World Bank report: FG clears air on ‘missing’ revenue

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

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

According to the ministry, deductions from the Federation Account Allocation Committee (FAAC) were wrongly portrayed as waste or missing funds.

“It is important to emphasise that refunds 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,” Oyedele said.

It clarified that such deductions cover legitimate expenditures, including statutory transfers, security spending, savings and investments, cost-of-collection charges, refunds to Ministries, Departments and Agencies, MDAs, as well as transfers and interventions for states and other tiers of government.