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.Â
The approval was disclosed at yesterday’s Federal Accounts Allocation Committee (FAAC) meeting.Â
The Committee also resolved to save a portion of the monthly distributable proceeds to minimize the impact of increased revenues on money supply, inflation and the exchange rate.
The decisions were communicated in a statement by Mr. Dele Alake, Special Adviser to the President on Special Duties, Communications & Strategy.
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According to Mr Alake, the new Infrastructure Fund will enable states to intervene and invest in critical areas like Agriculture; Health; Education; Power; Water Resources, and Transportation, including farm to market road improvements.
Of the June 2023 distributable revenue of N1.9 trillion, only N907 billion will be distributed among the three tiers of government, while N790 billion will be saved, and the rest will be used for statutory deductions.
Mr. Alake says the savings will complement the efforts of the Infrastructure Support Fund and other existing and planned fiscal measures.
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