FG denies claims of hidden spending, says World Bank report misrepresented
The ministry of finance has dismissed allegations that a significant portion of Nigeria’s federation revenue is being diverted or hidden, describing recent reports as a distortion of the World Bank’s latest Nigeria Development Update.
The statement on Sunday by the Minister of State for Finance, Taiwo Oyedele, said claims suggesting FAAC deductions amount to “hidden spending” or missing funds were false and based on a misunderstanding of Nigeria’s fiscal system.
“The attention of the Federal Ministry of Finance has been drawn to recent media reports and commentaries that misrepresent the findings of the latest Nigeria Development Update by the World Bank,” the Ministry said.
It added that interpretations suggesting federation earnings were being diverted “misrepresent the World Bank’s analysis and reflect a misunderstanding of the fiscal system.”
According to the Ministry, deductions from the Federation Account Allocation Committee (FAAC) include 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 benefiting subnational governments.
“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,” the statement said.
The Ministry also accused some commentators of selectively relying on outdated data while ignoring reforms already being implemented.
It noted that the World Bank acknowledged reforms introduced in early 2026, including a recently signed Executive Order aimed at safeguarding remittance of petroleum revenues.
