The Federal Ministry of Finance has dismissed recent media reports alleging widespread diversion of federation revenue, describing such claims as a misinterpretation of findings from the latest Nigeria Development Update by the World Bank.
In a press statement issued on April 19, 2026, the ministry said assertions that a significant portion of Federation Account earnings constitutes “hidden spending” or is being diverted are inaccurate and misleading.
The statement, signed by the Minister of State for Finance, Taiwo Oyedele, clarified that deductions made by the Federation Account Allocation Committee are legitimate fiscal transactions and not waste or missing funds.
According to the ministry, these deductions cover 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 benefiting states and other tiers of government.
It stressed that such flows, particularly refunds and statutory allocations, should not be misconstrued as leakages, noting that they represent lawful financial obligations within Nigeria’s fiscal framework.
The ministry also accused some commentators of selectively using outdated data while ignoring recent reforms highlighted in the World Bank report. It pointed to measures introduced in early 2026, including a new Executive Order aimed at safeguarding the remittance of petroleum revenues.
“These reforms are already addressing concerns around deductions and are expected to improve transparency while increasing revenues available to all tiers of government,” the statement said, adding that the measures could boost distributable revenue by about 0.4 per cent of GDP annually.
Beyond the controversy, the ministry emphasised that the World Bank report presents a largely positive outlook for the Nigerian economy. It noted that economic growth is becoming more broad-based, inflation is gradually declining due to policy interventions, and the country’s external reserves and current account position have improved.
It further highlighted improvements in debt indicators, including a decline in the debt-to-GDP ratio for the first time in over a decade.
The ministry maintained that the World Bank did not conclude that Nigeria’s fiscal system is failing. Rather, it said the report acknowledged that ongoing reforms are yielding results and should be sustained to achieve inclusive growth.
Reaffirming the Federal Government’s commitment to fiscal transparency and efficient public spending, the ministry urged media organisations and stakeholders to engage responsibly with economic data.
“Twisted interpretations of fiscal information risk undermining confidence in Nigeria’s reform trajectory and may fuel unnecessary public discord,” the statement warned.
In a press statement issued on April 19, 2026, the ministry said assertions that a significant portion of Federation Account earnings constitutes “hidden spending” or is being diverted are inaccurate and misleading.
The statement, signed by the Minister of State for Finance, Taiwo Oyedele, clarified that deductions made by the Federation Account Allocation Committee are legitimate fiscal transactions and not waste or missing funds.
According to the ministry, these deductions cover 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 benefiting states and other tiers of government.
It stressed that such flows, particularly refunds and statutory allocations, should not be misconstrued as leakages, noting that they represent lawful financial obligations within Nigeria’s fiscal framework.
The ministry also accused some commentators of selectively using outdated data while ignoring recent reforms highlighted in the World Bank report. It pointed to measures introduced in early 2026, including a new Executive Order aimed at safeguarding the remittance of petroleum revenues.
“These reforms are already addressing concerns around deductions and are expected to improve transparency while increasing revenues available to all tiers of government,” the statement said, adding that the measures could boost distributable revenue by about 0.4 per cent of GDP annually.
Beyond the controversy, the ministry emphasised that the World Bank report presents a largely positive outlook for the Nigerian economy. It noted that economic growth is becoming more broad-based, inflation is gradually declining due to policy interventions, and the country’s external reserves and current account position have improved.
It further highlighted improvements in debt indicators, including a decline in the debt-to-GDP ratio for the first time in over a decade.
The ministry maintained that the World Bank did not conclude that Nigeria’s fiscal system is failing. Rather, it said the report acknowledged that ongoing reforms are yielding results and should be sustained to achieve inclusive growth.
Reaffirming the Federal Government’s commitment to fiscal transparency and efficient public spending, the ministry urged media organisations and stakeholders to engage responsibly with economic data.
“Twisted interpretations of fiscal information risk undermining confidence in Nigeria’s reform trajectory and may fuel unnecessary public discord,” the statement warned.
