…says world Bank lauds program

The Federal Government has reaffirmed its commitment to strengthening fiscal transparency, improving revenue mobilisation and ensuring efficiency in public spending.

It vowed to sustain the implementation of ongoing reform to achieve economic growth. Minister of State for Finance, Mr Taiwo Oyedele, reaffirmed the government’s position in a statement issued on Sunday to clarify misrepresentation trailing the
latest Nigeria Development Update report by the World Bank.

Some individuals’ slanted interpretation of the NDU report means that a significant portion of federation earnings is being “diverted” or constitutes “hidden spending”.
The Minister declared that the World Bank does not conclude that Nigeria’s fiscal system is collapsing or that reforms have failed. Rather, it states that reforms are working, and they must be sustained and deepened to translate macroeconomic gains into inclusive growth.

Part of the statement read: ” 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 Development Update by the World Bank, particularly claims suggesting that a significant portion of federation earnings is being ‘diverted’ or constitutes ‘hidden spending.”

These interpretations misrepresent the World Bank’s analysis and reflect a misunderstanding of the fiscal system.

With regards to misrepresentation of FAAC deductions, which was also alluded to, Oyedele clarified:” The misreporting in question incorrectly characterises Federation Account Allocation Committee (FAAC) deductions as ‘waste’ or missing funds. This is incorrect.
FAAC deductions, as presented in the World Bank report, include:
statutory transfers, savings and investments, security-related expenditures,cost-of-collection charges, refunds to Ministries, Departments and Agencies (MDAs), and transfers and interventions 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”.
He said the World Bank endorsed the effectiveness of government reforms, describing it as becoming more broad-based across sectors.

“Inflation, while still elevated, is declining due to deliberate policy actions. Nigeria’s external position has strengthened significantly, with improved reserves and a current account surplus”, he said.