President Tinubu has approved the Infrastructure Support Fund (ISF) for all 36 states to cushion petrol subsidy removal’s effects.
The ISF will enable states to invest in critical areas like transportation, agriculture, healthcare, education, power, and water resources.
In June, N907 billion of the N1.9 trillion distributable revenue will be shared among the three tiers of government, while N790 billion will be saved.
“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,” Alake said in the statement.
“Out of the June 2023 distributable revenue of N1.9 trillion, 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 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.”