,,,,,,Approves establishment of infrastructure support fund for States.
President Bola Ahmed Tinubu.
Photo credit: Wikipedia.
President Bola Tinubu has directed that only N907 billion would be distributed among the three tiers of government out of the June distributable revenue of N1.9 trillion.
Dele Alake, special adviser on special duties, communications and strategies, who disclosed this in a statement in Abuja on Thursday said Tinubu ordered that the balance of N790 billion be saved and the rest be used for statutory deductions.
According to Alake, the president also approved the establishment of the 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.
He said,“The approval was disclosed at the monthly meeting of the Federation Account Allocation Committee (FAAC), on Thursday, July 20, 2023.
“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.
“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.
“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.
Edited by Dada Ahmed.
