The Federal Government (FG) has refuted claims of ₦34.44 trillion in revenue leakage from Nigeria’s federation account.
In a statement signed on Sunday, the Minister of State for Finance, Taiwo Oyedele, described the interpretations as a misrepresentation of the World Bank’s analysis and said that it reflects a misunderstanding of the fiscal system.
Minister Oyedele noted that reports describing Federation Account Allocation Committee (FAAC) deductions as “waste” or missing funds are incorrect, stressing that the deductions presented in the World Bank report include statutory transfers, savings and investments, and security-related expenditures.
Other components include cost-of-collection charges, refunds to Ministries, Departments and Agencies (MDAs), as well as transfers and interventions benefiting subnational governments.
He emphasised that refunds and transfers to states and other tiers of government are not leakages, explaining that they represent legitimate fiscal flows, including repayments of obligations and statutorily backed allocations.
“Some commentaries selectively relied on past data while ignoring the forward-looking analysis and ongoing public financial management reforms highlighted in the report.
“The World Bank explicitly notes that reforms implemented in early 2026, including the recently signed Executive Order to safeguard remittance of petroleum revenues, are already addressing concerns around deductions, and are expected to improve transparency while increasing revenues available to all tiers of government by about 0.4% of GDP annually,” he said.
The Minister argued that misinterpreting one aspect of the analysis without acknowledging the progressive reforms and measures already introduced to enhance distributable federation revenues gives a distorted picture.
According to him, the broader message of the World Bank report is positive and forward-looking, stating that economic growth is becoming more broad-based across sectors.
“Inflation, while still elevated, is declining due to deliberate policy actions. Nigeria’s external position has strengthened significantly, with improved reserves and a current account surplus.
“Debt indicators have improved, including a decline in the debt-to-GDP ratio, the first in over a decade. These developments reflect the outcomes of the current administration’s ongoing macroeconomic policies and public financial management reforms,” he stated.
Oyedele further asserted that the World Bank does not conclude that Nigeria’s fiscal system is collapsing or that reforms have failed, but instead points out that reforms are working and must be sustained and deepened to translate macroeconomic gains into inclusive growth.
He reiterated the FG’s commitment to strengthening fiscal transparency, improving revenue mobilisation, ensuring efficient public spending, and deepening reforms to support inclusive economic growth.
The Minister urged accurate understanding and responsible reporting of fiscal information, insisting that these are critical to maintaining confidence in Nigeria’s reform trajectory and economic outlook.
He also encouraged stakeholders, media organisations, and the public to engage constructively with fiscal information and avoid twisted interpretations that may undermine reform efforts and fuel public discord.
