President Bola Tinubu has approved the establishment of an Infrastructure Support Fund (ISF) for all 36 States in Nigeria as a measure to cushion the impact of petrol subsidy removal on citizens.
This announcement was made during the monthly meeting of the Federation Account Allocation Committee (FAAC) held on Thursday in Abuja.
President Tinubu’s approval of the Infrastructure Support Fund is aimed at empowering States to intervene and invest in crucial sectors, including Transportation, Agriculture, Health, Education, Power, and Water Resources.
“The new Infrastructure Fund will 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,” a statement signed by the Special Adviser to the President on Special Duties, Communications & Strategy, Dele Alake said.
The ISF seeks to bolster economic competitiveness, generate job opportunities, and foster overall prosperity for the Nigerian populace.
The FAAC also took steps to mitigate the impact of increased revenues resulting from the subsidy removal and exchange rate unification by saving a portion of the monthly distributable proceeds to address concerns related to money supply, inflation, and the exchange rate.
“Out of the distributable revenue for June 2023, totaling 1.9 trillion Naira, N907 billion will be allocated among the three tiers of government, while N790 billion will be saved, and the remainder will be used for statutory deductions,” Alake said.
These savings will complement the efforts of the ISF 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.
Meanwhile, the Presidency has called for patience from Nigerians, urging citizens to exercise understanding as the government implements measures to alleviate the impact of the subsidy removal.