FG Debunks Claims of Hidden Spending, Defends Fiscal Reforms

The Federal Government has rejected allegations of hidden public spending and diversion of federation revenue, saying recent claims were based on a misinterpretation of a World Bank Nigeria Development Update.

The Minister of State for Finance, Mr Taiwo Oyedele, in a statement issued in Abuja, said the reports circulating in parts of the media wrongly portrayed statutory fiscal processes as leakages or missing funds.

According to him, deductions made by the Federation Account Allocation Committee (FAAC) were legitimate and constitutionally backed, and should not be confused with unaccounted expenditure.

He explained that FAAC deductions include statutory transfers, security-related funding, investments, cost of revenue collection, and reimbursements to Ministries, Departments and Agencies.

“These are established fiscal obligations, not hidden or diverted funds,” he said.

Mr Oyedele criticised what he described as selective interpretation of data, noting that some commentators relied on outdated figures while ignoring ongoing fiscal reforms.

He said the World Bank report acknowledged recent policy measures, including a 2026 Executive Order aimed at improving petroleum revenue remittances and strengthening transparency in public finance.

According to him, the reforms are projected to raise distributable revenue by approximately 0.4 per cent of Gross Domestic Product annually.

The minister also highlighted what he described as improving macroeconomic indicators, including moderating inflation, a stronger external reserves position, and a current account surplus.

He further stated that Nigeria’s debt profile had shown improvement, with a decline in the debt-to-GDP ratio recorded for the first time in over a decade.

Mr Oyedele maintained that, contrary to claims of fiscal distress, the World Bank report presented an overall positive outlook, noting that reforms were beginning to yield measurable results.

He said sustained implementation of reforms would be critical to translating macroeconomic stability into broad-based and inclusive growth.

Reaffirming government’s position, he restated commitment to fiscal transparency, improved revenue mobilisation, and efficient public spending.

He also urged media organisations and analysts to exercise caution and responsibility in interpreting fiscal data in order to avoid misleading the public.