President Bola Tinubu generated 1.9 trillion naira in revenue in June 2023, allocated 907 billion naira to all 36 states, including the federal capital territory and ordered the reserve of the remaining in the newly established Infrastructure Support Fund (ISF).
Mr President unveiled this at the Federation Account Allocation Committee (FAAC) meeting held in Abuja on Thursday, July 20, 2023.
He maintained that the allocation would complement governors’ strives in the implementation of policies to counter the challenges occasioned by the increase in fuel price, especially in the areas of infrastructure and investments.
President Tinubu noted, ‘The new infrastructure fund will enable the states 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.’
He also noted that the reserved proceeds of the accrued distributable revenue would lessen the impact of high exchange rate unification on the money supply and inflation.
‘Out of the June 2023 distributable revenue of 1.9 trillion Naira, 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,’ Tinubu stated.
He added, ‘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 sitting committee extolled the president for his bold action of subsidy removal and for devising means to minimize its shock on the common Nigerian.