The Federal Government says deductions from federation earnings by the Federation Account Allocation Committee are being misrepresented as revenue diversion. Minister of State for Finance, Dr Taiwo Oyedele, made the clarification in a statement addressing interpretations of the World Bank Nigeria Development Update report.
Dr Taiwo Oyedele explained that the deductions cited in the report refer to statutory transfers, savings, investments, security-related spending, and other legitimate fiscal obligations. He said these include cost of collection charges, refunds to Ministries, Departments and Agencies, and transfers that benefit state and local governments.
The minister stated that such financial flows are lawful and do not amount to leakages or hidden spending. He also expressed concern that some commentaries ignored the positive assessment by the World Bank, which highlighted ongoing reforms aimed at improving transparency and increasing government revenue.
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Dr Taiwo Oyedele added that recent policy measures, including reforms introduced in early 2026, are already addressing concerns around revenue management. He noted that the World Bank report points to improving economic indicators, including broader growth, declining inflation, and a stronger external position, while urging continued reforms to sustain progress.
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