Nigeria Denies Misappropriation of Federation Revenue Claims

The Federal Government of Nigeria has denied allegations of diverting federation revenue, which were suggested in a recent World Bank report. The report, presented by Fiseha Hailu, the World Bank's lead economist for Nigeria, noted a significant increase in fuel prices, which rose by 50 percent, contributing to inflationary pressures and affecting household welfare.

Minister of State for Finance, Taiwo Oyedele, addressed media reports claiming hidden spending and misallocation of funds, clarifying that deductions from the Federation Account Allocation Committee (FAAC) are legitimate and part of established fiscal processes. The World Bank report also acknowledged ongoing reforms expected to improve transparency and revenue availability by 2026.

The minister stressed that the World Bank did not conclude that Nigeria's fiscal system had failed but indicated that ongoing reforms are yielding results. He urged media organizations to accurately report on fiscal issues to maintain public confidence in the government's reform efforts.