Nigeria Rejects Claims of Missing $12.4 Billion

Nigeria’s finance ministry has denied on Tuesday that $12.4 billion is missing from the economy, saying the figure cited in recent media reports is a standard balance of payments residual rather than lost or stolen funds.

The ministry said reports had misrepresented the World Bank’s October 2026 Nigeria Development Update.

It noted the World Bank referred to “net errors and omissions of –US$12.4 billion in the first half of 2026” as a balancing item, whereas media coverage described it as an “unexplained gap.”

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The ministry also disputed that the gap was tied solely to oil earnings “not repatriated to the country,” noting the World Bank said the residual “likely” reflects unrepatriated oil proceeds “only in part.”

The bank identified no specific amount, company or cargo, and acknowledged that data gaps might have contributed, it said.

The ministry explained that “net errors and omissions” does not refer to a bank account belonging to the government, a company or an individual, but reflects discrepancies between different data sources such as customs, oil liftings and banks.

“Whatever does not match is booked as ‘net errors and omissions’. It does not mean money has gone missing, been stolen or been withheld,” it said, adding that “It only shows that data sources disagree, not why.”

Image of the World Bank logo. Credit: APAnews.

It said Nigeria recorded a negative residual in seven of the last eight years, ranging from a positive $17.0 billion in 2020 to a negative $24.9 billion in 2023, citing World Bank data.

It said large residuals are normal even in advanced economies, citing figures for the United States, the United Kingdom and Brazil.

Factors that may account for the H1 2026 gap include informal cross-border trade, delayed or retained export proceeds and provisional data, the ministry said. It noted that an estimated $10 billion a year in remittances moves through informal channels or stays abroad, with the difference landing in the residual.

“An economy losing US$12 billion in six months would not be adding over US$8 billion to its reserves,” the ministry said, pointing to a current account surplus of $12.0 billion in H1 2026 and gross reserves rising from $45.5 billion at end-2025 to $53.8 billion at end-August 2026.

The ministry said it would continue to strengthen the recording of external transactions with the Central Bank of Nigeria and other agencies, urging commentators and media to seek clarification from subject-matter experts.

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Jimisayo Opanuga

Jimisayo Opanuga is a web writer in the Digital Department at News Central TV, where she covers African and international stories. Her reporting focuses on social issues, health, justice, and the environment, alongside general-interest news. She is passionate about telling stories that inform the public and give voice to underreported communities.