The Federal Government has denied allegations of hidden spending and diversion of federation revenue, describing such claims as a misinterpretation of the World Bank’s Nigeria Development Update.
Minister of State for Finance, Taiwo Oyedele, said deductions by the Federation Account Allocation Committee (FAAC) are lawful and form part of standard fiscal operations, including statutory transfers, security spending, and allocations to states and agencies.
He clarified that refunds and transfers to subnational governments are not leakages but legitimate financial obligations backed by law.
Oyedele also faulted the use of outdated data in some reports, noting that ongoing reforms, including a 2026 Executive Order on petroleum revenue remittance, are improving transparency and expected to boost government revenue.
He added that economic indicators show gradual improvement, with declining inflation, stronger reserves, and a reduced debt-to-GDP ratio.
The government reaffirmed its commitment to transparency and urged stakeholders to accurately interpret fiscal data to sustain public confidence.
