FG Clarifies World Bank Report on Revenue Diversion

​ABUJA – The Federal Ministry of Finance has strongly pushed back against media reports alleging “hidden spending” and the diversion of federation revenue, describing such claims as a fundamental misinterpretation of the latest Nigeria Development Update (NDU) by the World Bank.

​In a press statement issued Sunday, April 19, 2026, the Minister of State for Finance, Taiwo Oyedele, maintained that the narrative of “missing funds” stems from a misunderstanding of how the Federation Account Allocation Committee (FAAC) operates.

​Legitimate Deductions, Not “Waste”

​The Ministry clarified that the figures often cited as “diverted” are actually standard FAAC deductions used for statutory obligations. According to the government, these include:

• ​Statutory transfers and security-related expenditures.

• ​Savings and investments for future fiscal stability.

• ​Cost-of-collection charges by revenue-generating agencies.

• ​Refunds to MDAs and interventions that directly benefit subnational governments.

​”Refunds and transfers to states are not leakages,” the statement read. “They represent legitimate fiscal flows, including repayments of obligations and statutorily backed allocations.”

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​Reforms of 2026 Gaining Traction

​The government criticized the “selective use of outdated data,” pointing out that the World Bank’s report explicitly highlights the success of early 2026 reforms. Central to these is a recent Executive Order designed to safeguard the remittance of petroleum revenues.

​This measure alone is projected to enhance transparency and boost the revenue available to all tiers of government by approximately 0.4% of GDP annually.

​Improving Macroeconomic Outlook

​Far from a system in collapse, the Minister noted that the World Bank report actually paints a picture of a strengthening economy. Key indicators cited include:

• ​Broad-based growth across multiple sectors beyond oil.

• ​Declining inflation due to targeted policy interventions.

• ​Improved debt-to-GDP ratios, marking a significant shift for the first time in over a decade.

• ​Strengthened external reserves and a healthy current account surplus.

​A Call for Responsible Reporting

​The Ministry urged the media and the public to engage with fiscal data constructively rather than fueling “public discord” through twisted interpretations.

​”The World Bank does not conclude that Nigeria’s fiscal system is collapsing,” Oyedele stated. “Rather, it confirms that reforms are working and must be sustained to ensure inclusive growth.”