The Federal Government has firmly denied allegations that it secretly spent more than ₦8 trillion outside the approved national budget, insisting that the claims are false and based on a misinterpretation of the International Monetary Fund’s 2026 Article IV Consultation Report. The clarification comes amid growing public debate over reports suggesting that government expenditure equivalent to about two percent of Nigeria’s Gross Domestic Product was carried out without legislative approval.
In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, dismissed suggestions that the Federal Government operates a shadow budget or spends public funds outside the constitutional framework. He stressed that every government expenditure is carried out under duly approved Appropriation Acts, Supplementary Appropriation Acts, or other statutory provisions enacted by the National Assembly.
According to the minister, Sections 80 to 83 and 162 of the 1999 Constitution clearly regulate the withdrawal and spending of public funds, making it impossible for the Federal Government to legally execute projects without legislative backing. He explained that many of the figures being cited relate to lawful expenditures such as statutory transfers, first line charges, debt servicing obligations, intervention funds for national priorities, and multi year capital projects that extend across several budget cycles...READ THE FULL ARTICLE HERE .
Oyedele argued that these expenditures are fully recognized under Nigerian law, publicly disclosed in fiscal reports, and subject to oversight and audit. He noted that differences in how such spending is presented under international fiscal reporting standards should not be mistaken for evidence of unlawful or secret spending.
The minister also rejected claims that the reported amount automatically translates to a higher fiscal deficit. He explained that a country’s fiscal deficit is determined by the relationship between total revenue and total expenditure, not simply by how approved projects are financed or reported.
He further clarified that the IMF’s observations focused on improving the comprehensiveness and presentation of Nigeria’s fiscal reporting rather than accusing the government of illegal expenditure. According to him, the Federal Government is already implementing reforms aimed at aligning Nigeria’s budgeting and reporting systems with international best practices.
Oyedele recalled that President Bola Tinubu had previously called on the National Assembly to harmonise multiple and overlapping budgets into a single, more transparent framework during the presentation of the 2026 Appropriation Bill. He added that ongoing reforms in budget management, revenue administration, treasury operations, and digital financial systems have continued to strengthen transparency and have received positive recognition from the IMF, international credit rating agencies, investors, and other multilateral institutions.
While welcoming public scrutiny of government finances, the minister urged Nigerians and public commentators to rely on verified facts and a proper understanding of the country’s fiscal framework, warning that misrepresenting technical observations could mislead the public and undermine informed democratic discourse.
