… Federal Govt, states, councils share N907b
…Excess revenue moved to CBN
President Bola Ahmed Tinubu has approved the establishment of an Infrastructure Support Fund (ISF) for the 36 states.
It is part of measures to cushion the effects of the petrol subsidy removal, according to Presidential spokesman Dele Alake.
He said this was made known during yesterday’s meeting of the Federation Account Allocation Committee (FAAC) in Abuja.
Alake’s statement further explained that the FAAC would be distributing N907 billion among the three tiers of government for June, out of the N1.9 trillion revenue.
“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 minimise 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 N790 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 commended 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.”
During the FAAC meeting, there were intense negotiations between the Federal Government team and the governors before an agreement was reached on the amount to be shared.
The governors approved the Federal Government’s request not to share the entire N1.9 trillion realised in June.
The decision to save a larger portion was further ratified at the NEC meeting shortly before the commencement of the FAAC meeting.
The Nation
