Tinubu endorses establishment of infrastructural support fund for states

President Bola Tinubu has approved the creation of the Infrastructure Support Fund (ISF) for the 36 States of the Federation as one of the steps to mitigate the effects of the elimination of the petrol subsidy.

The Federation Account Allocation Committee (FAAC) monthly meeting on Thursday included the announcement of the approval.

The infrastructure fund will give the States the ability to get involved and make investments in the vital fields of transportation, agriculture, cattle and ranching, health, and education.

Additionally, it will increase economic competitiveness, produce jobs, and bring prosperity to Nigerians.

The Committee also decided to set aside a portion of the monthly distributable proceeds in order to reduce the effects of the increased revenues brought on by the elimination of subsidies and the unification of exchange rates on the money supply, inflation, and the exchange rate.

According to the statement, only N907 billion of the 1.9 trillion Naira in distributable revenue from June 2023 will be divided among the three levels of government; the remaining N790 billion will be preserved and utilised for statutory deductions.

These savings will supplement the work of the Infrastructure Support Fund (ISF) and other current and upcoming fiscal initiatives, all of which are intended to make sure that the elimination of the subsidy results in real improvements in the lives and living conditions of Nigerians.

The Committee applauded Tinubu for his audacious decision to discontinue the petroleum subsidy and, more crucially, for giving the States the assistance they needed to lessen the effects of the decision on Nigerians.

Source