According to a document on the 0.5 per cent Stabilisation Fund Account as of January 2026, analysed by our correspondent on Sunday, the transfer was authorised by the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, in favour of the FAAC sub-committees tasked with developing budget proposals for the current yearās fiscal programme.
The document indicated that N11,500,000,000.01 was withdrawn from the account on January 28, 2026, specifically for the sub-committees handling the preparation of the 2026 proposed budget.
It stated, āThe transfer represents the amount approved by HMF/CME in favour of various sub-committees of FAAC for the 2026 proposed budget.ā The Stabilisation Fund account statement revealed that the withdrawal formed part of a series of transactions involving allocations, deductions, and statutory transfers recorded between November 2025 and February 2026.
Before the latest withdrawal, the account had recorded a cumulative balance of N61.11bn following previous deductions, including N7.89bn approved for the operations of the National Economic Council Secretariat for the 2025 fiscal year.
With the deduction of N11.5bn, the balance in the account temporarily declined to N49.61bn, according to the statement. Further inflows and adjustments, including monthly allocations and refunds tied to the 13 per cent derivation index for Bayelsa State, later pushed the balance higher.
The document showed that by February 20, 2026, the Stabilisation Fund account had recorded a closing balance of N54.27bn.
On December 19, 2025, President Bola Tinubu presented the N58.18tn 2026 Appropriation Bill to a joint session of the National Assembly of Nigeria in December 2025, outlining the administrationās third full-year spending plan since assuming office in May 2023.
The proposal, described as the āBudget of Consolidation, Renewed Resilience and Shared Prosperity,ā is designed to sustain economic reforms, strengthen security, and expand infrastructure investment across the country.
The fiscal plan is built 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 mobilisation from oil and non-oil sources.
Following the presentation, the budget progressed through the second reading stage in both chambers of the National Assembly, after which lawmakers referred the proposal to various standing committees for detailed scrutiny.
This stage marks the beginning of the budget defence process, during which ministries, departments, and agencies appear before relevant committees to justify their proposed allocations.
Since early 2026, several ministries and government agencies have been appearing before Senate and House committees to defend their spending plans and explain the projects captured in their budgets.
During the defence sessions, lawmakers examine revenue projections, question expenditure proposals, and request clarifications on ongoing and new projects contained in the budget.
The committee review stage also allows legislators to recommend adjustments, increase or reduce allocations, and, in some cases, request agencies to revise their proposals. The process is considered a crucial phase of the appropriation cycle because it determines the final funding levels that will appear in the approved budget.
After the conclusion of the defence sessions, the reports of the various committees are expected to be compiled by the appropriation committees of both chambers. The harmonised report will then be presented for consideration and passage by the Senate and the House of Representatives before the final appropriation bill is transmitted to the President for assent.
The Senate has scheduled March 17, 2026, as the tentative date for its final consideration and passage.
The account statement also detailed other significant transactions within the period, including deductions for transfers to the Nigerian Sovereign Investment Authority as well as payments related to a forensic audit review of the defunct Nigerian National Petroleum Corporation covering the period from 2015 to 2023.
In addition, part of the inflows into the account came from 25 per cent of monthly allocations accruing to the Stabilisation Account, which were subsequently transferred to the sovereign wealth fund in line with presidential approvals.
The Stabilisation Fund forms 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 the Federal Government, states, and local governments through FAAC.
The account is designed 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 sub-committees underscores the growing fiscal coordination required among federal and sub-national governments in planning national budgets.
The FAAC sub-committees typically work on critical components of the fiscal framework, including revenue projections, expenditure planning, oil price benchmarks, and macroeconomic assumptions, which ultimately shape the national budget and revenue distribution to the three tiers of government.
