President, Major General Muhammadu Buhari (retd.), will, on Thursday, present the 2022 budget to a joint session of the National Assembly.

The Deputy Senate President, Ovie Omo-Agege, gave the hint on Tuesday after reading and referring Buhari’s submission of the revised 2022-2024 Medium Term Expenditure Framework and Fiscal Strategy Paper to the Committee on Finance for necessary legislative input.

The President in a letter to both chambers of the National Assembly, dated October 4, 2021, explained that the revision was necessitated by the need to reflect the new fiscal terms in the Petroleum Industry Act, 2021, as well as other critical expenditures in the 2022 budget.

He said the underlying drivers of the 2022 fiscal projections, such as oil price benchmark, oil production volume, exchange rate, GDP growth, and inflation rate reflected emergent realities and the macroeconomic outlook, and remained unchanged in the previously approved 2022-2024 MTEF/FSP.

He said, “The PIA established a progressive fiscal framework aimed at encouraging investment in the Nigerian Petroleum Industry.

“This significantly alters the oil and gas fiscal terms and has necessitated changes in the 2022-2024 Medium Term Fiscal Framework.

“The fiscal effects of PIA implementation are assumed to kick in by mid-year 2022.

“The revised 2022-2024 Fiscal Framework is premised on hybrid of January-June (based on current fiscal regime) and July-December (based on PIA fiscal regime), while 2023 and 2024 are now fully based on the PIA.”

Buhari listed the changes to the 2022 Fiscal Framework projections to include gross revenue projection which decreased by N341.57bn.

He said it decreased from N8.87tn to N8.53tn.

He also announced a decrease in the deductions for federally funded upstream projects costs and 13 per cent derivation by N335.3bn and N810.2m respectively. Net oil and gas revenue projection declined by N5.42bn from N6.54tn to N6.54tn.

Buhari added that also to be modified in the fiscal framework was a decline in net oil and gas revenue by N5.42bn and an increase in projected FGN’s retained revenue from N8.36tn to N10.13tn.

Giving a breakdown of the projected increase in Federal Government’s revenue, he said N837.76bn was from increase in revenue of Government Owned Enterprises; N697.6bn from MDAs Internally Generated Revenue.

The increase, he added, also affected the introduction of education tax of N306bn and dividend of N8.3bn from the bank of industry as revenue lines

The FGN share of oil price royalty was put at N96.9bn which is expected to be transferred to the Nigerian Sovereignty Investment Authority based on the provisions of the PIA.

He added that the FGN aggregate expenditure (including GOEs and Projected-tied Loans) was projected to increase by N2.47tn, from N13.98tn to N16.45tn.how