Finance ministry says World Bank report misread, insists fiscal reforms are strengthening transparency and boosting government revenue…..
The Federal Government has rejected claims that federal revenues are being secretly diverted, describing recent reports as misleading and based on a flawed interpretation of official data.
In a statement released on Sunday in Abuja, the Minister of State for Finance, Taiwo Oyedele, said the controversy stemmed from a misreading of the latest World Bank Nigeria Development Update.
According to him, suggestions that large portions of government earnings are unaccounted for do not reflect the reality of how Nigeria’s public finance system operates. He explained that the figures being questioned relate to legitimate deductions made through the Federation Account Allocation Committee (FAAC), not missing or diverted funds.
Oyedele stressed that these deductions are standard components of fiscal management. They include statutory transfers, savings and investment allocations, security spending, cost-of-collection charges, and refunds to Ministries, Departments, and Agencies (MDAs). They also cover financial transfers and interventions directed at state and local governments.
He argued that categorising such transactions as “leakages” is inaccurate, noting that many of them represent lawful obligations such as repayments and allocations backed by existing laws.
The minister also criticised what he described as selective and outdated use of data in some public discussions, adding that the World Bank report itself acknowledges reforms currently underway to improve transparency and revenue generation.
Among those reforms is a new executive order introduced earlier in 2026, aimed at ensuring stricter remittance of petroleum revenues. Oyedele said the policy is already addressing concerns around revenue deductions and is expected to increase funds available to all tiers of government by about 0.4 percent of GDP annually.
Beyond the controversy, he pointed to broader signs of economic recovery highlighted in the report. These include more diversified economic growth, easing inflationary pressures, and a stronger external position supported by improved foreign reserves and a current account surplus.
Nigeria’s debt outlook is also showing improvement, he added, noting a decline in the debt-to-GDP ratio, the first such drop in over a decade.
“The report does not suggest that Nigeria’s fiscal system is failing,” the statement emphasised. “On the contrary, it recognises that ongoing reforms are yielding results and should be sustained to achieve inclusive growth.”
The government also called on media organisations and analysts to handle fiscal data with greater care, warning that misinterpretations could erode public trust and undermine reform efforts.
Reaffirming its position, the Federal Government said it remains committed to strengthening transparency, improving revenue mobilisation, and ensuring more efficient use of public funds.
