By Mohammed Bello Doka.
This approval was disclosed at the monthly meeting of the Federation Account Allocation Committee (FAAC) on July 20, 2023, in Abuja. The new Infrastructure Fund aims to empower the states to invest in key areas such as transportation, agriculture, health, education, power, and water resources. By doing so, it aims to improve economic competitiveness, create job opportunities, and deliver economic prosperity for Nigerians.
Furthermore, the committee has also resolved to save a portion of the monthly distributable proceeds to minimize the impact of the increased revenues resulting from the subsidy removal and exchange rate unification. This measure aims to address concerns such as inflation and the exchange rate while ensuring that the subsidy removal translates into tangible improvements in the lives and living standards of Nigerians.
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. These savings will complement the efforts of the Infrastructure Support Fund (ISF) and other fiscal measures, both existing and planned.
The decision to remove the petrol subsidy is a bold move, and the committee commends President Tinubu for making it. Equally important is the support being provided to the states to mitigate the effects of the subsidy removal on the Nigerian people.
The establishment of the Infrastructure Support Fund (ISF) is seen as a crucial step towards addressing the infrastructure deficit in Nigeria. The fund will enable the states to invest in critical areas such as transportation, agriculture, health, education, power, and water resources. By doing so, it will not only improve the quality of infrastructure but also create job opportunities and enhance economic competitiveness.
Transportation is one of the key areas that will benefit from the ISF. The fund will be used to improve farm-to-market road networks, which will facilitate the efficient transportation of agricultural produce. This, in turn, will boost agricultural productivity and contribute to food security in the country.
Agriculture is another sector that will receive significant support from the ISF. The fund will be used to implement livestock and ranching solutions, which are vital for transforming the agricultural sector and boosting its contribution to the economy. These interventions will enhance the productivity and profitability of livestock farming and provide opportunities for job creation.
The ISF will also prioritize investments in the health sector, particularly in basic healthcare. This will help improve access to healthcare services, especially in rural areas where quality healthcare is often lacking. By investing in basic healthcare, the fund aims to reduce morbidity and mortality rates and improve the overall health outcomes of Nigerians.
Another critical area of focus for the ISF is education, with an emphasis on basic education. The fund will be used to improve infrastructure in schools, provide access to quality education for all children, and enhance teacher training and development. By investing in basic education, the fund aims to equip Nigerian children with the skills and knowledge they need to succeed in the future.
Power and water resources are also key sectors that will benefit from the ISF. The fund will be used to enhance the generation, transmission, and distribution of electricity, ensuring a reliable and sustainable power supply for businesses and households. Additionally, the fund will support initiatives aimed at improving water supply and sanitation services, addressing a critical need in many parts of the country.
The decision to save a portion of the monthly distributable proceeds is a strategic move aimed at minimizing the potential negative impacts of increased revenues resulting from the subsidy removal. By saving these funds, the government aims to control money supply, inflation, and exchange rate fluctuations. This approach ensures that the removal of the petrol subsidy has a positive and sustainable impact on the economy and the lives of Nigerians.
The combination of the Infrastructure Support Fund (ISF), planned fiscal measures, and the decision to save a portion of the monthly distributable proceeds demonstrates the government's commitment to driving sustainable development and ensuring that the benefits of the subsidy removal are felt by all Nigerians. These measures will go a long way in improving infrastructure, creating job opportunities, and enhancing economic competitiveness in the country.
President Tinubu's bold decision to remove the petrol subsidy is commendable. This move demonstrates his commitment to addressing the long-standing challenges in the Nigerian economy and prioritizing the welfare of the Nigerian people. By approving the establishment of the Infrastructure Support Fund (ISF) and providing necessary support to the states, President Tinubu is taking concrete steps towards transforming the socio-economic landscape of Nigeria and delivering prosperity for all.
Edited using write cream AI App.
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