The Federal Government (FG) has refuted claims that approximately two percent of Nigeria’s Gross Domestic Product (GDP), amounting to over ₦8 trillion, was spent outside the approved budget, following references to the International Monetary Fund (IMF) Representative in Nigeria and the Fund’s 2026 Article IV Consultation Report.
The claims raised concerns among many Nigerians, including opposition presidential candidates Atiku Abubakar and Peter Obi.
In a statement signed on Sunday by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the FG described the claims as incorrect, saying they risk misleading the public regarding the government’s financial management.
Oyedele explained that the FG does not operate a “shadow budget” or expend public funds outside the constitutional and statutory framework established for public finance.
“Under Sections 80 – 83 and 162 of the Constitution of the Federal Republic of Nigeria, 1999 (as amended), public funds may only be withdrawn and expended in accordance with the Constitution and laws enacted by the National Assembly. Accordingly, Federal Government expenditure is incurred pursuant to duly enacted Appropriation Acts, Supplementary Appropriation Acts, and other statutory authorities enacted by the National Assembly.
“In addition, multi-year capital projects which necessarily span multiple budgets are implemented in accordance with extant laws and approved provisions for capital rollovers where applicable. These are recognised features of public financial management and should not be misconstrued as expenditures outside the budget. It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval,” he stated.
According to him, such allegations should identify the specific projects purportedly executed without appropriation or legal authority and should present credible evidence in support of the claims.
Oyedele maintained that assertions of such magnitude must be supported by verifiable facts rather than conjecture, while highlighting the distinction between appropriation, expenditure authorisation, financing, and fiscal reporting.
The Minister pointed out that Nigeria’s public finance framework contains several statutory transfers, first-line charges, and intervention mechanisms established by Acts of the National Assembly, including:
– Statutory allocations and contributions to development commissions and other agencies created by law.
– Cost of collection and cost of administration retained by designated revenue-collecting agencies as expressly provided under relevant legislation.
– Capital expenditure approved in separate budgets for some agencies and the Federal Capital Territory by the National Assembly.
– Special interventions approved by law to address national priorities such as security, infrastructure, disaster response, and other strategic national programmes or emergencies.
– Debt service obligations and other statutory transfers that are authorised under applicable legislation.
Oyedele emphasised that these expenditures are neither secret nor illegal, stating that they are established by law, disclosed in various fiscal reports, and subject to applicable oversight, audit, and accountability mechanisms.
However, he noted that their treatment for reporting purposes may differ from their presentation in the annual Appropriation Act, particularly under international statistical and reporting standards adopted by the Federal Government.
“Such classification differences should not be misrepresented as evidence of unlawful expenditure,” he said. “It is equally incorrect to suggest that the reported amount represents an increase in budget deficit.”
The Minister stressed that a fiscal deficit is determined by the relationship between total government revenues and total government expenditures. He argued that whether a capital project is financed through annual appropriations, supplementary appropriations, statutory transfers, approved intervention mechanisms, or other lawful financing arrangements does not, by itself, increase the fiscal deficit.
Oyedele further stated that the IMF’s observation relates primarily to the comprehensiveness, timing, and presentation of fiscal reporting rather than the legality of expenditure.
“Like many countries, Nigeria continues to strengthen the alignment between budget presentation and international fiscal reporting standards as part of ongoing public financial management reforms.
“As a matter of fact, His Excellency, President Bola Ahmed Tinubu, GCFR had himself formally requested the National Assembly to end the practice of running multiple and overlapping budgets, and rather harmonise into a single, cohesive framework during his presentation of the 2026 Appropriation Bill to a joint session of the National Assembly on December 19, 2025,” he said.
He reiterated the Federal Government’s commitment to prudent fiscal management, transparency, and accountability, asserting that recent reforms have significantly strengthened public financial management through ongoing improvements in budget assumptions and credibility, transparent revenue administration, the digitalisation of government financial processes, and stronger treasury management.
“These reforms have been acknowledged by the IMF itself and other multilateral institutions, as well as international credit rating agencies, major media organisations, and investors.”
While affirming that public debate is both welcome and essential in a democratic society, Oyedele said that it should be based on facts and an accurate understanding of Nigeria’s constitutional and fiscal framework.
He emphasised that mischaracterising technical observations as evidence of unlawful expenditure neither advances informed public discourse nor strengthens democratic accountability.
He assured that the FG would 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.
