The Federal Government has dismissed claims that more than ₦8 trillion was spent outside the approved budget, describing the allegations as false, misleading and inconsistent with Nigeria’s constitutional public finance framework.
In a statement on Saturday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, clarified that the Federal Government does not operate a “shadow budget” or spend public funds without the approval of the National Assembly.
The clarification followed public commentary referencing the International Monetary Fund (IMF)’s 2026 Article IV Consultation Report, which some interpreted as suggesting that about two per cent of Nigeria’s Gross Domestic Product (GDP), estimated at over ₦8 trillion, was spent outside the budget.
Oyedele stressed that under Sections 80–83 and 162 of the 1999 Constitution (as amended), all public funds can only be withdrawn and spent in line with constitutional provisions and laws passed by the National Assembly.
According to him, government spending is carried out through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory approvals, while multi-year capital projects are implemented under existing laws with approved capital rollovers where necessary.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval,” the minister said, noting that such claims should be backed by verifiable evidence identifying projects allegedly executed without legal authorisation.
He explained that several categories of government expenditure—including statutory transfers, debt service obligations, development commission allocations, intervention funds, security spending and Federal Capital Territory projects—are all backed by law and subjected to legislative oversight, auditing and accountability processes.
Oyedele added that differences in how such expenditures are presented under international fiscal reporting standards should not be mistaken for unlawful or off-budget spending.
The minister also rejected claims that the reported amount represented an increase in Nigeria’s fiscal deficit, explaining that the deficit is determined by the gap between government revenue and expenditure, not by the financing method adopted for legally approved projects.
He said the IMF’s observations were largely related to the comprehensiveness and presentation of fiscal reporting rather than the legality of government expenditure.
Oyedele recalled that President Bola Ahmed Tinubu had already urged the National Assembly during the presentation of the 2026 Appropriation Bill to harmonise multiple and overlapping budgets into a single, unified budget framework.
Reaffirming the Tinubu administration’s commitment to fiscal discipline, transparency and accountability, the minister highlighted ongoing reforms aimed at improving budget credibility, strengthening treasury management, digitalising public financial processes and enhancing revenue administration.
He noted that these reforms have received positive recognition from the IMF, other multilateral institutions, international credit rating agencies, investors and global media organisations.
While welcoming public scrutiny of government finances, Oyedele urged commentators to ensure that debates are based on facts rather than misinterpretations of technical fiscal reports.
He reiterated that the Federal Government remains committed to prudent management of public resources and will continue working with the National Assembly, oversight institutions, development partners and Nigerians to strengthen fiscal governance in line with international best practices. :::
