The Federal Government has rejected claims of revenue diversion from the Federation Account, describing them as a misrepresentation of legitimate fiscal processes.
Minister of State for Finance, Mr Taiwo Oyedele, clarified that deductions from the Federation Account Allocation Committee (FAAC) are not “waste” or missing funds as allegedly suggested in recent reports.
He explained that such deductions include statutory transfers, savings and investments, security expenditures, cost-of-collection charges, refunds to MDAs, and direct interventions benefiting sub-national governments.
Oyedele stressed that refunds and transfers to states and other tiers of government represent legitimate fiscal flows and not leakages.
Simultaneously, the Federal Government has directed the seven regional development commissions to focus on economic diversification and reduce dependence on statutory allocations.
The commissions were tasked with investing in revenue-generating assets, scaling up skills acquisition programmes in agriculture and small-scale enterprises, and creating jobs to stimulate regional economies.
These directives were contained in a communiqué issued at the end of a two-day sectoral retreat organised by the Ministry of Regional Development in Benin City, themed ‘Generating Fresh Ideas to Unlock the Potential of the Regions.’
Minister of Regional Development, Abubakar Momoh, emphasised the need for stronger coordination, accountability, and strict adherence to governance standards, including the Public Procurement Act and international accounting practices.
He noted that managing directors of the commissions have signed performance bonds and must deliver on set targets.
Meanwhile, former Vice President Atiku Abubakar criticised the Tinubu administration’s economic policies, saying the recent IMF assessment only validates the severe hardship Nigerians are facing.
In a statement, Atiku described the situation as “organised hardship dressed up as reform,” blaming policy inconsistencies and weak leadership.
He noted that the IMF has downgraded Nigeria’s 2026 growth forecast to 4.1 per cent.
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