The Federal Government has dismissed claims that it spent more than ₦8 trillion outside the approved national budget, describing the allegation as false and based on a misrepresentation of comments attributed to the International Monetary Fund (IMF) Representative in Nigeria and the Fund’s 2026 Article IV Consultation Report.
In a statement issued by the Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the government said Nigeria does not operate a “shadow budget” and does not spend public funds outside the constitutional and legal framework governing public finance. It stressed that all federal expenditures are carried out in accordance with the Constitution and laws enacted by the National Assembly.
According to the statement, Sections 80 to 83 and 162 of the 1999 Constitution (as amended) clearly provide that public funds can only be withdrawn and spent based on duly approved Appropriation Acts, Supplementary Appropriation Acts, and other statutory authorities passed by the National Assembly. It added that multi-year capital projects and approved capital rollovers are legitimate features of public financial management.
The government argued that allegations suggesting trillions of naira were secretly spent without legislative approval are misleading and unsupported by evidence. It maintained that anyone making such claims should identify the specific projects allegedly executed without appropriation and provide credible proof rather than relying on speculation.
The statement further explained that Nigeria’s public finance system includes several statutory transfers, first-line charges, and intervention mechanisms established by Acts of the National Assembly. These include statutory allocations to development commissions and agencies, revenue collection costs retained by designated agencies, approved capital budgets for certain agencies and the Federal Capital Territory, security and emergency intervention funds, as well as debt service obligations.
The Federal Government noted that while these expenditures may be presented differently under international fiscal reporting standards, they remain lawful, transparent, and subject to oversight and audit. It stressed that differences in accounting presentation should not be interpreted as evidence of illegal or off-budget spending.
Addressing concerns over the country’s fiscal deficit, the government said it is incorrect to conclude that the reported amount automatically translates into an increased budget deficit. It explained that a fiscal deficit is determined by the relationship between total government revenue and total expenditure, regardless of whether projects are financed through annual appropriations, supplementary budgets, statutory transfers, or other legally approved mechanisms.
The statement also clarified that the IMF’s observations relate mainly to the comprehensiveness, timing, and presentation of Nigeria’s fiscal reporting rather than the legality of government spending. It recalled that President Bola Ahmed Tinubu had already requested the National Assembly during the presentation of the 2026 Appropriation Bill on December 19, 2025, to end the practice of operating multiple overlapping budgets and adopt a single, harmonised budget framework.
Reaffirming its commitment to transparency, accountability, and prudent fiscal management, the Federal Government said it will continue to strengthen public financial management reforms in collaboration with the National Assembly, oversight institutions, development partners, and the Nigerian people. The statement added that while public debate is welcome in a democracy, discussions on fiscal matters should be guided by facts and an accurate understanding of Nigeria’s constitutional and financial management framework.
