The Federal Government has dismissed allegations that more than ₦8 trillion was spent outside the 2026 approved budget, insisting that all public expenditures were made within Nigeria’s constitutional and legal framework and denying claims that it operates a “shadow budget.”
The clarification followed public commentary linking the alleged off-budget spending—estimated at about two per cent of the country’s Gross Domestic Product (GDP)—to observations contained in 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, described the claims as inaccurate and misleading, stressing that no public funds are expended outside the authority granted by the Constitution and 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 statement said.
According to the government, Sections 80 to 83 and 162 of the 1999 Constitution (as amended) require that all withdrawals and expenditures from public funds must be backed by duly enacted Appropriation Acts, Supplementary Appropriation Acts or other statutory approvals granted by the National Assembly.
The government explained that some public expenditures, including statutory transfers, debt service obligations, intervention programmes and multi-year capital projects, may not appear in the annual Appropriation Act in the same manner as conventional budget items because they are authorised under separate legislation or recognised public finance procedures.
It noted that these expenditures are lawful, publicly disclosed and subject to legislative oversight, audit and accountability mechanisms.
The statement also rejected suggestions that the reported ₦8 trillion represented secret spending or an increase in Nigeria’s fiscal deficit.
According to the Finance Ministry, a fiscal deficit is determined by the relationship between total government revenues and expenditures, rather than by the funding mechanism adopted for approved projects.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval,” the government said, adding that allegations of unlawful spending should be supported with verifiable evidence identifying specific projects executed without appropriation or legal authority.
The Federal Government further argued that the IMF’s observations had been misconstrued, maintaining that the Fund’s comments related to the comprehensiveness, timing and presentation of fiscal reporting rather than the legality of government expenditure.
It said 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 statement recalled that President Bola Tinubu had, during the presentation of the 2026 Appropriation Bill to the National Assembly in December 2025, advocated the harmonisation of multiple and overlapping budgets into a single, more transparent fiscal framework.
The government maintained that reforms introduced under the current administration have strengthened budget credibility, treasury management, revenue administration and the digitalisation of public finance processes.
It added that these reforms have received positive assessments from the IMF, other multilateral institutions, international credit rating agencies and investors.
While welcoming public scrutiny of government finances, the Federal Government urged commentators to distinguish between budget appropriations, expenditure authorisations, financing arrangements and fiscal reporting standards.
It warned that misrepresenting technical fiscal reporting issues as evidence of unlawful spending could undermine informed public debate and public confidence.
The government reaffirmed its commitment to transparency, accountability and prudent fiscal management, saying it would continue to work with the National Assembly, oversight institutions and development partners to strengthen Nigeria’s public finance system in line with international best practices.