ABUJA — The Federal Authorities has dismissed claims of hidden spending and diversion of federation income, describing such experiences as a misrepresentation of findings contained within the newest Nigeria Growth Replace by the World {Bank}.
In an announcement issued in Abuja on Sunday, the Minister of State for Finance, Taiwo Oyedele, mentioned current media interpretations suggesting that a good portion of federation earnings was being diverted had been inaccurate and based mostly on a misunderstanding of Nigeria’s fiscal framework.
Oyedele clarified that deductions by the Federation Account Allocation Committee (FAAC), which had been portrayed in some experiences as wasteful or lacking funds, had been legit and statutory elements of public finance administration.
He defined that such deductions embrace statutory transfers, financial savings and investments, security-related expenditures, cost-of-collection prices, refunds to Ministries, Departments and Businesses (MDAs), in addition to transfers and interventions benefiting subnational governments.
In keeping with him, refunds and transfers to states and different tiers of presidency shouldn’t be labeled as leakages, noting that they characterize lawful fiscal flows, together with repayments of obligations and allocations backed by legislation.
The minister additionally faulted what he described because the selective use of outdated information in some commentaries, stressing that the World {Bank} report acknowledged ongoing reforms aimed toward enhancing transparency and boosting income.
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He identified that reforms launched in early 2026, together with a brand new Govt Order designed to safeguard the remittance of petroleum revenues, had been already addressing issues round deductions and are projected to extend revenues accessible to all tiers of presidency by about 0.4 per cent of Gross Home Product yearly.
Highlighting the broader outlook of the report, Oyedele mentioned Nigeria’s {economic} efficiency was displaying indicators of enchancment, with progress turning into extra broad-based throughout sectors, inflation steadily declining, and the nation’s exterior place strengthening via improved reserves and a present account surplus.
He added that debt indicators had additionally improved, together with a discount within the debt-to-GDP ratio for the primary time in over a decade.
“The World {Bank} doesn’t conclude that Nigeria’s fiscal system is collapsing or that reforms have failed. Quite, it affirms that reforms are working and ought to be sustained to attain inclusive progress,” the assertion mentioned.
The Federal Authorities reaffirmed its dedication to fiscal transparency, enhanced income mobilisation, and environment friendly public spending, whereas urging the media and stakeholders to have interaction responsibly with fiscal information to keep away from misinterpretations that might undermine ongoing reforms and public confidence.
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