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 \u201cdiverted\u201d or constitutes \u201chidden spending.\u201d<\/p>\n
These interpretations misrepresent the World Bank\u2019s analysis and reflect a misunderstanding of the fiscal system.<\/p>\n
MISINTERPRETATION OF FAAC DEDUCTIONS<\/p>\n
The misreporting in question incorrectly characterises Federation Account Allocation Committee (FAAC) deductions as \u201cwaste\u201d or missing funds. This is incorrect.<\/p>\n
FAAC deductions, as presented in the World Bank report, include:<\/p>\n
Statutory transfers,
\nSavings and investments,
\nSecurity-related expenditures,
\nCost-of-collection charges,
\nRefunds to Ministries, Departments and Agencies (MDAs),
\nTransfers and interventions benefiting subnational governments.<\/p>\n
It is important to emphasise that refunds and transfers to states and other tiers of government are not leakages. They represent legitimate fiscal flows, including repayments of obligations and statutorily backed allocations.<\/p>\n
SELECTIVE USE OF OUTDATED DATA<\/p>\n
Some commentaries selectively relied on past data while ignoring the forward-looking analysis and ongoing public financial management reforms highlighted in the report.<\/p>\n
The World Bank explicitly notes that reforms implemented in early 2026, including the recently signed Executive Order to safeguard remittance of petroleum revenues, are already addressing concerns around deductions, and are expected to improve transparency while increasing revenues available to all tiers of government by about 0.4% of GDP annually.<\/p>\n
Misinterpreting one aspect of the analysis without acknowledging the progressive reforms and measures already introduced to enhance distributable federation revenues gives a distorted picture.<\/p>\n
STRONGER MACROECONOMIC FUNDAMENTALS<\/p>\n
The broader message of the World Bank report is positive and forward-looking:<\/p>\n
Economic growth is becoming more broad-based across sectors.<\/p>\n
Inflation, while still elevated, is declining due to deliberate policy actions.<\/p>\n
Nigeria\u2019s external position has strengthened significantly, with improved reserves and a current account surplus.<\/p>\n
Debt indicators have improved, including a decline in the debt-to-GDP ratio, the first in over a decade.<\/p>\n
These developments reflect the outcomes of the current administration’s ongoing macroeconomic policies and public financial management reforms.<\/p>\n
THE REAL MESSAGE OF THE REPORT<\/p>\n
The World Bank does not conclude that Nigeria\u2019s fiscal system is collapsing or that reforms have failed. Rather, it states that reforms are working, and they must be sustained and deepened to translate macroeconomic gains into inclusive growth.<\/p>\n
CONCLUSION<\/p>\n
The Federal Government remains committed to strengthening fiscal transparency, improving revenue mobilisation, ensuring efficient public spending, and deepening reforms to support inclusive economic growth.<\/p>\n
An accurate understanding and responsible reporting of fiscal information are critical to maintaining confidence in Nigeria\u2019s reform trajectory and economic outlook.<\/p>\n
We urge stakeholders, media organisations, and the public to engage constructively with fiscal information and avoid twisted interpretations that may undermine reform efforts and fuel public discord.<\/p>\n
Signed<\/p>\n
Taiwo Oyedele
\nHonourable Minister of State for Finance,
\nFederal Republic of Nigeria<\/p>\n
April 19, 2026<\/p>\n","protected":false},"excerpt":{"rendered":"
The attention of the Federal Ministry of Finance has been drawn to recent media reports and commentaries that misrepresent the<\/p>\n","protected":false},"author":1,"featured_media":21539,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_mi_skip_tracking":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-21537","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"_links":{"self":[{"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/posts\/21537","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/comments?post=21537"}],"version-history":[{"count":1,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/posts\/21537\/revisions"}],"predecessor-version":[{"id":21538,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/posts\/21537\/revisions\/21538"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/media\/21539"}],"wp:attachment":[{"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/media?parent=21537"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/categories?post=21537"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/thenewsnow.org\/index.php\/wp-json\/wp\/v2\/tags?post=21537"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}