President Bola Tinubu has approved the creation of an Infrastructure Support Fund (ISF) for states as part of measures to mitigate the effects of the removal of petrol subsidies on Nigerians.
According to Mr. Dele Alake, Special Adviser to the President on Special Duties, Communications, and Strategy, the permission was announced at the Federation Account Allocation Committee’s monthly meeting on Thursday in Abuja.
He stated that the new Fund will allow states to intervene and invest in essential transportation areas such as farm-to-market road upgrades and agriculture, including cattle and ranching solutions.
Other areas of concentration include health, with a focus on basic healthcare; education, particularly basic education; and electricity and water resources, which would increase Nigeria’s economic competitiveness, create jobs, and bring economic prosperity.
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Alake further stated that the committee determined to save a portion of the monthly distributable proceeds to mitigate the impact of increased revenues–due to the removal of subsidies and the unification of exchange rates–on money supply, inflation, and the exchange rate.
He stated that only N907 billion of the June distributable revenue of N1.9 trillion would be split among the three levels of government, with the remaining N790 billion kept and used for statutory deductions.
He noted that these savings would supplement the ISF’s efforts as well as other existing and planned fiscal measures targeted at improving Nigerians’ lives.
Alake stated that the committee applauded Tinubu for taking the bold decision to eliminate the gasoline subsidy, as well as for offering assistance to the states to mitigate the effects of the decision.
