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.”
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The government criticized the “selective use of outdated data,” pointing out that the World Bank’s report explicitly highlights the success of early 2026 reforms.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.
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”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.”