FG saves N3.56tn despite borrowing

The Federal Government and other tiers of government have 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. This represents a 95% 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.

The sharp increase in savings came against the backdrop of the Federal Government's expanded borrowing plan for 2026, with its borrowing target raised by N11.31tn to N29.20tn from the earlier N17.89tn projection, while the budget deficit stood at N31.46tn.

Brief written by urgent.news from Punch Nigeria's own syndicated text. Machine-written — may contain errors; check the original before relying on it.