ENUGU, Nigeria (VOICE OF NAIJA)- The Federal Government of Nigeria has dismissed claims that it spent more than N8 trillion outside the approved budget, insisting that reports linking the allegation to the International Monetary Fund’s (IMF) 2026 Article IV Consultation Report misrepresent the institution’s findings.
The government maintained that it does not operate a shadow budget or spend public funds outside the constitutional and legal framework governing Nigeria’s public finances.
The clarification was contained in a statement issued on Sunday by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
According to the minister, reports suggesting that about two per cent of Nigeria’s Gross Domestic Product (GDP) was spent outside the country’s budgetary framework are inaccurate and capable of misleading the public about the government’s fiscal management.
“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.
READ ALSO Senate Demands Answers Over N16.6bn SEDC Spending
He explained that Sections 80 to 83 and 162 of the 1999 Constitution (as amended) clearly provide that public funds can only be withdrawn and spent in accordance with constitutional provisions and laws enacted by the National Assembly.
Oyedele noted that government expenditure is executed through duly approved Appropriation Acts, Supplementary Appropriation Acts and other statutory approvals granted by the National Assembly.
He further explained that many capital projects extend across several budget cycles and are implemented under existing legal provisions and approved capital rollover arrangements, stressing that such projects should not be interpreted as spending outside the budget.
The minister described as unfounded allegations that trillions of naira had been secretly spent without legislative approval, arguing that those making the claims had failed to identify any project executed without appropriation or provide credible evidence to support the accusations.
He also clarified that Nigeria’s public finance architecture includes statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly.
READ ALSO FG Capital Spending Drops By N1tn- World Bank
According to him, these include statutory allocations to development commissions and agencies, cost-of-collection retained by designated revenue agencies, separately approved capital expenditure for certain government institutions and the Federal Capital Territory, special interventions covering national priorities such as security, infrastructure and disaster response, as well as debt service obligations.
Oyedele emphasised that all such expenditures are lawful, publicly disclosed through fiscal reports and remain subject to legislative oversight and audit.
He added that differences in the way such expenditures are presented under international fiscal reporting standards should not be mistaken for evidence of unlawful spending.
The minister also dismissed suggestions that the reported amount automatically translated into an increase in Nigeria’s fiscal deficit.
According to him, fiscal deficits are determined by the relationship between total government revenue and expenditure, noting that the financing structure adopted for duly approved projects does not necessarily widen the deficit.
Oyedele explained that the IMF’s observation focused primarily on the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather than the legality of government spending.
READ ALSO N100bn CNG Buses: Senate Urges Tinubu To Seek Supplementary Budget, Warns Against Illegal Spending
He disclosed that the Federal Government has already commenced reforms aimed at aligning Nigeria’s budget presentation with internationally accepted fiscal reporting standards.
The minister recalled that President Bola Tinubu, while presenting the 2026 Appropriation Bill before a joint session of the National Assembly on December 19, 2025, called for an end to the practice of operating multiple and overlapping budgets and urged lawmakers to harmonise them into a single, coordinated fiscal framework.
Reaffirming the administration’s commitment to prudent fiscal management, transparency and accountability, Oyedele said ongoing reforms have strengthened budget credibility, improved revenue administration, enhanced treasury management and accelerated the digitalisation of government financial processes.
He added that the 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, the minister urged analysts and commentators to ensure their views are guided by 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.