Abuja — The Federal Ministry of Finance has rejected claims that a significant portion of Nigeria’s federation revenue is being diverted or concealed, describing such interpretations as a misreading of the latest Nigeria Development Update by the World Bank.
In a press statement issued on Sunday, the Honourable Minister of State for Finance, Taiwo Oyedele, said recent media reports alleging “hidden spending” or missing funds misrepresented the World Bank’s analysis and reflected a misunderstanding of the country’s fiscal framework.
According to Oyedele, deductions referenced in the report relate to legitimate fiscal processes under the Federation Account Allocation Committee (FAAC), rather than waste or leakages.
“These include statutory transfers, savings and investments, security-related expenditures, cost-of-collection charges, refunds to Ministries, Departments and Agencies, as well as transfers and interventions benefiting subnational governments,” he said.
He stressed that refunds and allocations to states and other tiers of government are lawful obligations and should not be interpreted as diverted funds.
The Minister also criticised what he described as the selective use of outdated data in some public commentaries, noting that such analyses ignore recent reforms acknowledged in the World Bank report.
He pointed to measures introduced in early 2026, including an Executive Order aimed at strengthening the remittance of petroleum revenues, which are expected to improve transparency and increase distributable revenue by about 0.4 per cent of Gross Domestic Product annually.
Oyedele further highlighted the report’s broader assessment of Nigeria’s economic outlook, which he said was positive and forward-looking. He noted that the World Bank identified improvements in economic growth across sectors, a gradual decline in inflation, stronger external reserves, a current account surplus, and a reduction in the debt-to-GDP ratio for the first time in over a decade.
“The World Bank does not conclude that Nigeria’s fiscal system is collapsing or that reforms have failed. Rather, it affirms that reforms are working and should be sustained,” he said.
The Federal Government, he added, remains committed to strengthening fiscal transparency, improving revenue mobilisation, and ensuring efficient public spending.
He urged the media and stakeholders to engage responsibly with fiscal information to avoid misinterpretations that could undermine public confidence in ongoing economic reforms.
