The federal government has dismissed claims that it has spent more than ₦8 trillion outside the approved 2026 budget, describing the allegation as inaccurate and misleading.
The federal government’s denial is contained in a statement by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele.
Oyedele said recent public commentary citing the International Monetary Fund (IMF) 2026 Article IV Consultation Report had wrongly suggested that about two percent of Nigeria’s Gross Domestic Product (GDP) was spent outside the constitutional budgetary process.
According to the minister, the federal government does not operate a “shadow budget” or spend public funds outside the legal framework governing public finance.
Oyedele explained that under Sections 80–83 and 162 of the 1999 Constitution (as amended), government funds can only be withdrawn and spent in accordance with laws passed by the National Assembly.
He noted that federal expenditure is carried out through duly approved Appropriation Acts, Supplementary Appropriation Acts and other statutory authorisations, adding that multi-year capital projects are also implemented in line with existing laws that permit capital rollovers where necessary.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval,” the statement said.
The minister argued that anyone making such allegations should identify the specific projects allegedly executed without appropriation and provide credible evidence to support the claims.
Oyedele also clarified that differences between budget presentation and fiscal reporting should not be interpreted as evidence of unlawful spending.
He explained that Nigeria’s public finance system includes several legally established expenditure channels, including statutory transfers, debt servicing, development commission allocations, revenue collection costs, capital budgets for certain agencies and the Federal Capital Territory (FCT), as well as special interventions approved by law for security, infrastructure and emergency responses.
According to him, these expenditures are authorised by legislation, disclosed in government fiscal reports and remain subject to oversight, audit and accountability mechanisms.
The minister further rejected claims that the reported amount represents an increase in Nigeria’s fiscal deficit.
He explained that a fiscal deficit is determined by the relationship between government revenue and expenditure, noting that financing through statutory transfers, supplementary budgets or other lawful mechanisms does not automatically increase the deficit.
Oyedele said the IMF’s observations were primarily related to the comprehensiveness, timing and presentation of fiscal reporting rather than the legality of government expenditure.
He added that Nigeria is already working to align its budget presentation more closely with international fiscal reporting standards as part of ongoing public financial management reforms.
The statement recalled that President Bola Tinubu, had while presenting the 2026 Appropriation Bill to the National Assembly on December 19, 2025, called for an end to the practice of multiple and overlapping budgets in favour of a single, harmonised budget framework.
Oyedele maintained that the federal government remains committed to prudent fiscal management, transparency and accountability.
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He noted that recent reforms have 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 been recognised by the IMF, other multilateral institutions, international credit rating agencies, investors and global media organisations.
The minister urged the public to distinguish between technical fiscal reporting issues and allegations of unlawful spending, stressing that informed public debate should be based on facts rather than misinterpretations.
“The federal government will continue to uphold the rule of law, maintain transparency in the management of public resources, and work with the National Assembly, oversight institutions, development partners and the Nigerian people to further strengthen fiscal governance in line with international best practices,” the statement added.
