KatsinaTimes | Abuja, April 19, 2026
The Federal Ministry of Finance has dismissed claims circulating in sections of the media alleging hidden spending and diversion of federation revenue, describing them as a misinterpretation of the latest Nigeria Development Update by the World Bank.
In a statement issued on Sunday, the Minister of State for Finance, Taiwo Oyedele, said reports suggesting that a significant portion of federation earnings was being diverted or constituted “hidden spending” were inaccurate and misleading.
The ministry clarified that deductions by the Federation Account Allocation Committee (FAAC), which have been cited as evidence of alleged waste or missing funds, are legitimate fiscal transactions. According to the statement, such 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 for subnational governments.
It stressed that refunds and transfers to states and other tiers of government should not be regarded as leakages, noting that they represent lawful financial obligations and allocations backed by statute.
The ministry also faulted what it described as the selective use of outdated data in some commentaries, saying such analyses ignored recent reforms highlighted in the World Bank report. It pointed out that measures introduced in early 2026 — including a new Executive Order aimed at safeguarding petroleum revenue remittances — are already addressing concerns around deductions and are expected to improve transparency.
According to the statement, the reforms are projected to increase revenues available to all tiers of government by about 0.4 per cent of Gross Domestic Product (GDP) annually.
Highlighting the broader findings of the World Bank report, the ministry said Nigeria’s economic outlook remains positive, with growth becoming more broad-based, inflation gradually declining, and the country’s external reserves strengthening alongside a current account surplus.
It added that debt indicators have also improved, including a reduction 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 was failing, but rather emphasised that ongoing reforms are yielding results and should be sustained to achieve inclusive economic growth.
Reaffirming the Federal Government’s commitment to fiscal transparency and efficient public spending, the ministry urged media organisations and stakeholders to ensure accurate and responsible reporting of fiscal matters to avoid misinforming the public and undermining ongoing reforms.
