The Federation Account Allocation Committee Post-Mortem Sub-Committee has stated that both the fuel subsidy and the rising public debt are concerning.
This was stated in a communiqué that was released at the conclusion of a retreat that lasted three days to evaluate issues that arose from the Federation Account between January 2019 and September 2022.
“The rising level of public debt and the increasing ratio of debt service to revenue is worrisome” was the headline of the communiqué that was sent to our correspondent.
It noted that structural constraints affecting the oil sector, such as the unsustainable gasoline subsidy acting as the first line of defense against gross oil revenues, had hampered the oil sector’s ability to contribute to Federation account revenues.
