‎Finance Ministry Denies Hidden Spending, Says W’Bank Report Misread
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‎The Federal Ministry of Finance has dismissed allegations of hidden spending and diversion of federation revenue, describing recent media reports interpreting the latest Nigeria Development Update by the World Bank as misleading and inaccurate.
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‎In a statement issued on Sunday, the Honourable Minister of State for Finance, Taiwo Oyedele, said claims that a significant portion of federation earnings was being diverted or concealed stemmed from a misunderstanding of Nigeria’s fiscal system.
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‎According to the ministry, reports describing deductions from the Federation Account Allocation Committee (FAAC) as waste or missing funds failed to properly explain the nature of such expenditures.
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‎It clarified that FAAC deductions include 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 state governments and other tiers of government.
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‎The ministry stressed that refunds and transfers to states are legitimate fiscal transactions and not leakages, noting that many of them involve repayments of obligations or allocations backed by law.
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‎It also accused some commentators of selectively relying on outdated data while ignoring reforms already acknowledged in the World Bank report.
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‎The statement pointed to reforms introduced in early 2026, including a recently signed Executive Order aimed at safeguarding the remittance of petroleum revenues. These measures, it said, are expected to enhance transparency and increase revenues available to all tiers of government by about 0.4 per cent of Gross Domestic Product annually.
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‎The ministry further highlighted what it described as positive signals in the World Bank report, including broader economic growth across sectors, declining inflation, stronger external reserves, a current account surplus, and improved debt indicators.
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‎It noted that Nigeria’s debt-to-GDP ratio had declined for the first time in over a decade, attributing the progress to the administration’s macroeconomic policies and public financial management reforms.
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‎Rejecting suggestions that the report portrayed Nigeria’s fiscal system as failing, the ministry said the World Bank’s position was that reforms are yielding results but should be sustained and deepened to ensure inclusive growth.
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‎The Federal Government reaffirmed its commitment to fiscal transparency, improved revenue mobilisation, efficient public spending, and continued reforms to strengthen the economy.
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‎It also urged media organisations, stakeholders, and the public to engage responsibly with fiscal information and avoid interpretations capable of undermining public confidence in ongoing reforms.