No ₦8tn was spent outside Budget — FG Insists

The Federal Government has dismissed claims that it spent more than ₦8 trillion outside the approved national budget.

In a statement issued on Sunday by the Minister of Finance and Coordinating Minister of the Economy, Taiwo Oyedele, the government insisted that it does not operate a “shadow budget” or expend public funds outside the constitutional and statutory framework governing public finance in Nigeria.

He described the allegations as inaccurate and a misrepresentation of the International Monetary Fund (IMF)’s 2026 Article IV Consultation Report.

The clarification follows public commentary suggesting that approximately two per cent of Nigeria’s Gross Domestic Product (GDP), estimated at over ₦8 trillion, had been spent outside legislative approval based on references to the IMF Representative in Nigeria and the Fund’s latest assessment of the country’s economy.

The minister in rejecting the claims, stressed that all federal expenditures are undertaken in accordance with the provisions of the 1999 Constitution (as amended), Appropriation Acts, Supplementary Appropriation Acts, and other laws enacted by the National Assembly.

According to him, multi-year capital projects that extend beyond a single fiscal year are implemented under existing legal provisions, including approved capital rollovers where necessary, adding that such practices are standard features of public financial management and should not be interpreted as extra-budgetary spending.

“It is inaccurate to suggest that trillions of naira have been secretly spent outside legislative approval,” the statement said.

The government argued that allegations of unlawful expenditure should be supported with verifiable evidence, including the identification of specific projects purportedly executed without appropriation or legal authority.

The statement further explained that Nigeria’s public finance system provides for several statutory transfers, first-line charges and intervention mechanisms established by Acts of the National Assembly.

These, it said, include statutory allocations to development commissions and agencies, costs of collection retained by designated revenue-generating agencies, separate capital budgets approved for certain agencies and the Federal Capital Territory, security and emergency interventions authorised by law, as well as debt service obligations and other transfers.

The ministry maintained that such expenditures are neither secret nor illegal, noting that they are established by law, reflected in fiscal reports and subjected to oversight, audit and accountability mechanisms.

It added that differences between how such expenditures are presented in the annual Appropriation Act and how they appear under international fiscal reporting standards should not be misconstrued as evidence of unlawful spending.

Addressing concerns over the country’s fiscal deficit, the Federal Government said it was misleading to suggest that the reported amount represented an increase in the deficit.

According to the statement, a fiscal deficit is determined by the relationship between total government revenue and total expenditure, stressing that financing arrangements such as statutory transfers, supplementary appropriations and other lawful mechanisms do not automatically increase the deficit.

The ministry also clarified that the IMF’s observations focused mainly on improving the comprehensiveness, timing and presentation of Nigeria’s fiscal reporting rather than questioning the legality of government expenditure.

It noted that Nigeria is already implementing reforms aimed at aligning budget presentation with international fiscal reporting standards.

The statement recalled that President Bola Ahmed Tinubu had, during the presentation of the 2026 Appropriation Bill to a joint session of the National Assembly on December 19, 2025, called for an end to the practice of operating multiple and overlapping budgets in favour of a unified budget framework.

Reaffirming the administration’s commitment to transparency and accountability, the government said recent reforms have strengthened public financial management through improved budget credibility, enhanced revenue administration, digitalisation of government financial processes and stronger treasury management.

It added that these reforms have received recognition from the IMF, other multilateral institutions, international credit agencies, investors and global media organisations.

While acknowledging the importance of public scrutiny in a democratic society, the Federal Government urged commentators to ensure that public discourse is based on facts and a proper understanding of Nigeria’s constitutional and fiscal framework.