By Williams Amofokhai
President Bola Tinubu has ordered the saving of N790 billion from the N1.9 trillion oil windfall, as Federal, States and Local Governments shared N907 billion.
The president also approved the establishment of Infrastructure Support Fund (ISF) for the 36 States of the Federation as part of measures to cushion the effects of the petrol subsidy removal on the people.
The approval was disclosed at the monthly meeting of the Federation Account Allocation Committee (FAAC), on Thursday July 20, 2023, in Abuja.
This is contained in a statement issued by Dele Alake, Special Adviser to the President on Special Duties, Communications & Strategy.
According to Alake, the new Infrastructure Fund would enable the States to intervene and invest in the critical areas of Transportation, including farm to market road improvements; Agriculture, encompassing livestock and ranching solutions; Health, with a focus on basic healthcare; Education, especially basic education; Power and Water Resources, that will improve economic competitiveness, create jobs and deliver economic prosperity for Nigerians.
He said the Committee also resolved to save a portion of the monthly distributable proceeds to minimize the impact of the increased revenues-occasioned by the subsidy removal and exchange rate unification-on money supply, as well as inflation and the exchange rate.
Alake added that out of the June 2023 distributable revenue of N1.9 trillion, only N907 billion would be distributed among the three tiers of government, while N790 billion would be saved, and the rest would be used for statutory deductions.
“These savings will complement the efforts of the Infrastructure Support Fund (ISF) and other existing and planned fiscal measures, all aimed at ensuring that the subsidy removal translates into tangible improvements in the lives and living standards of Nigerians.
“The Committee commends President Tinubu for the bold decision to remove the petrol subsidy, and even more importantly, for providing necessary support to the States to cushion the effects of the subsidy removal on Nigerians,” Alake stated.
