FG Fires Back at ‘Hidden Spending’ Claims, Says World Bank Report Was Twisted

Nigeria Finance Ministry Denies Claims of Hidden Spending, Revenue Diversion

ABUJA, Nigeria — April 19, 2026 — Nigeria’s Federal Ministry of Finance has rejected allegations that a substantial portion of federation revenue is being secretly diverted or concealed, describing recent interpretations of the World Bank’s latest Nigeria Development Update as misleading.

In a statement issued on Sunday, the Minister of State for Finance, Taiwo Oyedele, said reports suggesting that federation earnings were being lost through “hidden spending” amounted to a misreading of the country’s fiscal structure and the World Bank’s findings. 

The ministry said the controversy centred on deductions made through the Federation Account Allocation Committee (FAAC), which some commentaries had wrongly portrayed as waste or missing funds.

According to the statement, these deductions cover legitimate fiscal obligations, including statutory transfers, savings and investments, security-related expenditures, cost-of-collection charges, refunds to ministries and agencies, as well as transfers and interventions benefiting state and local governments.

“It is important to emphasise that refunds and transfers to states and other tiers of government are not leakages,” the ministry said, adding that such flows represent legally backed allocations and repayments of obligations.

The ministry also accused some commentators of relying selectively on outdated figures while ignoring ongoing reforms highlighted in the World Bank’s April 2026 report.

The World Bank’s update noted that recent reforms, including an executive order aimed at safeguarding petroleum revenue remittances, are expected to improve transparency and increase revenues available to all tiers of government by approximately 0.4 percent of GDP annually. 

Beyond the dispute over deductions, the ministry pointed to what it described as the broader positive message of the World Bank report, including stronger macroeconomic indicators.

According to the report, Nigeria’s economy expanded by 4.0 percent in 2025, while inflation eased significantly to 15.1 percent in February 2026 from 26.3 percent a year earlier. The country’s external reserves also improved, supported by stronger non-oil exports and resilient remittance inflows. 

The ministry said debt indicators had also improved, noting a decline in the debt-to-GDP ratio for the first time in more than a decade.

It added that the World Bank did not conclude that Nigeria’s fiscal system was collapsing, but rather emphasised the need to sustain and deepen ongoing reforms to translate macroeconomic gains into inclusive growth.

The government reaffirmed its commitment to fiscal transparency, improved revenue mobilisation and efficient public spending, while urging the media and stakeholders to report fiscal data responsibly.

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