The Federal Government has rejected reports alleging hidden spending and diversion of federation revenue, describing them as misleading.

Minister of State for Finance, Taiwo Oyedele, said the claims were based on a misinterpretation of the latest Nigeria Development Update by the World Bank.

He explained that deductions by the Federation Account Allocation Committee are lawful and part of standard fiscal operations, covering statutory transfers, savings, security expenses, cost-of-collection, and refunds to Ministries, Departments, and Agencies.

Oyedele emphasised that transfers and refunds to states and other tiers of government are legitimate financial flows, not revenue leakages.

He also criticised the use of outdated data in some reports, noting that the World Bank acknowledged ongoing reforms aimed at improving transparency and boosting revenue.

According to him, new measures introduced in early 2026, including an Executive Order to protect petroleum revenue remittances, are expected to increase government earnings by about 0.4% of GDP annually.

He added that Nigeria’s economy is showing improvement, with broader growth, easing inflation, stronger reserves, and a current account surplus, alongside a decline in the debt-to-GDP ratio.

The government reiterated its commitment to transparency, revenue mobilisation, and responsible public spending, while urging accurate interpretation of fiscal data.