President Bola Tinubu has taken a decisive step to alleviate the impact of petrol subsidy removal on Nigerians by approving the establishment of an Infrastructure Support Fund (ISF) dedicated to all 36 States of the Federation. The announcement was made during the monthly meeting of the Federation Account Allocation Committee (FAAC) held on Thursday, July 20, 2023, in Abuja.
The primary goal of the newly established Infrastructure Support Fund is to cushion the effects of the recent petrol subsidy removal on the citizens. By providing financial assistance to the states, the government aims to offset the burden of increased fuel prices and ensure that essential services are maintained and improved.
The Infrastructure Fund is designed to empower the states to invest in critical areas of development that will bolster various sectors of the economy. Notably, the funds will be directed towards enhancing transportation infrastructure, with a particular focus on improving farm-to-market roads to facilitate the efficient movement of goods and people. Additionally, the agriculture sector will receive attention, encompassing solutions aimed at bolstering livestock and ranching practices.
Moreover, investments in the healthcare and education sectors are also at the forefront of the Infrastructure Support Fund’s objectives. Basic healthcare and education will be given priority, ensuring that the populace has access to essential services in these crucial areas.
Another crucial aspect of the ISF is its contribution to improving power and water resources across the nation. By investing in these sectors, the government aims to enhance economic competitiveness, create job opportunities, and foster economic prosperity for all Nigerians.
In conjunction with the establishment of the ISF, the FAAC has taken additional measures to stabilize the economy and minimize the impact of the subsidy removal and exchange rate unification. Out of the total distributable revenue of 1.9 trillion Naira for June 2023, only N907 billion will be allocated among the three tiers of government. An impressive sum of 790 billion Naira will be saved to manage money supply, inflation, and exchange rates effectively. The remaining funds will be utilized for statutory deductions.
The savings generated from these measures will complement the efforts of the Infrastructure Support Fund and other existing and planned fiscal initiatives. The ultimate aim is to ensure that the removal of petrol subsidies translates into tangible improvements in the lives and living standards of the Nigerian population.
The FAAC Committee commends President Tinubu for his bold decision to remove petrol subsidies and, more significantly, for providing vital support to the states to mitigate the effects of this removal on the Nigerian people. This proactive approach reflects the government’s commitment to creating sustainable solutions for the betterment of the nation and its citizens.
The implementation of the Infrastructure Support Fund is anticipated to drive positive changes in critical sectors, uplift the overall socio-economic landscape, and empower Nigerians towards a brighter future. As the funds begin to be deployed for various projects, citizens look forward to witnessing the tangible benefits of these initiatives in their daily lives.
