FG Reacts to World Bank Report, Clarifies Secret Spending Claims
- The federal government has dismissed claims of hidden spending and revenue diversion
- The finance minister said FAAC deductions were misinterpreted and are legitimate fiscal obligations
- The World Bank report acknowledged ongoing reforms to improve transparency
Oluwatobi Odeyinka is a business editor at Legit.ng, covering energy, the money market, technology and macroeconomic trends in Nigeria.
The federal government has rejected reports alleging hidden spending and diversion of federation revenue, saying they stem from a misinterpretation of the World Bank’s Nigeria Development Update.
The argument was made by the Minister of State for Finance, Taiwo Oyedele, in a statement issued on Sunday in Abuja, the News Agency of Nigeria reported.
Source: Getty Images
‘FAAC deductions not missing funds’
Oyedele said claims of large-scale diversion of government earnings do not reflect the actual findings of the report by the World Bank.
He explained that deductions by the Federation Account Allocation Committee (FAAC) had been wrongly described in some reports as waste or missing funds.
According to him, such deductions cover statutory transfers, security spending, cost of revenue collection, investments, and refunds to Ministries, Departments and Agencies (MDAs).
He added that transfers to states and other tiers of government are legitimate fiscal obligations, not leakages.
FG faults data interpretation
The minister also faulted what he described as the selective use of outdated data by some commentators.
He noted that recent fiscal reforms introduced by the government were not reflected in such analyses.
Oyedele said the World Bank report acknowledged ongoing efforts to improve transparency and revenue management, including a 2026 Executive Order aimed at strengthening petroleum revenue remittances.
Reforms expected to boost revenue
He stated that the reforms are projected to increase distributable revenue by about 0.4% of Gross Domestic Product (GDP) annually.
The minister added that the report presents a generally positive outlook for the Nigerian economy, with growth recorded across multiple sectors.
Oyedele said inflation is gradually easing due to government policy measures, while external reserves have improved alongside a current account surplus.
He also noted that Nigeria’s debt indicators have shown progress, including a reduction in the debt-to-GDP ratio for the first time in over a decade.
Call for responsible reporting
The minister maintained that the World Bank report does not point to fiscal collapse but instead highlights the impact of ongoing reforms.
He said sustaining these reforms would help translate macroeconomic gains into broader economic benefits.
Oyedele reiterated the government’s commitment to fiscal transparency, revenue mobilisation, and efficient public spending.
He also urged media organisations and stakeholders to ensure accurate reporting of fiscal issues to avoid misleading narratives.
Source: UGC
IMF warns Nigerians of rising hardship
Legit.ng earlier reported that the International Monetary Fund (IMF) has cautioned that Nigerians may face increased economic hardship in the near future, citing rising food and transportation costs amid ongoing global uncertainties.
According to the Fund, these pressures are already affecting household incomes, even as higher crude oil prices offer prospects for improved government revenue.
Crude oil prices above $113 per barrel could boost Nigeria’s revenue beyond budget projections. Experts warn that oil windfalls may not translate to economic relief without disciplined fiscal management.
Source: Legit.ng
