The Federal Government and other tiers of government set aside a combined N3.56tn as savings from Federation Account revenue between January and September 2026, despite the Federal Government’s increasing reliance on borrowing to finance its budget deficit.
The amount represents a 95 per cent increase from the N1.83tn recorded in the corresponding period of 2025, raising questions about the country’s fiscal priorities amid mounting public debt and rising debt-servicing obligations.
A report by Agora Policy, titled Ten Insights from FAAC Disbursements for January-September 2026, analysed , showed that savings and interventions accounted for N8.34tn of deductions from Federation Account revenue during the nine-month period.
The report put deductions for interventions at N4.78tn, making it the largest category, while savings accounted for N3.56tn. Together, the two categories represented 75.1 per cent of total deductions, compared with 39.9 per cent in the corresponding period of 2025.
The report read, “Interventions accounted for the largest deduction, at N4.78tn, followed by savings at N3.56tn. In nine months, refunds amounted to N1.21tn and collection costs to N1.09tn. Transfers, at N469.06bn, were the smallest category.”
The sharp increase in savings came against the backdrop of the Federal Government’s expanded borrowing plan for 2026. The government raised its borrowing target by N11.31tn to N29.20tn