By Jane Okafor, Abuja
The Federal Government has dismissed allegations that it spent more than ₦8 trillion outside the approved 2026 budget, insisting that all public expenditures are authorised by the Constitution and relevant laws enacted by the National Assembly.
The government was reacting to public commentaries referencing the International Monetary Fund’s (IMF) 2026 Article IV Consultation Report, which some commentators interpreted as evidence that about two per cent of Nigeria’s Gross Domestic Product (GDP) was expended outside the national budget.
In a statement issued on Sunday, the Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described the claims as false and misleading, stressing that the Federal Government does not operate a “shadow budget.”
“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He explained that under Sections 80 to 83 and 162 of the 1999 Constitution (as amended), public funds can only be withdrawn and spent in accordance with the Constitution and laws passed by the National Assembly.
According to him, federal expenditures are executed through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorisations approved by the legislature.
Oyedele also noted that multi-year capital projects often extend across several budget cycles and are implemented through approved capital rollovers where necessary, adding that such arrangements are recognised under Nigeria’s public financial management system.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval. Such allegations should have identified the specific projects purportedly executed without appropriation or legal authority and present credible evidence in support of the claim,” he said.
The minister further explained that several government expenditures often cited as “off-budget” are in fact statutory obligations established by law. These include statutory transfers to development commissions and agencies, debt servicing, security interventions, infrastructure projects, disaster response initiatives, and other national priority programmes.
He said these expenditures are publicly disclosed in fiscal reports and remain subject to legislative oversight, auditing and accountability mechanisms.
“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,” the statement read.
Addressing concerns over Nigeria’s fiscal deficit, Oyedele said it was incorrect to conclude that the reported expenditure automatically translated into a wider budget deficit.
“A fiscal deficit is determined by the relationship between total government revenues and total government expenditures. Whether a capital project is financed through annual appropriations, supplementary appropriations, statutory transfers, approved intervention mechanisms, or other lawful financing arrangements does not, by itself, increase the fiscal deficit,” he explained.
The minister also clarified that the IMF’s observations centred on improving the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather than questioning the legality of government spending.
He noted that the Federal Government has continued to implement reforms aimed at aligning Nigeria’s budget reporting with international fiscal standards.
Oyedele recalled that President Bola Ahmed Tinubu had, during the presentation of the 2026 Appropriation Bill on December 19, 2025, requested the National Assembly to harmonise multiple and overlapping budgets into a single, cohesive fiscal framework.
He maintained that recent reforms had strengthened public financial management through improved budget credibility, enhanced revenue administration, digitalisation of government financial processes and stronger treasury management.
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 affirming the government’s support for public scrutiny, the minister urged commentators to ensure that debates on public finance are grounded in facts.
“Public debate is both welcome and essential in a democratic society.
However, it should be based on facts and an accurate 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,” Oyedele said.
He reaffirmed the Federal Government’s commitment to transparency, accountability and prudent fiscal management, pledging continued collaboration with the National Assembly, oversight institutions, development partners and Nigerians to strengthen fiscal governance in line with international best practices.
