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
By Moses Okorie
In a bid to cushion the effect of fuel subsidy removal, the presidency, Thursday, approved establishment of Infrastructure Support Fund for States, ISF.
This was contained in a statement issued in Abuja by Dele Alake, Special Adviser to the President on Special Duties, Communications who said it is a fallout of the monthly meeting of the Federation Account Allocation Committee, FAAC, held on Thursday in Abuja.
Alake said the new infrastructure fund will enable the states to intervene and invest in the critical areas of transportation, agriculture, healthcare, education, power and water resources.
According to him, 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.
“Out of the June 2023 distributable revenue of 1.9 trillion Naira, 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.
“The Committee commends President Tinubu for the bold decision to remove the petrol subsidy, and even more importantly, for providing necessary support to the States to cushion the effects of the subsidy removal on Nigerians”, Alake said.