The Federal Government has dismissed allegations that it spent more than ₦8 trillion outside the 2026 approved budget, describin...
The Federal Government has dismissed allegations that it spent more than ₦8 trillion outside the 2026 approved budget, describing the claims as inaccurate and misleading.
In a statement issued on Sunday by the Federal Ministry of Finance, the government said recent public commentary citing the International Monetary Fund (IMF) Representative in Nigeria and the Fund's 2026 Article IV Consultation Report had wrongly suggested that about two per cent of the country's Gross Domestic Product (GDP) was spent outside the constitutional budgetary framework.
According to the ministry, Nigeria does not operate a "shadow budget" or expend public funds outside the legal framework established by the Constitution and relevant laws.
The statement explained that, under Sections 80–83 and 162 of the 1999 Constitution (as amended), public funds can only be withdrawn and spent in accordance with the Constitution and laws enacted by the National Assembly.
It added that all Federal Government expenditures are executed through duly approved Appropriation Acts, Supplementary Appropriation Acts and other statutory authorisations passed by the National Assembly. It also noted that multi-year capital projects are implemented in line with existing laws and approved capital rollover provisions.
The ministry argued that claims suggesting trillions of naira were secretly spent outside legislative approval lacked evidence, stressing that anyone making such allegations should identify the specific projects involved and provide verifiable proof.
The statement further clarified that Nigeria's public finance system includes several statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly. These include statutory allocations to development commissions, debt servicing obligations, revenue collection costs, approved capital expenditures for certain agencies, and legally authorised interventions for national priorities such as security, infrastructure and disaster response.
According to the ministry, these expenditures are lawful, publicly disclosed in fiscal reports and subject to oversight and audit. It explained that differences in the presentation of such expenditures under international fiscal reporting standards should not be interpreted as evidence of illegal or off-budget spending.
The government also rejected suggestions that the reported amount represented an increase in Nigeria's fiscal deficit, explaining that fiscal deficits are determined by the relationship between total government revenue and expenditure rather than by the financing mechanism used for approved projects.
The ministry stated that the IMF's observations primarily concerned the comprehensiveness, timing and presentation of fiscal reporting, rather than the legality of government spending.
It recalled that President Bola Ahmed Tinubu had, during the presentation of the 2026 Appropriation Bill to the National Assembly on December 19, 2025, called for the harmonisation of multiple and overlapping budgets into a single budgetary framework.
The Federal Government said it remains committed to prudent fiscal management, transparency and accountability, adding that ongoing reforms in budget credibility, revenue administration, treasury management and the digitalisation of public financial processes have been recognised by the IMF, other multilateral institutions, international credit rating agencies and investors.
While reaffirming its support for public scrutiny and democratic debate, the ministry urged stakeholders to base discussions on verified facts and a proper understanding of Nigeria's constitutional and fiscal framework.
The statement was signed by the Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
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