ABUJA, Nigeria (VOICE OF NAIJA)-The Federal Government has denied allegations that more than N8 trillion was spent outside the 2025 budget, insisting that all public expenditure was carried out in line with Nigeria’s constitutional and legal provisions.
In a statement issued on Sunday by the Minister of Finance, Taiwo Oyedele, the government said reports claiming that about two per cent of Nigeria’s Gross Domestic Product, estimated at over N8 trillion, was spent outside the approved budget stemmed from a misinterpretation of the International Monetary Fund’s 2026 Article IV Consultation Report.
The ministry maintained that the Federal Government does not operate a “shadow budget” or expend public funds without legislative approval.
It explained that Sections 80 to 83 and 162 of the 1999 Constitution provide that all public funds can only be withdrawn and spent in accordance with the Constitution and laws enacted by the National Assembly.
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According to the ministry, government spending is undertaken through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorisations.
It added that multi-year capital projects are executed under existing laws and approved capital rollovers where applicable, stressing that such projects should not be construed as expenditure outside the budget.
The ministry also dismissed claims of secret government spending, saying those making the allegations should identify the specific projects allegedly executed without appropriation or legal authorisation.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval. Such allegations should have identified the specific projects purportedly executed without appropriation or legal authority and present credible evidence in support of the claim. To be meaningful, assertions of this magnitude must be supported by verifiable facts rather than conjecture,” Oyedele said.
The ministry further explained that Nigeria’s public finance framework includes statutory transfers, first-line charges and intervention mechanisms established through Acts of the National Assembly.
It said these include statutory allocations to development commissions and agencies, revenue collection costs retained by designated agencies, separate capital budgets for certain agencies and the Federal Capital Territory, special interventions for national priorities such as security and infrastructure, as well as debt servicing obligations.
According to the ministry, these expenditures are lawful, publicly disclosed and subject to oversight, audit and accountability mechanisms, although their presentation in fiscal reports may differ from how they appear in the annual Appropriation Act because of international reporting standards.
The government also rejected claims that the reported ₦8 trillion represented an increase in the country’s fiscal deficit, explaining that fiscal deficits are determined by the difference between total government revenue and expenditure rather than the financing mechanism used for approved projects.
It stated that the IMF’s observations were focused on the comprehensiveness, timing and presentation of fiscal reporting, not the legality of government spending.
The ministry noted that President Bola Tinubu had already requested the National Assembly to harmonise multiple and overlapping budgets into a single framework while presenting the 2026 Appropriation Bill on December 19, 2025.
It added that the administration remains committed to prudent fiscal management, transparency and accountability through ongoing reforms in budget credibility, revenue administration, digitalisation of government financial processes and treasury management.
The statement urged Nigerians to base public discussions on verified facts and a proper understanding of the country’s fiscal framework, warning against interpreting technical observations as evidence of unlawful government expenditure.