President Tinubu Gives Approval of Infrastructure Support Fund for States
President Bola Ahmed- Tinubu on Thursday approved the establishment of the Infrastructure Support Fund (ISF) for all 36 States in Nigeria to ease the effects of the subsidy removal.
The approval, which was made known at the monthly meeting of the Federation Account Allocation Committee (FAAC) on Thursday will enable the States to intervene and invest in the critical areas of transportation, agriculture, livestock and ranching solutions, health and education.
The fund would also improve economic competitiveness, create jobs and deliver economic prosperity for Nigerians.
A portion of the monthly distributable proceeds to minimize 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 as resolved by the committee.
The committee also stated that out of the June 2023 distributable revenue of N1.9 trillion, only N907 billion will be distributed among the three tiers of government, while N790 billion will be saved, and the rest will be used for statutory deductions.
These savings will complement the efforts of the Infrastructure Support Fund (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.
Tinubu was, however, commended by the Committee for his bold decision in removing the petrol subsidy and more importantly, for providing necessary support to the States to cushion the effects of the subsidy removal on Nigerians.
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