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Tinubu Floats Infrastructure Support Fund For States To Cushion Fuel Subsidy Removal Impact -

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News

Tinubu Floats Infrastructure Support Fund for States to Cushion Fuel Subsidy Removal Impact

Tinubu Floats Infrastructure Support Fund for States to Cushion Fuel Subsidy Removal Impact

By THECONSCIENCEng 

As part of measures to cushion the effects of the petrol subsidy removal, President Bola Tinubu has approved the establishment of Infrastructure Support Fund (ISF) for the 36 States of the Federation.

The approval was announced at the monthly meeting of the Federation Account Allocation Committee (FAAC) on Thursday.

The infrastructure fund will enable the States to intervene and invest in the critical areas of transportation, agriculture, livestock and ranching solutions, health and education.

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It will also improve economic competitiveness, create jobs and deliver economic prosperity for Nigerians.

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.

It said out of the June 2023 distributable revenue of N1.9 trillion, only N907 billion will be distributed among the three tiers of government, while N790 billion will be saved, and the rest will be used for statutory deductions.

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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 commended 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.

TheConscience

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