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Finance Minister Dismisses “Hidden Spending” Allegations, Defends Nigeria’s Fiscal Transparency
FG says reports of missing funds misrepresent World Bank findings and ignores ongoing economic reforms.
The Federal Government has refuted claims of hidden spending and alleged diversion of federation revenue, describing them as inaccurate interpretations of the World Bank Nigeria Development Update.
The clarification was made in Abuja on Sunday by the Minister of State for Finance, Taiwo Oyedele.
Oyedele said reports suggesting large-scale mismanagement of federation earnings were misleading and stemmed from a poor understanding of Nigeria’s revenue structure.
He explained that deductions by the Federation Account Allocation Committee (FAAC) were wrongly labelled as leakages or missing funds.
According to him, FAAC deductions cover statutory transfers, security-related spending, investments, cost of collection, and refunds to government agencies.
“These are legitimate fiscal obligations, not leakages or hidden expenditures,” he said.
The minister also faulted analysts for relying on outdated data and ignoring ongoing fiscal reforms.
He noted that the World Bank recognised key reforms, including a 2026 Executive Order designed to improve petroleum revenue remittances and strengthen transparency.
Oyedele said the measures are projected to raise distributable revenue by around 0.4 percent of GDP annually.
He added that the report highlighted a positive macroeconomic outlook, with improvements in growth across sectors.
He also said inflation is declining due to policy measures, while foreign reserves and the current account position have improved.
Debt indicators have also strengthened, including a drop in the debt-to-GDP ratio for the first time in over 10 years.
Oyedele stressed that the World Bank report did not suggest fiscal failure, but rather confirmed progress from ongoing reforms.
He said sustaining reforms would ensure broader economic gains reach citizens.
The minister reiterated the government’s commitment to fiscal transparency and urged media organisations to report responsibly to avoid misleading interpretations.
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