The Federal Government has denied claims that it spent more than N8tn outside the 2025 budget, describing reports suggesting the existence of a “shadow budget” as false and a misrepresentation of the International Monetary Fund’s (IMF) 2026 Article IV Consultation Report.
In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said recent public commentary alleging that about two per cent of Nigeria’s Gross Domestic Product (GDP), estimated at over N8tn, was spent outside the approved budget was inaccurate and misleading.
According to the minister, the claims were based on an incorrect interpretation of comments attributed to the IMF Resident Representative in Nigeria and the Fund’s 2026 Article IV Consultation Report.
“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.
He explained that under Sections 80 to 83 and 162 of the 1999 Constitution, public funds can only be withdrawn and spent in accordance with the Constitution and laws enacted by the National Assembly.
The minister said all Federal Government expenditure is incurred through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities approved by the National Assembly.
He added that multi-year capital projects, which naturally extend beyond a single fiscal year, are implemented in line with existing laws and approved capital rollover provisions where applicable.
According to him, such arrangements are recognised features of public financial management and should not be interpreted as expenditure outside the budget.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval. Such allegations should identify the specific projects purportedly executed without appropriation or legal authority and provide credible evidence to support the claims,” he said.
Oyedele stressed the need to distinguish between budget appropriation, expenditure authorisation, financing arrangements and fiscal reporting, noting that differences in reporting classifications should not be mistaken for illegal spending.
He explained that Nigeria’s public finance framework includes statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly.
These, he said, include statutory allocations to development commissions and agencies, cost-of-collection deductions retained by revenue-generating agencies, separate capital budgets for certain agencies and the Federal Capital Territory, debt service obligations and special interventions for national priorities such as security, infrastructure and emergency response.
The minister maintained that such expenditures are lawful, publicly disclosed and subject to oversight and audit.
“These expenditures are neither secret nor illegal. They are established by law, disclosed in various fiscal reports and subject to applicable oversight, audit and accountability mechanisms,” he stated.
He further argued that the reported amount does not automatically translate into an increase in Nigeria’s fiscal deficit.
According to him, the fiscal deficit is determined by the relationship between government revenue and expenditure, regardless of whether projects are financed through annual appropriations, supplementary budgets, statutory transfers or other lawful financing mechanisms.
Oyedele said the IMF’s observations primarily related to the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather than the legality of government expenditure.
He noted that Nigeria, like many other countries, is working to align its budget presentation with international fiscal reporting standards as part of ongoing public financial management reforms.
The minister also recalled that President Bola Tinubu had, during the presentation of the 2026 Appropriation Bill to the National Assembly on December 19, 2025, requested lawmakers to end the practice of operating multiple and overlapping budgets and instead adopt a unified budget framework.
He said the government remains committed to prudent fiscal management, transparency and accountability, adding that recent reforms have strengthened budget credibility, revenue administration, treasury management and the digitalisation of public finance.
According to him, these reforms have received positive recognition from the IMF, other multilateral institutions, international credit rating agencies, investors and global media organisations.
While reaffirming the government’s support for public scrutiny and debate, Oyedele urged commentators to base their analyses on 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.
He reaffirmed the Federal Government’s commitment to upholding the rule of law, ensuring transparency in the management of public resources and working with the National Assembly, oversight institutions and development partners to strengthen fiscal governance in line with international best practices.
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