The Federal Government has refuted claims of alleged hidden spending and diversion of national revenue
Kano —
The Federal Government has refuted claims of alleged hidden spending and diversion of national revenue, labelling it as misrepresentation of findings contained in the latest Nigeria Development Update by the World Bank
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Sources include official statements, on-record interviews, public documents and verified reporting.
The Federal Government has refuted claims of alleged hidden spending and diversion of national revenue, labelling it as misrepresentation of findings contained in the latest Nigeria Development Update by the World Bank.
According to a statement issued by the Federal Ministry of Finance and signed by the Minister of State for Finance, Taiwo Oyedele, on Sunday, the government revealed that interpretation circulating in some media platforms mistaken statutory fiscal processes as leakages.
“The attention of the Federal Ministry of Finance has been drawn to recent media reports and commentaries that misrepresent the findings of the latest Nigeria Development Update by the World Bank, particularly claims suggesting that a significant portion of federation earnings is being ‘diverted’ or constitutes ‘hidden spending’,” the statement read
The ministry further noted that such claims portray a misunderstanding of Nigeria’s fiscal structure and allocation of revenues through the Federation Account Allocation Committee.
The ministry clarified that deductions from the federation account are often wrongly interpreted as waste or missing funds, a claim it firmly rejected.
“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 sub national governments,” it stated
It emphasized that such deductions are legitimate fiscal flows within the public finance system.
“Refund and transfers to states and other tiers of government are not leakages.
They represent legitimate fiscal flows, including repayments of obligations and statutorily backed allocations,” the ministry added
The ministry also highlighted reforms introduced in 2026 adding that the World Bank is aware of such reforms,including a new Executive Order aimed at safeguarding petroleum revenue remittances.
“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,” the statement said.
It added that the ongoing reforms are projected to promote transparency and equitable distribution of revenues to all tiers of government by about 0.4 per cent of GDP annually.
The ministry further concludes that the World Bank report was positive and encouraging,contrary to interpretations suggesting fiscal distress.
“The World Bank does not conclude that Nigeria’s fiscal system is collapsing or that reforms have failed. Rather, it states that reforms are working, and they must be sustained and deepened,” it added.
Reflcting on President Tinubu’s policies,the ministry emphasized that economic growth is becoming more visible and diversified across sectors, inflation is reducing due to policy measures, and Nigeria’s external position has improved with stronger reserves and a current account surplus with a decline in the debt-to-GDP ratio, describing it as the first improvement in over a decade.
“These developments reflect the outcomes of the current administration’s ongoing macroeconomic policies and public financial management reforms,” it said.
The statement cautioned the media organisations and stakeholders against misinterpretation of fiscal data, noting that unethical reporting could undermine reform efforts.
“We urge 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,” it said.
Atiku Criticize Tinubu’s Policies.
Former Vice President, Atiku Abubakar, on Sunday has also criticised the economic policies of President Bola Tinubu, saying recent findings by the International Monetary Fund merely confirmed the biting hardship being experienced by Nigerians.
Speaking on the Fund’s latest report on Nigeria’s economy, Atiku said the current situation is an organised hardship “dressed up as reform,” blaming what he called policy inconsistencies, weak leadership, and a disconnect from the realities facing ordinary citizens.
In a statement issued by his Senior Special Assistant on Public Communication, Phrank Shaibu, the former Vice President said the IMF report only echoed what Nigerians have long been enduring.
“At a time when Nigerians were promised renewed hope, what they have received is renewed hardship—raw, relentless, and unforgiving. The IMF is not breaking news; it is confirming a national emergency that this administration refuses to acknowledge” he said
Atiku further argued that while government officials described it as macroeconomic indicators, citizens are grappling with harsh economic realities and rising living costs.
He clarified that while government representatives used polished economic jargon Nigerians are living a different reality-one where wages have become worthless paper, markets have turned into museums of unaffordable goods, and survival has become a daily gamble.
The former vice president lamented that despite the surge in global oil prices, many Nigerians are slipping deeper into poverty, weighed down by soaring food prices, high transportation costs, exchange rate instability and a rapidly depreciating currency
“Parents are pulling children out of school because education is now a luxury. Farmers are abandoning their lands out of fear of violence” he continued
“Young people roam the streets, degrees in hand, but hope in short supply. Small businesses are folding up like a pack of cards under the weight of electricity tariffs, taxes, and a suffocating business” he added
Atiku cautioned that the country is facing more than a routine economic downturn, calling it instead as a crisis eroding citizens’ dignity.
“This administration has turned sacrifice into a one-way street where the people bleed and the government lecture
“You cannot ask hungry people to be patient while policies choke the life out of them. That is not reform—that is punishment.”he said
He also raised concerns over Nigeria’s rising debt profile, warning of long-term consequences.
“We are borrowing like there is no tomorrow, yet there is nothing to show today. No jobs, no relief, no visible improvement in the lives of the people—only mounting debt and mounting pain” he lamented
“Governance is not a classroom exercise. It is about whether a pot boils in the kitchen, whether transport fare can be afforded, whether a small trader can restock, and whether a nation’s youth can dream again.
Today, those simple things have become distant luxuries,” he stated
The allegations follows a report by the International Monetary Fund, which downgraded Nigeria’s 2026 growth forecast to 4.1 per cent in its April 2026 Global Financial Stability Report.
According to the Chief of the IMF Research Department’s World Economic Studies Division, Denz Igan, said the downgrade reflects competing pressures on the economy.
War-related higher fuel and fertiliser prices and higher shipping costs are going to weigh on non-oil activity in Nigeria.
“There’s some offset coming from higher oil prices, but the net balance is weaker growth in 2026, with some recovery built in for 2027,” Igan said
IMF has projected rising inflation across Sub-Saharan Africa and emphasised the need for tight monetary policies in Nigeria to stabilise prices, even as declining bilateral aid continues to strain fiscal buffers across the region.
The World Bank recently said pump prices in Nigeria have risen by more than 50 percent since the outbreak of the Iran conflict, a situation it said has intensified inflationary pressures and raising concerns over household welfare.
Speaking at the Nigeria Development Update (NDU) presentation in Abuja, the World Bank’s Lead Economist for Nigeria, Fiseha Haile, noted that the sharp increase in fuel prices has significantly increased transportation, food, and production costs across the economy