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 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.
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
This is the first time the governors are pushing to save revenue that will accrue directly to the federation account.
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At the end of the FAAC meeting, a communiqué was issued detailing how the N907,054 billion should be shared.
