World Bank report: Nigerian Govt clears air on ‘missing’ revenue

Nigeria’s Ministry of Finance has clarified that deductions flagged in the World Bank report are legitimate statutory transfers rather than “missing” funds, citing 2026 transparency reforms as proof of a strengthening fiscal system.

The Federal Ministry of Finance has formally dismissed reports suggesting that a significant portion of Nigeria’s revenue is missing or diverted. Minister of State for Finance Taiwo Oyedele issued a statement on Sunday clarifying that such claims are a “misinterpretation” of the latest World Bank Nigeria Development Update. The ministry argued that critics have wrongly portrayed legitimate statutory deductions and transfers from the Federation Account Allocation Committee (FAAC) as fiscal leakages or “hidden spending.”

According to the ministry, the deductions in question cover essential and lawful fiscal transactions, including security spending, cost-of-collection charges, and statutory transfers to states and other tiers of government. Oyedele emphasized that these repayments and allocations are statutorily backed and represent the standard functioning of the country’s fiscal framework. The government also criticized the use of “outdated data” by commentators, asserting that current financial management is more robust than portrayed.

The statement highlighted significant reforms introduced in early 2026, specifically an Executive Order aimed at improving the remittance of petroleum revenues. This measure is projected to increase distributable revenue by approximately 0.4% of GDP annually. The ministry maintained that the World Bank report actually supports a positive economic outlook, citing broad-based growth, declining inflation, and a strengthening debt-to-GDP ratio as evidence that ongoing reforms are yielding tangible results.

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