Federal Government and other levels of government don keep N3.56 trillion aside from money wey dem collect through Federation Account between January and September 2026, even as Federal Government continue to borrow money to finance its budget.

The amount show 95 per cent increase compared to the N1.83 trillion wey government save during the same period for 2025.

This development don raise questions about how government dey manage public money, especially as Nigeria debt continue to increase and government dey spend plenty money to pay back loans.

One report by Agora Policy, wey carry the title Ten Insights from FAAC Disbursements for January-September 2026, and The PUNCH analyse on Friday, show say government deductions from Federation Account revenue reach N11.10 trillion during the first nine months of 2026.

According to the report, government set aside N4.78 trillion for different interventions, making am the biggest category of deductions, while N3.56 trillion go into savings.

Other deductions include N1.21 trillion for refunds, N1.09 trillion for collection costs and N469.06 billion for transfers.

The report explain say interventions and savings together account for 75.1 per cent of all deductions from Federation Account revenue during the nine-month period.

This na serious increase compared to 39.9 per cent wey both categories account for during the same period for 2025.

The increase in savings come at a time wey Federal Government don increase the amount wey e plan to borrow for 2026.

Government raise its borrowing target by N11.31 trillion, from the earlier N17.89 trillion to N29.20 trillion, while the budget deficit stand at N31.46 trillion.

Under the 2026 budget, government plan to spend N68.32 trillion, while the revenue wey e expect to collect na N36.87 trillion.

This leave government with a big money gap wey e plan to cover mainly through borrowing.

Government Revenue And Deductions

Despite the increase in savings and interventions, the Agora Policy report show say total deductions from Federation Account revenue actually reduce by 3.5 per cent.

The deductions drop from N11.50 trillion during the first nine months of 2025 to N11.10 trillion for the same period in 2026.

The percentage of total revenue wey government remove as deductions also reduce from 41.1 per cent to 35.3 per cent.

This help increase the money wey remain for sharing among the Federal Government, state governments and local governments before additional funds enter the account.

The amount of money available for sharing before augmentation increase by 23.8 per cent to N20.36 trillion.

The report also show say total money wey enter Federation Account increase by 12.6 per cent, from N27.95 trillion in the first nine months of 2025 to N31.46 trillion during the same period in 2026.

According to the report, the increase in distributable revenue reach N3.91 trillion, higher than the N3.51 trillion increase in total revenue.

This happen because government deductions reduce by about N400 billion.

However, the report explain say the small reduction in total deductions hide some major changes in how government spend and keep the money.

Refunds, wey previously be the biggest category of deductions, reduce by about N3.99 trillion and move from the first position to the third position.

At the same time, money wey government set aside for interventions and savings increase by about N3.75 trillion, moving from N4.59 trillion to N8.34 trillion.

Together, both categories account for 75.1 per cent of total deductions during the first nine months of 2026, compared to 39.9 per cent during the same period in 2025.

Further breakdown show say refunds reduce by 77 per cent, from N5.20 trillion in the first nine months of 2025 to N1.21 trillion in 2026.

Meanwhile, money wey government spend on collection costs increase by four per cent to N1.09 trillion, while transfers reduce by 29 per cent to N469.06 billion.

Why Government Still Dey Borrow Despite Savings

The increase in savings and interventions don raise questions about why government dey keep some money aside from Federation Account revenue while Federal Government still dey borrow heavily to finance its spending.

However, the report make am clear say the N3.56 trillion savings no be money wey Federal Government keep alone.

The amount cover savings from the Federation Account revenue wey concern all three levels of government: Federal Government, state governments and local governments.

This mean say the money no suppose be seen as savings wey belong to Federal Government alone because the revenue dey shared among the three levels of government under the existing allocation arrangement.

Federal Government don defend its decision to continue borrowing, explaining say the pressure on government spending don increase beyond the additional money wey e dey generate without borrowing.

Government argue say borrowing remain necessary to provide money for infrastructure and other development projects.

As part of its explanation, government point to increasing workers’ salaries, money wey e dey use to pay debts, electricity support and infrastructure projects as some of the major things wey dey put pressure on public finances.

One statement by the Presidency on its infrastructure investment plan explain say government dey direct borrowed money towards projects and infrastructure wey fit support economic growth instead of using am mainly for everyday spending.

However, the Presidency also acknowledge the pressure wey debt repayment dey put on government revenue.

According to the statement, debt servicing account for about 65 per cent of government revenue during the first half of 2026.

This mean say a large part of the money wey government collect as revenue dey go towards paying debts, leaving less money for other government responsibilities.