Government Dismisses Secret Expenditure Allegations, Sheds Light on World Bank Findings

Minister of State for Finance, Taiwo Oyedele, has rejected claims of covert expenditure and misallocation of federation revenue, labelling such assertions as misconstruals of the World Bank Nigeria Development Update, in a statement released on Sunday in Abuja.

n

According to Oyedele, reports implying widespread diversion of federation earnings have misinterpreted the World Bank's findings, stemming from a lack of understanding of Nigeria's fiscal framework.

n

The minister clarified that deductions made by the Federation Account Allocation Committee (FAAC) have been mistakenly classified as wasteful or missing funds in certain reports, when in fact they encompass statutory transfers, security spending, investments, and other legitimate expenditures.

n

Oyedele explained that FAAC deductions cover a range of costs, including the cost of collection and refunds to Ministries, Departments and Agencies, which are essential fiscal obligations.

n

He emphasized that transfers and refunds to states and other tiers of government are legitimate fiscal responsibilities, rather than unaccounted-for expenditures or leakages.

n

Oyedele criticized the selective use of outdated data by certain commentators, who have ignored recent reforms in their analysis, including a 2026 Executive Order aimed at enhancing petroleum revenue remittances and transparency.

n

The World Bank, he noted, has acknowledged the ongoing fiscal reforms, which are expected to increase distributable revenue by approximately 0.4 per cent of Gross Domestic Product annually.

n

According to the minister, the report presents a favourable outlook, highlighting economic growth across various sectors, as well as a gradual decline in inflation due to deliberate government policy actions.

n

Oyedele also cited improvements in Nigeria's external reserves and a current account surplus, in addition to enhanced debt indicators, including a reduction in the debt-to-GDP ratio for the first time in over a decade.

n

The minister asserted that the World Bank report does not indicate a fiscal crisis, but rather confirms that ongoing reforms are yielding positive results.

n

Oyedele stressed the importance of sustaining and deepening these reforms to translate macroeconomic gains into inclusive growth, reiterating the government's commitment to fiscal transparency, revenue mobilisation, and efficient public spending.

n

The minister urged media organisations and stakeholders to report on fiscal matters in a responsible manner, avoiding the dissemination of misleading narratives.