In a significant move to mitigate the impact of petrol subsidy removal, President Bola Tinubu has given the green light for the establishment of the Infrastructure Support Fund (ISF) aimed at aiding the 36 states in Nigeria. The approval was made public during the monthly meeting of the Federation Account Allocation Committee (FAAC) held in Abuja on Thursday.
The Infrastructure Support Fund is designed to empower the states to invest in critical areas, bolster economic competitiveness, generate employment opportunities, and foster economic prosperity. The identified areas of focus include transportation, agriculture with a special emphasis on livestock and ranching solutions, basic healthcare, primary education, as well as power and water resources.
In line with the current economic measures, the FAAC reached a resolution to allocate only N907 billion out of the total distributable revenue of N1.9 trillion for the month of June. The remaining N790 billion will be set aside as savings. This decision was taken to minimize the impact of increased revenues resulting from the subsidy removal and exchange rate unification, effectively addressing concerns related to money supply, inflation, and the exchange rate.
The FAAC further highlighted that the savings will complement the efforts of the newly established Infrastructure Support Fund, along with other existing and planned fiscal measures. These measures are collectively aimed at ensuring that the subsidy removal leads to tangible improvements in the standard of living for Nigerians.
The committee expressed its appreciation to President Tinubu for his decisive step in eliminating the petrol subsidy, while also extending necessary support to the states to alleviate the repercussions of the subsidy removal on citizens’ lives.
The move to create the Infrastructure Support Fund is expected to usher in a new era of development and growth for the states in Nigeria. With focused investments in crucial sectors, the country aims to overcome economic challenges and pave the way for a more prosperous future.
Source: The Cable
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