FG faults Peter Obi’s revenue claims
By Damilare Adeleye
The federal government has dismissed claims that a significant portion of Nigeria’s federation revenue is being diverted or concealed, describing such interpretations of the World Bank’s latest Nigeria Development Update as misleading and inaccurate.
In a statement issued on Saturday via his X account, former presidential candidate of Labour Party, Peter Obi, had raised concerns over Nigeria’s fiscal management, alleging massive revenue leakages.
Hee cited recent estimates by the World Bank that Nigeria generated about N84 trillion in federation revenue within the last three years, but that 41 per cent of that amount, roughly N34.44 trillion, was not remitted into the Federation Account.
Obi noted that the missing funds exceed the combined N34 trillion allocated for capital projects in the 2024 and 2025 national budgets, describing the comparison as evidence of deep-rooted inefficiencies in public finance management.
Responding in a statement issued on Sunday, the Minister of State for Finance, Taiwo Oyedele, said the claims had “misrepresented” the World Bank’s findings, particularly allegations of “hidden spending” linked to deductions from the Federation Account.
According to the minister, deductions by the Federation Account Allocation Committee are legitimate fiscal mechanisms and not evidence of waste or missing funds.
He explained that such deductions cover statutory transfers, savings and investments, security expenditures, cost-of-collection charges, refunds to Ministries, Departments and Agencies, and transfers benefiting subnational governments.
“It is important to emphasise that refunds and transfers to states and other tiers of government are not leakages,” the statement noted, adding that they represent lawful financial flows, including repayments and statutory allocations.
Oyedele also accused some commentators of selectively relying on outdated data while ignoring recent reforms highlighted in the World Bank report.
He pointed to reforms introduced in early 2026, including an executive order aimed at safeguarding petroleum revenue remittances, which are expected to boost transparency and increase distributable revenue by about 0.4 per cent of GDP annually.
Highlighting the broader outlook, the minister said the report presents a positive trajectory for the economy, noting that growth is becoming more broad-based, inflation is gradually easing, and Nigeria’s external position has strengthened with improved reserves and a current account surplus.
It added that debt indicators have also improved, with a decline in the debt-to-GDP ratio recorded for the first time in over a decade.
“The World Bank does not conclude that Nigeria’s fiscal system is collapsing or that reforms have failed,” the statement said.
“Rather, it states that reforms are working and should be sustained and deepened to translate macroeconomic gains into inclusive growth.”
Reaffirming the government’s position, the ministry said it remains committed to enhancing fiscal transparency, improving revenue mobilisation, and ensuring efficient public spending.
It urged media organisations and stakeholders to engage responsibly with fiscal data, warning that distorted interpretations could undermine public confidence and the country’s reform agenda.