As part of measures to mitigate the effects of the petrol subsidy removal, President Bola Tinubu has approved the establishment of an Infrastructure Support Fund (ISF) for all states of the federation.
The approval was contained in an announcement made during the monthly meeting of the Federation Account Allocation Committee (FAAC) on Thursday, July 20.
The infrastructure fund is designed to enable states intervene and invest in the critical areas of transportation, agriculture, livestock and ranching solutions, health and education.
It is also meant to improve economic competitiveness, create jobs and deliver economic prosperity for Nigerians.
The committee also resolved to save 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.
It said 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 ISF and other existing and planned fiscal measures, all aimed at ensuring that the subsidy removal translates into tangible improvements in Nigerians’ lives and living standards.
