The Federal Government has dismissed claims that it spent more than ₦8 trillion, representing about two per cent of Nigeria’s Gross Domestic Product (GDP), outside the approved budget, describing the allegations as false and a misrepresentation of the International Monetary Fund (IMF)’s 2026 Article IV Consultation Report.
In a statement issued on Sunday, the Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said the Federal Government does not operate a “shadow budget” or expend public funds outside the constitutional and statutory framework governing public finance.
Oyedele explained that under Sections 80–83 and 162 of the 1999 Constitution (as amended), public funds can only be withdrawn and spent in accordance with the Constitution and laws enacted by the National Assembly. He noted that government expenditure is carried out through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities, while multi-year capital projects are implemented in line with existing laws and approved capital rollover provisions.
The minister said it was misleading to suggest that trillions of naira had been secretly spent without legislative approval, stressing that such claims should be backed by verifiable evidence identifying specific projects allegedly executed outside the law.
He clarified that Nigeria’s public finance framework includes statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly, including allocations to development commissions, debt service obligations, revenue collection costs, Federal Capital Territory budgets and special interventions for security, infrastructure and disaster response.
According to him, these expenditures are lawful, publicly disclosed in fiscal reports and subject to oversight and audit, adding that differences in their presentation under international reporting standards should not be interpreted as evidence of illegal spending.
Oyedele also rejected claims that the reported amount represented an increase in the country’s fiscal deficit, explaining that fiscal deficits are determined by the relationship between total government revenue and expenditure, not by the financing mechanism used for approved projects.
He stated that the IMF’s observations primarily related to the comprehensiveness, timing and presentation of fiscal reporting rather than the legality of government expenditure, noting that Nigeria is continuing reforms to align its fiscal reporting with international standards.
The minister recalled that President Bola Ahmed Tinubu had, during the presentation of the 2026 Appropriation Bill on December 19, 2025, requested the National Assembly to end the practice of operating multiple and overlapping budgets by harmonising them into a single framework.
Reaffirming the administration’s commitment to prudent fiscal management, transparency and accountability, Oyedele said ongoing reforms had strengthened budget credibility, revenue administration, treasury management and the digitalisation of government financial processes.
He urged the public to base discussions on accurate facts and a proper understanding of Nigeria’s constitutional and fiscal framework, warned that misrepresenting technical observations undermined informed public discourse and democratic accountability.
