The Federal Government has dismissed claims that it spent more than N8 trillion, equivalent to about two per cent of Nigeria’s Gross Domestic Product (GDP), outside the approved 2026 budget, describing the allegations as false and misleading.
In a statement issued on Sunday by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the government said reports citing the International Monetary Fund (IMF) Representative in Nigeria and the Fund’s 2026 Article IV Consultation Report had been misinterpreted.
The minister stressed that the Federal Government does not operate a “shadow budget” or spend public funds outside the constitutional and legal framework governing public finance.
According to the statement, all federal expenditures are carried out in line with the provisions of Sections 80–83 and 162 of the 1999 Constitution (as amended), as well as Appropriation Acts, Supplementary Appropriation Acts and other laws enacted by the National Assembly.
Oyedele explained that ongoing multi-year capital projects, statutory transfers, debt service obligations and other intervention programs are all backed by legislation and should not be mistaken for unauthorized spending.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval,” the minister said, adding that such allegations must be supported with verifiable evidence rather than speculation.
The statement further clarified that expenditures on development commissions, revenue-collecting agencies, security interventions, infrastructure projects, disaster response and other strategic national programs are legally authorized and disclosed through various fiscal reports, although they may be presented differently under international reporting standards.
The government also rejected claims that the reported amount represented an increase in Nigeria’s fiscal deficit, noting that a budget deficit is determined by the gap between total government revenue and expenditure, not by the financing mechanism used for approved projects.
Oyedele said the IMF’s observations were primarily related to improving the comprehensiveness and presentation of Nigeria’s fiscal reporting rather than questioning the legality of government spending.
He recalled that President Bola Ahmed Tinubu had already urged the National Assembly during the presentation of the 2026 Appropriation Bill to harmonize multiple and overlapping budgets into a single, unified framework to enhance transparency.
The minister reaffirmed the Federal Government’s commitment to prudent fiscal management, transparency and accountability, citing ongoing reforms in budget credibility, revenue administration, treasury management and the digitalization of government financial processes.
He added that these reforms had been recognized by the IMF, other multilateral institutions, international credit rating agencies and investors.
The Federal Government called on the public to base discussions on verified facts and a proper understanding of Nigeria’s fiscal framework, pledging to continue working with the National Assembly, oversight institutions and development partners to strengthen public financial management in line with international best practices.
