Nigeria Says FAAC Deductions Not Missing Funds

The Nigerian Government says deductions from federation earnings by the Federation Account Allocation Committee (FAAC ) are being misrepresented as a diversion of revenue, the Federal Ministry of Finance said on Sunday.

In a statement signed by the Minister of State for Finance, Taiwo Oyedele, the ministry said recent media reports misrepresented the findings of the World Bank’s latest Nigeria Development Update.

“These interpretations misrepresent the World Bank’s analysis and reflect a misunderstanding of the fiscal system,” the statement read.

“The misreporting in question incorrectly characterises Federation Account Allocation Committee (FAAC) deductions as “waste” or missing funds. This is incorrect.”

The ministry said FAAC deductions cited in the World Bank report include statutory transfers, savings and investments; security-related 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. They represent legitimate fiscal flows, including repayments of obligations and statutorily backed allocations,” Oyedele said.

Ministry of Finance and Coordinating Minister of the Economy building. Credit: PUNCH

The ministry also accused commentators of selectively using outdated data while ignoring ongoing public financial management reforms.

It noted that the World Bank explicitly said that reforms introduced in early 2026, including an executive order to safeguard the remittance of petroleum revenues, are already addressing concerns about deductions.

“Misinterpreting one aspect of the analysis without acknowledging the progressive reforms and measures already introduced to enhance distributable federation revenues gives a distorted picture,” the ministry said.

It urged media organisations and the public to “engage constructively with fiscal information and avoid twisted interpretations that may undermine reform efforts and fuel public discord.”

FEDERAL MINISTRY OF FINANCE PRESS STATEMENT

FALSE ALLEGATION OF HIDDEN SPENDING AND DIVERSION OF FEDERATION REVENUE

The attention of the Federal Ministry of Finance has been drawn to recent media reports and commentaries that misrepresent the findings of the latest Nigeria…

— Taiwo Oyedele (@taiwoyedele) April 19, 2026

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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.