The Federal Ministry of Finance has denied media reports on the latest Nigeria Development Update by the World Bank.
In what it described as a misrepresentation of facts, the ministry claimed that reports that a significant portion of federation earnings was being “diverted” or constituted “hidden spending,” were false and misleading.
A statement by Minister of State for Finance, Mr Taiwo Oyedele said these interpretations misrepresent the World Bank’s analysis and reflect a misunderstanding of the fiscal system.
According to him, “The misreporting in question incorrectly characterises Federation Account Allocation Committee (FAAC) deductions as “waste” or missing funds. This is incorrect.”
He explained that “It is important to emphasise that refunds and transfers to states and other tiers of government are not leakages. They represent legitimate fiscal flows, including repayments of obligations and statutorily backed allocations. Some commentaries selectively relied on past data while ignoring the forward-looking analysis and ongoing public financial management reforms highlighted in the report.”
He explained that the World Bank noted that reforms implemented in early 2026, including the recently signed Executive Order to safeguard remittance of petroleum revenues, are already addressing concerns around deductions, and are expected to improve transparency while increasing revenues available to all tiers of government by about 0.4% of GDP annually.
Oyedele added that misinterpreting one aspect of the analysis without acknowledging the progressive reforms and measures already introduced to enhance distributable federation revenues gives a distorted picture.
He further indicated that these developments reflect the outcomes of the current administration’s ongoing macroeconomic policies and public financial management reforms.
He added, “The World Bank does not conclude that Nigeria’s fiscal system is collapsing or that reforms have failed. Rather, it states that reforms are working, and they must be sustained and deepened to translate macroeconomic gains into inclusive growth.”
Oyedele therefore affirmed that “The Federal Government remains committed to strengthening fiscal transparency, improving revenue mobilisation, ensuring efficient public spending, and deepening reforms to support inclusive economic growth.’
He called for accurate understanding and responsible reporting of fiscal information saying they are critical to maintaining confidence in Nigeria’s reform trajectory and economic outlook and called on stakeholders, the media and the public to engage constructively with fiscal information and avoid twisted interpretations that may undermine reform efforts and fuel public discord.
