The Federal Government has refuted claims that more than ₦8 trillion was spent outside the approved budget, describing the allegation as false and a misinterpretation of the 2026 Article IV Consultation Report by the International Monetary Fund.
The government said suggestions that about two per cent of Nigeria’s Gross Domestic Product was expended outside the budgetary process could mislead the public and create a false impression about the country’s public finance management system.
In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, maintained that the Federal Government does not operate a “shadow budget” or spend public funds outside constitutionally recognised procedures.
According to him, Sections 80 to 83 and 162 of the 1999 Constitution, as amended, provide that public funds can only be withdrawn and utilised in accordance with constitutional provisions and laws passed by the National Assembly.
“The Federal Government does not operate a shadow budget or expend public funds outside the constitutional and statutory framework established for public finance,” the minister said.
Oyedele explained that government expenditures are undertaken through duly approved Appropriation Acts, Supplementary Appropriation Acts and other statutory instruments authorised by the National Assembly.
He added that multi-year capital projects, which extend across different budget periods, are executed under existing legislation and approved rollover arrangements, stressing that such projects should not be interpreted as spending outside the budget.
The minister described allegations that trillions of naira had been secretly spent without legislative approval as inaccurate, arguing that critics had failed to identify any specific project carried out without appropriation or present credible evidence to back their claims.
He further noted that Nigeria’s public finance architecture includes statutory transfers, first-line charges and intervention mechanisms established through Acts of the National Assembly.
According to him, these provisions cover allocations to development commissions and government agencies, collection costs retained by designated revenue bodies, separately approved capital projects for certain agencies and the Federal Capital Territory, emergency interventions in areas such as security, infrastructure and disaster management, as well as debt servicing obligations.
Oyedele emphasised that such expenditures are legal, publicly disclosed and subject to both oversight and audit processes, adding that variations in their treatment under international reporting standards should not be mistaken for unlawful spending.
He also dismissed claims that the amount in question reflected a rise in Nigeria’s fiscal deficit.
The minister explained that fiscal deficits are determined by the gap between government revenues and expenditures, noting that the financing arrangements for approved projects do not automatically increase the deficit.
According to him, the IMF’s observations focused mainly on issues relating to the scope, timing and presentation of Nigeria’s fiscal reports rather than the legality of government spending.
He added that the Federal Government was already pursuing reforms aimed at aligning budget presentation with international fiscal reporting standards.
Oyedele recalled that Bola Tinubu, while presenting the 2026 Appropriation Bill to a joint session of the National Assembly on December 19, 2025, urged lawmakers to discontinue the practice of maintaining multiple and overlapping budgets in favour of a single, unified framework.
Reaffirming the administration’s commitment to transparency, accountability and prudent fiscal management, the minister said ongoing reforms had improved budget credibility, revenue generation, treasury operations and the digitalisation of government financial systems.
He added that these measures had earned recognition from the IMF, other multilateral organisations, international rating agencies, investors and global media outlets.
While encouraging public scrutiny of government finances, Oyedele urged critics and commentators to rely on facts and a sound understanding of Nigeria’s constitutional and fiscal structure.
“Mischaracterising technical observations as evidence of unlawful expenditure neither advances informed public discourse nor strengthens democratic accountability,” he said.
