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Tinubu Seeks Amendment Of 2022 Supplementary Appropriation Act To Allow Him Spend N500B On Palliatives

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2 years ago

July 13, 2023

President Bola Tinubu is seeking the approval of the House of Representatives to spend 500 billion naira on fuel subsidy palliatives.

The president is seeking the amendment of the 2022 Supplementary Appropriation Act to allow the spending.

In a letter read on the floor of the House at Wednesday’s plenary by the speaker of Nigeria’s House of Representatives, Tajudeen Abbas, President Tinubu said the money will be sourced from the 2022 Supplementary Appropriation Act of 819. 5 billion naira.

He explained that the request has become necessary following the removal of fuel subsidy and the need to provide palliatives to cushion its effect on Nigerians.

This comes as the Debt Management Office (DMO), announced that Nigeria had redeemed a $500 million Eurobond.

According to the DMO, the debt was redeemed on its due date, July 12, 2023.

In a statement on Wednesday, July 12, the DMO said that the debt was part of a dual-tranche US$1 billion Eurobond for a tenor of ten (10) years at a coupon of 6.375% per annum.

The DMO said the successful redemption of the Eurobond shows the country’s commitment to meeting its debt service obligations. The debt management office added that the Eurobond was issued in July 2013.

“Nigeria had previously redeemed a USD500 million Eurobond in July 2018, another USD500 million Eurobond in January 2021, and a USD300 million Diaspora Bond in June 2022. These, together with the USD500 million Eurobond redeemed today, bring the total amount of securities redeemed by Nigeria in the International Capital Market (ICM) to USD1.8 billion.

“Nigeria’s successful redemption of its Eurobonds and Diaspora Bond in the ICM over the past six (6) years is a demonstration of its strong debt management operations and planning.” the statement reads in part.”

Interestingly, the plan to amend the 2022 Supplementary Appropriation Act to spend 500 billion naira on palliative comes after the Federal Government announced it had so far saved about N400bn as a result of the removal of subsidy on Premium Motor Spirit, popularly called petrol.

Recall that President Tinubu announced the removal of subsidy on petrol when he assumed office on May 29, 2023.

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