July 21, (THEWILL) – President Bola Tinubu has approved the establishment of an Infrastructure Support Fund (ISF) for states, as part of measures to cushion the effects of the petrol subsidy removal on Nigerians.
A statement issued on Thursday night, by Special Adviser to the President on Special Duties, Communication and Strategy, Dele Alake, said the approval was disclosed at the monthly meeting of the Federation Account Allocation Committee on Thursday, in Abuja.
The new Fund, Alake said, would enable states to intervene and invest in the critical areas of transportation including farm to market road improvements; agriculture, encompassing livestock and ranching solutions.
Others areas include 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.
The FAAC committee 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.
It further resolved that out of the June distributable revenue of N1.9 trillion, only N907 billion would be shared among the three tiers of government, while N790 billion would be saved, and the rest to be used for statutory deductions.
The savings would complement the efforts of the ISF and other existing and planned fiscal measures aimed at ensuring a tangible improvement in the lives of Nigerians.
The FAAC committee commended the President for the bold decision to remove the petrol subsidy and for providing supports to the states to cushion the effects of the removal.
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