The Federal Government has dismissed claims that it spent more than N8 trillion outside the 2025 Appropriation Act, describing the allegations as inaccurate and based on a misinterpretation of the International Monetary Fund’s 2026 Article IV Consultation Report.
In a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said recent reports suggesting that approximately two per cent of Nigeria’s Gross Domestic Product (GDP) was spent outside the approved budget failed to accurately reflect the country’s constitutional and fiscal governance framework.
Oyedele stressed that the Federal Government does not operate a “shadow budget” or expend public funds outside the legal processes established by the Constitution and approved by the National Assembly.
According to him, all federal expenditures are undertaken in line with Sections 80 to 83 and 162 of the 1999 Constitution, as amended, through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorisations approved by lawmakers.
The minister explained that some capital projects extend across multiple fiscal years and are implemented through legally recognised capital rollovers, noting that such arrangements should not be misconstrued as unapproved or unlawful spending.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval,” Oyedele said, adding that any allegation of illegal expenditure should be supported with verifiable evidence identifying specific projects executed without appropriation.
He further clarified that there is a distinction between budget appropriation, expenditure authorisation, financing mechanisms and fiscal reporting, noting that Nigeria’s public finance system includes several statutory transfers and intervention mechanisms established by Acts of the National Assembly.
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According to the minister, these include statutory allocations to development commissions and government agencies, revenue collection costs retained under existing laws, separately approved capital budgets for certain agencies and the Federal Capital Territory, special interventions for national priorities such as security, infrastructure and disaster response, as well as debt servicing obligations.
Oyedele said all such expenditures are lawful, publicly disclosed through government fiscal reports and subject to legislative oversight, audit and accountability processes, even where their presentation differs under international fiscal reporting standards.
He also rejected suggestions that the reported amount represented an increase in Nigeria’s fiscal deficit, explaining that fiscal deficits are determined by the difference between total government revenue and expenditure rather than the financing arrangements for approved projects.
The minister maintained that the IMF’s observations focused mainly on issues relating to the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting, rather than the legality of government spending.
He recalled that while presenting the 2026 Appropriation Bill to the National Assembly on December 19, 2025, Bola Ahmed Tinubu called for an end to the practice of operating multiple and overlapping budgets, advocating instead for a unified budget framework to improve fiscal transparency and efficiency.
Oyedele said the Tinubu administration remains committed to prudent fiscal management, transparency and accountability, noting that recent reforms have strengthened treasury management, revenue administration, digitalisation of public finance processes and overall budget credibility.
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 acknowledging that public scrutiny is vital in a democratic society, the minister urged Nigerians to base public discourse on verified facts and a proper understanding of the country’s fiscal framework.
He reaffirmed the Federal Government’s commitment to the rule of law, transparent management of public resources and sustained collaboration with the National Assembly and oversight institutions to strengthen fiscal governance in line with international best practices.