The Federal Government has dismissed reports alleging that it spent more than ₦8 trillion outside the approved 2026 budget, describing the claim as false and a distortion of the International Monetary Fund’s (IMF) 2026 Article IV Consultation Report.
The government said the reports, which claimed that expenditure equivalent to about two per cent of Nigeria’s Gross Domestic Product (GDP) was incurred outside the budgetary framework, were misleading and capable of creating a false impression about the country’s public financial management.
In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, maintained that the Federal Government does not operate any form of “shadow budget” or spend public resources outside the legal framework established by the Constitution and relevant laws.
According to the minister, Sections 80 to 83 and Section 162 of the 1999 Constitution (as amended) clearly provide that public funds can only be withdrawn and utilised in accordance with constitutional provisions and legislation passed by the National Assembly.
“The Federal Government does not operate a shadow budget or expend public funds outside the constitutional and statutory framework established for public finance,” Oyedele stated.
He explained that government expenditures are executed through Appropriation Acts, Supplementary Appropriation Acts and other statutory approvals granted by the National Assembly.
Oyedele also clarified that many capital projects span multiple fiscal years and are implemented under approved capital rollover provisions, stressing that such expenditures remain lawful and should not be interpreted as spending outside the budget.
He described claims that trillions of naira had been secretly spent without legislative approval as inaccurate, arguing that those making the allegations had not identified any project executed without appropriation or presented credible evidence to support their assertions.
The minister further explained that Nigeria’s public finance structure includes statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly.
According to him, these include statutory allocations to development commissions and government agencies, cost-of-collection deductions retained by designated revenue agencies, approved capital expenditures for certain agencies and the Federal Capital Territory, special interventions for critical national priorities such as infrastructure, security and disaster response, as well as debt servicing obligations.
He noted that all such expenditures are lawful, publicly disclosed through fiscal reports and subject to legislative oversight and independent audit.
Oyedele added that differences in how some of these expenditures are presented under international reporting standards should not be misconstrued as evidence of illegal spending.
The minister also dismissed suggestions that the reported amount represented an increase in Nigeria’s fiscal deficit.
He explained that fiscal deficits are calculated based on the gap between total government revenue and expenditure, noting that the financing method adopted for approved projects does not automatically increase the deficit.
According to him, the IMF’s observations focused mainly on the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather than questioning the legality of government spending.
He disclosed that the Federal Government is already implementing reforms aimed at aligning Nigeria’s budget presentation with internationally accepted fiscal reporting standards.
Oyedele recalled that while presenting the 2026 Appropriation Bill before a joint session of the National Assembly on December 19, 2025, President Bola Tinubu had urged lawmakers to eliminate the practice of operating multiple overlapping budgets and instead adopt a single, integrated fiscal framework.
The minister reaffirmed the administration’s commitment to prudent fiscal management, transparency and accountability, stating that ongoing reforms have strengthened budget credibility, revenue administration, treasury management and the digitalisation of government financial systems.
He added that the reforms have attracted 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 analysts and commentators to base their assessments on facts and a proper understanding of Nigeria’s constitutional and fiscal framework.
“Mischaracterising technical observations as evidence of unlawful expenditure neither advances informed public discourse nor strengthens democratic accountability,” he said.
