As FAAC shares N907 billion from N1.9trillion June revenue after subsidy removal
Following improved revenue generation into the coffers of the federal government of Nigeria, President Bola Ahmed Tinubu has approved the creation 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 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.
According to a statement from the Special Adviser to the President, Special Duties, Communications & Strategy, Dele Alake: “The new Infrastructure Fund will enable the states governments 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.”
It was also revealed that 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.
“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”, he further added.
Prior to the removal of the fuel subsidy, Federation Account Allocation Committee (FAAC) said it shared total distributable revenue of N786.161 billion with the Federal Government, States and Local Government Areas in May.
At the end of June 2023, the distributable revenue shows N120.893 billion increase from positions prior to the implementation of the subsidy removal policy.
Source: State House
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