President Bola Tinubu has approved a bogus Infrastructure Support Fund (ISF) to cushion the effects of galloping inflation and fuel subsidy removal in Nigeria.
The Nigerian government disclosed the new measure at its monthly meeting of the Federation Account Allocation Committee (FAAC), on Thursday, July 20, 2023, in Abuja.
Chronicle NG notes that the federal government did not announce how much the Infrastructure Support Fund will be, how much each State will receive, and when the Infrastructure Support Fund will be disbursed.
Tinubu on May 29 announced that the fuel subsidy regime was over sending petrol prices from N195 per litre to N617 per litre in July, with some market analysts noting that it could go higher.
“The new Infrastructure Fund will 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,” Dele Alake, special adviser to the President on special duties, communications and strategy said in a press statement.
The statement added, “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.
“Out of the June 2023 distributable revenue of 1.9 trillion naira, only N907 billion will be distributed among the three tiers of government, while 790 billion will be saved, and the rest will 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 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,” the statement added.
