Finance Ministry refutes claims of missing revenue, clarifies World Bank report

The Federal Ministry of Finance has dismissed reports suggesting that a significant portion of Nigeria’s revenue is missing or unaccounted for, saying such claims misrepresent the findings of the World Bank’s latest Nigeria Development Update.

 

In a statement issued on Sunday, the Minister of State for Finance, Taiwo Oyedele, said the interpretations circulating in some reports were based on a misunderstanding of the country’s fiscal operations.

 

He clarified that deductions from the Federation Account Allocation Committee (FAAC) were wrongly being described as leakages or diverted funds.

 

“Refunds and transfers to states and other tiers of government are not leakages. They represent legitimate fiscal flows,” Oyedele said.

 

According to the ministry, such deductions include statutory transfers, security-related spending, cost-of-collection charges, refunds to Ministries, Departments and Agencies, as well as transfers and interventions to subnational governments.

 

The statement stressed that these are lawful fiscal transactions and should not be interpreted as missing funds.

 

It also faulted what it called the selective use of outdated data in some public commentary, noting that the World Bank report actually highlights ongoing public financial management reforms in Nigeria.

 

The ministry pointed to recent measures, including an Executive Order introduced in early 2026 aimed at improving petroleum revenue remittances, which it said would enhance transparency and boost distributable revenue.

 

On the broader economic outlook, the ministry said the World Bank report projects improved growth, easing inflation, stronger external reserves, and a more stable debt position.

 

It maintained that contrary to claims of fiscal breakdown, the report shows that Nigeria’s ongoing reforms are producing results and should be sustained..