FG Denies Spending N8trn Outside Budget, Clarifies IMF Report

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ABUJA – The Federal Government has dismissed claims that it spent more than N8 trillion outside the approved national budget, de­scribing the allegation as a mis­representation of observations contained in the International Monetary Fund’s (IMF) 2026 Article IV Consultation Report.

In a statement issued on Sun­day by the Federal Ministry of Finance, the government insist­ed it does not operate a “shadow budget” or spend public funds outside the constitutional and le­gal framework governing public finance in Nigeria.

The ministry said recent pub­lic commentary suggesting that about two percent of Nigeria’s Gross Domestic Product (GDP), estimated at over N8 trillion, was spent without legislative approv­al was incorrect and capable of misleading the public about the country’s fiscal management.

According to the statement signed by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, all fed­eral government expenditures are backed by laws passed by the National Assembly, including Ap­propriation Acts, Supplementary Appropriation Acts and other stat­utory authorisations.

The ministry explained that multi-year capital projects often span several budget cycles and are implemented in line with existing laws and approved capital roll­overs where necessary, stressing that such arrangements should not be interpreted as spending outside the budget.

“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval,” the statement said, adding that allegations of such magnitude should be supported with verifiable evidence identify­ing the specific projects allegedly executed without appropriation or legal authority.

The government further clarified that Nigeria’s public fi­nance system includes statutory transfers, first-line charges and intervention mechanisms cre­ated by Acts of the National As­sembly. These include allocations to development commissions and agencies established by law, cost of collection retained by reve­nue-generating agencies, debt ser­vice obligations, special interven­tions for national priorities such as security and infrastructure, and capital expenditure approved sep­arately for certain agencies and the Federal Capital Territory.

According to the ministry, these expenditures are lawful, publicly disclosed and subject to oversight and audit processes, although their presentation in fis­cal reports may differ from their classification in the annual Appro­priation Act under international reporting standards.

The statement also rejected suggestions that the reported amount represented an increase in Nigeria’s fiscal deficit, explain­ing that a fiscal deficit is deter­mined by the difference between total government revenue and ex­penditure rather than the financ­ing structure of approved projects.

It maintained that the IMF’s observations were largely related to the comprehensiveness, timing and presentation of fiscal report­ing, not the legality of government spending.

The ministry noted that Nige­ria is continuing reforms aimed at aligning budget presentation with international fiscal reporting stan­dards as part of broader public financial management reforms.

It recalled that President Bola Ahmed 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 multiple and overlap­ping budgets by harmonising government spending into a sin­gle, cohesive framework.

The Federal Government said it remains committed to prudent fiscal management, transpar­ency and accountability, adding that reforms in budget credibility, revenue administration, treasury management and the digitalisa­tion of public financial processes have received recognition from the IMF, other multilateral insti­tutions, international credit rating agencies, investors and global me­dia organisations.

While affirming that public debate is essential in a democracy, the ministry urged stakeholders to base discussions on facts and a proper understanding of Nigeria’s constitutional and fiscal frame­work, warning that misrepresent­ing technical fiscal observations as evidence of unlawful expenditure undermines informed public dis­course.

It pledged to continue work­ing with the National Assembly, oversight institutions, develop­ment partners and Nigerians to strengthen fiscal governance in line with international best prac­tices.