FG Faults Misreporting of World Bank Fiscal Findings
By Patience Ikpeme
The Federal Government has dismissed recent media reports suggesting that a significant portion of Nigeria’s federation earnings is being diverted or treated as hidden spending, saying such claims misrepresent the findings of the latest Nigeria Development Update by the World Bank.
In a statement issued on Sunday and signed by the Minister of State for Finance, Taiwo Oyedele, the ministry of finance said the interpretations circulating in some quarters shows a misunderstanding of the country’s fiscal system and the World Bank’s analysis.
The government specifically faulted reports that described deductions by the Federation Account Allocation Committee (FAAC) as waste or missing funds, explaining that such deductions are legitimate and form part of routine fiscal operations.
Oyedele said the deductions include statutory transfers, savings and investments, security-related expenditures, cost-of-collection charges, refunds to Ministries, Departments and Agencies, as well as transfers and interventions that benefit state and local governments.
He said, “It is incorrect to describe these deductions as waste or diversion. Refunds and transfers to states and other tiers of government are not leakages. They are lawful fiscal flows, including repayments of obligations and allocations backed by law.”
The ministry also noted that some of the commentaries relied on selective or outdated data while ignoring the forward-looking elements of the World Bank report and ongoing reforms in public financial management.
According to the statement, reforms introduced in early 2026, including a recently signed Executive Order to safeguard the remittance of petroleum revenues, are already addressing concerns around deductions. It added that these measures are expected to improve transparency and increase the funds available to all tiers of government by about 0.4 per cent of Gross Domestic Product annually.
The ministry warned that focusing on a narrow aspect of the report without considering the broader reform efforts presents a distorted view of Nigeria’s fiscal position.
It said the overall message of the World Bank report is positive, noting that economic growth is becoming more broad-based across sectors, while inflation is gradually declining due to policy measures.
The statement further pointed to improvements in Nigeria’s external position, including stronger foreign reserves and a current account surplus, as well as better debt indicators, with the debt-to-GDP ratio declining for the first time in over a decade.
“These outcomes reflect the impact of ongoing macroeconomic policies and reforms,” the ministry said, adding that the World Bank did not conclude that Nigeria’s fiscal system is failing.
Instead, it said the report shows that reforms are yielding results and should be sustained and deepened to ensure that economic gains translate into inclusive growth.
The Federal Government reaffirmed its commitment to strengthening fiscal transparency, improving revenue mobilisation, and ensuring efficient use of public resources.
It also called on the media, analysts and the public to engage responsibly with fiscal information, warning that misleading interpretations could weaken confidence in the country’s reform efforts and create unnecessary tension.
