The Federal Government has rejected claims that federation revenues are being secretly diverted, insisting that such reports misrepresent findings from the latest Nigeria Development Update by the World Bank.
In a statement issued in Abuja, the Minister of State for Finance, Taiwo Oyedele, said interpretations suggesting hidden or wasteful spending were based on a misunderstanding of how Nigeria’s fiscal system operates.
He explained that deductions made by the Federation Account Allocation Committee — which some reports described as missing funds — are in fact legitimate and legally backed components of public finance.
According to him, these deductions cover statutory transfers, security spending, cost-of-collection charges, refunds to Ministries, Departments and Agencies, as well as allocations and interventions that benefit states and other tiers of government.
Oyedele stressed that such financial flows should not be mistaken for leakages.
Instead, he described them as structured and lawful transactions within Nigeria’s fiscal framework, including repayments and allocations required by law.
He also criticised what he called the selective use of outdated data, noting that the World Bank report itself acknowledged ongoing reforms aimed at improving transparency and increasing government revenue.
Among these reforms, he highlighted a new Executive Order introduced in early 2026 to strengthen the remittance of petroleum revenues — a move expected to boost funds available to all levels of government.
Beyond the controversy, the minister pointed to signs of economic improvement.
He said growth is becoming more widespread across sectors, inflation is gradually easing, and Nigeria’s external position is strengthening with improved reserves and a current account surplus.
He also noted that debt indicators are improving, including a reduction in the country’s debt-to-GDP ratio for the first time in over a decade.
“The World Bank does not conclude that Nigeria’s fiscal system is collapsing,” the statement emphasised. “Rather, it affirms that reforms are working and should be sustained.”
The Federal Government reiterated its commitment to transparency, stronger revenue mobilisation, and responsible spending — while urging the media and stakeholders to interpret fiscal data carefully to avoid misleading the public.
At the heart of the response is a clear message:
What some see as missing money, the government says, is simply the system at work.