The Federation Account Allocation Committee has approved the transfer of N11.5 billion from the 0.5% Stabilisation Fund to finance the operations of its subcommittees preparing the framework for the 2026 national budget, according to official documents .
Documents on the 0.5% Stabilisation Fund account as of January 2026 show the transfer was authorized by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, in favor of FAAC subcommittees tasked with developing proposals for the 2026 fiscal program.
The records indicate that N11,500,000,000.01 was withdrawn from the account on Jan. 28, 2026, specifically for subcommittees handling preparation of the proposed 2026 budget.
“The transfer represents the amount approved by HMF/CME in favor of various subcommittees of FAAC for the 2026 proposed budget,” the document stated.
The Stabilisation Fund account statement showed the withdrawal was part of a series of transactions involving allocations, deductions and statutory transfers recorded between November 2025 and February 2026.
Before the withdrawal, the account had a cumulative balance of N61.11 billion, following earlier deductions, including N7.89 billion approved for the operations of the National Economic Council Secretariat for the 2025 fiscal year.
After the N11.5 billion deduction, the balance temporarily dropped to N49.61 billion. Subsequent inflows and adjustments, including monthly allocations and refunds linked to the 13% derivation index for Bayelsa State, later increased the balance.
By Feb. 20, 2026, the account recorded a closing balance of N54.27 billion, according to the statement.
On Dec. 19, 2025, President Bola Tinubu presented the N58.18 trillion 2026 Appropriation Bill to a joint session of the National Assembly, outlining the administration’s third full-year spending plan since taking office in May 2023.
The proposal, described as the “Budget of Consolidation, Renewed Resilience and Shared Prosperity,” aims to sustain economic reforms, strengthen security and expand infrastructure investment.
The fiscal plan is based on key macroeconomic assumptions, including an oil benchmark of about $64.85 per barrel, an exchange rate projection of roughly N1,400 to the dollar, and improved revenue mobilization from oil and non-oil sources.
Following the presentation, the budget passed second reading in both chambers of the National Assembly and was referred to various standing committees for detailed review.
The committee stage marks the start of the budget defense process, during which ministries, departments and agencies appear before lawmakers to justify proposed allocations.
Since early 2026, several government agencies have appeared before Senate and House committees to defend their spending plans and explain projects included in their budgets.
During the sessions, lawmakers examine revenue projections, question expenditure proposals and request clarifications on ongoing and new projects.
The committee review also allows legislators to recommend adjustments, increase or reduce allocations, and in some cases request agencies to revise proposals. The stage is considered critical in determining the final funding levels in the approved budget.
After the defense sessions conclude, reports from the committees will be compiled by the appropriation committees of both chambers. The harmonized report will then be presented for consideration and passage by the Senate and the House of Representatives before the final appropriation bill is sent to the president for assent.
The Senate has tentatively scheduled March 17, 2026, for final consideration and passage.
The account statement also listed other major transactions during the period, including deductions for transfers to the Nigerian Sovereign Investment Authority and payments related to a forensic audit of the defunct Nigerian National Petroleum Corporation covering 2015 to 2023.
Part of the inflows into the account came from 25% of monthly allocations accruing to the Stabilisation Account, which were later transferred to the sovereign wealth fund in line with presidential approvals.
The Stabilisation Fund is part of the broader Federation Account structure, which pools revenues generated by the federal government — including oil and gas earnings — before they are shared among federal, state and local governments through FAAC.
The fund is intended to provide fiscal buffers and support specific government obligations, particularly during periods of revenue volatility.
Economic and fiscal experts say the use of the fund to support FAAC budget subcommittees highlights the growing fiscal coordination required among federal and subnational governments in planning national budgets.
The FAAC subcommittees typically handle key components of the fiscal framework, including revenue projections, expenditure planning, oil price benchmarks and macroeconomic assumptions that shape the national budget and revenue distribution across the three tiers of government.
