The federal government has denied allegations of concealed expenditures and diversion of public funds, stating that recent interpretations of a World Bank report on Nigeria’s economy are inaccurate.
In a statement released by the Federal Ministry of Finance, the Minister of State for Finance, Taiwo Oyedele, explained that the claims stem from a misunderstanding of Nigeria’s fiscal framework.
The ministry clarified that deductions from the federation account, often portrayed as “missing” or “diverted” funds, are legitimate and routine.
These include statutory transfers, security-related expenditures, investment allocations, cost-of-collection charges, and disbursements to states as well as government agencies.
According to the government, such deductions are lawful components of revenue sharing managed through the Federation Account Allocation Committee (FAAC).
It further criticised analysts and commentators for relying on outdated figures, while overlooking recent fiscal reforms introduced in 2026.
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These reforms, the ministry noted, are aimed at strengthening transparency, particularly in petroleum revenue remittances.
Citing the World Bank report, the government said the institution acknowledged these reforms and projected that they could boost revenue distribution by approximately 0.4 percent of Gross Domestic Product (GDP) each year.
The statement also highlighted improving macroeconomic indicators referenced in the report, including moderating inflation, rising foreign reserves, a current account surplus, and a declining debt-to-GDP ratio.
Reaffirming its position, the government maintained that the report reflects progress rather than failure, adding that ongoing economic reforms are beginning to deliver measurable results.
It cautioned against misinterpretation of fiscal data, warning that inaccurate narratives could mislead the public and potentially undermine confidence in the country’s reform agenda.
