President Bola Tinubu has approved the establishment of Infrastructure Support Fund for states as part of measures to cushion the effects of the petrol subsidy removal on the Nigerians.
Dele Alake, Special Adviser to the President on Special Duties, Communications and Strategy, said the Fund would enable states to intervene and invest in the critical areas of transportation, including farm to market road improvements; agriculture, encompassing livestock and ranching solutions.
Others areas approved at the Funds Allocation Committee meeting are 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.
Alake also disclosed that a portion of the monthly distributable proceeds would be saved to minimise 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.
He said that out of the June distributable revenue of N1.9 trillion only N907 billion would be shared among the three tiers of government, while N790 billion would be saved, and the rest would be used for statutory deductions.
He explained that these savings would complement the efforts of the ISF and other existing and planned fiscal measures aimed at ensuring a tangible improvement in the lives of Nigerians.
Alake said the committee commended Tinubu for the bold decision to remove the petrol subsidy, and for providing supports to the states to cushion the effects of the removal.
