By Abigail David
The Federal Government has denied claims that it spent more than N8 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, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said reports suggesting that about two per cent of Nigeria’s Gross Domestic Product was spent outside the budgetary framework were misleading and created a false impression of the country’s public financial management.
Oyedele maintained that the Federal Government does not operate a “shadow budget” or spend public funds outside the constitutional and statutory framework.
He cited Sections 80 to 83 and 162 of the 1999 Constitution (as amended), noting that public funds can only be withdrawn and expended in accordance with the Constitution and laws enacted by the National Assembly.
According to the minister, government spending is carried out through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities approved by the National Assembly.
He explained that multi-year capital projects implemented across several budget cycles are executed under existing laws and approved capital rollover provisions, stressing that such projects should not be interpreted as off-budget spending.
Oyedele also dismissed claims that trillions of naira had been secretly spent without legislative approval, saying no evidence had been presented to show that any project was executed without appropriation.
He further clarified that Nigeria’s public finance framework includes statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly. These cover allocations to development agencies, revenue collection costs, approved capital expenditure for certain agencies and the Federal Capital Territory, special interventions for national priorities and debt service obligations.
The minister said these expenditures are lawful, publicly disclosed in fiscal reports and subject to legislative oversight and audit, adding that differences in their presentation under international reporting standards should not be construed as evidence of illegal spending.
He also rejected suggestions that the reported amount reflected an increase in Nigeria’s fiscal deficit, explaining that fiscal deficits are determined by the gap between government revenue and expenditure, not by the financing method for approved projects.
According to Oyedele, the IMF’s observations relate to the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather than the legality of government expenditure. He added that the Federal Government is implementing reforms to align its budget presentation with international fiscal reporting standards.
The minister recalled that President Bola Ahmed Tinubu had, during the presentation of the 2026 Appropriation Bill to the National Assembly, called for the harmonisation of multiple and overlapping budgets into a single fiscal framework.
