Coordinating Minister of the Economy and Finance Minister, Dr. Ngozi Okonjo-Iweala, yesterday [May 11] said N145.2bn had been provided for subsidy payments on petroleum products in the 2015 budget.
Making the disclosure during a media briefing on the N4.493trn 2015 budget in Abuja, the minister hinted that N100bn was provided for subsidy payments on premium motor spirit (petrol) while N45.2bn would cover kerosene subsidy claims during the fiscal year.
This is just as she also disclosed that prior to the passage of the budget by the National Assembly last week, the Executive had borrowed N473bn out of the N883bn borrowing provision in the budget to meet up with recurrent expenditure, including salaries and overheads, since the Constitution allows the Executive to explore the financing option pending the passage of yearly budgets.
“I want to clarify some of the information in the media that the National Assembly passed the budget without the subsidy. This is not true. I also want to share with you that we have sent in a budget with a benchmark price of $52 per barrel, the National Assembly passed a benchmark oil price of $53 per barrel. That is one dollar higher than the budget proposal.
“This generated an extra revenue of N54bn for the Federal Government; they retained the production volume of 2.2782 million barrels per day and exchange rate of N190 to a dollar".
Giving a breakdown of the budget, she said gross federally collectible revenue was raised by N169.845bn, from N9.61trn to N9.78trn due to increase in the benchmark price by a dollar.
In addition, Okonjo-Iweala explained that the budget revenue provisions were raised by the legislature to N3.452trn up from the N3.358trn earlier proposed by the Executive.