The Ministry of Finance has categorically rejected claims that federation revenue is being diverted or hidden, describing recent media reports as a misinterpretation of the World Bank’s latest Nigeria Development Update.
The ministry stated that the World Bank report does not describe deductions by the Federation Account Allocation Committee (FAAC) as waste or missing funds. Instead, it stressed that these deductions are fully accounted for and cover only lawful items such as statutory transfers, savings, security spending, cost-of-collection charges, MDA refunds and interventions for states.
Refunds and transfers to subnational governments, the ministry added, are legitimate fiscal obligations and not leakages as some reports had suggested.
In its clarification, the ministry pointed to recent 2026 reforms, including the Executive Order on petroleum revenue remittance, which are already improving transparency across revenue streams. These measures, it said, are expected to raise distributable revenue by 0.4 percent of GDP every year.
The ministry further noted that the broader message from the World Bank’s Nigeria Development Update is that the reforms are working and should be sustained to deliver even stronger fiscal outcomes for the country. The statement, issued through the ministry’s official X handle @FinMinNigeria, forms the latest official update on Nigeria’s fiscal transparency efforts as the government continues to push structural changes in revenue management and public spending.
