The Federal Ministry of Finance has dismissed claims of hidden spending and diversion of federation revenue, describing recent interpretations of the World Bank’s Nigeria Development Update as misleading and inaccurate.
In a statement issued in Abuja by the ministry and signed by the minister of state for finance, Taiwo Oyedele, the Ministry clarified that reports suggesting that a significant portion of Nigeria’s federation earnings is being diverted are based on a misreading of the World Bank’s analysis.
According to the Ministry, deductions by the Federation Account Allocation Committee, FAAC have been wrongly labelled as waste or missing funds.
The Ministry explained that these deductions include statutory transfers, security-related expenditures, savings and investments, as well as cost-of-collection charges and refunds to Ministries, Departments and Agencies
It added that such financial flows are legitimate and backed by law, noting that transfers to states and other tiers of government do not constitute leakages but are part of established fiscal processes.
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The statement also faulted what it described as the selective use of outdated data in some commentaries, stressing that recent reforms introduced in 2026 are already addressing concerns around revenue deductions.
It highlighted a new Executive Order aimed at improving the remittance of petroleum revenues, which is expected to enhance transparency and increase funds available to all tiers of government.
The Ministry further pointed to improvements in Nigeria’s macroeconomic outlook, including broader economic growth, declining inflation, stronger external reserves, and a reduction in the country’s debt-to-GDP ratio maintaining lthat the World Bank report presents a positive and forward-looking assessment of Nigeria’s economy, emphasizing that ongoing reforms are yielding results and should be sustained.
The Federal Government reaffirmed its commitment to fiscal transparency, efficient public spending, and inclusive economic growth, while urging the media and stakeholders to ensure accurate interpretation of fiscal data to sustain confidence in the nation’s economic reforms.
(Editor: Anoyoyo Ogiagboviogie)
