The Federal Ministry of Finance has dismissed claims of hidden spending and diversion of federation revenue, describing recent media reports as a misrepresentation of findings from the latest Nigeria Development Update by the World Bank.
The Minister of State for Finance, Taiwo Oyedele, in a statement he personally signed on Sunday, April 19, 2026, said interpretations suggesting that a significant portion of federation earnings is being diverted reflect a misunderstanding of Nigeria’s fiscal system.
The Minister clarified that deductions by the Federation Account Allocation Committee (FAAC), which some reports labelled as waste or missing funds, are legitimate and comprise statutory transfers, savings and investments, security expenditures, cost-of-collection charges, and refunds to Ministries, Departments and Agencies (MDAs), among others.
He stressed that refunds and transfers to states and other tiers of government are not leakages but represent lawful fiscal transactions, including repayments and statutory allocations.
The statement also accused some commentators of selectively relying on outdated data while ignoring ongoing reforms highlighted in the World Bank report. It noted that recent measures, including a new Executive Order to safeguard petroleum revenue remittances, are already improving transparency and are expected to boost revenues available to all tiers of government by about 0.4 per cent of Gross Domestic Product annually.
Highlighting broader economic trends, the ministry said the report paints a positive outlook for Nigeria, citing more broad-based economic growth, declining inflation, stronger external reserves, and a current account surplus. It added that debt indicators have also improved, with a decline in the debt-to-GDP ratio for the first time in over a decade.
According to him, the World Bank did not conclude that Nigeria’s fiscal system is failing but rather emphasised that ongoing reforms are yielding results and should be sustained to achieve inclusive growth.
Reaffirming the government’s commitment, the ministry said it would continue to strengthen fiscal transparency, enhance revenue mobilisation, and ensure efficient public spending.
It urged media organisations and stakeholders to engage responsibly with fiscal information to avoid misinterpretations that could undermine public confidence in the country’s economic reform agenda.
