Nigeria’s Federal Ministry of Finance has dismissed claims that a large share of the country’s federation revenue is being diverted or concealed, describing such reports as misleading interpretations of the World Bank’s latest assessment.
In a statement signed by the Minister of State for Finance, Taiwo Oyedele, the ministry clarified that recent media coverage had inaccurately portrayed findings from the Nigeria Development Update. It stressed that suggestions of “hidden spending” or diverted funds stem from a misunderstanding of how the country’s fiscal system operates.
The ministry explained that deductions made by the Federation Account Allocation Committee (FAAC) are legitimate and should not be classified as waste or missing funds. These deductions, it noted, cover statutory obligations such as transfers, savings, security expenditures, administrative costs, and refunds to government agencies, as well as allocations to state and local governments.
According to the statement, payments and transfers to subnational governments are valid fiscal processes and do not represent leakages. It also criticized the use of outdated or selective data in some analyses, warning that ignoring recent reforms presents a distorted picture of Nigeria’s financial situation.
Highlighting progress, the ministry pointed to reforms introduced in early 2026, including a new executive order aimed at improving transparency in petroleum revenue remittances. These measures are expected to boost government earnings and strengthen accountability across all levels of government.
The statement further noted that the World Bank report reflects improving economic conditions, including broader growth, easing inflation, stronger external reserves, and a current account surplus. It also referenced a decline in Nigeria’s debt-to-GDP ratio, marking the first such improvement in over a decade.
Reaffirming its stance, the ministry maintained that ongoing reforms are yielding results and should be sustained to achieve inclusive economic growth. It also urged the media and stakeholders to interpret fiscal data responsibly to avoid spreading misinformation that could undermine reform efforts.
