The Federal Government has dismissed claims that more than ₦8 trillion was spent outside the 2025 budget, insisting that Nigeria does not operate a “shadow budget” or expend public funds without legislative approval.
In a statement issued by the Honourable Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the government said recent reports misrepresented comments attributed to the International Monetary Fund (IMF) and the Fund’s 2026 Article IV Consultation Report.
According to the minister, allegations that about two percent of Nigeria’s Gross Domestic Product (GDP), estimated at over ₦8 trillion, was secretly spent outside the approved budget are false and misleading.
Oyedele explained that all Federal Government expenditures are governed by the provisions of the 1999 Constitution and relevant laws passed by the National Assembly.
He stressed that public funds can only be withdrawn through duly enacted Appropriation Acts, Supplementary Appropriation Acts, or other statutory authorisations approved by lawmakers.
The minister noted that some multi-year capital projects naturally extend across several budget cycles and are implemented through approved capital rollovers, which are recognised under Nigeria’s public finance laws.
He added that statutory transfers, debt servicing, intervention funds, development commission allocations, and other legally established expenditures are authorised by law and are subject to oversight and audit.
Oyedele clarified that differences in the way such expenditures are presented under international fiscal reporting standards should not be interpreted as evidence of illegal or off-budget spending.
He further explained that the IMF’s observations relate mainly to improving the comprehensiveness and presentation of Nigeria’s fiscal reporting rather than questioning the legality of government expenditure.
The minister recalled that President Bola Ahmed Tinubu had already requested the National Assembly to harmonise multiple budget frameworks into a single, unified system during the presentation of the 2026 Appropriation Bill.
The Federal Government reaffirmed its commitment to transparency, prudent fiscal management, and accountability, stating that recent reforms in treasury management, revenue administration, and digital financial processes have strengthened public financial management and received recognition from the IMF and other international institutions.
Oyedele urged Nigerians to rely on verified facts when discussing public finance, warning that misrepresenting technical fiscal observations as evidence of unlawful spending undermines informed public debate and democratic accountability.
