The Federal Government has denied claims that it spent over ₦8 trillion outside the 2026 approved budget, insisting that it does not operate a “shadow budget” and that all public expenditure is backed by constitutional and statutory provisions.
The government said allegations that about two per cent of GDP was spent outside the budget, reportedly based on comments attributed to the International Monetary Fund’s representative in Nigeria and the IMF’s 2026 Article IV Consultation Report, were false and misleading.
In a statement, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, said it was inaccurate to suggest that trillions of naira had been secretly spent without legislative approval.
“For the avoidance of doubt, the Federal Government does not operate a ‘shadow budget’ or expend public funds outside the constitutional and statutory framework established for public finance,” Oyedele said.
He explained that under Sections 80 to 83 and 162 of the 1999 Constitution, public funds can only be withdrawn and spent in line with the Constitution and laws passed by the National Assembly.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,” he said.
Oyedele added that multi-year capital projects that span several budget cycles are implemented in line with extant laws and approved capital rollovers, stressing that such provisions are recognised features of public financial management and should not be misconstrued as spending outside the budget.
“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval. Such allegations should have identified the specific projects purportedly executed without appropriation or legal authority and present credible evidence in support of the claim,” he said.
The minister said the expenditures being cited by critics relate largely to statutory transfers, first-line charges and intervention mechanisms already created by Acts of the National Assembly.
“These expenditures are neither secret nor illegal. They are established by law, disclosed in various fiscal reports, and subject to applicable oversight, audit and accountability mechanisms,” he said.
Oyedele explained that the treatment of such expenditures for reporting purposes may differ from how they appear in the annual Appropriation Act, especially 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.
He also rejected suggestions that the reported amount represented an increase in the budget deficit, saying fiscal deficit is determined by the relationship between total government revenues and total government expenditures.
“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 said.
The minister maintained that the IMF’s observations were largely about 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,” he said.
Oyedele noted that President Bola Tinubu had already moved to address the issue of multiple and overlapping budgets by formally asking the National Assembly, during the presentation of the 2026 Appropriation Bill, to harmonise them into a single framework.
He said the government remained committed to prudent fiscal management, transparency and accountability, adding that recent reforms had strengthened budget assumptions, revenue administration, treasury management and the digitalisation of financial processes.
“Public debate is both welcome and essential in a democratic society. However, it should be based on facts and an accurate understanding of Nigeria’s constitutional and fiscal framework,” he said.
He added: “Mischaracterising technical observations as evidence of unlawful expenditure neither advances informed public discourse nor strengthens democratic accountability.”
Oyedele assured Nigerians that the government would continue to uphold the rule of law, maintain transparency in the management of public resources and work with the National Assembly, oversight institutions and development partners to strengthen fiscal governance in line with international best practices.