Contrary to reports that there was no provision for fuel subsidy in the 2015 budget, the Senate Committee Chairman on Finance, Senator Ahmed Makarfi, on Thursday said Senate approved N143bn for fuel subsidy in the budget.
Speaking with newsmen in Abuja, Makarfi also gave an insight into how the nation can effectively address the issue of high cost of governance.
He said a total sum of N100bn was provided for as subsidy for Premium Motor Spirit, while N43bn was approved for Dual Purpose Kerosene for the 2015 fiscal period.
Markafi said “There is a provision for subsidy in the budget, people need to understand where to look for an issue. If you look at the main appropriation, there is so many cost components.
“You will not see cash call in the main appropriation, you will not see subsidy in the main appropriation. There are expenses in the main memoranda items that you are not going to see in the main appropriation.
“For you to see them, you have to go through the revenue profile. In this year budget, N100bn was provided for Premium Motor Spirit, N43bn for DPK,” he said.
The federal government in 2013, budgeted the sum of N970bn for fuel subsidy out of which N515bn was released to oil marketers.
In the 2014 fiscal period, the same N970bn was budgeted for fuel subsidy while N414bn was released.
But Makarfi said while the amount budgeted for this year may not be enough to for subsidised petroleum products, the law allows for a request of additional funding when the need arises.
This window, according to him, could be used by the incoming government.