Tinubu Approves Infrastructure Support Fund and FAAC Allocates N907 Billion to States, Saving N790 Billion
President Bola Tinubu has taken a significant step to mitigate the effects of petrol subsidy removal by approving the establishment of an Infrastructure Support Fund (ISF) for all 36 states of the Federation.
During the monthly meeting of the Federation Account Allocation Committee (FAAC) held on July 20, 2023, in Abuja, the President’s approval for the ISF was made public. This fund will enable the states to invest in crucial sectors such as Transportation, Agriculture, Health, Education, Power, and Water Resources, aimed at promoting economic competitiveness, job creation, and overall prosperity for Nigerians.
In addition to the ISF, the Committee has resolved to allocate a portion of the monthly distributable revenue towards savings, to minimize the impact of increased revenues resulting from the subsidy removal and exchange rate unification. Out of the June 2023 distributable revenue of 1.9 trillion Naira, N907 billion will be distributed among the three tiers of government, while N790 billion will be wisely saved, and the remaining funds will be utilized for statutory deductions.
These savings will complement the efforts of the Infrastructure Support Fund and other fiscal measures, collectively designed to ensure that the subsidy removal leads to tangible improvements in the lives and living standards of Nigerians.
The Committee commends President Tinubu for his decisive action in removing the petrol subsidy, and more importantly, for providing essential support to the states, effectively mitigating the impact of the subsidy removal on Nigerians.