In an effort to mitigate the impact of petrol subsidy removal, President Bola Tinubu has given the green light for the establishment of an Infrastructure Support Fund (ISF) tailored to benefit all 36 States of the Federation.
The announcement was made during the monthly meeting of the Federation Account Allocation Committee (FAAC) on Thursday.
The ISF aims to empower the States in vital sectors such as transportation, agriculture, livestock and ranching solutions, health, and education.
Economic competitiveness, job creation, and overall prosperity for Nigerians are expected to be bolstered through this fund.
To further minimize the repercussions of increased revenues due to subsidy removal and exchange rate unification on money supply, inflation, and exchange rate, the Committee has decided to save a portion of the monthly distributable proceeds.
Out of the N1.9 trillion distributable revenue for June 2023, N907 billion will be allocated to the three tiers of government, while N790 billion will be saved, and the remaining funds will be used for statutory deductions.
These savings will complement the initiatives of the Infrastructure Support Fund (ISF) and other fiscal measures in place, all directed towards ensuring that the subsidy removal translates into tangible improvements in the lives and living standards of Nigerians.
The Committee praised President Tinubu for his courageous decision to remove the petrol subsidy and, more importantly, for providing crucial support to the States in easing the impact of the subsidy removal on Nigerians.