Lawan asks Buhari for PIA amendment to align with 2022 budget
By Jeph Ajobaju, Chief Copy Editor
Senate President Ahmad Lawan has urged President Muhammadu Buhari to send to the National Assembly (NASS) a bill to amend the Petroleum Industry Act (PIA) to accommodate extra funds for fuel subsidy expected to cost N3 trillion by June 2023.
Fuel subsidy was to end in the first quarter of 2022 (Q1 2022) but was extended in January for 18 months because of national uproar over the multiplier effects on the costs of transport and other goods and services.
Finance Minister Zainab Ahmed says the extension to mid 2023 will cost additional N3 trillion but that Abuja is in talks with Governors on how to reduce the amount.
Lawan sought an amendment bill in remarks before he referred Buhari’s request for the amendment of the 2022 Appropriation Act to the Committee on Appropriation after the bill scaled second reading.
He said a PIA amendment bill would enable the NASS to extend fuel subsidy to be in line with Buhari’s request for additional N2.557 trillion to cover subsidy in the 2022 budget from July this year.
The current subsidy template expires in June 2022, as stated in the PIA.
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Aligning PIA with 2022 budget
Buhari wrote a letter to the NASS dated 10 February requesting additional N2.557 trillion to fund petrol subsidy in the 2022 Budget Framework from July this year.
Lawan mandated Senate Oil and Gas Committees to engage the executive on a bill to amend the PIA to align with the request.
His words: “This is an opportunity for me to speak to the issue of the Executive sending a request for the amendment of the Petroleum Industry Act to extend the provision of the fuel subsidy which is also requested in the amendment of the 2022 Appropriation Act.
“The Act itself says something else, that there will be no subsidy. If we approve for subsidy in the 2022 Appropriation Act Amendment Bill to us, then it means we have to extend the period in which government will provide subsidy up to the point this subsidy we approve (N2.557 trillion) would last.
“So, there is need to come up with the request for amendment.
“Our Gas and Oil related Committees should work with the Executive side of government to get that sorted as soon as possible, so that what we do is appropriate, and is lawful and legal.”
