President Bola Tinubu has given his approval for the establishment of an Infrastructure Support Fund (ISF) for all 36 states in Nigeria. This measure is aimed at mitigating the impact of the petrol subsidy removal on the people. The decision was revealed at the monthly meeting of the Federation Account Allocation Committee (FAAC), during which N907 billion was distributed among the three tiers of government for the month of June.
The ISF will allow the states to invest in critical areas such as transportation, agriculture, health, education, power, and water resources, with the goal of promoting economic competitiveness, job creation, and prosperity for Nigerians.
The National Economic Council (NEC) has also made a decision to do away with the national social register used by the previous administration to implement conditional cash transfers. Instead, the federal government will distribute 252,000 metric tons of grains to states at subsidized rates to help alleviate the hardships caused by the petrol subsidy removal.
The June 2023 distributable revenue of N1.9 trillion saw N907 billion distributed among the three tiers of government, with N790 billion set aside for savings, and the rest used for statutory deductions. These savings will complement the ISF and other fiscal measures to ensure that the subsidy removal translates into tangible improvements in the lives of Nigerians.
The FAAC meeting also shared the total distributable revenue of N907.054 billion among the federal government, states, and local governments, with additional allocations for 13% derivation revenue. The meeting was chaired by the Accountant General of the Federation, Dr. Oluwatoyin Madein.
Overall, the Nigerian government is taking proactive measures to ease the impact of the subsidy removal on its citizens and promote economic growth and development.
