April 21, 2024

Tinubu approves Infrastructure Support Fund to provide relief for States, cushions impact of petrol subsidy removal

President Bola Tinubu

Oredola Adeola

 

President Bola Tinubu has approved the establishment of an Infrastructure Support Fund (ISF) for the 36 States of the Federation as part of measures to cushion the effects of the petrol subsidy removal on the people.

 

This was disclosed in a statement released by Dele Alake, Special Adviser to the President on Special Duties, Communications & Strategy on Thursday.

 

The approval according to Alake was disclosed at the monthly meeting of the Federation Account Allocation Committee (FAAC), on Thursday, July 20, 2023, in Abuja.

 

He stated that the new Infrastructure Fund will enable the States to intervene and invest in the critical areas of Transportation, including farm to market road improvements; Agriculture, encompassing livestock and ranching solutions; Health, with a focus on basic healthcare; Education, especially basic education; Power and Water Resources, that will improve economic competitiveness, create jobs and deliver economic prosperity for Nigerians.

 

EnergyDay also gathered that 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.

 

Alake in the statement further stated that 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 790 billion will be saved, and the rest will be used for statutory deductions.

 

He said “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 Nigerians’ lives and living standards.”

 

EnergyDay gathered that the Committee on Thursday commended 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.

 

As part of efforts to provide other forms of palliatives to cushion the adverse effect of petrol subsidy removal,
President Tinubu earlier in the week considered the review of the cash transfer policy, which includes the plan to pay N8,000 monthly to 12 million vulnerable persons.

 

Tinubu’s administration is planning to now unveil a complete package of palliatives to Nigerians and has also approved the immediate release of fertilizers and grains to approximately 50 million farmers and households, respectively, in all 36 states and the FCT.