Isaac Samuel
The Federal Government has dismissed claims that it spent more than N8 trillion outside the approved budget, insisting that Nigeria does not operate a “shadow budget” and that all public expenditure is backed by constitutional and statutory provisions.
The clarification followed widespread reports citing comments by the International Monetary Fund (IMF) Resident Representative in Nigeria, Christian Ebeke, and the Fund’s 2026 Article IV Consultation, which indicated that public spending equivalent to about two per cent of Nigeria’s Gross Domestic Product (GDP) had not been reflected in recent official budgets.
According to the IMF, the discrepancy created a gap between the country’s reported fiscal deficit and its actual financing needs because some capital spending was omitted from budget documents and implementation reports.
Ebeke explained that the unreported expenditure was linked partly to major government projects executed outside the formal budget framework, saying the omission distorted assessments of Nigeria’s fiscal position and public investment levels.
But in a statement issued on Sunday, the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, described suggestions that over N8 trillion had been spent outside legislative approval as incorrect and capable of misleading the public.
“The Federal Government does not operate a ‘shadow budget’ or expend public funds outside the constitutional and statutory framework established for public finance,” the minister said.
The comments caused widespread public debate and media reports suggesting that the Federal Government had spent more than N8 trillion outside the approved budget, prompting Sunday’s rebuttal by the Ministry of Finance.
According to the minister, Sections 80 to 83 and 162 of the 1999 Constitution (as amended) require that public funds can only be withdrawn and spent in accordance with laws passed by the National Assembly.
He explained that federal spending is undertaken through Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities, while multi-year capital projects are implemented under existing laws that allow approved capital rollovers.
“The government argued that these practices are recognised features of public financial management and should not be interpreted as evidence of unlawful or unapproved spending. 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. To be meaningful, assertions of this magnitude must be supported by verifiable facts rather than conjecture.
“For the purpose of public education, it is important to distinguish between appropriation, expenditure authorisation, financing, and fiscal reporting.
“Nigeria’s public finance framework contains several statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly”, he said.
Oyedele challenged those alleging that trillions of naira were secretly spent outside the budget to identify the specific projects involved and provide credible evidence.
He explained that Nigeria’s fiscal framework contains several legally established expenditures, including statutory transfers to agencies and development commissions, debt service obligations, intervention funds for national priorities such as security and infrastructure, as well as capital expenditure approved separately by the National Assembly.
According to him, such expenditures are lawful, publicly disclosed and subject to oversight, although their presentation under international fiscal reporting standards may differ from how they appear in annual appropriation laws.
The minister added that it was equally inaccurate to conclude that the reported amount represented an increase in Nigeria’s fiscal deficit.
He explained that fiscal deficits are determined by the relationship between total government revenue and total expenditure, stressing that different financing mechanisms for approved projects do not automatically increase the deficit.
The statement maintained that the IMF’s observations were primarily about improving the comprehensiveness and presentation of Nigeria’s fiscal reporting rather than questioning the legality of government expenditure.
The Federal Government also recalled that President Bola Tinubu had, during the presentation of the 2026 Appropriation Bill on December 19, 2025, asked the National Assembly to discontinue the practice of operating multiple and overlapping budgets in favour of a single, harmonised budget framework.
Reaffirming its commitment to prudent fiscal management, the government said it would continue implementing reforms aimed at improving budget credibility, treasury management, revenue administration and transparency in line with international best practices.
