FRC Chairman proposes formula for sub-national debt sustainability

FRC Chairman proposes formula for sub-national debt sustainability

By Bushrah Yusuf-Badmus
The Executive Chairman, Fiscal Responsibility Commission (FRC), Mr Victor Muruako, has called for the implementation of the 22-point Fiscal Sustainability Plan (FSP) and the SFTAS Delivery-Linked Indicators (DLIs).

Muruako, while making the call on Wednesday in Ilorin at a workshop on Fiscal Responsibility and Debt Sustainability, said the implementation would help to achieve debt sustainability.

The News Agency of Nigeria reports that the workshop was organised by the OrderPaper Advocacy Initiative (OAI) in partnership with the FRC in Abuja and the FRC in Kwara.

Muruako, who was represented by his Special Adviser, Dr Chris Uwadoka, said there was no better formula for debt sustainability than a committed execution of the FSP and the SFTAS DLIs.

“These measures provide a comprehensive framework for managing public finances responsibly and ensuring long-term debt sustainability.

”Unsustainable debt can severely diminish a government’s ability to deliver essential services and invest in development projects to meet the needs of its citizens,” he warned.

The FRC Chairman added that it was crucial for sub-national governments to adopt responsible fiscal practices and prioritise debt sustainability.

Muruako urged state governments to maintain the positive fiscal practices introduced through the FSP and SFTAS, even though these programmes have officially ended.

He also reiterated the FRC’s commitment to providing technical support to state governments in their efforts to manage fiscal responsibility effectively.

“The FRC stands ready to assist state governments in implementing sustainable fiscal policies and achieving long-term debt sustainability.

“We encourage all states to enact dedicated Fiscal Responsibility Laws to further strengthen their fiscal frameworks,” Muruako said.

He also urged all state governments to establish and strengthen independent fiscal responsibility institutions which could monitor compliance with fiscal rules and provide objective advice on fiscal policy.



=========Edited by Olawale Alabi

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