President Bola Tinubu has granted approval for the establishment of the Infrastructure Support Fund (ISF) aimed at alleviating the impact of petrol subsidy removal on the populace. The decision was unveiled during the monthly meeting of the Federation Account Allocation Committee (FAAC) in Abuja, where N907 billion was distributed among the three tiers of government for June.
In a bid to provide timely assistance to citizens facing hardship due to the petrol subsidy removal, the new infrastructure fund will empower all 36 states to invest in vital sectors, including transportation, agriculture, healthcare, education, power, and water resources. These strategic interventions are envisioned to bolster economic competitiveness, job creation, and deliver prosperity to Nigerians.
To mitigate the impact of increased revenues resulting from the subsidy removal and exchange rate unification, the National Economic Council (NEC) resolved to save a substantial portion of the monthly distributable proceeds. This move aims to address concerns about money supply, inflation, and the exchange rate.
Mr. Dele Alake, the Special Adviser to the President on Special Duties, Communications, and Strategy, emphasized that N907 billion was distributed from the June 2023 distributable revenue of N1.9 trillion, while N790 billion will be saved, and the remainder will be used for statutory deductions. These savings will complement the efforts of the ISF and other fiscal measures aimed at transforming the lives and living standards of Nigerians.
During the FAAC meeting, chaired by the Accountant General of the Federation, Dr. Oluwatoyin Madein, the N907.054 billion total distributable revenue for June was allocated among the federal, state, and local governments. The federal government received N345.564 billion, states got N295.948 billion, and local governments received N218.064 billion. Additionally, N47.478 billion was shared as 13 percent derivation revenue to relevant states.
The establishment of the ISF and the savings initiatives signal the government’s commitment to providing much-needed support and relief to citizens while ensuring a sustainable financial environment.
The remarkable increase in tax revenues achieved by the Federal Inland Revenue Service (FIRS) provides hope for the future, with the service generating a total of N5.79 trillion in tax revenues for the first half of the year. This outstanding performance is attributed to improved voluntary tax compliance, aided by the automation of tax administrative processes and ongoing engagement with stakeholders across various sectors.
As the country moves forward, the president and relevant authorities express confidence in overcoming challenges and achieving better days ahead, bolstered by prudent fiscal measures and impactful policies to uplift the nation’s economy and wellbeing of its citizens.