FG Denies Allegations Of Hidden Spending, Clarifies World Bank Report
The Federal Ministry of Finance has dismissed recent media reports alleging hidden spending and diversion of federation revenue, describing such claims as a misinterpretation of findings from the World Bank’s latest Nigeria Development Update.
In a press statement issued on Sunday, the Honourable Minister of State for Finance, Taiwo Oyedele, said the reports wrongly portrayed deductions by the Federation Account Allocation Committee (FAAC) as wasteful or missing funds.
According to the ministry, FAAC deductions cover legitimate fiscal obligations, including statutory transfers, savings and investments, security-related expenditures, cost-of-collection charges, refunds to Ministries, Departments and Agencies (MDAs), as well as transfers and interventions that benefit subnational governments.
The statement stressed that refunds and allocations to states and other tiers of government should not be misconstrued as leakages, noting that they represent lawful financial flows, including repayment of obligations and constitutionally backed disbursements.
The ministry also faulted what it described as the selective use of outdated data by some commentators, arguing that such analysis ignored recent reforms highlighted in the World Bank report. It pointed to measures introduced in early 2026, including an Executive Order aimed at ensuring proper remittance of petroleum revenues.
These reforms, the ministry noted, are already addressing concerns around deductions and are projected to improve transparency while increasing distributable federation revenue by about 0.4 percent of GDP annually.
Highlighting the broader findings of the World Bank report, the ministry said Nigeria’s macroeconomic outlook is improving, with economic growth becoming more broad-based and inflation showing signs of decline due to policy interventions.
It further noted improvements in the country’s external position, including stronger reserves and a current account surplus, alongside better debt indicators such as a decline in the debt-to-GDP ratio for the first time in over a decade.
The ministry emphasised that the World Bank did not conclude that Nigeria’s fiscal system is failing but rather acknowledged that ongoing reforms are yielding results and should be sustained to achieve inclusive growth.
Reaffirming the Federal Government’s commitment, the statement said efforts are ongoing to enhance fiscal transparency, boost revenue mobilisation, and ensure efficient public spending.
The ministry urged media organisations and stakeholders to report fiscal matters accurately and responsibly, warning that misleading interpretations could undermine public confidence and disrupt ongoing reform efforts.
