figure represents a 0.04 percentage-point decline month-on-month, indicating a slight moderation in the pace of increase in the general price level.

The NBS also reported a significant slowdown in the month-on-month inflation rate, which fell to 0.71 per cent in August, compared with 1.57 per cent in July. This represents a decline of 0.86 percentage points.

According to the statistics agency, the development means that the average prices of goods and services increased at a slower pace in August than they did in July.

Food inflation also recorded a substantial moderation, dropping to 19.57 per cent year-on-year in August 2026, compared with 25.30 per cent recorded in August 2025.

On a month-on-month basis, food inflation declined sharply to 1.02 per cent in August, from 5.56 per cent in July, representing a 4.55 percentage-point reduction.

The NBS attributed the moderation in food inflation largely to changes in the average prices of several food items, including palm oil, carrots, pepper, onions, cassava flour, beef, yam flour, water yam, melon (egusi), fresh ginger, fresh fish, Irish potatoes, wheat grain, frozen chicken and turkey meat, among others.

At the state level, Adamawa recorded the highest year-on-year food inflation rate at 38.85 per cent, followed by Zamfara at 37.96 per cent and Bayelsa at 36.20 per cent.

The lowest year-on-year food inflation rates were recorded in Borno at -4.04 per cent, Jigawa at -0.23 per cent, and Kebbi at 3.47 per cent.

On a month-on-month basis, Katsina recorded the highest food inflation rate at 9.48 per cent, followed by Rivers at 8.86 per cent and Osun at 8.32 per cent.

Meanwhile, the slowest month-on-month food inflation rates were recorded in Taraba at -12.42 per cent, Borno at -12.15 per cent, and Bauchi at -8.88 per cent.

The latest NBS figures point to a broad moderation in the pace of price increases, particularly in the food sector, although inflation remains a major economic concern for households and businesses across the country.

 

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