President Bola Tinubu has approved the establishment of an Infrastructure Support Fund (ISF) for Nigeria’s 36 States to mitigate the impact of petrol subsidy removal. This decision was made during the monthly meeting of the Federation Account Allocation Committee (FAAC) in Abuja on July 20, 2023.
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The ISF aims to empower the States in critical sectors like Transportation, Agriculture, Health, Education, Power, and Water Resources, fostering economic competitiveness, generating employment opportunities, and promoting overall economic prosperity.
To counterbalance the effects of subsidy removal and exchange rate unification, a portion of the monthly distributable revenue will be allocated for savings. Out of the June 2023 distributable revenue of 1.9 trillion Naira, 907 billion Naira will be distributed among the three tiers of government, and the remaining 790 billion Naira will be saved for prudent utilisation.
The Special Adviser to the President on Special Duties, Communications and Strategy, Dele Alake, commended President Tinubu for the bold decision to eliminate the petrol subsidy and for supporting the States in easing the impact of the subsidy removal on citizens.
The Infrastructure Support Fund is expected to enable the states to undertake transformative projects and alleviate the burden of increased fuel costs on ordinary Nigerians, ultimately driving socio-economic development and improving the well-being of the nation.
The FAAC is responsible for the equitable distribution of resources among the beneficiaries of the Federation Account. It operates in strict adherence to Constitutional provisions and upholds the interpretations made by the Supreme Court on matters requiring clarification.
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