The Federal Government has described the recent reports and commentaries by some media organisations in the country on the findings of the latest World Bank’s Nigeria Development Update (NDU) report, particularly claims suggesting that a significant portion of federation earnings is being “diverted” or constitutes “hidden spending”, as outrightly misleading and undesirable for the credibility of the media industry in the country.
Reacting to the reported misrepresentation of the NDU findings in a statement on Sunday, the Minister of State for Finance, Taiwo Oyedele, noted that the interpretations misrepresented the World Bank’s analysis and reflected a misunderstanding of the fiscal system.
According to him, the misreporting in question incorrectly characterizes Federation Account Allocation Committee (FAAC) deductions as “waste” or missing funds, which is incorrect.
The minister listed the FAAC deductions, as presented in the World Bank report, include statutory transfers, savings and investments, security-related expenditures, cost-of-collection charges, refunds to Ministries, Departments and Agencies (MDAs), and transfers and interventions benefiting subnational governments.
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Oyedele stressed that refunds and transfers to states and other tiers of government were not leakages but represented legitimate fiscal flows, including repayments of obligations and statutorily backed allocations.
Reflecting on the misleading news reports, he stated that some commentaries selectively relied on past data while ignoring the forward-looking analysis and ongoing public financial management reforms highlighted in the report.
The minister clarified that the World Bank explicitly noted that reforms implemented in early 2026, including the recently signed Executive Order to safeguard remittance of petroleum revenues, were 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 stated: “Misinterpreting one aspect of the analysis without acknowledging the progressive reforms and measures already introduced to enhance distributable federation revenues gives a distorted picture.
“The broader message of the World Bank report is positive and forward-looking: 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”, the minister added.
He maintained that the World Bank did not conclude that Nigeria’s fiscal system is collapsing or that reforms have failed but rather, noted that reforms were working, and they must be sustained and deepened to translate macroeconomic gains into inclusive growth.
Oyedele restated the Federal Government’s commitment to strengthening fiscal transparency, improving revenue mobilisation, ensuring efficient public spending, and deepening reforms to support inclusive economic growth.
Noting that an accurate understanding and responsible reporting of fiscal information are critical to maintaining confidence in Nigeria’s reform trajectory and economic outlook, he urged 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.
