President Bola Ahmed Tinubu, GCFR
*The Federal Government explains the newly-approved Infrastructure Fund is meant to enable the states to invest in critical areas of transportation, agriculture, health, education, power and water resources to improve economic competitiveness, create jobs, and deliver economic prosperity for Nigerians
Isola Moses | ConsumerConnect
As part of measures to cushion the effects of recent fuel subsidy removal on consumers, President Bola Ahmed Tinubu has approved the establishment of the Infrastructure Support Fund (ISF) for the 36 states of the Nigerian Federation.
Mr. Dele Alake, Special Adviser (SA) to the President on Special Duties, Communications and Strategy, in a statement Thursday, July 20, 2023, said Tinubu’s approval followed the monthly meeting of the Federation Account Allocation Committee (FAAC), in Abuja, FCT.
Objectives of Infrastructure Support Fund
Alake also stressed the new Infrastructure Fund would enable the states in Nigeria to intervene and invest in the critical areas of transportation, such as farm-to-market road improvements; agriculture, encompassing livestock and ranching solutions; health, with a focus on basic healthcare.
Other key areas are education, especially basic education; power and water resources, that will improve economic competitiveness, create jobs and deliver economic prosperity for Nigerians.
The Presidential Spokesman stated: “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.”
The statement further said: “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.”
The Presidency disclosed the Committee also resolved to save a portion of the monthly distributable proceeds to minimise 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.