FG slams ‘hidden spending’ claims, says World Bank report misread

The Federal Government has pushed back against what it described as widespread misinterpretation of the latest Nigeria Development Update by the World Bank, insisting that claims of “diverted” or “hidden” federation earnings are inaccurate.

In a statement issued on April 19, 2026, the Minister of State for Finance, Taiwo Oyedele, said the Ministry’s attention had been drawn to “recent media reports and commentaries that misrepresent the findings” of the report.

According to him, “these interpretations misrepresent the World Bank’s analysis and reflect a misunderstanding of the fiscal system.”

Oyedele faulted reports that framed deductions by the Federation Account Allocation Committee as missing or wasted funds.

“The misreporting in question incorrectly characterises Federation Account Allocation Committee deductions as ‘waste’ or missing funds. This is incorrect,” he stated.

He explained that the deductions cited in the report cover legitimate fiscal obligations, including “statutory transfers, savings and investments, security-related expenditures, cost-of-collection charges, refunds to Ministries, Departments and Agencies, and 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,” Oyedele said. “They represent legitimate fiscal flows, including repayments of obligations and statutorily backed allocations.”

The minister also accused some commentators of relying on outdated figures while ignoring reforms already underway.

“Some commentaries selectively relied on past data while ignoring the forward-looking analysis and ongoing public financial management reforms highlighted in the report,” he noted.

He pointed to the World Bank’s acknowledgement of recent policy steps, including a newly signed Executive Order aimed at safeguarding remittance of petroleum revenues.

The reforms, he said, “are already addressing concerns around deductions, and are expected to improve transparency while increasing revenues available to all tiers of government by about 0.4 per cent of GDP annually.”

“Misinterpreting one aspect of the analysis without acknowledging the progressive reforms… gives a distorted picture,” he added.

Highlighting the broader conclusions of the report, Oyedele stressed that the World Bank’s assessment of Nigeria’s economy is “positive and forward-looking.”

He said “economic growth is becoming more broad-based across sectors,” while “inflation, although still elevated, is declining due to deliberate policy actions.”

Nigeria’s external position, he added, “has strengthened significantly, with improved reserves and a current account surplus,” alongside “a decline in the debt-to-GDP ratio, the first in over a decade.”

“These developments reflect the outcomes of the current administration’s ongoing macroeconomic policies and public financial management reforms,” he said.

Contrary to claims that the fiscal system is failing, Oyedele said the World Bank report affirms ongoing progress.

“The World Bank does not conclude that Nigeria’s fiscal system is collapsing or that reforms have failed,” he stated. “Rather, it says reforms are working, and they must be sustained and deepened to translate macroeconomic gains into inclusive growth.”

The minister reaffirmed the Federal Government’s commitment to “strengthening fiscal transparency, improving revenue mobilisation, ensuring efficient public spending, and deepening reforms to support inclusive economic growth.”

He urged stakeholders to handle fiscal information carefully.

“An accurate understanding and responsible reporting of fiscal information are critical to maintaining confidence in Nigeria’s reform trajectory and economic outlook,” Oyedele said.

“We urge stakeholders, media organisations, and the public to engage constructively with fiscal information and avoid twisted interpretations that may undermine reform efforts and fuel public discord.”