The Federal Government has dismissed claims that it spent more than ₦8 trillion outside the approved national budget, describing the allegation as false and a misrepresentation of the International Monetary Fund’s (IMF) 2026 Article IV Consultation Report.
The Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, said the Federal Government does not operate a “shadow budget” and has not spent public funds outside the constitutional and legal framework governing public finance in Nigeria.
“The Federal Government does not operate a ‘shadow budget’ or expend public funds outside the constitutional and statutory framework established for public finance,” Oyedele said in a statement issued on Saturday.
He explained that under the 1999 Constitution, public funds can only be withdrawn and spent in line with the Constitution and laws passed by the National Assembly.
According to the minister, federal 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 legal provisions that allow such projects to continue across different budget cycles.
Oyedele said it was wrong to suggest that trillions of naira had been secretly spent without legislative approval.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval,” he said.
He challenged those making the allegation to identify the specific projects they believe were executed without appropriation or legal authority and provide credible evidence to support their claims.
The minister explained that the figures being cited relate to lawful expenditures that are already recognised under existing laws. These include statutory transfers, debt servicing, allocations to agencies and development commissions created by law, revenue collection costs retained by designated agencies, separate capital budgets approved by the National Assembly for some agencies and the Federal Capital Territory, as well as special interventions for security, infrastructure, disaster response and other national priorities.
“These expenditures are neither secret nor illegal. They are established by law, disclosed in various fiscal reports, and subject to applicable oversight, audit and accountability mechanisms,” he said.
Oyedele also rejected suggestions that the reported amount represented an increase in Nigeria’s budget deficit.
He explained that the fiscal deficit is determined by the difference between government revenue and total expenditure, adding that financing approved projects through statutory transfers, supplementary appropriations or other lawful mechanisms does not automatically increase the deficit.
The minister said the IMF’s comments had been misunderstood, noting that the Fund’s observations were mainly about the comprehensiveness, timing and presentation of Nigeria’s fiscal reports rather than the legality of government expenditure.
“Indeed, the IMF’s observation relates primarily to the comprehensiveness, timing and presentation of fiscal reporting rather than the legality of expenditure,” he said.
Oyedele added that the Tinubu administration had already begun addressing the issue by seeking to end the practice of running multiple and overlapping budgets.
He recalled that President Bola Ahmed Tinubu had asked the National Assembly during the presentation of the 2026 Appropriation Bill to harmonise government budgets into a single and more coordinated framework.
The minister said the Federal Government remained committed to prudent fiscal management, transparency and accountability, adding that recent reforms in budgeting, revenue administration, treasury management and the digitalisation of government financial processes had strengthened public financial management.
According to him, these reforms have been acknowledged by the IMF, other multilateral institutions, international credit rating agencies, investors and major global media organisations.
He urged Nigerians to base public debate on verified facts and a proper understanding of the country’s fiscal system, warning against presenting technical reporting issues as evidence of unlawful government spending.
“The Federal Government will continue to uphold the rule of law, maintain transparency in the management of public resources, and work with the National Assembly, oversight institutions, development partners and the Nigerian people to further strengthen fiscal governance in line with international best practices,” Oyedele said.
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