The Federal Government has dismissed claims that more than ₦8 trillion, estimated at about two per cent of Nigeria’s Gross Domestic Product (GDP), was spent outside the approved budget, describing the allegations as false and misleading.
In a statement issued on Sunday, July 5, 2026, by Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the reports, which cited comments attributed to the International Monetary Fund (IMF) Representative in Nigeria and the Fund’s 2026 Article IV Consultation Report, had misrepresented the government’s fiscal operations.
Oyedele stressed that the Federal Government does not operate a “shadow budget” or spend public funds outside the constitutional and legal framework governing public finance.
According to him, all federal expenditures are authorised under the provisions of the 1999 Constitution (as amended) and relevant laws passed by the National Assembly, including Appropriation Acts, Supplementary Appropriation Acts and other statutory instruments.
He explained that multi-year capital projects often span several budget cycles and are implemented in line with existing laws and approved capital rollovers, noting that such arrangements are standard public financial management practices rather than evidence of unauthorised spending.
Oyedele stated, “It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval,” adding that claims of unlawful expenditure should be backed by verifiable evidence identifying specific projects allegedly executed without appropriation.
The government also clarified that several categories of expenditure, including statutory transfers, debt servicing, intervention programmes, development commission allocations, and revenue collection costs, are authorised by legislation and publicly disclosed through official fiscal reports.
Oyedele noted that while these expenditures may be presented differently from the annual Appropriation Act under international fiscal reporting standards, such classification differences should not be interpreted as illegal or secret spending.
He further rejected suggestions that the reported amount reflected an increase in Nigeria’s fiscal deficit, explaining that budget deficits are determined by the relationship between government revenues and total expenditure, not by the financing mechanism or reporting format of approved projects.
According to him, the IMF’s observations relate mainly to improving the comprehensiveness, timing and presentation of fiscal reporting rather than questioning the legality of government spending.
The statement recalled that President Bola Ahmed Tinubu had, during the presentation of the 2026 Appropriation Bill to the National Assembly in December 2025, called for the harmonisation of multiple and overlapping budgets into a single, unified framework as part of ongoing public finance reforms.
Oyedele said the government remains committed to prudent fiscal management, transparency and accountability, highlighting reforms aimed at improving budget credibility, digitalising government financial processes, strengthening treasury management and enhancing revenue administration.
He added that these reforms have received recognition from the IMF, other multilateral institutions, international credit rating agencies, investors and global media organisations.
The Federal Government urged the public to distinguish between technical issues relating to fiscal reporting and allegations of unlawful expenditure, warning that misrepresenting such issues could undermine informed public debate.
It reaffirmed its commitment to managing public resources in accordance with the Constitution, maintaining transparency, and working with the National Assembly and other stakeholders to strengthen fiscal governance in line with international best practices.
