ABUJA, Nigeria — The Federal Government has refuted claims that federation revenues contain hidden spending, describing such assertions as a misinterpretation of a recent World Bank report, according to a statement issued by the Federal Ministry of Finance on April 20, 2026.
Okay News reports that the statement was signed by the Minister of State for Finance, Taiwo Oyedele, who explained that the claims stem from a misunderstanding of the World Bank’s Nigeria Development Update, particularly regarding Federation Account Allocation Committee (FAAC) deductions and fiscal flows.
“The attention of the Federal Ministry of Finance has been drawn to recent media reports and commentaries that misrepresent the findings of the latest Nigeria Development Update by the World Bank, particularly claims suggesting that a significant portion of federation earnings is being ‘diverted’ or constitutes ‘hidden spending’,” the ministry said. “These interpretations misrepresent the World Bank’s analysis and reflect a misunderstanding of the fiscal system.”
The ministry explained that FAAC deductions cover statutory transfers, savings, security expenditures, cost-of-collection charges, and refunds to government agencies, all of which it described as legitimate fiscal obligations properly documented within the federation account system.
The government rejected suggestions of large-scale revenue diversion and pointed to ongoing policy measures aimed at improving transparency and increasing government revenues. It referenced an Executive Order designed to strengthen petroleum revenue remittances and noted that these reforms are already improving transparency in public finance management.
The ministry added that the World Bank report presented a generally positive outlook for Nigeria’s economy, citing broader-based growth, easing inflation, stronger external reserves, and improved debt indicators.
The clarification comes after former Anambra State Governor Peter Obi cited the World Bank report to argue that a significant portion of federation revenue did not reach the Federation Account. Obi claimed that out of N84 trillion generated over three years, approximately 41 percent, or N34.44 trillion, was not remitted, describing the situation as institutionalised corruption.
Obi had earlier in April 2026 challenged the approval of N3.3 trillion to settle debts in Nigeria’s power sector, questioning execution outcomes of similar past approvals.
