The Federal Government has dismissed claims of hidden spending and diversion of federal revenues, describing recent media reports as misrepresentations of findings in the World Bank’s latest Nigeria Development Update.
In a statement issued in Abuja, Minister of State for Finance, Taiwo Oyedele, clarified that deductions reported by the Federation Account Allocation Committee (FAAC) are legitimate statutory components of public finance. These include statutory transfers, savings and investments, security-related expenditures, cost-of-collection charges, refunds to Ministries, Departments and Agencies (MDAs), and transfers to state and local governments.
Oyedele stressed that such allocations are lawful fiscal flows, not leakages, and that some media interpretations relied on outdated data. He noted that the World Bank report recognised ongoing reforms aimed at improving transparency and increasing revenue.
Among the measures introduced, an Executive Order in early 2026 is designed to safeguard the remittance of petroleum revenues. The government projects these reforms will boost revenues available to all tiers of government by about 0.4 per cent of GDP annually.
The minister highlighted broader positive trends in the report, including more broad-based economic growth, a gradual decline in inflation, strengthening external reserves, and a current account surplus. Debt indicators have also improved, with the debt-to-GDP ratio falling 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,” the statement said. “Rather, it affirms that reforms are working and should be sustained to achieve inclusive growth.”
The government urged media and stakeholders to engage responsibly with fiscal data to avoid misinterpretations that could undermine public confidence in ongoing reforms. It reaffirmed its commitment to fiscal transparency, enhanced revenue mobilisation, and efficient public spending.
