FG denies spending N8tn outside budget, says claims misrepresent IMF report

By Innocent Anaba

The Federal Government has dismissed claims that it spent over N8 trillion outside the approved budget, describing the allegation as false and a misrepresentation of the 2026 Article IV Consultation Report by the International Monetary Fund, IMF.

The government said reports suggesting that about two per cent of Nigeria’s Gross Domestic Product, GDP, was expended outside the budgetary framework were capable of misleading the public and creating a wrong impression about the country’s public financial management.

In a statement on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Mr. Taiwo Oyedele, insisted that the Federal Government does not operate a “shadow budget” or spend public funds outside the constitutional and statutory framework.

According to him, Sections 80 to 83 and 162 of the 1999 Constitution (as amended) clearly stipulate that public funds can only be withdrawn and spent in line with the Constitution and laws enacted by the National Assembly.

“The Federal Government does not operate a shadow budget or expend public funds outside the constitutional and statutory framework established for public finance,” the minister said.

He explained that government spending is carried out through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities approved by the National Assembly.
Oyedele also noted that multi-year capital projects, which span several budget cycles, are implemented under existing laws and approved capital rollover provisions, stressing that such projects should not be misconstrued as expenditure outside the budget.

He described as inaccurate claims that trillions of naira had been secretly spent without legislative approval, arguing that those making such allegations had failed to identify any project executed without appropriation or provide credible evidence to support their assertions.

The minister further clarified that Nigeria’s public finance system includes statutory transfers, first-line charges and intervention mechanisms created by Acts of the National Assembly.

According to him, these cover statutory allocations to development commissions and agencies, cost of collection retained by designated revenue agencies, separately approved capital expenditure for some agencies and the Federal Capital Territory, special interventions for national priorities such as security, infrastructure and disaster response, as well as debt service obligations.

He stressed that these expenditures are lawful, publicly disclosed in fiscal reports and subject to oversight and audit, adding that differences in their presentation under international reporting standards should not be interpreted as evidence of illegal spending.

Oyedele also rejected suggestions that the reported amount represented an increase in Nigeria’s fiscal deficit.

He explained that fiscal deficits are determined by the relationship between total government revenue and total expenditure, noting that the financing method for approved projects does not automatically widen the deficit.

The minister said the IMF’s observation was primarily about the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather than the legality of government expenditure.

He added that the Federal Government was already implementing reforms to align budget presentation with international fiscal reporting standards.

Oyedele recalled that President Bola Ahmed Tinubu had, during the presentation of the 2026 Appropriation Bill to a joint session of the National Assembly on December 19, 2025, requested lawmakers to end the practice of running multiple and overlapping budgets and harmonise them into a single, cohesive framework.

Reaffirming the administration’s commitment to prudent fiscal management, transparency and accountability, the minister said ongoing reforms had strengthened budget credibility, revenue administration, treasury management and the digitalisation of government financial processes.

He added that the reforms had received recognition from the IMF, other multilateral institutions, international credit rating agencies, investors and global media organisations.

While welcoming public scrutiny of government finances, Oyedele urged commentators to base their arguments 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.

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