By Ayo Ayodele
The Federal Government has dismissed claims that it spent more than ₦8 trillion outside the approved budget, describing the allegation as false and based on a misrepresentation of the International Monetary Fund’s 2026 Article IV Consultation Report.
In a statement issued on Sunday by the Federal Ministry of Finance, the government said reports alleging that about two per cent of Nigeria’s Gross Domestic Product (GDP) was spent outside the budget were misleading and did not reflect the country’s public finance system.
The ministry 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 government spending is carried out in line with Sections 80–83 and 162 of the 1999 Constitution (as amended), which require that public funds be appropriated and authorised by the National Assembly through Appropriation Acts, Supplementary Appropriation Acts or other statutory provisions.
The ministry explained that multi-year capital projects, which extend across several budget cycles, are implemented under existing laws and approved capital rollover provisions, noting that such arrangements are standard public financial management practices and should not be interpreted as off-budget spending.
It maintained that allegations of trillions of naira being secretly spent outside legislative approval lacked evidence, adding that anyone making such claims should identify the specific projects involved and provide verifiable proof.
The statement further clarified that Nigeria’s fiscal framework includes several legally established expenditure mechanisms, including statutory transfers, debt servicing, first-line charges, security interventions, infrastructure funding, disaster response programmes, and allocations to agencies created by Acts of the National Assembly.
It noted that although these expenditures may be presented differently in annual budgets and international fiscal reports, they are lawful, publicly disclosed, and subject to oversight and audit.
The ministry also rejected claims that the reported amount represented an increase in Nigeria’s fiscal deficit, explaining that deficits are determined by the balance between total government revenue and expenditure, not by the financing method used for approved projects.
According to the government, the IMF’s observations relate mainly to the completeness, timing and presentation of fiscal reporting rather than the legality of government spending.
It added that Nigeria is continuing reforms aimed at aligning its budget presentation with international reporting standards. The ministry recalled that Bola Ahmed Tinubu had, while presenting the 2026 Appropriation Bill to the National Assembly in December 2025, called for an end to the practice of operating multiple and overlapping budgets in favour of a unified budget framework.
The Federal Government said it remains committed to prudent fiscal management, transparency and accountability, highlighting ongoing reforms that have strengthened budget credibility, revenue administration, treasury management and the digitalisation of government financial processes.
It added that these reforms have been acknowledged by the IMF, other multilateral institutions, international credit rating agencies, investors and global media organisations.
While affirming that public debate is essential in a democracy, the government urged commentators to base discussions on verified facts and a proper understanding of Nigeria’s constitutional and fiscal framework, warning that misrepresenting technical fiscal observations as evidence of illegal spending undermines informed public discourse.
The statement was signed by Taiwo Oyedele, Honourable Minister of Finance and Coordinating Minister of the Economy.