Fuel Subsidy Reforms Boost FAAC Inflow to N1.7 Trillion Inflow into the Federal Account Allocation Committee (FAAC) account has increased from about N800 billion monthly to over N1.7 trillion since the implementation of fuel subsidy removal and foreign exchange (FX) reforms. This higher inflow will improve fiscal deficit and debt sustainability ratio in the short
Fuel Subsidy Reforms Boost FAAC Inflow to N1.7 Trillion
Inflow into the Federal Account Allocation Committee (FAAC) account has increased from about N800 billion monthly to over N1.7 trillion since the implementation of fuel subsidy removal and foreign exchange (FX) reforms.
This higher inflow will improve fiscal deficit and debt sustainability ratio in the short term, according to a report by FSDH Research.
A fiscal deficit is a shortfall in a government’s revenue compared with its expenditure. A government that has a fiscal deficit is spending beyond its means.
FAAC disburses allocations from the revenues generated into the Federation Accounts, which comprise multiple accounts specific to an RGA or a sector/ business type. For example, Electronic Money Transfer Account and the Excess Crude Oil Account are two of many.
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