SNOW TV NEWS DESK
The Federal Government and other tiers of government recorded a combined N3.56tn in savings from Federation Account revenue between January and September 2026, despite the Federal Government’s growing reliance on borrowing to finance its budget deficit.
The figure represents a 95 percent increase compared with the N1.83tn saved during the corresponding period in 2025.
According to an Agora Policy report titled Ten Insights from FAAC Disbursements for January-September 2026, analyzed by The PUNCH, total deductions from Federation Account revenue stood at N11.10tn during the nine-month period.
Interventions accounted for the largest share of deductions at N4.78tn, followed by savings of N3.56tn. Together, both categories represented 75.1 per cent of total deductions, compared with 39.9 per cent in 2025.
Other deductions included refunds of N1.21tn, collection costs of N1.09tn, and transfers amounting to N469.06bn.
The increase in savings comes amid the Federal Government’s expanded borrowing target for 2026, which rose by N11.31tn from N17.89tn to N29.20tn. The 2026 budget projects an expenditure of N68.32tn against an expected revenue of N36.87tn, leaving a deficit of N31.46tn.
Meanwhile, gross Federation Account revenue increased by 12.6 percent from N27.95tn in 2025 to N31.46tn in 2026.
The report also showed that total deductions declined by 3.5 percent, while distributable revenue before augmentation increased by 23.8 percent to N20.36tn.
Refunds recorded the sharpest decline, falling by 77 percent from N5.20tn to N1.21tn.
The report’s findings have raised questions about the government’s decision to accumulate substantial savings while increasing borrowing. However, the savings and deductions cover the Federation Account and are not exclusively funds belonging to the federal government.
SNOW TV EDITORIAL ANALYSIS
The rise in public savings alongside increased borrowing raises legitimate concerns about Nigeria’s fiscal management. While saving revenue can provide financial stability and protect against future economic shocks, borrowing at high costs while setting aside substantial funds requires greater justification.
The government must explain the purpose, accessibility, and investment value of these savings. More importantly, borrowing should be tied to productive projects capable of generating economic returns.
Nigeria cannot afford a fiscal strategy that simultaneously accumulates idle resources and increases its debt burden. Transparency, accountability, and prudent financial management must guide the country’s borrowing and savings decisions.
“Sir Bartholomew White Ebe is a Lagos-based media personality, Music Artist, Producer, and a Relationship Coach and independent journalist. With over seven years of experience tracking political developments and cultural shifts in Nigeria, he specializes in local current affairs, grassroots politics, and community-driven reporting across Lagos State. As the founder and chief editor of Snow Multimedia Connect {SNOW TV}, he leads the editorial team to deliver verified, high-impact stories to digital audiences.”
Email: snowmediaconnect@gmail.com
