Nigeria’s Federal Ministry of Finance has pushed back against claims that government revenues are being diverted or hidden, saying recent interpretations of a World bank report are inaccurate and misleading.
In a statement issued Sunday, the ministry said media reports mischaracterized findings from the World Bank’s latest Nigeria Development Update, particularly assertions that a significant share of federation earnings is unaccounted for or wasted.
“The interpretations reflect a misunderstanding of the fiscal system,” the ministry said.
The ministry clarified that deductions made by the Federation Accounts Allocation Committee(FAAC) — which distributes revenue among federal, state and local governments — are legitimate and not evidence of financial leakage.
According to the statement, these deductions include statutory transfers, savings and investments, security-related expenditures, cost-of-collection charges, and refunds to ministries, departments and agencies (MDAs), as well as transfers benefiting subnational governments.
Officials emphasized that refunds and allocations to states are lawful fiscal transactions, including repayments and constitutionally backed disbursements.
The ministry also accused some commentators of relying on outdated data while ignoring recent reforms highlighted in the World Bank report.
It pointed to measures introduced in early 2026, including a new executive order aimed at improving the remittance of petroleum revenues, which the World Bank said could increase government revenue available for distribution by about 0.4% of gross domestic product annually.
Failing to account for these reforms, the ministry said, presents a distorted picture of Nigeria’s fiscal position.
The ministry highlighted what it described as the report’s broader, more positive message, noting signs of improving macroeconomic stability.
These include more diversified economic growth, easing inflation, stronger foreign reserves, a current account surplus, and an improvement in debt indicators — including a decline in Nigeria’s debt-to-GDP ratio for the first time in more than a decade.
The statement stressed that the World Bank did not conclude that Nigeria’s fiscal system is failing, but rather that ongoing reforms are beginning to yield results and should be sustained.
Nigeria’s Minister of State for Finance, Taiwo Oyedele urged media organizations and stakeholders to engage responsibly with fiscal data.
“An accurate understanding and responsible reporting of fiscal information are critical to maintaining confidence in Nigeria’s reform trajectory,” the statement said.
The government reiterated its commitment to improving transparency, boosting revenue mobilization and ensuring efficient public spending as part of broader efforts to support inclusive economic growth.
