The Federal Government has firmly denied allegations that it spent more than ₦8 trillion outside the approved 2026 budget, describing the claim as false, misleading and a misrepresentation of observations contained in the International Monetary Fund (IMF) 2026 Article IV Consultation Report.
In a statement issued on Sunday by the Honourable Minister of Finance and Coordinating Minister of the Economy,Taiwo Oyedele in his verified X handle, the government maintained that it does not operate a “shadow budget” and that every expenditure undertaken by the Federal Government is backed by constitutional and statutory provisions enacted by the National Assembly.
The ministry explained that public expenditure in Nigeria is governed by Sections 80 to 83 and 162 of the 1999 Constitution (as amended), which stipulate that public funds can only be withdrawn and spent in accordance with the Constitution and laws passed by the National Assembly. It stressed that government spending is executed through duly enacted Appropriation Acts, Supplementary Appropriation Acts and other statutory authorities, while multi-year capital projects are implemented in line with existing laws governing capital rollovers.
According to the statement, claims suggesting that trillions of naira were secretly spent outside legislative approval are unfounded, noting that anyone making such allegations should identify the specific projects allegedly executed without appropriation and provide credible evidence to support such assertions. It argued that allegations of such magnitude must be backed by verifiable facts rather than speculation.
The ministry further clarified that several expenditures often cited as being “outside the budget” are, in fact, statutory obligations created by Acts of the National Assembly. These include statutory allocations to development commissions and agencies, cost of collection retained by designated revenue-generating agencies, debt servicing obligations, capital expenditure approved through separate statutory budgets, and special interventions authorised by law to address national priorities such as security, infrastructure development, disaster response and other strategic emergencies.
It noted that while these expenditures may be presented differently in annual appropriation documents under international fiscal reporting standards, such classification differences should not be interpreted as evidence of illegal or unapproved spending.
The ministry emphasised that these expenditures are disclosed in official fiscal reports and remain subject to legislative oversight, auditing and accountability mechanisms.
The Federal Government also rejected claims that the reported amount translated into an increase in Nigeria’s fiscal deficit. It explained that a fiscal deficit is determined by the relationship between total government revenue and expenditure, adding that the financing method of approved projects—whether through annual appropriations, supplementary budgets, statutory transfers or other lawful financing arrangements—does not automatically increase the deficit.
Addressing references made to the IMF report, the ministry said the Fund’s observations centred primarily on improving the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather than questioning the legality of government expenditure.
It added that Nigeria continues to strengthen its public financial management systems to align budget presentation with international reporting standards, recalling that had, during the presentation of the 2026 Appropriation Bill, urged the National Assembly to harmonise multiple and overlapping budgets into a single, cohesive fiscal framework.
The government maintained that recent reforms have enhanced transparency, treasury management, revenue administration, budget credibility and the digitalisation of public financial processes, noting that these efforts have been acknowledged by the IMF, other multilateral institutions, international credit rating agencies and investors.
While affirming that public debate remains essential in a democratic society, the ministry urged commentators to ensure that discussions on fiscal matters are guided by facts and a proper understanding of Nigeria’s constitutional and financial management framework.
It reiterated the Federal Government’s commitment to transparency, accountability, prudent fiscal management and continued collaboration with the National Assembly, oversight institutions, development partners and Nigerians in strengthening fiscal governance in line with international best practices.
