FG Denies Hidden Spending or Diversion of Federation Revenue — Oyedele

The federal government has rejected claims of hidden spending or diversion of federation account revenue. Taiwo Oyedele, Chairman of the Presidential Committee on Fiscal Policy and Tax Reforms, said the allegations stem from misinterpretation of the World Bank’s Nigeria Development Update.

The World Bank report had raised concerns that over ₦34.53 trillion was diverted from federation revenue over three years through pre-distribution deductions. While total federation revenue rose to about ₦84 trillion between 2023 and 2025, the Bank noted that 41 per cent did not reach the Federation Account for distribution.

Oyedele’s statement pushed back against the characterization, saying the deductions classified as “first-line charges” are statutory and not hidden. These include cost of collection frameworks and agency remittances that have long been part of Nigeria’s fiscal architecture.

The clarification comes as the government pushes its tax reform agenda amid growing public concern over revenue management. ActionAid Nigeria and opposition figures including Labour Party’s Peter Obi had called for forensic audits following the World Bank’s findings.

The government maintains that rising revenues have been offset by structural deductions tied to statutory transfers, not by any diversion or hidden spending.

Sources: ThisDayLive, Forefront NG, Nigerian Bulletin