President Bola Tinubu has approved the establishment of Infrastructure Support Fund (ISF) for the 36 states of the Federation as part of measures to cushion the effects of the petrol subsidy removal on the people.
According to a statement on Thursday by the President’s Special Adviser on Special Duties, Communications and Strategy, Mr. Dele Alake, the approval was disclosed at the monthly meeting of the Federation Account Allocation Committee (FAAC) on Thursday.
The statement explained that ISF would enable the states to intervene and invest in the critical areas of transportation, including farm-to-market road improvements; agriculture, encompassing livestock and ranching solutions; health, with a focus on basic healthcare; education, especially basic education; power and water resources, that will improve economic competitiveness, create jobs and deliver economic prosperity for Nigerians.
Alake said that FAAC also resolved to save a portion of the monthly distributable proceeds to minimise the impact of the increased revenues-occasioned by the subsidy removal and exchange rate unification-on money supply, as well as inflation and the exchange rate.
According to the statement, out of the June 2023 distributable revenue of N1.9 trillion, only N907 billion would be distributed among the three tiers of government, while N790 billion would be saved, and the rest would be used for statutory deductions.
Alake said that these savings, it further said, would complement ISF’s efforts and other existing and planned fiscal measures, all aimed at ensuring that the subsidy removal translates into tangible improvements in the lives and living standards of Nigerians.
According to him, FAAC commended President Tinubu for the bold decision to remove the petrol subsidy, and even more importantly, for providing necessary support to the states to cushion the effects of the subsidy removal on Nigerians.
