*Says IMF Report Was Twisted to Mislead Nigerians, Insists No Public Funds Were Spent Outside National Assembly Approval The Federal Governm...
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*Says IMF Report Was Twisted to Mislead Nigerians, Insists No Public Funds Were Spent Outside National Assembly Approval
The Federal Government has strongly dismissed claims that it secretly spent more than ₦8 trillion—estimated at about two per cent of Nigeria's Gross Domestic Product (GDP)—outside the country's approved budget, describing the allegations as false, misleading and a gross misrepresentation of findings contained in the 2026 International Monetary Fund (IMF) Article IV Consultation Report.
The government's position was contained in a statement issued on Sunday by the Federal Ministry of Finance, signed by the Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, in response to growing public debates over reports suggesting that the Federal Government operated what critics described as a "shadow budget."
According to the ministry, the claims falsely interpreted technical observations made by the IMF and created the erroneous impression that trillions of naira were spent without legislative approval.
The statement categorically declared that Nigeria does not operate a shadow budget, insisting that every expenditure by the Federal Government is backed by constitutional and statutory provisions.
"For the avoidance of doubt, the Federal Government does not operate a 'shadow budget' or expend public funds outside the constitutional and statutory framework established for public finance," the ministry stated.
It explained that under Sections 80 to 83 and 162 of the 1999 Constitution (as amended), no public funds can be withdrawn or spent except in accordance with laws enacted by the National Assembly.
According to the ministry, all federal expenditures are implemented through duly enacted Appropriation Acts, Supplementary Appropriation Acts, and other statutory authorities approved by lawmakers.
The government further explained that several capital projects naturally span multiple fiscal years and therefore continue across successive budgets through legally recognised capital rollovers, stressing that such practices should not be mistaken for illegal or off-budget spending.
FG Challenges Critics to Produce Evidence
The Federal Government argued that allegations of unlawful spending running into trillions of naira should be supported with concrete evidence rather than speculation.
It maintained that those making the claims failed to identify any specific projects allegedly executed without appropriation or any legal authority authorising such expenditures.
According to the statement, assertions of such magnitude require verifiable facts capable of withstanding public scrutiny.
Explains What Nigerians Mistook for 'Off-Budget Spending'
The Ministry of Finance said much of the misunderstanding stemmed from confusion over how public expenditures are classified under Nigeria's fiscal framework and international reporting standards.
It explained that Nigeria's public finance system includes several legally recognised expenditures that may not appear directly in the annual Appropriation Act but are nevertheless authorised by Acts of the National Assembly.
These include statutory allocations to development commissions and government agencies, debt servicing obligations, first-line charges, revenue collection costs retained by designated agencies, approved capital budgets for some agencies and the Federal Capital Territory, as well as special interventions for national security, infrastructure development, disaster response and emergency programmes.
The ministry stressed that these expenditures are neither hidden nor unlawful.
Instead, it noted, they are disclosed through various fiscal reports, subjected to oversight, auditing and accountability processes, although their presentation may differ under internationally accepted fiscal reporting standards.
IMF Never Accused FG of Illegal Spending — Ministry
The Federal Government also rejected suggestions that the IMF accused Nigeria of spending outside the law.
According to the ministry, the IMF's observations focused mainly on improving the comprehensiveness, timing and presentation of fiscal reporting rather than questioning the legality of government expenditure.
It explained that like many other countries, Nigeria is working towards better alignment between its budget presentation and international fiscal reporting standards as part of broader public financial management reforms.
Tinubu Had Already Ordered End to Multiple Budgets
The statement further revealed that President Bola Ahmed Tinubu had already taken steps to address concerns over multiple budget structures.
According to the ministry, during the presentation of the 2026 Appropriation Bill before a joint session of the National Assembly on December 19, 2025, the President requested lawmakers to discontinue the practice of operating overlapping budgets and instead harmonise government spending into a single, unified fiscal framework.
The government said the move demonstrates the administration's commitment to improving transparency and strengthening budget credibility.
FG Says Deficit Was Not Increased
Responding to suggestions that the alleged ₦8 trillion expenditure widened Nigeria's fiscal deficit, the ministry described the claim as inaccurate.
It explained that fiscal deficits are calculated by comparing total government expenditure with total government revenue, not merely by the financing mechanism adopted for individual projects.
The ministry argued that projects financed through supplementary budgets, statutory transfers or other lawful financing arrangements do not automatically increase the budget deficit.
Government Highlights Ongoing Fiscal Reforms
The Federal Government maintained that it remains committed to prudent fiscal management, transparency and accountability.
According to the ministry, recent reforms have improved revenue administration, strengthened treasury management, enhanced budget credibility and accelerated the digitalisation of government financial processes.
It added that these reforms have received positive recognition from the IMF, international credit rating agencies, multilateral institutions, investors and global media organisations.
Calls for Responsible Public Debate
While acknowledging that public debate remains vital in a democratic society, the Federal Government urged commentators to ensure discussions are based on facts and a proper understanding of Nigeria's constitutional and fiscal systems.
The ministry warned that misrepresenting technical observations contained in international reports as evidence of unlawful expenditure could undermine informed public discourse and weaken democratic accountability.
It reaffirmed the government's commitment to transparency, adherence to the rule of law and continued collaboration with the National Assembly, oversight institutions, development partners and Nigerians to strengthen fiscal governance in line with international best practices.
The statement was signed by Taiwo Oyedele, Honourable Minister of Finance and Coordinating Minister of the Economy.
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