The Federal Government has denied reports suggesting that federation revenues are being hidden or diverted, insisting that Nigeria’s public finance system remains transparent and properly regulated.
Minister of State for Finance, Taiwo Oyedele, made the clarification in Abuja, saying recent media interpretations of a World Bank report were misleading and based on a misunderstanding of how the country’s fiscal system operates.
According to him, deductions made before revenue distribution — often referred to in reports as “missing funds” — are actually legitimate statutory components of public finance management.
He explained that these include legal transfers, savings, security-related spending, cost of revenue collection, refunds, and other approved interventions that support both federal and state governments.
Oyedele stressed that such deductions are not leakages or diversions, but lawful financial processes backed by existing regulations.
He also criticised the use of outdated or incomplete data in some public discussions, noting that recent reforms have already improved transparency in revenue administration.
The minister further highlighted ongoing fiscal reforms introduced in 2026, including measures to ensure proper remittance of petroleum revenues, which he said are expected to increase funds available to all tiers of government.
He added that Nigeria’s economic indicators are gradually improving, with better revenue performance, easing inflation, stronger external reserves, and a reduced debt-to-GDP ratio.
The government maintained that the World Bank report did not suggest system failure but rather acknowledged progress in ongoing reforms.
It urged media organisations and stakeholders to verify fiscal data properly before publication to avoid misinterpretation that could undermine public trust.
The Federal Government reaffirmed its commitment to transparency, accountability, and more efficient public spending going forward.
