Abuja: Mr Taiwo Oyedele, Minister of State for Finance, has dismissed reports alleging hidden spending and diversion of federation revenue, describing them as misinterpretations of the World Bank Nigeria Development Update.
He clarified this in a statement issued Sunday in Abuja. Expanding on his position, he noted that reports suggesting large-scale diversion of federation earnings misrepresented the World Bank’s findings and reflected a poor understanding of Nigeria’s fiscal system.
He clarified that, for example, deductions by the Federation Account Allocation Committee (FAAC) had been wrongly labelled as waste or missing funds in some reports.
Oyedele went on to explain that FAAC deductions cover statutory transfers, security spending, investments, cost of collection and refunds to Ministries, Departments, and Agencies.
He said transfers and refunds to states and other tiers of government were legitimate fiscal obligations, not leakages or hidden expenditures.
The minister also criticised the selective use of outdated data by some commentators, saying recent reforms were ignored in their analysis.
He noted that the World Bank recognises ongoing fiscal reforms, including a 2026 Executive Order to improve petroleum revenue remittances and to enhance transparency.
Oyedele said the reforms were expected to increase distributable revenue by about 0.4 per cent of Gross Domestic Product annually, which, based on recent GDP estimates.
Building on this, he added that the report presented a positive outlook, highlighting broad-based economic growth across sectors.
According to him, inflation is gradually declining due to the government’s deliberate policy actions.
He also cited improvements in Nigeria’s external reserves, and a current account surplus.
The minister said debt indicators had improved, including a reduction in the debt-to-GDP ratio for the first time in over a decade.
Summing up, Oyedele maintained that the World Bank report did not suggest fiscal collapse but affirmed that ongoing reforms were yielding results.
He said sustaining and deepening reforms would help translate macroeconomic gains into inclusive growth.
The minister reiterated the government’s commitment to fiscal transparency, revenue mobilisation and efficient public spending.
He urged media organisations and stakeholders to report fiscal matters responsibly to avoid misleading narratives.
