By Deborah Nnamdi
The Federal Government has dismissed claims that it spent more than N8 trillion outside the approved budget, describing the allegation as false and based on a misrepresentation of the International Monetary Fund’s (IMF) 2026 Article IV Consultation Report.
In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, said reports alleging that about two per cent of Nigeria’s Gross Domestic Product (GDP) was spent outside the budgetary framework were misleading and created a false impression of the country’s public financial management system.
Oyedele insisted that the Federal Government does not operate a “shadow budget” or expend public funds outside the constitutional and statutory framework governing public finance.
“The Federal Government does not operate a shadow budget or expend public funds outside the constitutional and statutory framework established for public finance,” he said.
According to the minister, Sections 80 to 83 and 162 of the 1999 Constitution (as amended) clearly provide that public funds can only be withdrawn and spent in accordance with the Constitution and laws passed by the National Assembly.
He explained that federal expenditures are implemented through duly enacted Appropriation Acts, Supplementary Appropriation Acts, and other statutory authorities approved by lawmakers.
Oyedele further noted that multi-year capital projects, which extend across several budget cycles, are executed under existing legal provisions and approved capital rollover mechanisms, stressing that such projects should not be interpreted as off-budget spending.
He described allegations that trillions of naira had been secretly spent without legislative approval as inaccurate, noting that those making the claims had failed to identify any project executed without appropriation or provide credible evidence to support their assertions.
The minister also clarified that Nigeria’s public finance system includes statutory transfers, first-line charges, and intervention mechanisms established by Acts of the National Assembly. These, he said, cover statutory allocations to development commissions and agencies, cost-of-collection deductions retained by designated revenue agencies, separately approved capital expenditures for certain agencies and the Federal Capital Territory, special interventions for national priorities such as security, infrastructure, and disaster response, as well as debt service obligations.
He stressed that these expenditures are lawful, publicly disclosed through fiscal reports, and remain subject to legislative oversight and audit. According to him, differences in how such expenditures are presented under international reporting standards should not be misconstrued as evidence of unlawful spending.
Addressing concerns over the fiscal deficit, Oyedele rejected suggestions that the reported amount represented an increase in Nigeria’s deficit, explaining that fiscal deficits are determined by the relationship between total government revenue and total expenditure, not simply by the financing method for approved projects.
He said the IMF’s observation focused mainly on the comprehensiveness, timing, and presentation of Nigeria’s fiscal reporting rather than questioning the legality of government spending.
The minister added that the Federal Government was already implementing reforms aimed at aligning Nigeria’s budget presentation with international fiscal reporting standards.
He recalled that President Bola Ahmed Tinubu, while presenting the 2026 Appropriation Bill to a joint session of the National Assembly on December 19, 2025, called for an end to the practice of operating multiple and overlapping budgets, urging lawmakers to harmonise them into a single, unified framework.
Reaffirming the Tinubu administration’s commitment to fiscal discipline, transparency, and accountability, Oyedele said ongoing reforms had strengthened budget credibility, revenue administration, treasury management, and the digitalisation of public financial processes.
He added that the reforms had earned recognition from the IMF, other multilateral institutions, international credit rating agencies, investors, and global media organisations.
While welcoming public scrutiny of government finances, the minister urged commentators to rely on facts and a proper understanding of Nigeria’s constitutional and fiscal framework.
“Mischaracterising technical observations as evidence of unlawful expenditure neither advances informed public discourse nor strengthens democratic accountability,” Oyedele said.
