FG Debunks ‘Hidden Spending’ Allegations, Defends Fiscal Transparency

Abuja, Nigeria — April 19, 2026

The Federal Ministry of Finance has dismissed allegations of hidden spending and diversion of federation revenue, describing the claims as misleading and based on a misinterpretation of the World Bank’s latest Nigeria Development Update report.

In a press statement released on Sunday, the Ministry clarified that reports suggesting large portions of Nigeria’s revenue are being diverted or unaccounted for do not accurately reflect the country’s fiscal operations.

Addressing concerns over deductions by the Federation Account Allocation Committee (FAAC), the Ministry explained that such deductions are legitimate and form part of established fiscal processes. These include statutory transfers, security-related expenditures, savings and investments, cost-of-collection charges, refunds to Ministries, Departments and Agencies (MDAs), as well as financial interventions supporting state and local governments.

The Ministry stressed that these transactions are lawful and should not be misconstrued as waste or missing funds, noting that they represent structured and transparent fiscal obligations.

It further accused some commentators of selectively relying on outdated data while ignoring recent fiscal reforms acknowledged in the World Bank report. According to the statement, reforms introduced in early 2026—particularly an Executive Order aimed at improving petroleum revenue remittances—are already enhancing transparency and are expected to increase distributable revenue by about 0.4 percent of GDP annually.

Highlighting key economic indicators, the Ministry said Nigeria’s macroeconomic outlook is improving, with broader-based economic growth, easing inflation, stronger external reserves, a current account surplus, and a decline in the debt-to-GDP ratio—the first recorded reduction in over a decade.

The statement emphasized that the World Bank report does not suggest a failing fiscal system, but rather acknowledges ongoing reforms as effective, while calling for their continuation to ensure inclusive economic growth.

Reaffirming government commitment, the Ministry pledged to sustain efforts aimed at strengthening fiscal transparency, improving revenue mobilisation, and ensuring prudent public spending.

It also urged media organisations and stakeholders to engage responsibly with fiscal information to avoid misrepresentation that could erode public confidence and hinder reform progress.

The statement was signed by Taiwo Oyedele, Honourable Minister of State for Finance.