President Bola Ahmed Tinubu has urged the Senate to amend the 2022 Supplementary Appropriation Act to accommodate N500 billion for provision of palliatives for Nigerians.
According to a letter read at plenary by the Senate President, Godswill Akpabio, on Thursday, the President’s request was an intervention to cushion the impact of subsidy on Nigerians.
In the letter, Tinubu stated: “I write to request for the amendment of the 2022 Supplementary Appropriation Act. The request became necessary, among others things, to source for funds to provide necessary palliatives to mitigate the effects of the removal of fuel subsidy on Nigerians.
“Thus, the sum of N500 billion only has been extracted from the 2022 Supplementary Appropriation Act of N819 billion, 536 million, 937 thousand 803 naira only for the provisions of palliatives for Nigerians to cushion the effects of subsidy removal.”
Tinubu implored the Senate to give his request “expeditious” consideration and approval to enable his administration to provide palliatives for Nigerians.
After reading the letter, Akpabio referred the request to the Committee of the Whole, as substantive Committees have not been constituted.
President Tinubu had on May 29, 2023, announced the removal of fuel subsidy.
The President disclosed this in his inaugural speech as the new President of Nigeria.
According to Tinubu, “Subsidy has gone, subsidy can no longer justify its ever-increasing costs in the wake of drying resources.
“We shall instead re-channel the funds into better investment in public infrastructure, education, healthcare and jobs that will materially improve the lives of millions,” he stated.
Also, President Tinubu requested the Senate to approve the sum of $800 million as additional funds for the financing of the national social safety net programme set up by the National Assembly.
The request was contained in a letter he forwarded to the Senate through the President of the Senate, Godswill Akpabio, which he read on the floor of the Assembly during plenary.
Tinubu explained that the Federal Executive Council led by President Muhammadu Buhari, had approved an additional loan facility to the tune of U.S. $800 million to be secured from the World Bank, to finance the Social Safety Net Programme.
The President noted that the purpose of the facility was to expand coverage of shock responsive safety net supports for all and vulnerable Nigerians, to be able to meet the cost of their basic needs.
According to the statement, which reads in part: “Request for approval of additional financing of the national social safety net programme set up by the National Assembly. It is with pleasure that I refer the above matter to you.
“Please note that the Federal Executive Council, led by President Muhammadu Buhari, had approved an additional loan facility to the tune of U.S. $800 million to be secured from the World Bank to finance the Social Safety Net Programme, copy of the Federal Executive Council extract is attached here.
“You may also wish to know that the purpose of the facility is to expand coverage of shock responsive safety net support for all and vulnerable Nigerians and the cost of meeting basic needs.
“You may further wish to note that under the conditional cash transfer window of the programme, the Federal Government of Nigeria will transfer the sum of N8,000 a month to 12 million poor and low-income households for a period of six months with a multiply effect on about 60 million individuals.
“In order to guarantee the credibility of the process, digital transfers will be made directly to beneficiaries accounts and mobile wallets.
“It is expected that the programme will stimulate economic activities in the informal sector and improve nutrition, health and education outcomes for beneficial households.
“Given the above, I wish to invite the Senate to kindly grant approvals for additional loan facilities USD800milliom to be secured from the World Bank for the national social safety net programme.
“While hoping that this submission will receive expeditious consideration by the Senate, please distinguished Senate President and distinguished members have the assurances of my highest regards.”
After reading the letter, the President of the Senate referred to the Committee of a Whole for further legislative action.