RismadarVoice Reporters, April 19, 2026
The Federal Ministry of Finance has dismissed recent media reports alleging widespread diversion of federation revenue, describing such claims as a misinterpretation of findings contained in the latest Nigeria Development Update published by the World Bank.
In a press statement issued on Sunday, the Honourable Minister of State for Finance, Taiwo Oyedele, said assertions that a significant portion of government earnings is being “hidden” or diverted are inaccurate and reflect a misunderstanding of Nigeria’s fiscal framework.
The Ministry clarified that deductions made by the Federation Account Allocation Committee (FAAC), which some reports labelled as “waste” or missing funds, are in fact legitimate and statutory components of revenue distribution. These include transfers, savings and investments, security-related expenditures, cost-of-collection charges, and refunds to Ministries, Departments and Agencies (MDAs), as well as financial interventions benefiting state and local governments.
“Refunds and transfers to subnational governments are not leakages,” the statement emphasised. “They represent valid fiscal obligations and legally backed allocations within the federation’s revenue-sharing structure.”
The Ministry also criticised what it described as the selective use of outdated data in some commentaries, noting that recent reforms were overlooked. According to the statement, the World Bank report acknowledges that policy measures introduced in early 2026 including a new executive order aimed at improving remittance of petroleum revenues are already addressing concerns around revenue deductions.
These reforms, the Ministry said, are projected to enhance transparency and boost distributable revenues by approximately 0.4 per cent of Nigeria’s Gross Domestic Product annually.
Highlighting broader economic trends, the statement pointed to strengthening macroeconomic fundamentals, including more diversified growth across sectors, a gradual decline in inflation, improved foreign reserves, and a current account surplus. It also noted a reduction in Nigeria’s debt-to-GDP ratio, marking the first such decline in over a decade.
Contrary to claims of fiscal distress, the Ministry stressed that the World Bank’s assessment presents a largely positive and forward-looking outlook, underscoring that ongoing reforms are yielding results and should be sustained.
“The report does not suggest a collapse of Nigeria’s fiscal system,” the statement read. “Rather, it affirms that reforms are working and should be deepened to achieve inclusive economic growth.”
Reaffirming its commitment to transparency and prudent financial management, the Federal Government urged stakeholders and media organisations to engage responsibly with fiscal data to avoid misinformation that could undermine public confidence.
The statement further called for constructive dialogue and accurate reporting to support Nigeria’s economic reform trajectory.
