Nigeria Rejects ‘Missing Revenue’ Claims, Cites Misreading of World Bank Report

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The Federal Government has dismissed reports suggesting that a significant portion of Nigeria’s revenue is missing, describing such claims as a misinterpretation of the latest Nigeria Development Update by the World Bank.

In a statement released on Sunday, the Minister of State for Finance, Taiwo Oyedele, said assertions of “hidden spending” or diversion of public funds were inaccurate and reflected a misunderstanding of the country’s fiscal structure.

According to the Ministry of Finance, deductions from the Federation Account Allocation Committee (FAAC) have been wrongly portrayed as missing or wasted funds. The ministry clarified that such deductions are legitimate fiscal transactions, including statutory allocations, repayments, and transfers to various tiers of government.

Oyedele explained that refunds and transfers to states and government agencies are lawful and should not be classified as leakages. He added that these expenditures also cover security spending, savings, cost-of-collection charges, and interventions for subnational governments.

The ministry further criticised the use of outdated data in some analyses of the report, noting that the World Bank highlighted ongoing reforms in Nigeria’s public financial management system.

It referenced new measures introduced in early 2026, including an Executive Order aimed at improving the remittance of petroleum revenues. The reforms are expected to enhance transparency and increase distributable revenue by about 0.4 per cent of Gross Domestic Product annually.

On the broader economic outlook, the ministry stated that the report points to improving conditions, with growth becoming more diversified, inflation easing gradually, and external reserves strengthening alongside a current account surplus.

It also noted improvements in debt indicators, including a decline in the country’s debt-to-GDP ratio.

The government maintained that the World Bank report does not indicate a breakdown of Nigeria’s fiscal system but instead shows that ongoing reforms are beginning to yield positive results and should be sustained.