The Federal Ministry of Finance has dismissed World Bank allegations about hidden spending and diversion of federation revenue, describing them as a misinterpretation of findings. Minister of State for Finance, Taiwo Oyedele, said media reports and commentaries suggesting that a significant portion of federation earnings was being diverted were inaccurate and misleading.

The ministry clarified that such interpretations of the latest Nigeria Development Update by the World Bank reflect a poor understanding of Nigeria’s fiscal system and do not align with the conclusions of the World Bank report. He said reports suggesting large-scale diversion of federation earnings misrepresented the World Bank’s findings and reflected a poor understanding of Nigeria’s fiscal system.

He said that the World Bank acknowledged ongoing fiscal reforms, including a 2026 Executive Order to improve petroleum revenue remittances and enhance transparency.