The Federal Government has dismissed reports alleging the diversion of Federation Account revenues, insisting that deductions from the Federation Account Allocation Committee (FAAC) are lawful and do not constitute illegal or hidden spending.
Minister of State for Finance, Taiwo Oyedele, said the claims stem from a misinterpretation of recent analysis by the World Bank, stressing that the deductions reflect legitimate fiscal obligations.
According to him, categorising FAAC deductions as waste or missing funds is inaccurate, as the figures referenced cover statutory transfers, savings, investments, and security-related expenditures.
He explained that the deductions also include cost-of-collection charges, refunds to ministries, departments, and agencies (MDAs), as well as targeted interventions to support state governments.
The government maintained that such refunds and transfers are lawful repayments and allocations backed by existing fiscal frameworks, not illegal deductions.
Oyedele noted that some public commentaries rely on selective or outdated data while ignoring recent reforms, including a new Executive Order aimed at improving petroleum revenue remittance and boosting distributable income.
He added that the World Bank report highlights positive trends, including improving economic growth, easing inflation, a stronger external position, and a declining debt-to-GDP ratio.
The Federal Government urged stakeholders to interpret fiscal data responsibly, warning that misleading narratives could undermine public confidence and distort Nigeria’s economic outlook.
