In response to the petrol subsidy removal’s impact on the public, President Bola Tinubu has authorized the establishment of an C for all 36 States of the Federation. This decision was announced during the monthly meeting of the Federation Account Allocation Committee (FAAC) held on July 20 in Abuja.
The primary objective of the Infrastructure Support Fund is to enable the States to make targeted investments in crucial sectors, including Transportation (such as farm-to-market road improvements), Agriculture (with a focus on livestock and ranching solutions), Health (prioritizing basic healthcare), Education (especially in basic education), and Power and Water Resources to enhance economic competitiveness, generate employment opportunities, and foster prosperity for the Nigerian population.
Additionally, the Committee has taken measures to address the potential repercussions of increased revenues arising from the subsidy removal and exchange rate unification. A portion of the monthly distributable proceeds will be saved to mitigate the impact on money supply, inflation, and the exchange rate.
Out of the total distributable revenue of 1.9 trillion Naira for June 2023, only N907 billion will be allocated among the three tiers of government. The substantial amount of N790 billion will be set aside as savings, while the remaining funds will be utilized for statutory deductions.
These savings will complement the initiatives of the Infrastructure Support Fund (ISF) and other fiscal measures already in place or planned. The ultimate goal is to ensure that the petrol subsidy removal translates into tangible improvements in the lives and standards of living for the Nigerian populace.
The Committee commends President Tinubu for his courageous decision to eliminate the petrol subsidy and, more importantly, for providing crucial support to the States to mitigate the impact of the subsidy removal on the citizens of Nigeria.
